This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail. The
Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages
arising from the translation.

To Those Shareholders with Voting Rights:

MATTERS PROVIDED IN ELECTRONIC FORMAT FOR THE CONVOVATION OF
THE 101st ORDINARY GENERAL MEETING OF SHAREHOLDERS(MATTERS OMITTED FROM THE PAPER COPY)• Business Report
Principal Business Locations
Employees
Accounting Auditor
Systems to Ensure the Proper Business Operation of the Corporate Group
Composed of the Company and Its Subsidiaries, Including Systems to Ensure that
Directors Execute Duties in Line with Relevant Laws, Regulations and the Articles
of Incorporation, and Status of Their Operation• Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets
Notes to the Consolidated Financial Statements• Non-consolidated Financial Statements
Non-consolidated Statement of Changes in Net Assets
Notes to the Non-consolidated Financial Statements(April 1, 2023 to March 31, 2024)

ISHIHARA SANGYO KAISHA, LTD.
The matters shown above have not been included in the paper copy sent to shareholders who haverequested it, in accordance with laws and regulations, as well as the provisions of Article 19 of our
Articles of Incorporation.

1

Principal Business Locations (As of March 31, 2024)(1) The Company
Name
Location
Osaka Head OfficeOsaka City, Osaka Prefecture
Yokkaichi Plant
Yokkaichi City, Mie Prefecture
Central Research InstituteKusatsu City, Shiga Prefecture
Tokyo Branch
Chiyoda-ku, Tokyo
Chubu Branch
Yokkaichi City, Mie Prefecture
Singapore Branch
Singapore
Sapporo Sales Office
Sapporo City, Hokkaido
Sendai Sales OfficeSendai City, Miyagi Prefecture
Fukuoka Sales Office
Fukuoka City, Fukuoka Prefecture
Note: Sendai Sales Office was closed on April 30, 2024.
(2) Subsidiaries

Name
Location
ISK BIOSCIENCES K.K.
Chiyoda-ku, Tokyo
ISK AMERICAS INCORPORATED
Ohio, United States
ISK BIOSCIENCES EUROPE N.V.
Belgium
ISHIHARA TECHNO CORPORATION
Osaka City, Osaka Prefecture
FUJI TITANIUM INDUSTRY CO., LTD.
Kobe City, Hyogo Prefecture
MF MATERIAL CO., LTD.
Nobeoka City, Miyazaki Prefecture
ISK ENGINEERING PARTNERS
Yokkaichi City, Mie Prefecture
CORPORATION
Note: MF MATERIAL CO., LTD. was established on September 1, 2023.

Employees (As of March 31, 2024)
Business Segment
Number of Employees
YoY Change
Organic chemicals business
573+8
Inorganic chemicals business
1,012
+ 37
Other businesses
122
Corporate (common)
106
Total
1,813
+ 45
Note: The number of employees represents the number of active personnel employed. Corporate(common) employees mainly comprise those employed at the administration department at
the head office, who do not belong to any reportable segment.

2

Accounting Auditor(1)

Accounting Auditor’s Name
Ernst & Young ShinNihon LLC(2)Accounting Auditor’s Compensation, etc.
Accounting Auditor’s compensation, etc., for the fiscal year ended March 31, 2024:
73 million yen
Total cash and other proprietary benefits payable by the Company and its subsidiaries
to the Accounting Auditor:
86 million yen
Notes: 1. Under the audit agreement with the Accounting Auditor, audit compensation is notdistinguished between that pertaining to audits based on the Companies Act, and audits
based on the Financial Instruments and Exchange Act, which are effectively inseparable.
The amount shown above therefore represents the total, undivided amount.
2. ISK BIOSCIENCES EUROPE N.V., a significant subsidiary of the Company, is auditedby Ernst & Young, Reviseurs d’Entreprises.
3. The Audit & Supervisory Board has given its consent to the compensation, etc. for the
Accounting Auditor in accordance with Article 399, Paragraph 1 of the Companies
Act, after confirming the audit plan, status of audit execution, basis for calculating
the expected compensation, etc., based on the Practical Guidelines for Coordination
with Accounting Auditors published by the Japan Audit & Supervisory Board
Members Association.

(3)

Policy on Determination of Dismissal or Non-reappointment of Accounting Auditor
Where deemed necessary, due to the incapacity of the Accounting Auditor to execute its duties orother reason, the Audit & Supervisory Board shall determine the content of a proposal on thedismissal or non-reappointment of the Accounting Auditor, to be submitted to the General Meetingof Shareholders.
Moreover, if the Accounting Auditor falls under any of the items set forth in Article 340, Paragraph 1 of
the Companies Act, the Audit & Supervisory Board shall dismiss the Accounting Auditor throughthe unanimous consent of all its Members. In this event, an Audit & Supervisory Board Member
selected by the Audit & Supervisory Board shall report on the dismissal of the Accounting Auditor,
and the reason for the dismissal, at the first General Meeting of Shareholders held after thedismissal.

3

Systems to Ensure the Proper Business Operation of the Corporate Group Composed of
the Company and Its Subsidiaries, Including Systems to Ensure that Directors Execute
Duties in Line with Relevant Laws, Regulations and the Articles of Incorporation, andStatus of Their Operation
The Company’s Board of Directors has resolved on the following basic policy regarding systems to ensure
proper business operation of the corporate group composed of the Company and its subsidiaries (referred tohereinafter as the “Group”), including systems to ensure that Directors execute duties in line with laws,
regulations and the Articles of Incorporation.
(1)

Systems to Ensure that the Execution of Duties by Directors and Employees Complies with Laws,
Regulations and the Articles of Incorporation
1) The Company has adopted a management structure that places priority on compliance with laws,
rules and societal norms.
2) The Company has established the ISK Group Code of Conduct, which stresses the importance ofcompliance activities, and makes sure that Directors and employees follow them strictly.
3) The Company has established a Compliance Committee, headed by the Director in charge ofCompliance. This committee creates and implements plans to develop and maintain the compliancestructure.
4) Company policy dictates that should it be discovered that any Director or employee of the Company
has acted illegally, transgressed the Company’s Articles of Incorporation, or acted in a way thatraises the risk of a legal transgression, the incident must be reported immediately. Furthermore, allrecords of the reports and investigation are to be kept strictly confidential to ensure that those whoreport such incidents are not subject to repercussions.
5) The Company has established an Office of Internal Audit to conduct regular audits, and which
reports directly to the Executive Director, President.

