ISB : 〔Delayed〕Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended June 30, 2022
		(Based on Japanese GAAP)
				July 29, 2022
Company name:	I S B CORPORATION
Stock exchange listing:	Tokyo
Stock code:	9702	URL https://www.isb.co.jp/
Representative:	President		Kazufumi Wakao
	Director,
Inquiries:	Executive General Manager, Administrative	Yoichi Takeda	TEL [phone]
	Headquarters
Scheduled date to file Quarterly Securities Report:	August 15, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)									Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen		%
Six months ended June 30, 2022	14,173		10.3		1,106		8.3		1,133			7.7		694		7.1
Six months ended June 30, 2021	12,845		5.9		1,021		15.6		1,052		16.3		648		30.4
	Earnings per share		Diluted earnings per share
			Yen						Yen
Six months ended June 30, 2022			61.07						-
Six months ended June 30, 2021			57.13						-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2022		14,572						9,983				68.5
As of December 31, 2021		14,361						9,557				66.6
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended December 31, 2021		-			0.00				-				30.00			30.00
Year ending December 31, 2022		-			0.00
Year ending December 31, 2022 (Forecast)										-				37.00			37.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	28,673	9.5	2,286	22.2	2,353	21.2	1,404	26.5	123.28

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	11,388,716	shares	As of December 31, 2021	11,363,159	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	112	shares	As of December 31, 2021	112	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	11,372,507	shares	Six months ended June 30, 2021	11,348,272	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	6,074,660	6,643,805
Notes and accounts receivable - trade, and contract assets	4,962,481	4,815,711
Prepaid expenses	143,239	175,008
Merchandise	265,733	452,992
Work in process	81,042	2,593
Supplies	1,604	1,027
Other	119,739	80,286
Allowance for doubtful accounts	(35,345)	(40,100)
Total current assets	11,613,155	12,131,325
Non-current assets
Property, plant and equipment
Buildings and structures	490,913	488,058
Accumulated depreciation and impairment	(295,127)	(294,123)
Buildings and structures, net	195,785	193,934
Land	600,550	600,550
Other	667,618	667,904
Accumulated depreciation and impairment	(472,878)	(481,114)
Other, net	194,740	186,789
Total property, plant and equipment	991,076	981,274
Intangible assets
Goodwill	711,908	533,931
Other	44,411	39,214
Total intangible assets	756,320	573,145
Investments and other assets
Investment securities	468,342	418,265
Long-term prepaid expenses	6,601	6,741
Guarantee deposits	293,330	287,501
Deferred tax assets	150,775	150,432
Other	82,152	23,356
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	1,001,202	886,297
Total non-current assets	2,748,598	2,440,717
Total assets		14,361,754	14,572,042

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,635,335	1,621,934
Contract liabilities	-	4,562
Short-term borrowings	120,000	120,000
Accounts payable - other	1,063,210	912,863
Accrued expenses	102,563	66,667
Income taxes payable	448,664	447,716
Accrued consumption taxes	401,042	283,061
Provision for bonuses	28,076	29,591
Provision for bonuses for directors (and other officers)	17,395	30,087
Provision for loss on order received	16	609
Other	407,572	511,557
Total current liabilities	4,223,878	4,028,651
Non-current liabilities
Retirement benefit liability	236,485	244,797
Provision for retirement benefits for directors (and other	53,430	48,294
officers)
Asset retirement obligations	82,361	84,951
Deferred tax liabilities	43,620	18,089
Other	164,163	163,563
Total non-current liabilities	580,061	559,696
Total liabilities	4,803,939	4,588,347
Net assets
Shareholders' equity
Share capital	2,346,932	2,361,512
Capital surplus	2,951,111	2,965,691
Retained earnings	4,117,861	4,496,298
Treasury shares	(92)	(92)
Total shareholders' equity	9,415,812	9,823,410
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	156,646	115,171
Foreign currency translation adjustment	(14,644)	45,113
Total accumulated other comprehensive income	142,002	160,284
Total net assets	9,557,814	9,983,695
Total liabilities and net assets		14,361,754	14,572,042

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	12,845,676	14,173,713
Cost of sales	9,565,150	10,740,441
Gross profit	3,280,525	3,433,271
Selling, general and administrative expenses	2,258,788	2,327,057
Operating profit	1,021,736	1,106,213
Non-operating income
Interest income	5,110	6,544
Dividend income	24,385	8,803
Surrender value of insurance policies	-	14,403
Other	5,887	2,697
Total non-operating income	35,383	32,449
Non-operating expenses
Interest expenses	568	372
Share issuance costs	475	476
Loss on sale of notes receivable - trade	1,429	895
Foreign exchange losses	1,837	1,744
Other	116	1,841
Total non-operating expenses	4,428	5,330
Ordinary profit	1,052,692	1,133,332
Profit before income taxes	1,052,692	1,133,332
Income taxes - current	388,901	456,190
Income taxes - deferred	15,437	(17,378)
Total income taxes	404,339	438,812
Profit	648,353	694,520
Profit attributable to owners of parent		648,353	694,520

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