Financial and Non-Financial Summaries

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Financial Summary (Consolidated)
Fiscal year

(FY)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

100,441

105,293

103,330

102,903

101,601

108,001

106,441

101,066

101,774

110,955

131,238

2,792

3,038

11,104

8,314

8,415

10,022

11,372

6,188

5,173

11,557

8,631

719-8,207

6,661

9,151

3,804

3,442

8,683

2,359

3,373

11,6906,947

Profit and loss
Net sales
Operating income
Net income attributable to owners of parent(Million yen)

Financial status(Million yen)

Current assets

103,693

96,321

105,204

109,386

102,565

103,387

107,080

110,324

117,003

121,389

137,499

Property, plant and equipment

55,04647,15944,52538,73339,18340,843

43,167

46,271

47,10746,53546,728Intangible assets, investments and other assets

17,71921,051

17,932

14,935

15,121

15,536

18,442

15,841

15,90917,834

17,685

Total assets

176,459

164,532

167,662

163,056

156,871

159,767

168,689

172,437

180,021

185,758

201,913

Current liabilities

64,71359,49556,892

49,72547,31047,99044,712

43,73742,203

46,731

59,192Long-term liabilities

59,90460,33759,99054,396

46,57944,63848,64252,02958,30247,15745,289Total net assets

51,842

44,69950,77958,93362,981

67,13775,33576,66979,51591,86997,431

Interest-bearing debt

85,77277,65478,73867,68658,781

51,32849,52852,531

60,10350,420Other
Cash flows from operating activities-7,19812,067

6,351

Cash flows from investing activities-5,734-4,125

Free cash flow

-12,932

7,941

5,699

5,271

Depreciation and amortization

56,081(Million yen)

10,268

14,631

16,607

4,907

3,317

4,749

16,501-6,022-3,214

9,656-5,950-6,030-8,590-6,922-6,162-4,319-5,021

3,136

19,925

8,681

10,577-3,682-3,605-1,413

12,182-11,043

4,757

4,458

4,215

4,214

4,266

4,445

4,669

4,545

5,225

Capital investment

6,127

2,758

3,049

4,507

5,407

6,142

7,141

8,062

6,092

4,542

5,330

R&D expenses

8,451

8,965

9,330

8,988

8,173

8,706

8,070

9,150

8,639

8,165

9,156

Per share status
Current net income per share
Dividends per share

(Yen)

17.97

-205.19166.58228.88

95.15

86.12

217.25

59.03

84.41

292.58175.75

-

-

-

-

-

-

12.00

20.00

18.00

36.00

42.00

Financial indicators
Operating margin (ROS, %)

2.78

2.89

10.75

8.08

8.28

9.28

10.68

6.12

5.08

10.42

6.58

Return on equity (ROE, %)1.42-17.00

13.95

16.68

6.24

5.29

12.19

3.10

4.32

13.64

7.34

Return on assets (ROA, %)

1.59

1.78

6.69

5.03

5.26

6.33

6.92

3.63

2.94

6.32

4.45

D/E ratio (double)

1.65

1.74

1.55

1.15

0.93

0.76

0.66

0.69

0.76

0.55

0.58

63

76.3

Consolidated Financial Statements

Consolidated Balance Sheet

Value Creation Strategies(Unit: Million yen)Previous consolidated FY(March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – trade
Electronically recorded monetary claims – operating
Contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

About ISK

17,662
2,233
35,8891,322
495
37,558
6,897
30,323
6,292(1,175)
137,499

42,395(26,995)
15,400115,277(94,507)
20,7705,359
2,106(1,276)
829
3,327
3,933
(3,086)847
46,53543,265(27,876)
15,389117,078(96,640)
20,437
6,753
1,767
(893)
874
2,419
4,002
(3,149)853
46,728

519
484
3
11
1,018

413
969
1
11
1,396

7,456
8,883
10
550
(85)
16,81564,369185,758

8,106
7,308
23
900
(49)
16,28964,414201,913

Corporate Data

(Unit: Million yen)

Current consolidated FY(March 31, 2023)