(2)

Recording and Managing Information Regarding the Activities of Directors
The Company maintains written records of the minutes of Board of Directors meetings, proposals
submitted for consideration, and other important documents used in the course of Directors’ duties.
These documents are stored and managed in a way that corresponds to the legal regulations
governing official documents, as well as all internal rules and regulations.

(3)

Rules and Structures Intended to Manage Risk of Loss
1) A set of Risk Management Regulations has been established to express the Company's basic stanceon risk management and to help guard against the risk of unexpected losses.
2) The Company seeks to identify the various types of risk that emerge in the course of normal businessactivities, taking steps to ensure that each sector of business operations is aware of risk factors that
may affect them, and takes steps to manage such risks.
3) When events occur that could have an important impact on the Company's management and businessactivities, the Corporate Risk Management Committee takes action under the Risk Management
Regulations, and assumes control of the operating divisions in order to minimize and address
problems.

(4)

Structures to Ensure That the Duties of Directors Are Executed Efficiently
1) The Board of Directors meets regularly, a minimum of once a month, to make decisions on important
issues that affect the Company, and to oversee the activities of its Directors. In the case of priority
issues that relate to management and business execution, the Executive Management Committee,
made up of Board members who are associated with the issue, discusses it first, and then reports tothe entire Board for a final decision.
2) The Company establishes clear and specific numerical targets for achievement, in an effort toimprove management efficiency.
3) The Board of Directors allocates duties and work responsibilities to individual Directors, and each
Director reports back to the Board of Directors regarding progress in completing the allocatedbusiness tasks.

4

(5)

Measures to Ensure Proper Business Operation of the Group1) The Company ensures proper group management based on regulations established concerning thebasic policies for the execution of its subsidiaries and affiliates’ business activities, and for thevarious work processes concerning management of subsidiaries and affiliates.
2) Subsidiaries report regularly to the Company on important information such as businessperformance and financial condition, based on the aforementioned regulations.
3) Subsidiaries guard against the risk of unexpected losses in accordance with the Risk Management
Regulations established by the Company, and immediately report to the Company, endeavor tocontain and resolve the situation in the case of an emergency.
4) Subsidiaries comply with laws, rules and societal norms, in accordance with the ISK Group Codeof Conduct established by the Company. The Company's internal whistleblower system is also
applicable to subsidiaries.

(6)

Employees Assigned as Requested to Assist the Duties of Audit & Supervisory Board Members,
Measures to Ensure the Independence of These Employees from the Influence of Directors, andMeasures to Ensure the Effectiveness of Directions Given to These Employees
1) Audit & Supervisory Board Members may request that the Company assign personnel to assist themin carrying out their duties. When this need arises, Directors cooperate with Audit & Supervisory
Board Members to select individuals who are able to provide assistance.
2) When Audit & Supervisory Board Members ask to have employees assigned to assist with theiractivities, the views of the Audit & Supervisory Board are given top priority in selecting,transferring and evaluating such employees. This is intended as a way to ensure that the employees
can act independently, without influence from Directors.
3) Employees who assist Audit & Supervisory Board Members in carrying out their duties do not work
concurrently in any other section, and must only follow the directions and orders of the Audit &Supervisory Board Members.

(7)

Structure for Reporting Information to Audit & Supervisory Board Members, Including Reports
Provided by Directors and Employees of the Group, and Structures to Ensure That the Person
Reporting Information Is Not Disadvantaged as a Result
1) Audit & Supervisory Board Members of the Company attend meetings of the Board of Directors
and the Executive Management Committee, as well as other important company meetings. They arealso provided with access to documents regarding all important proposals and resolutions made bymanagement personnel.
2) Directors and employees of the Company are required to provide necessary reports and information
to Audit & Supervisory Board Members, as stipulated in the Company’s internal regulations
regarding reporting to Audit & Supervisory Board and its members.
3) Directors, Audit & Supervisory Board Members and employees of subsidiaries are required toprovide necessary reports and information to the Company’s Audit & Supervisory Board Members
as stipulated in the Company’s internal regulations regarding reporting to Audit & Supervisory
Board and its members.
4) The Company prohibits any disadvantageous treatment of its Directors or employees, or Directors,
Audit & Supervisory Board Members or employees of subsidiaries, as a result of reporting to theCompany’s Audit & Supervisory Board Members. This information is made known broadly among
the Group’s Directors, Audit & Supervisory Board Members and employees.

(8)

Policy on the Treatment of Expenses and Liabilities Arising from the Execution of Duties by Audit& Supervisory Board Members, Including Processes for Prepaying or Reimbursing Such Expenses
Should the Company receive a prepayment or similar request based on Article 388 of the Companies
Act for expenses incurred by an Audit & Supervisory Board Member in the execution of his/herduties, the section responsible examines the request and, except where deemed unnecessary for the
execution of duties by the Audit & Supervisory Board Member, promptly processes the relevant
expenses or liabilities.

5

(9)

Structures to Ensure That the Duties of Audit & Supervisory Board Members Are Executed
Effectively
1) The Executive Director, President holds regular meetings with Audit & Supervisory Board Members
in order to exchange opinions regarding the improvement of the audit environment for Audit &Supervisory Board Members, and promote mutual understanding.
2) To ensure the effectiveness of auditing activities, Directors are responsible for ensuring that thereis close cooperation between Audit & Supervisory Board Members and the Office of Internal Audit.

