ISB : Summary of Consolidated Financial Results for the Three Months Ended March 31, 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 Three Months Ended March 31, 2022

(Based on Japanese GAAP)

Company name:I S B CORPORATIONStock exchange listing: TokyoStock code: Representative:

9702 URLhttps://www.isb.co.jp/ President

Director,

Inquiries:

Executive General Manager, Administrative Headquarters

Scheduled date to file Quarterly Securities Report: Scheduled date to commence dividend payments:

Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results meeting:

Kazufumi Wakao

Yoichi Takeda

May 16, 2022 -

TEL [phone]

Yes

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended March 31, 2022 (from January 1, 2022 to March 31, 2022)

(1) Consolidated operating results (cumulative)

April 28, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Three months ended March 31, 2022 Three months ended March 31, 2021	Millions of yen 7,056 6,686	% 5.5 5.5	Millions of yen 695 826	% (15.8) 33.5	Millions of yen 697 845	% (17.5) 36.1	Millions of yen 445 532	% (16.5) 65.5

Earnings per share	Diluted earnings per share
Three months ended March 31, 2022 Three months ended March 31, 2021	Yen 39.18 47.00	Yen - -

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of March 31, 2022 As of December 31, 2021	Millions of yen 14,485 14,361	Millions of yen 9,686 9,557	% 66.9 66.6

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended December 31, 2021 Year ending December 31, 2022	Yen - -	Yen 0.00	Yen -	Yen 30.00	Yen 30.00
Year ending December 31, 2022 (Forecast)	0.00	-	33.00	33.00

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 owners of parent	Earnings per share
Six months ending June 30, 2022 Full year	Millions of yen 13,500 28,000	% 5.1 7.0	Millions of yen 890 2,070	% (12.9) 10.7	Millions of yen 910 2,130	% (13.6) 9.8	Millions of yen 530 1,240	% (18.3) 11.7	Yen 46.64 109.13

4. Notes

• (1) Changes in significant subsidiaries during the three months ended March 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):No

• (2) Application of special accounting methods for preparing quarterly consolidated financial statements: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 March 31, 2022 11,363,159 shares

As of December 31, 2021 11,363,159 shares

As of March 31, 2022

11,363,159 shares As of December 31, 2021

Number of treasury shares at the end of the period

As of March 31, 2022 112 shares

As of December 31, 2021 112 shares

As of March 31, 2022

112 shares As of December 31, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended March 31, 2022 11,363,047 shares

Three months ended March 31, 2021 11,339,792 shares

Three months ended March 31, 2022

11,363,047 shares Three months ended March 31, 2021

112 sh

11,339,792 shares

Quarterly consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of December 31, 2021	As of March 31, 2022
Assets Current assets Cash and deposits Notes and accounts receivable - trade Notes and accounts receivable - trade, and contract assets Prepaid expenses Merchandise Work in process Supplies Other Allowance for doubtful accounts	6,074,660 4,962,481 - 143,239 265,733 81,042 1,604 119,739 (35,345)	6,094,494 - 5,070,531 162,207 409,001 - 1,604 122,623 (37,691)
Total current assets	11,613,155	11,822,770
Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation and impairment	490,913 (295,127)	481,543 (290,263)
Buildings and structures, net	195,785	191,280
Land Other Accumulated depreciation and impairment	600,550 667,618 (472,878)	600,550 656,371 (473,959)
Other, net	194,740	182,411
Total property, plant and equipment	991,076	974,242
Intangible assets Goodwill Other	711,908 44,411	622,920 41,075
Total intangible assets	756,320	663,995
Investments and other assets Investment securities Long-term prepaid expenses Guarantee deposits Deferred tax assets Other Allowance for doubtful accounts	468,342 6,601 293,330 150,775 82,152 (0)	441,242 6,232 292,828 200,816 83,643 (0)
Total investments and other assets	1,001,202	1,024,763
Total non-current assets	2,748,598	2,663,001
Total assets	14,361,754	14,485,772

(37,691)

(290,263)

(473,959)

(0)

(Thousands of yen)
As of December 31, 2021	As of March 31, 2022
Liabilities Current liabilities Notes and accounts payable - trade Contract liabilities Short-term borrowings Accounts payable - other Accrued expenses Income taxes payable Accrued consumption taxes Provision for bonuses Provision for bonuses for directors (and other officers) Provision for loss on order received Other	1,635,335 - 120,000 1,063,210 102,563 448,664 401,042 28,076 17,395 16 407,572	1,785,265 1,782 120,000 638,700 133,178 315,036 417,252 477,888 28,498 5,650 344,908
Total current liabilities	4,223,878	4,268,161
Non-current liabilities Retirement benefit liability Provision for retirement benefits for directors (and other officers) Asset retirement obligations Deferred tax liabilities Other	236,485 53,430 82,361 43,620 164,163	238,724 45,425 82,656 - 164,163
Total non-current liabilities	580,061	530,969
Total liabilities	4,803,939	4,799,131
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,346,932 2,951,111 4,117,861 (92)	2,346,932 2,951,111 4,247,019 (92)
Total shareholders' equity	9,415,812	9,544,970
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment	156,646 (14,644)	136,195 5,474
Total accumulated other comprehensive income	142,002	141,670
Total net assets	9,557,814	9,686,640
Total liabilities and net assets	14,361,754	14,485,772

(92)

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

(cumulative)

Consolidated statements of income (cumulative)

(Thousands of yen)
Three months ended March 31, 2021	Three months ended March 31, 2022
Net sales Cost of sales	6,686,295 4,777,030	7,056,080 5,273,572
Gross profit	1,909,265	1,782,507
Selling, general and administrative expenses	1,082,574	1,086,513
Operating profit	826,690	695,993
Non-operating income Interest income Dividend income Other	2,767 16,000 3,487	3,175 - 1,709
Total non-operating income	22,255	4,885
Non-operating expenses Interest expenses Loss on sale of notes receivable - trade Foreign exchange losses Other	257 911 2,001 56	185 435 2,788 32
Total non-operating expenses	3,228	3,441
Ordinary profit	845,717	697,437
Profit before income taxes	845,717	697,437
Income taxes - current Income taxes - deferred	406,666 (93,869)	338,741 (86,545)
Total income taxes	312,796	252,195
Profit	532,921	445,241
Profit attributable to owners of parent	532,921	445,241

(86,545)