27,073
2,768
29,5251,000
441
32,813
4,633
20,051
4,190(1,109)121,389

Foundation for Value Creation

Previous consolidated FY(March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable – trade
Electronically recorded obligations – operating
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Accrued income taxes
Contract liabilities
Accrued expenses
Provision for bonuses
Provision for environment and safety improvement
Provision for repairs
Provision for loss on business withdrawal
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans payable
Lease obligations
Provision for environment and safety improvement
Provision for repairs
Net defined benefit liability
Asset retirement obligations
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

Current consolidated FY(March 31, 2023)

16,680
1,058
7,770
8,298
1,118
355
1,242
20
4,728
851
81
336
169
4,020
46,731

22,682
1,366
13,470
8,956
938
403
403
16
4,529
870
54
5,500
59,192

3,898
24,831555
1,384
83
13,058160
3,185
47,15793,8892,960
25,647
545
1,145
238
12,16682
2,503
45,289104,481

43,42010,62738,592(734)
91,90543,42010,653
44,102(2,710)95,466

405
(297)
(143)
(36)
91,869185,758

384
1,309
271
1,965
97,431201,91365

Consolidated Financial Statements

About ISK

Consolidated Statements of Income

Value Creation Strategies

Foundation for Value Creation

Corporate Data

(Unit: Million yen)

Consolidated Statement of Comprehensive Income(Unit: Million yen)Previous consolidated FY(April 1, 2021 to March 31, 2022)

Current consolidated FY(April 1, 2022 to March 31, 2023)

Previous consolidated FY(April 1, 2021 to March 31, 2022)

Current consolidated FY(April 1, 2022 to March 31, 2023)

Cost of sales

110,955
78,297

131,238
97,973Gross profit

32,65733,265

Valuation difference on available-for-sale securities

714

(21)

Selling, general and administrative expenses

21,10024,633Foreign currency translation adjustment

971

1,422

Operating income

11,557

8,631

(64)

414

Interest income

1640

Dividend income

180

202

Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income

Share of profit of entities accounted for using equity method

533

648

1,597

1,452

103

113

Net sales

Non-operating income

Foreign exchange gains
Gain on sales of raw materials
Other
Total non-operating income

288

453

2,720

2,911
481

Net income

11,690

6,947

Other comprehensive income

Comprehensive income

17

185

1,638

2,001

13,328

8,949

13,328

8,949(Comprehensive income attributable to)Comprehensive income attributable to owners of parent

Non-operating expenses
Interest expenses

539

Financial fees

258

421

Other

206

290

Total non-operating expenses
Ordinary income

1,005

1,194

13,272

10,349552-

Extraordinary income
Gain on forgiveness of debts
Gain on change in equity
Gain on sale of investment securities

2,736

-

41

76

129

-

3,459

76

Loss on disposal of noncurrent assets

969

862

Impairment loss

163

63

2,344

-

Other
Total extraordinary income
Extraordinary loss

Loss on valuation of investment securities

162-

Total extraordinary losses

3,640

925

Income before income taxes

13,091

9,499

Income taxes – current

1,533

1,148

Income taxes – deferred

(132)

1,403

Total income taxes

1,401

2,551

Net income

11,6906,947

Profit attributable to owners of parent

11,690

6,947

Other

66

Consolidated Financial Statements

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Consolidated Statement of Changes in Net Assets
Previous consolidated FY (April 1, 2021 to March 31, 2022)(Unit: Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of current period

43,420Capital surplus
10,627

27,872

Treasury share
(730)

(251)

Cumulative effects of changes in accounting policies
Restated balance

Retainedearnings

Accumulated other comprehensive income

43,42010,627

27,621

Total
shareholders’equity81,189Valuation difference on
Foreign
Remeasurements Total accumulated Total net assets
available-for-salecurrency translationof definedother comprehensive
securities
adjustment
benefit plansincome(308)(1,286)(78)(1,674)

(251)
(730)

80,93879,515
(251)

(308)

(1,286)(78)(1,674)

79,263

Changes of items during period
Dividends of surplus
Profit attributable to owners of parent

(719)

(719)

(719)

11,69011,69011,690

(4)

(4)

(4)

0

0

0

Purchase of treasury share0

Disposal of treasury shares714

Net changes of items other than shareholders’ equity
Total changes of items during period
Balance at end of current period

988

(64)

1,638

1,638

-

0

10,970(3)

10,967

714

988

(64)