(10) Structures to Ensure the Reliability of Financial Reporting Activities
In order to ensure the reliability of financial reporting, the Company and its subsidiaries andaffiliates have established a structure to operate appropriately, and to improve and evaluate internal
controls governing the preparation of financial reports, in accordance with the Financial Instruments
and Exchange Act and other relevant laws and regulations.
(11) Basic Stance on Measures to Prevent Interaction with “Antisocial Groups”
1) The Company strictly prohibits any activity or interaction with “antisocial groups” which may
threaten public order or present a danger to the general public. The Company shall be resolute in
avoiding any such contact, and will under no circumstances give in to unreasonable demands orpressure from any such group.
2) In order to ensure that no such relationships or activities arise, a section of the General Affairs
Division has been assigned specifically to cooperate with police, corporate lawyers and otheroutside organizations to combat the influence of corporate racketeers. This division will collectrelevant information on a daily basis and establish a system to deal with unexpected incidents
involving such groups.
[Overview of the Status of Operation of Systems to Ensure Proper Business Operations]
Overview of the status of operation in the fiscal year ended March 31, 2024 (the “current fiscal year”)
is as follows.
(1) Compliance
1) The Company holds biannual meetings of its Compliance Committee, to confirm and discuss matterssuch as the compliance implementation structure and the status of compliance education, in
accordance with the Company’s corporate philosophy.
2) The ISK Group Code of Conduct requires that any person who discovers an actual or possible
violation of compliance by an organization member, where resolution or improvement is difficult
through the usual chain of command, must report this through the Company’s whistleblower system.
(2) Execution of Duties by Directors
1) The Board of Directors meets each month as a rule, and holds extraordinary meetings as required,based on the Company’s Company Rules and Board of Directors Rules. In addition, the Board of
Directors deliberates and passes resolutions on matters concerning management policy andimportant business execution, after these have first been thoroughly considered by the Executive
Management Committee.
2) The Company establishes a group management plan to serve as a goal, clarifies the measuresnecessary to achieve this goal, and monitors their progress through the Board of Directors.
3) Important documents concerning the execution of duties by Directors, such as the minutes of Boardof Directors meetings, are properly stored and managed in a way that corresponds to legal
regulations and the Company’s internal rules such as the Document Management Regulations.

6

(3)

Risk Management Structure1) The Company engages in risk management, appropriately assesses risk, and has implemented thenecessary measures to prevent, mitigate, transfer, or otherwise prepare for risk, based on the impact
and likelihood of occurrence, to ensure that the Group attains optimal results.
2) The Company holds biannual meetings of the Corporate Risk Management Committee, chaired by
the Executive Director, President, to check the results of risk assessment, designate “risks forpriority measures” that would materially impact the Company’s business activities, and deliberate
and resolve on measures to address these risks. The results of this deliberation are reported to theBoard of Directors.
3) The Company implements regular training sessions to address the risk of disasters.

(4)Group Management Structure1) The Company ensures a proper group management structure, including the establishment of a system
to receive advance applications or reports concerning the execution of important duties fromsubsidiaries that fulfill certain criteria, based on regulations established concerning the basic
policies for the execution of its subsidiaries and affiliates’ business activities.
2) The Company implements audits of its subsidiaries and affiliates as necessary, based on the Internal
Audit Regulations.

(5)

Execution of Duties by Audit & Supervisory Board Members
1) Audit & Supervisory Board Members attend important meetings, including meetings of the Boardof Directors and the Executive Management Committee, comprehend important decision-making
processes, and the status of the execution of duties, request explanations from Directors or others
as necessary, and express opinions.
2) Audit & Supervisory Board Members hold regular meetings with the Executive Director, President
in order to exchange opinions regarding matters such as issues to be addressed, and promote mutual
understanding. Moreover, in the course of their audit duties, Audit & Supervisory Board Members
coordinate with the Office of Internal Audit, including holding regular meetings, in order toimplement organized and effective audits.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Reference:
Amounts presented in this business report have been rounded down to the nearest unit.

7

Consolidated Statement of Changes in Net Assets(April 1, 2023 - March 31, 2024)(Millions of yen)
Shareholders’ equity

Balance at April 1, 2023

Commonstock

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders'equity43,42010,653

44,102(2,710)95,466–－(1,601)－(1,601)

–

－

7,988

－

7,988

–

－

－

(5)

(5)

–

19

－

61

80

–

－

－

－

－

–

19

6,386

56

6,462

43,42010,67250,489(2,653)

101,928

Changes of items during
periodDividends of surplus
Net income
attributable to ownersof parent for theperiodAcquisition oftreasury stock
Disposal of treasury
stock
Other changes
Total changes of items
during period
Balance at March 31,2024

8

Accumulated other comprehensive income (loss)
Valuation
Total
NonRemeasuredifference
accumulated controlling
Translation ments ofon availableotherinterests
definedadjustments
comprehensive
for-salebenefit planssecurities
income (loss)
Balance at April 1,
2023

Total net
assets

384

1,309

271

1,965

－

97,431Dividends of surplus

－

－

－

－

－

(1,601)

Net income
attributable to ownersof parent for theperiod

－

－

－

－

－

7,988

Acquisition oftreasury stock

－

－

－

－

－

(5)

Disposal of treasury
stock

－

－

－

－

－

80

Other changes

432

1,679

61

2,173

48

2,222

Total changes of items
during period

432

1,679

61

2,173

48

8,685

Changes of items
during period

Balance at March 31,
817
2,989
333
4,139
48
106,1162024
Note: Figures presented in the financial statements are rounded down to the nearest million yen.

9

Notes to the Consolidated Financial Statements
1. Notes on Going Concern Assumption
Not applicable.
2. Notes on the Significant Items that Constitute the Basis of Preparation of Consolidated Financial
Statements(1) Scope of Consolidation
1) Number of Consolidated Subsidiaries and Names of Major Consolidated Subsidiaries
The Company has 18 consolidated subsidiaries.
Japan
ISK BIOSCIENCES K.K.
ISHIHARA TECHNO CORPORATION
FUJI TITANIUM INDUSTRY CO., LTD.
MF MATERIAL CO., LTD.
ISK ENGINEERING PARTNERSCORPORATION
Overseas
ISK AMERICAS INCORPORATEDISK BIOSCIENCES EUROPE N.V.
ISK TAIWAN CO., LTD.
MF MATERIAL CO., LTD. was newly established and is therefore included in the scopeof consolidation from the current fiscal year.
2) Name of Major Non-consolidated Subsidiaries
ISK BIOSCIENCES KOREA LTD.
The Company’s 16 non-consolidated subsidiaries are all small companies, and have been excluded
from the scope of consolidation as they do not have a material impact on the Company’s consolidated
financial statements individually or in the aggregate.
(2) Application of the Equity Method
1) Number and Names of Affiliates Accounted for Under the Equity Method
3 companies CERTIS BELCHIM B.V.
HOKUSAN CO., LTD.
SUMMIT AGRO USA, LLC
2) Names of Major Non-consolidated Subsidiaries and Affiliates Not Accounted for Under the
Equity Method
ISK BIOSCIENCES KOREA LTD.
The Company’s 16 non-consolidated subsidiaries and two affiliates have been excluded from thescope of application of the equity method, as their impact on the Company’s net income and retained
earnings for the current fiscal year are immaterial, and are also immaterial in the aggregate.
(3) Fiscal Year of the Consolidated Subsidiaries
The fiscal closing date for all consolidated subsidiaries in Japan is March 31. The fiscal closing date
for all consolidated subsidiaries overseas is December 31. Their financial statements as of that date
are used to prepare the consolidated financial statements, and necessary adjustments are made to10

reflect significant transactions that occurred between that date and the consolidated fiscal closing
date.
(4) Accounting Policies
1) Standards and Methods for Valuation of Assets
Securities
Available-for-sale securities
Securities apart from shares, etc. without market prices:
Carried at fair value (any valuation differences are reported as aseparate component of net assets; cost of securities sold is
calculated using the moving average method.)
Shares, etc. without market prices:
Carried at cost using the moving average method
Derivatives:

