ISB : Summary of Consolidated Financial Results for the Year Ended December 31, 2021 (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 Year Ended December 31, 2021
		(Based on Japanese GAAP)
					February 14, 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 of ordinary general meeting of shareholders:	March 25, 2022
Scheduled date to file Securities Report:	March 25, 2022
Scheduled date to commence dividend payments:	March 28, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)

(1) Consolidated operating results												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		%
Year ended December 31, 2021	26,176		7.1	1,869		13.7		1,940		13.3	1,110		11.6
Year ended December 31, 2020	24,434		8.5	1,644		37.7		1,712		39.5			994		57.0
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended December 31, 2021		97.77			-			12.1						13.9				7.1
Year ended December 31, 2020		94.10			-			12.9						13.3				6.7
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio		Net assets per share
	Millions of yen	Millions of yen						%					Yen
As of December 31, 2021		14,361					9,557						66.6					841.13
As of December 31, 2020		13,505					8,755						64.8					772.12
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended December 31, 2021				1,457					(202)						(402)					6,071
Year ended December 31, 2020				1,863					(132)						(185)					5,196
2. Cash dividends
					Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
														to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen		Yen	Yen	Millions of yen	%			%
Year ended December 31, 2020	-			0.00	-		63.00	63.00			357	33.5			4.1
Year ended December 31, 2021	-			0.00	-		30.00	30.00			340	30.7			3.6
Year ending December 31, 2022	-			0.00	-				33.00	33.00				30.2
(Forecast)
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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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
13,500	5.1	890	(12.9)	910	(13.6)		530	(18.3)	46.64
June 30, 2022
Full year	28,000	7.0	2,070	10.7	2,130	9.8		1,240	11.7	109.13
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

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

	As of December 31, 2021	11,363,159	shares	As of December 31, 2020	11,339,904	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	112	shares	As of December 31, 2020	112	shares
Average number of shares during the period
	Year ended December 31, 2021	11,355,720	shares	Year ended December 31, 2020	10,567,738	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	5,199,102	6,074,660
Notes and accounts receivable - trade	4,452,676	4,962,481
Prepaid expenses	116,147	143,239
Merchandise	487,081	265,733
Work in process	93,049	81,042
Supplies	3,062	1,604
Other	76,308	119,739
Allowance for doubtful accounts	(32,049)	(35,345)
Total current assets	10,395,378	11,613,155
Non-current assets
Property, plant and equipment
Buildings and structures	454,099	490,913
Accumulated depreciation and impairment	(293,059)	(295,127)
Buildings and structures, net	161,040	195,785
Land	600,550	600,550
Other	599,789	667,618
Accumulated depreciation and impairment	(440,592)	(472,878)
Other, net	159,197	194,740
Total property, plant and equipment	920,788	991,076
Intangible assets
Goodwill	1,163,090	711,908
Other	65,470	44,411
Total intangible assets	1,228,561	756,320
Investments and other assets
Investment securities	470,807	468,342
Long-term prepaid expenses	3,878	6,601
Guarantee deposits	265,505	293,330
Deferred tax assets	144,992	150,775
Other	77,746	82,152
Allowance for doubtful accounts	(1,963)	(0)
Total investments and other assets	960,967	1,001,202
Total non-current assets	3,110,316	2,748,598
Total assets		13,505,695	14,361,754

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,420,871	1,635,335
Short-term borrowings	140,000	120,000
Accounts payable - other	991,984	1,063,210
Accrued expenses	109,846	102,563
Income taxes payable	443,936	448,664
Accrued consumption taxes	542,891	401,042
Provision for bonuses	30,517	28,076
Provision for bonuses for directors (and other officers)	75,985	17,395
Provision for loss on order received	1,610	16
Other	390,023	407,572
Total current liabilities	4,147,666	4,223,878
Non-current liabilities
Retirement benefit liability	226,213	236,485
Provision for retirement benefits for directors (and other	49,516	53,430
officers)
Asset retirement obligations	81,461	82,361
Deferred tax liabilities	47,817	43,620
Other	197,315	164,163
Total non-current liabilities	602,324	580,061
Total liabilities	4,749,990	4,803,939
Net assets
Shareholders' equity
Share capital	2,332,514	2,346,932
Capital surplus	2,936,693	2,951,111
Retained earnings	3,364,788	4,117,861
Treasury shares	(92)	(92)
Total shareholders' equity	8,633,903	9,415,812
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	161,324	156,646
Foreign currency translation adjustment	(39,523)	(14,644)
Total accumulated other comprehensive income	121,801	142,002
Total net assets	8,755,704	9,557,814
Total liabilities and net assets		13,505,695	14,361,754

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales	24,434,307	26,176,541
Cost of sales	18,589,360	19,880,770
Gross profit	5,844,946	6,295,770
Selling, general and administrative expenses	4,200,893	4,425,779
Operating profit	1,644,053	1,869,991
Non-operating income
Interest income	8,423	10,527
Dividend income	18,241	39,144
Dividend income of insurance	30,073	37,172
Compensation income	18,890	-
Subsidy income	11,137	-
Other	9,181	21,031
Total non-operating income	95,949	107,875
Non-operating expenses
Interest expenses	5,096	862
Share issuance costs	18,538	475
Loss on sale of notes receivable - trade	2,856	2,192
Compensation expenses	-	29,499
Other	1,102	4,097
Total non-operating expenses	27,594	37,126
Ordinary profit	1,712,408	1,940,740
Extraordinary losses
Loss on sale of property, plant and equipment	566	-
Total extraordinary losses	566	-
Profit before income taxes	1,711,841	1,940,740
Income taxes - current	702,942	838,380
Income taxes - deferred	14,459	(7,917)
Total income taxes	717,402	830,463
Profit	994,439	1,110,276
Profit attributable to owners of parent		994,439	1,110,276

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