1,638

12,60543,42010,62738,592(734)

91,905

405

(297)

(143)

(36)

91,869Current consolidated FY (April 1, 2022 to March 31, 2023)(Unit: Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of current period

43,420Capital surplus
10,627Retainedearnings
38,592

Accumulated other comprehensive income
Treasury share
(734)

Total
shareholders’equity91,905

Valuation difference on
Foreign
Remeasurements Total accumulated Total net assets
available-for-salecurrency translationof definedother comprehensive
securities
adjustment
benefit plansincome
405

(297)

(143)

(36)

91,869Changes of items during period
Dividends of surplus(1,438)(1,438)(1,438)

Profit attributable to owners of parent

6,947

6,947

6,947

(2,003)(2,003)(2,003)

28

54

54

Purchase of treasury shares
26

Disposal of treasury shares(21)

Net changes of items other than shareholders’ equity
Total changes of items during period
Balance at end of current period

1,607

414

2,001

2,001

-

26

5,509

(1,975)

3,560

(21)

1,607

414

2,001

5,562

43,42010,653

44,102(2,710)95,466

384

1,309

271

1,965

97,431

67

Consolidated Financial Statements

About ISKStatement of Consolidated Cash Flows

Value Creation Strategies

Foundation for Value Creation(Unit: Million yen)

(Unit: Million yen)Previous consolidated FY
Current consolidated FY(April 1, 2021 to March 31, 2022) (April 1, 2022 to March 31, 2023)

Previous consolidated FY
Current consolidated FY(April 1, 2021 to March 31, 2022) (April 1, 2022 to March 31, 2023)

Cash flows from operating activities

Cash flows from investing activities

Income before income taxes

13,091

9,499

Depreciation and amortization

4,654

5,334

Gain on forgiveness of debts

(552)

-

Impairment loss

163

63

Loss (gain) on change in equity(2,736)-

Loss (gain) on valuation of investment securities

2,344

-

Increase (decrease) in allowance for doubtful accounts

1

23

Increase (decrease) in net defined benefit liability(94)

Increase (decrease) in provision for environment and safety
Increase (decrease) in other provision

(15)

(21)

(4,484)(4,615)

Proceeds from sales of noncurrent assets

77

34

Payments of loans receivable

(61)

(128)

Collection of loans receivable

104

109

(341)

Other

60

(400)

(288)

(320)

Cash flows from investing activities(4,319)(5,021)

352

(277)

Interest and dividend income

(196)

(243)

Interest expenses

539

481

(330)

5,700

Foreign exchange losses (gains)

(30)

(44)

Proceeds from long-term loans payable-

10,000Share of (profit) loss of entities accounted for using equity method

(518)

(510)

Repayments of long-term loans payable(8,323)(8,525)

Loss (gain) on disposal of noncurrent assets

215

221

Decrease (increase) in notes and accounts receivable – trade977(5,492)

Redemption of bonds(1,118)(1,118)(2,339)(15,964)

Repayments of lease obligations

(432)

(396)

Decrease (increase) in other current assets(768)(1,914)

Repayments of installment payables(674)(1,168)

Increase (decrease) in notes and accounts payable – trade

2,823

5,048

Dividends paid

(719)

(1,438)

Increase (decrease) in other current liabilities

201

741

Other

(71)

(92)

(3)

(2,003)

17,769(3,786)(11,601)

1,048

Decrease (increase) in inventories

Subtotal

Purchase of investment securities
Purchase of noncurrent assets

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Net decrease (increase) in treasury share
Cash flows from financing activities

Interest and dividends income received

196

229

Effect of exchange rate change on cash and cash equivalents

550

584

Interest expenses paid

(536)

(477)

Net increase (decrease) in cash and cash equivalents

1,132(9,410)

30

34

(957)

(2,022)

Cash and cash equivalents at beginning of period

25,941

27,073

16,501(6,022)

Cash and cash equivalents at end of period

27,073

17,662

Proceeds from insurance income
Income taxes paid
Cash flows from operating activities

Corporate Data

68

History of ISK

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

For over a century, embracing challenges
Since foundation in 1920, the ISK Group has continued to grow by overcoming difficulties and flexibly changing its business to meet the needs of the times.
The bedrock has been a willingness to embrace challenges passed down from our founder and carried on to today.