Carried at fair value

Inventories:

Inventories held for regular sales purposes
Principally stated at cost, determined by the gross average method(carrying amounts on the balance sheet are subject to the book value
reduction method based on decreased profit margin).

2) Depreciation or Amortization Method for Non-current Assets
Property, plant and equipment (except for leased assets):
Primarily the straight-line method
Intangible assets (except for leased assets):
Straight-line method
Computer software for internal use is amortized by the straight-line
method over their estimated useful lives of 5 years.
Leased assets:

Leased assets under finance lease contracts that transfer ownershipto the lessee are depreciated by using the same method as for selfheld non-current assets.
Leased assets under finance lease contracts that do not transfer
ownership to the lessee are depreciated to a residual value of zero by
the straight-line method over the lease term as the useful life.

3) Standards for Recording Allowances and Provisions
Allowance for doubtful receivables:
An estimated amount of uncollectible receivables is recorded basedon the aggregate historical experience of bad debts for ordinary
receivables. For specific probable doubtful accounts from customers
experiencing financial difficulties and those in bankruptcy, bad debts
amounts are estimated individually based on their specificcollectibility.

11

Provision for bonuses:
A provision for bonuses to be paid to employees is recorded for theestimated amount of such payments corresponding to the current fiscal
year.
Provision for implementation of environmental and safety arrangements:
A provision for expenditure to implement environmental and safety
arrangements is recorded for the estimated amount of such expenditure.
Specifically, the provision pertains to expenses related to the remediationof soil and groundwater contamination at the Yokkaichi Plant.
Provision for maintenance: A provision for expenditure for the maintenance of certain equipment isrecorded for the estimated amount of such expenditure that is attributable
to the current fiscal year.
4) Standards for Translating the Value of Important Foreign Currency-denominated Assets andLiabilities into Japanese Yen
The amounts of monetary receivables and payables denominated in foreign currencies are translated
into yen amounts at the spot rates of exchange in effect at the balance sheet date, and differences
resulting from translation are recognized in income or loss. The assets and liabilities of overseas
subsidiaries, etc. are translated into yen at the spot rates of exchange in effect at the balance sheet
date, revenue and expense accounts are translated at the average rates of exchange in effect during
the year, and differences resulting from translation are reported as translation adjustments which is
a component of net assets.
5) Method of Hedge Accounting
Hedging transactions are mainly accounted for using the deferral method. Forward exchange
contracts which meet certain conditions are accounted for at their contracted rates (the “allocation
method”), and interest-rate swaps which meet certain conditions are accounted for as if the interest
rates which apply to the swaps had originally applied to the underlying debt (the “special method”).
6) Method of Accounting for Retirement Benefitsa)Method of attribution of expected retirement benefits to each period
In order to calculate the amount of retirement benefit obligations, expected future retirement
benefits are attributed to each period through the end of the current fiscal year on a straight-line
basis.
b) Method of recognizing actuarial gains and losses and prior service cost in profit or loss
Actuarial gain or loss is amortized from the following fiscal year in which such gain or loss isrecognized, by the straight-line method, over the estimated average remaining years of serviceof the employees at the time of occurrence of such gain or loss.
Prior service cost is amortized as incurred by the straight-line method over the estimated averageremaining years of service of the employees at the time of such occurrence.

127) Standards for Recording Revenue and Expenses
The details of the main performance obligations concerning revenue arising from contracts withcustomers in the main businesses of the Company and its consolidated subsidiaries (collectively, the“Group”), and the normal timing of revenue recognition, are as follows.
The Group is mainly engaged in the manufacture and sale of products of the organic chemicals
business and those of the inorganic chemicals business. The Company generally considers
performance obligations associated with the sale of products to be satisfied at the time of delivery,
when the customer gains control over the products, and normally recognizes revenue from the saleof products at the time of delivery.
The Group considers performance obligations associated with construction contracts to be satisfied
over a certain period of time, and recognizes revenue based on the progress made in satisfying these
performance obligations. Progress is measured based on the ratio of the cost of works incurred as ofthe end of the reporting period to the forecast total cost of works. In cases where the progress madein satisfying performance obligations cannot be reasonably estimated, but the costs that arise are
expected to be recovered, the Group recognizes revenue based on the cost recovery method.
3. Notes on Changes in Accounting Policies
Not applicable.
4. Notes on Accounting Estimates
Recoverability of Deferred Tax Assets
Amount recorded on the consolidated financial statements for the fiscal year under review:
Deferred tax assets 7,630 million yen
Other information useful for the understanding of estimates:
1) Calculation Method
Recoverability of deferred tax assets is judged through estimated taxable income based on future
earning capacity, set against deductible temporary differences and a loss carry-forward in tax
accounting. The estimate of taxable income is based on future business plans at the time of theestimate.
2) Main Assumptions
Estimated taxable income based on future earning capacity is based on future business plans. Mainassumptions include estimated future sales volumes, and the trends in selling prices and raw
materials prices.
3) Impact on the Consolidated Financial Statements for the Following Fiscal Year
Estimated sales volume, one of the main assumptions, is highly uncertain, and there is a risk thatchanges in forecast taxable income due to fluctuations in sales volume may have a significant impact
on the judgement regarding the recoverability of deferred tax assets. A decrease in future forecast
sales volume, on which the future business plans are premised, may lead to a reversal of deferred tax
assets.
5. Notes to the Consolidated Balance Sheet(1) Accumulated Depreciation on Property, Plant and Equipment 133,461 million yen
Accumulated depreciation includes accumulated impairment loss.

13

(2) Assets Pledged as Collateral, and Related Obligations
Assets pledged as collateral
Investment securities

62 million yen

Buildings and structures

9,017 million yen

Machinery, equipment and vehicles

14,845 million yen

Land

584 million yen

Other property, plant and equipment

521 million yen

Total

25,030 million yen

Among the above assets, the total value of property, plant and equipment pledged as a floating
mortgage is 24,968 million yen, covering all classifications of assets.
Obligations related to the collateral
Short-term bank loans

5,980 million yen

Current portion of long-term bank loans

3,067 million yen

Long-term bank loans

10,061 million yen

Total

19,109 million yen(3) Notes, claims and obligations falling due on the last day of the fiscal year are accounted for bytreating them as settled on the exchange date or settlement date. As the last day of the current
fiscal year was a bank holiday, the following notes, claims and obligations which fell due on thelast day of the fiscal year, are included in the closing balance for the current fiscal year.
Notes receivable - trade
379 million yen
Electronically recorded monetary claims - operating

203 million yen

Notes and accounts payable - trade

30 million yen

Electronically recorded obligations - operating

551 million yen(4) Trade Notes Receivable Discounted with Banks

76 million yen(5) Guarantee Obligations
Not applicable.

146. Notes to the Consolidated Statement of Changes in Net Assets(1) Class and Total Number of Shares Outstanding at the Fiscal Year-end
Common stock 40,383,943 shares(2) Class and Total Number of Shares of Treasury Stock at the Fiscal Year-end
Common stock 2,186,519 shares(3) Dividends of Surplus
1) Dividend Amounts
Resolution

Class ofshares

Source ofdividend

Total amountof dividend

Dividend
per share

Recorddate

Effective dateOrdinary General
Meeting of
Shareholders on
June 28, 2023

Commonstock

Retainedearnings

1,601
million yen

42.00 yenMarch 31,2023

June 29,2023

2) Dividend for which the Record Date is During the Current Fiscal Year, but Whose Effective Date isafter the End of the Current Fiscal Year
Anticipated
Resolution

Class ofshares

Source ofdividend

Total amountof dividend

Dividend
per share

Recorddate

Effective dateOrdinary General
Meeting of
Shareholders on
June 26, 2024

Commonstock

Retainedearnings

2,673
million yen

70.00 yenMarch 31,2024

June 27,2024

15

7. Notes on Financial Instruments(1) Status of Financial Instruments
In consideration of plans for capital expenditures, etc., the Group raise required funds through loans
from financial institutions such as banks, or issuing bonds, for its domestic and overseas business.
The Group manages temporary cash surpluses through only low-risk short-term deposits and the like.
The use of derivatives is limited within the extent of risk arising at the actual demand and the Group
does not enter into derivative contracts for speculative trading purposes.
Trade receivables – trade notes, accounts receivable – trade, and electronically recorded monetaryclaims - operating are exposed to credit risk in relation to customers. The risk is mitigated inaccordance with the Credit Control Rules. The Group manages market price fluctuation risk
associated with investment securities by regularly monitoring market prices and the financial
condition of the securities issuer.
Bank loans are used for working capital and capital expenditure purposes, and the Group enters into
interest rate swap transactions for some bank loans to reduce the risk of interest rate fluctuations.
(2) Fair Value, etc. of Financial Instruments
The value recorded on the consolidated balance sheet, fair value, and difference between them as ofthe end of the current fiscal year, are as follows.
Note that shares, etc. without market prices (unlisted shares with a consolidated balance sheet amountof 8,016 million yen) are not included in “available-for-sale securities.”
Notes on “cash” have been omitted. Those on “deposits,” “notes receivable - trade,” “accounts
receivable - trade,” “electronically recorded monetary claims - operating,” “notes and accounts
payable - trade,” “electronically recorded obligations - operating,” and “short-term bank loans” havealso been omitted as they are settled in a short period of time, and balance sheet amounts approximate
fair values.
(Millions of yen)
Consolidated balance
Fair value
Difference
sheet amount(1) Investment securities
Available-for-sale securities
1,631
1,631
(2) Long-term bank loans, including
55,43955,232(207)
current portion(3) Derivatives*
55*The value of derivative transactions is presented net of claims and obligations. Net obligations areshown in parentheses.
(3) Fair Value Information by Level Within the Fair Value Hierarchy
The fair value of financial instruments is classified into the following three levels based on theobservability and materiality of the inputs used to calculate fair value.
Level 1 fair value: Fair value calculated using (unadjusted) quoted prices in active markets for
identical assets or liabilities
Level 2 fair value: Fair value calculated using directly or indirectly observable inputs other thanthose in Level 1
Level 3 fair value: Fair value calculated using significant unobservable inputs
If multiple inputs are used that are significant to the fair value measurement, the fair value
measurement is categorized in its entirety in the level of the lowest level input that is significant to
the entire measurement.

16

(1) Financial assets and financial liabilities carried on the consolidated balance sheet at fair value

Category(Millions of yen)

Fair Value
Level 1

Investment securities
Available-for-sale securities
SharesDerivatives

Level 2

1,631-

Level 3

5

Total

-

1,631
5

(2) Financial assets and financial liabilities not carried on the consolidated balance sheets at fair value

Category
Long-term bank loans, including
current portion(Millions of yen)

Fair Value
Level 1

Level 2-

55,232

Level 3

Total-

55,232

Note: Methods and inputs used to determine the fair value of financial instruments
Investment securities
The fair value of listed shares is measured based on quoted market prices. As listed sharesare traded in an active market, their fair value is classified as Level 1 fair value.
Derivatives
The fair value of currency swaps is measured using the discounted present value methodwith observable inputs such as currency exchange rates, and is classified as Level 2 fairvalue.
The fair value of interest-rate swaps that meet certain conditions for the special method is
included in the fair value of the long-term bank loans that they hedge (see “Long-termbank loans, including current portion” below).
Long-term bank loans, including current portion
Fair value is calculated as the present value of the total of principal and interest of the longterm bank loans, discounted using an interest rate that takes account of the remaining lifeand credit risk of the loan, and is classified as Level 2 fair value. The special method ofinterest rate swaps is applicable for long-term bank loans with floating interest rates (see“Derivatives” above), and fair value is calculated using the total of their principal andinterest payments that are accounted for together with the relevant interest rate swap.
8. Notes on Real Estate for Rent, etc.
Notes omitted due to lack of materiality.
9. Notes on Per Share Information
Net assets per share
2,776.83 yen
Net income per share209.27 yen
10. Significant Subsequent Events
Not applicable.