1920
ISK commences operation of an iron-ore mine on
the Malay Peninsula. ISK has been meeting difficult
challenges on the global stage since its founding.

1920
Company
founding

1950
ISK begins producing agrochemicals, a cornerstone of the organic chemicals business, andbecomes a pioneer in selective herbicides.

2010
ISK launches full-scale
sales of super-weatherresistant titanium dioxide,marking a shift fromgeneral products to highly
functional and high valueadded products.

1999
After embarking on pharmaceutical production,
ISK takes on challenges in life sciences, including
the gene therapy business.

1970
ISK focuses its resources on environmental preservation, becoming one of the first industrial companies
to build a comprehensive water treatment facility.

1920-1945

1945-1960

1960-1990

1990-20102010-2020

The origins of our willingness
to embrace challenges

Entering new businesses

Expanding overseas amidst
Japan’s rapid economic growth

Fulfilling social responsibility

Become a strong andtrusted chemical company

2020-2023
Looking ahead
To continue contributing tobetter living environments1920

2018
ISK receives approval for domestic manufacture andsale of the world’s first anti-pancreatitis agent for
dogs.

1924
ISK begins handling its own ore shipping. Ships
flying the company flag ply the oceans.

1934
The opening of the Kishu Mine, and the 1941
launch of operations at the Yokkaichi Plant, lay
the foundations of ISK’s domestic business.

1954
ISK begins producing titanium dioxide, a cornerstone of the inorganic chemicals business, andbecomes a top domestic producer.
1958
ISK’s business focus shifts from mining to chemicals.
It opens a research institute in Yokkaichi and embarks
on extensive R&D efforts.

1974
ISK responds to rapidly rising domestic and international demand for titanium dioxide by expanding its production facilities, becoming a major global producer.
1974
ISK weathers changes in the agrochemicals market
and moves boldly to strengthen its in-house development capabilities. After careful preparation, thecompany sets a course for world markets.

2005
ISK embarks on 100% Ferosilt recovery andprocessing, achieving the goal in 10 years.

2008
ISK publicizes the results of its comprehensive
compliance audit. The company mounts a
unified effort to rebuild trust.

2020
ISK celebrates the 100th
anniversary of its founding. By contributing tosociety through technological development, thecompany aims to help
achieve a sustainable
world and raise corporate value.

69

Company Profile / Group Bases

Company Profile (As of March 31, 2023)

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Network / Group Companies

Company Name

ISHIHARA SANGYO KAISHA, LTD.

Network

Head Office Location

3-15 Edobori 1-chome, Nishi-ku, Osaka
550-0002, Japan
Tel: +81-6-6444-1451

Head Office, Central Research Institute, Yokkaichi Plant, Tokyo Branch, Chubu Branch, Sapporo Sales Office, Sendai Sales Office, Fukuoka Sales Office, Argentina Branch, Singapore BranchFounded

September 10, 1920

Incorporated

June 1, 1949

Representative

Hideo Takahashi, Executive Director & President

Capital43.4 billion yen

Sales(Fiscal year ended March 31, 2023)
Consolidated: 131,238 million yen
Non-consolidated: 110,498 million yen

Group Companies
Japan

Number of Employees Consolidated: 1,768
Non-consolidated: 1,146

TaiwanKorea

ISK BIOSCIENCES K.K.
Sale of agrochemicals
ISHIHARA TECHNO CORPORATION
Trade in organic and inorganic chemical products
FUJI TITANIUM INDUSTRY CO., LTD.
Manufacture and sales of titanium dioxide, functional materials, others
MF MATERIAL CO., LTD.
Manufacture and sale of functional materials
ISK ENGINEERING PARTNERS CORPORATION
Construction
ISHIHARA SANSO KAISHA, LTD.
Manufacture and sale of industrial gases
ISHIHARA KOSAN CO., LTD.
Asset management
GENOMIDEA INC.
Asset management
HOKUSAN CO., LTD.
Manufacture and sale of agrochemicals
ISK TAIWAN CO., LTD.
Sale of inorganic chemical products
ISK KOREA CORPORATION
Sale of inorganic chemical products
ISK BIOSCIENCES KOREA LTD.
Administration of agrochemicals business in South Korea;
manufacture and sale of agrochemicals

Thailand

ISK BIOSCIENCES (THAILAND) LTD.
Registration and market development of agrochemicals in Thailand

India

ISK BIOSCIENCES INDIA PVT. LTD.
Registration, manufacture and sale of agrochemicals

China

Philippines

ZHEJIANG ISK & TAURUS CHEMICAL CO., LTD.
Sale of agrochemicals
ISK (SHANGHAI) CHEMICAL CO., LTD.
Registration and sale of agrochemicals
AVC CHEMICAL CORP.
Sale of agrochemicals

Belgium

The Netherlands
U.S.A.