1711. Notes on Revenue Recognition(1) Breakdown of revenue arising from contracts with customers
The net sales of the Group mainly comprise revenue recognized from contracts with customers. A
breakdown of this revenue by geographical region for each reportable segment is shown below.
(Millions of yen)
Reportable segment
Total

Organic chemicals
business

Inorganic
chemicals business

Other businessesJapan

13,40843,993

3,164

60,567

Asia

8,387

19,343

1

27,731

Americas22,567

3,253

74

25,895

Europe22,097

1,347-

23,444

711

105

-

816

67,171

68,043

3,241

138,456

Other regions
Net sales toexternal customers(2) Information Fundamental to an Understanding of Revenue Arising from Contracts with Customers
1) Revenue from the sale of products
The Group’s main performance obligations consist of providing customers with organic chemical
products and inorganic chemical products. The Group generally considers these performanceobligations to be satisfied at the time of delivery, when the customer gains control over the products,
and normally recognizes revenue from the sale of products at the time of delivery. However, theGroup applies the alternative treatment prescribed in Paragraph 98 of the Implementation Guidanceon Accounting Standard for Revenue Recognition, and recognizes revenue at the time of shipment
for domestic sales transactions where there is a normal period of time between the shipment of the
product and the transfer of control to the customer. Such revenue is measured as the net consideration
promised under the contract with the customer, after deducting discounts, rebates, returns, or othersimilar consideration payable to the customer.
2) Revenue from construction contracts
The Group considers performance obligations associated with construction contracts in otherbusinesses to be satisfied over a certain period of time, and recognizes revenue based on the progress
made in satisfying these performance obligations. Progress is measured based on the ratio of the costof works incurred as of the end of the reporting period to the forecast total cost of works. In cases
where the progress made in satisfying performance obligations cannot be reasonably estimated, but
the costs that arise are expected to be recovered, the Company recognizes revenue based on the cost
recovery method.
3) Revenue from principal/agent transactions
The Group identifies performance obligations through a consideration of whether it is acting as aprincipal or agent. For performance obligations judged to comprise arrangements for othercompanies, etc. to provide the goods or services promise under the contract with the customer, theGroup is acting as an agent, and recognizes revenue equal to the net amount of consideration towhich it expects to be entitled in return for arranging the provision of said goods or services by othercompanies, etc.

18

The Group considers the following three indicators when judging whether it is acting as a principal.
•
Whether it is primarily responsible for fulfilling the promise to provide the relevant goods orservices•
Whether it has inventory risk prior to the transfer of the relevant goods or services to thecustomer, or after the transfer of control to the customer•
Whether it has the discretion to set the prices for the goods or services(3) Information to Enable the Understanding of the Amount of Revenue for the Fiscal Year under Review
and Subsequent Fiscal Years
1) Balance of contract assets and contract liabilities
Contract assets comprise accounts receivable - trade that have not yet been invoiced, mainly
associated with the recognition of revenue based on the measurement of progress on construction
contracts. They are transferred to accounts receivable - trade when the customer accepts delivery andthe work is invoiced.
Contract liabilities are related to considerations received in advance of fulfillment based on thecontract, and are transferred to income when the Group fulfills its contractual obligations.
All contract liabilities outstanding at the end of the previous fiscal year were recognized as revenue
during the fiscal year under review.
2) Transaction price allocated to remaining performance obligations
The Group has applied a practical expedient and omitted presentation of the transaction priceallocated to remaining performance obligations because there are no material contracts for which theinitially expected contract term exceeds one year.

1912. Other Notes(1) Settlement Income

Settlement income, which is recorded as extraordinary income on the Consolidated Statement of
Income, is due to the receipt of a monetary legal settlement related to the use of the Company’s
patent for agrochemical products.
(2) Impairment Loss

The Group has recorded impairment loss on the following asset groups.
Location
Use
Classification
Equipment for the
Buildings and structures
Yokkaichi Plant
production of
Machinery, equipment, and(Yokkaichi City,titanium dioxide
vehiclesusing the sulfuric acid
Mie Prefecture)
Other
methodBuildings and structures
Machinery, equipment, andShiroyama Dormitory
Idle
vehicles
Other

Impairment loss

6,763 million yen

204 million yen

1) Method of asset grouping
The Company and its consolidated subsidiaries group their assets based on relation in the businesssegment and production process for assessment of impairment loss. For example, real estate for rent
and idle assets which are not anticipated to be utilized in the future are classified as individual asset
group if they are deemed to generate cash flow independently. Assets not clearly linked to a specificbusiness, such as the head-office building, the facilities for research and development and thefacilities for welfare, are classified as corporate assets.
2) Reason for the recognition of an impairment loss
The Company’s Board of Directors has resolved to implement structural reforms of the inorganic
chemicals business and cease the use of equipment for the production of titanium dioxide using thesulfuric acid method at the Yokkaichi Plant in the table above, at the end of March 2027. As a result,
the Company recorded an impairment loss for the related non-current assets. An impairment loss was
also recorded for the Shiroyama Dormitory in the table above, as it is planned for demolition and istherefore recognized as an idle asset.
3) Method for determining the recoverable amountAs the valuation of the equipment for the production of titanium dioxide using the sulfuric acid
method in the table above was zero based on future cash flows, its book value of was reduced to zero.
For the Shiroyama Dormitory in the table above, recoverable amount has been calculated using net
resale value. As it is not possible to repurpose or sell this asset, its recoverable amount wasdetermined to be zero, and its net book value of was reduced to zero.
4) Impairment loss by non-current asset classification
Classification
AmountBuildings and structures
1,968 million yen
Machinery, equipment, and vehicles
4,621 million yen
Construction in progress
350 million yen
Other
26 million yen
20

(3) Amounts presented are rounded down to the nearest million yen.

21

Non-consolidated Statement of Changes in Net Assets(April 1, 2023 - March 31, 2024)(Millions of yen)
Shareholders’ equity
Commonstock
Balance at April 1,
2023
Changes of items
during period
Dividends ofsurplus
Provision oflegal retained
earnings due todividends ofsurplus
Net income
Acquisition oftreasury stock
Disposal oftreasury stock
Other changes
Total changes of
items during period
Balance at March
31, 2024

Capital surplus
Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus43,420

9,155

667

9,822

–

–

－

－

–

–

－

－

–

–

－

－

–

–

－

－

–

–

19

19

–

–

－

－

–

–

19

19

43,420

9,155

686

9,842

22

Shareholders’ equity
Retained earnings
Legalretainedearnings
Balance at April 1,
2023
Changes of items
during period
Dividends ofsurplus
Provision oflegal retained
earnings due todividends ofsurplus

Other retained
earnings
Retained earnings
brought forward

Total
retainedearnings

Treasury
stock

Total
shareholders’equity613

27,88628,500(2,213)79,530－(1,601)(1,601)－(1,601)

160

(160)

－

－

－

Net income

－

5,990

5,990

－

5,990

Acquisition oftreasury stock
Disposal oftreasury stock

－

－

－

(5)

(5)

－

－

－

61

80

Other changes

－

－

－

－

－

160

4,228

4,389

56

4,464

773

32,11532,889(2,157)

83,995

Total changes of
items during period
Balance at March
31, 2024

23

Valuation and translation adjustments
Valuation
Total valuation and Total net assets
difference ontranslation
available-for-saleadjustments
securities
Balance at April 1,
2023

243

243

79,774

Dividends ofsurplus－－(1,601)

Provision of legal
retained earnings
due to dividends ofsurplus－－－

Net income

－

－

5,990

Acquisition oftreasury stock
Disposal of treasury
stock

－

－

(5)

－

－

80

Other changes

410

410

410

Total changes of items
during period

410

410

4,875

Balance at March 31,
2024

654

654

84,649Changes of items
during period

Note: Figures presented in the financial statements are rounded down to the nearest million yen.

24

Notes to the Non-consolidated Financial Statements
1. Notes on Going Concern Assumption
Not applicable.
2. Notes on Significant Accounting Policies(1) Standards and Methods for Valuation of Assets
Securities
Shares of subsidiaries and affiliates: Carried at cost using the moving average method
Available-for-sale securities
Securities apart from shares, etc. without market prices:
Carried at fair value (any valuation differences are reported as aseparate component of net assets; cost of securities sold is
calculated using the moving average method)
Shares, etc. without market prices:
Carried at cost using the moving average method.
Derivatives:

Carried at fair value

Inventories:

Inventories held for ordinary sales purposesStated at cost, determined by the gross average method (carrying
amounts on the balance sheet are subject to the book value reduction
method based on decreased profit margin).

(2) Depreciation or Amortization Method for Non-current Assets
Property, plant and equipment (except for leased assets):
Straight-line method
Intangible assets (except for leased assets):
Straight-line method
Computer software for internal use is amortized by the straight-line
method over their estimated useful lives of 5 years.
Leased assets:

Leased assets under finance lease contracts that transfer ownershipto the lessee are depreciated by using the same method as for selfheld non-current assets.
Leased assets under finance lease contracts that do not transfer
ownership to the lessee are depreciated to a residual value of zero by
the straight-line method over the lease term as the useful life.

(3) Standards for Recording Allowances and Provisions
Allowance for doubtful receivables:
An estimated amount of uncollectible receivables is recorded basedon the aggregate historical experience of bad debts for ordinary
receivables. For specific probable doubtful accounts from customers
experiencing financial difficulties and those in bankruptcy, bad debts
amounts are estimated individually based on their specificcollectibility.
25

Provision for bonuses:

A provision for bonuses to be paid to employees is recorded for theestimated amount of such payments corresponding to the current fiscal
year.

Provision for retirement benefits:
A provision for retirement benefits to be paid to employees is recorded
for the estimated amount of such payments as of the end of the current
fiscal year.
1) Method of attribution of expected retirement benefits to each period
In order to calculate the amount of retirement benefit obligations,
expected future retirement benefits are attributed to each period
through the end of the current fiscal year on a straight-line basis.
2) Method of recognizing actuarial gains and losses and prior service
cost in profit or loss
Actuarial gain or loss is amortized from the following year in whichsuch gain or loss is recognized, by the straight-line method, over theestimated average remaining years of service of the employees at thetime of occurrence of such gain or loss. Prior service cost is amortized
as incurred by the straight-line method over the estimated averageremaining years of service of the employees at the time of suchoccurrence.
Unrecognized actuarial differences and unrecognized prior service
cost are carried on the non-consolidated balance sheet in a different
manner compared to that on the consolidated basis.
Provision for implementation of environmental and safety arrangements:
A provision for expenditure to implement environmental and safety
arrangements is recorded for the estimated amount of such expenditure.
Specifically, the provision pertains to expenses related to the remediationof soil and groundwater contamination at the Yokkaichi Plant.
Provision for maintenance: A provision for expenditure for the maintenance of certain equipment isrecorded for the estimated amount of such expenditure that is attributable
for the current fiscal year.
(4) Standards for Recording Revenue and Expenses
The details of the main performance obligations concerning revenue arising from contracts withcustomers in the Company’s main businesses, and the normal timing of revenue recognition, are as
follows. The Company is mainly engaged in the manufacture and sale of organic chemical products
and inorganic chemical products. The Company generally considers performance obligations
associated with the sale of products to be satisfied at the time of delivery, when the customer gains
control over the products, and normally recognizes revenue from the sale of products at the time ofdelivery.
(5) Method of Hedge Accounting
Hedging transactions are mainly accounted for using the deferral method. Forward exchange
contracts which meet certain conditions are accounted for using the allocation method, and interestrate swaps which meet certain conditions are accounted for using the special method.

26

3. Notes on Changes in Accounting Policies
Not applicable.
4. Notes on Accounting Estimates
Recoverability of Deferred Tax Assets
Amount recorded on the non-consolidated financial statements for the current fiscal year:
Deferred tax assets 5,104 million yen
Other information useful for the understanding of estimates:
Identical to the information provided in the Notes to Consolidated Financial Statements 4. Notes on
Accounting Estimates “Recoverability of Deferred Tax Assets”
5. Notes to the Non-consolidated Balance Sheet(1) Monetary Claims and Obligations to Subsidiaries and Affiliates
Short-term monetary claims
34,142 million yen
Long-term monetary claims

4,799 million yen

Short-term monetary obligations

8,130 million yen

Long-term monetary obligations

68 million yen(2) Accumulated Depreciation on Property, Plant and Equipment 115,773 million yen
Accumulated depreciation includes accumulated impairment loss.