MexicoBrazil

ISK BIOSCIENCES EUROPE N.V.
Administration of agrochemicals business in Europe; manufactureand sales of agrochemicals
CERTIS BELCHIM B.V.
Sale of agricultural materials
ISK AMERICAS INCORPORATED
Administration of U.S. subsidiaries
ISK BIOSCIENCES CORPORATION
Administration of agrochemicals business in Americas; manufactureand sales of agrochemicals
ISK BIOCIDES, INC.
Sale of wood preservatives
IBC MANUFACTURING COMPANY
Manufacture of wood preservative and agrochemicals
ISK ANIMAL HEALTH, LLC (Ohio)
Manufacture and sales support of animal health products
ISHIHARA CORPORATION (U.S.A.)
Sale of inorganic chemical products
ISK MAGNETICS, INC.
Asset management
SUMMIT AGRO USA, LLC
Sales of agricultural materials and manufacture of agrochemicals
ISK BIOSCIENCES, S.A. DE C.V
Registration and sale of agrochemicals
ISK BIOSCIENCES DO BRASIL DEFENSIVOS AGRICOLAS LTDA.
Registration and market development of agrochemicals in Brazil

Consolidated subsidiary company

Equity method affiliated company

Non-consolidated subsidiary company

Non-equity method affiliated company

70

Stock Information

About ISK

100,000,000 shares

Number of Shareholders

27,672

Stock Exchange Listing

Tokyo Stock Exchange, Prime Market

Stock Code

4028

Shareholder Composition
2.28%

Corporate Data

Treasury
stock

5.56％
Individuals, others

31.29%

Foreign individuals

19.35%

Investment in ISK
Number of shares held
Shareholding ratio (%)(thousands)

Shareholder

Total Number of Shares Outstanding 40,383,943 shares

Securities firms

Foundation for Value Creation

Major Shareholders (As of March 31, 2023)

Stock Information (As of March 31, 2023)
Total Number of Shares Authorized

Value Creation Strategies

The Master Trust Bank of Japan, Ltd. (trust account)

4,768

12.50

Custody Bank of Japan, Ltd. (trust account)

3,675

9.64

Mitsui & Co., Ltd.

2,019

5.29

Toagosei Co., Ltd.

1,722

4.52

UPL Japan GK

1,170

3.07

Ishihara Sangyo Kaisha Client Stock Ownership Association
BNP PARIBAS PARIS/2S/JASDEC/FBB SEC/BELCHIMMANAGEMENT
Ishihara Sangyo Kaisha Employee Stock Ownership Association

1,039

2.73

960

2.52

830

2.18

DFA INTL SMALL CAP VALUE PORTFOLIO

821

2.15

CREDIT SUISSE AG

537

1.41

Notes:
1: The shareholding ratio is calculated after deducting treasury stock.
2: In addition to the above, the Company owns 2,243 thousand shares of treasury stock.

Number of shareholders

27,672
Total number of shares outstanding

40,383,943

Stock Price and Trading Volume

Other Japanesecorporations

16.27%

Stock Price (Yen)

Financial institutions

Volume (thousand shares)

1,500

15,0001,000

10,000500

5,000

25.25%

Total Shareholder Return(Unit: %)FY2018FY2019FY2020

FY2021

FY2022

ISK

87.6

44.9

73.8

89.3

95.5

TOPIX

95.0

85.9

122.1

124.6

131.8

TOPIX Chemical

96.0

89.1

120.5

110.9

116.2
0

10

11

12

2021

1

2

3

4

5

6

7

2022

8

9

10

11

12

1

2

3

4

5

6

2023

7

8

9

(Month)(Year)

071