27

(3) Assets Pledged as Collateral, and Related Obligations
Assets pledged as collateral
Buildings

4,384 million yen

Structures

4,890 million yen

Machinery and equipment

15,396 million yen

Tools, furniture and fixtures

521 million yen

Land

584 million yen

Total

25,777 million yen

Among the above assets, the total value of property, plant and equipment pledged as a floating
mortgage is 25,777 million yen, covering all classifications of assets.
Obligations related to the collateral
Short-term bank loans

5,980 million yen

Current portion of long-term bank loans

3,067 million yen

Long-term bank loans

10,061 million yen

Total

19,109 million yen(4) Notes, claims and obligations falling due on the last day of the fiscal year are accounted for by treatingthem as settled on the exchange date or settlement date. As the last day of the current fiscal year wasa bank holiday, the following notes, claims and obligations which fell due on the last day of the fiscal
year, are included in the closing balance for the current fiscal year.
Notes receivable - trade
132 million yen
Electronically recorded monetary claims - operating

49 million yen

Electronically recorded obligations - operating

30 million yen(5) Guarantee Obligations
Not applicable.
6. Notes to the Non-consolidated Statement of Income
Transactions with Subsidiaries and Affiliates
Sales

53,576 million yen

Purchases, etc.

13,664 million yen

Transactions other than trade

2,695 million yen

7. Notes to the Non-consolidated Statement of Changes in Net Assets
Class and Total Number of Shares of Treasury Stock at the Fiscal Year-end
Common stock 2,186,519 shares28

8. Notes on Tax Effect Accounting(1) Breakdown of deferred tax assets and deferred tax liabilities by major causes[Deferred tax assets]
Tax loss carryforwards

122 million yen

Loss on valuation of shares of subsidiaries and affiliates

1,974 million yen

Provision for retirement benefits

3,267 million yen

Allowance for doubtful receivables

189 million yen

Loss on valuation of investment securities

785 million yen

Accrued expenses, etc.

196 million yen

Provision for bonuses

187 million yen

Provision for implementation of environmental and safety arrangements
59 million yen
Asset retirement obligations

20 million yen

Impairment loss

2,412 million yen

Other

529 million yen

Gross deferred tax assets

9,745 million yen

Valuation allowance(4,504) million yen

Total deferred tax assets

5,241 million yen[Deferred tax liabilities]
Valuation difference on available-for-sale securities

136 million yen

Total deferred tax liabilities

136 million yen

Net deferred tax assets
5,104 million yen
Note: “Impairment loss,” which was included in “Other” in the previous fiscal year, is presented as aseparate item in the current fiscal year, due to increased materiality.
(2) Accounting treatment of corporate tax and local corporate tax and accounting treatment of related taxeffect accounting
The Company has transitioned to a group tax sharing system. The accounting treatment and disclosureof corporate tax and local corporate taxes, as well as related tax-effect accounting, is in accordance with
“Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ
PITF No. 42, August 12, 2021).

29

9. Notes on Transactions with Related Parties
Subsidiaries and Affiliates
Votingright
Relationship with
Name of company
holdings the related party(held)
Subsidiaries

Details oftransactions

Sale ofagrochemicals
Sale of the(Note 1)
ISK
Direct Company’s products
Deposit of surplus
BIOSCIENCES
100% Concurrent service
funds (Note 2)
K.K.
by directors, etc.
Payment of interest(Note 3)
Sale of the
ISK
Sale ofDirect Company’s products
BIOSCIENCES
agrochemicals
100% Concurrent service
EUROPE N.V.
(Note 1)by directors, etc.
Purchase of raw
materials, fuel,Purchase of raw
packaging materials,
materials
ISHIHARAetc. (Note 1)
Sale of the
DirectTECHNO
100% Company’s products Sale of titanium
CORPORATION
Concurrent service
dioxide andby directors, etc.
agrochemicals(Note 1)
Supply of raw
FUJI TITANIUM
Supply of raw
Directmaterials, etc.
INDUSTRY CO.,materials, etc.
100% Concurrent service
LTD.
(Note 1)by directors, etc.
Supply of raw
materials, etc.
(Note 1)
DirectSupply of raw
MF MATERIAL 10.0%
materials, etc.
CO., LTD.
Indirect Concurrent service
Loan of funds
70.0% by directors, etc.
(Note 4)Contracted
ISK
construction andConstruction of
ENGINEERING Direct
maintenance of
production equipment
PARTNERS
100%
equipment(Note 5)
Concurrent service
CORPORATION
by directors, etc.
Sale of the
ISK BIOSale ofIndirect Company’s products
SCIENCES
agrochemicals
100% Concurrent service
CORP.
(Note 1)by directors, etc.
30

Transaction
amount(Millions of
yen)

Item

Accounts
9,530 receivable –trade―Year-endbalance(Millions of
yen)

8,614

Deposits
received

1,140

Accounts
18,041 receivable –trade

11,271

Accounts
7,614 payable –
trade

2,728

Accounts
7,259 receivable –
trade

3,274

Accounts
840 receivable –
trade

205

12

Accounts
365 receivable –tradeLong-term
loans
receivable
4,455
from
subsidiaries
and affiliates

263

4,455

Accounts
payable other

1,338

Accounts
8,836 receivable –
trade

6,186

1,784

Transaction terms and method of determining transaction terms, etc.
Notes: 1. Transaction terms for the sale of products and the purchase of raw materials are
determined based on market prices, etc.
2. Deposit of surplus funds is carried out based on a deposit agreement. It is not recordedin the Transaction amount column, since the amount is moving daily.
3. The interest rate for interest payment is determined in view of the market interest rate .
4. The interest rate for loans is determined in view of the market interest rate and theinterest rates on funds procured.
5. Terms for the construction of production equipment are determined in view ofprevailing market values, etc.
10. Notes on Per Share Information
Net assets per share

2,216.10 yen

Net income per share

156.94 yen

11. Notes on Significant Subsequent Events
Not applicable.
12. Notes on Revenue Recognition
Information fundamental to an understanding of revenue arising from contracts with customers is
identical to the information provided in the Notes to Consolidated Financial Statements “Notes on
Revenue Recognition.”
13. Other Notes(1) Settlement Income

Identical to the information provided in the Notes to Consolidated Financial Statements 12. Other Notes(1) “Settlement Income.”(2) Impairment loss

Identical to the information provided in the Notes to Consolidated Financial Statements 12. Other Notes(2) “Impairment Loss.”(3) Amounts presented are rounded down to the nearest million yen.

31