Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Summary of Consolidated Financial Statements for First Quarter of Fiscal Year Ending March 31 , 2027 ( Under Japanese GAAP ) August 7 , 2026 Company name : Listing : Ishihara Sangyo Kaisha , Ltd. Tokyo Stock Exchange https://www.iskweb.co.jp/eng Hiroshi Okubo , Executive Director President Securities Code : 4028 URL : Representative : Inquiries : Telephone : Toichiro Shiomi , Managing Executive officer and CFO , Director of Finance & Accounting Headquarters + 81-6-6444-1850 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : 1 . No No ( Yen amounts are rounded down to millions , unless otherwise noted ) Consolidated Financial Results for the Three months Ended Jun 30,2026 ( April 1 , 2026 to Jun 30 , 2026 ) ( 1 ) Consolidated Operating Results ( cumulative ) ( Percentages indicate changes from the previous corresponding term ) Net sales Three months ended Jun 30 , 2026 Millions of yen 39,289 Jun 30 , 2025 42,561 % -7.7 13.2 Operating profit Millions of yen % 2,206 -57.6 5,206 191.4 Ordinary profit Millions of yen 4,142 % -33.1 Profit attributable to owners of parent Millions of yen % 1,013 -78.6 6,190 49.7 4,737 64.8 ( Note ) Comprehensive income : For the three months ended Jun 30 , 2026 : For the three months ended Jun 30 , 2025 : ¥ 2,048 million ( -52.5 % ) ¥ 4,307 million ( 9.7 % ) Basic earnings per share Diluted earnings per share Three months ended Jun 30 , 2026 Jun 30 , 2025 Yen 26.49 123.82 Yen ( 2 ) Consolidated Financial Position As of Total assets Millions of yen Jun 30 , 2026 March 31 , 2026 237,014 240,408 ( Reference ) Equity : As of Jun 30 , 2026 : 2. Cash dividends Fiscal Year ended March 31 , 2026 Fiscal Year ending March 31 , 2027 Fiscal Year ending March 31 , 2027 ( Forecast ) Net assets Equity - to - asset ratio Millions of yen % 127,740 129,178 53.8 53.7 ¥ 127,545 million As of March 31 , 2026 : ¥ 128,991 million Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 30.00 90.00 120.00 50.00 ( Note ) Revision to the forecast of Cash dividends most recently announced : No * This is an English translation of Summary originally written in Japanese and disclosed to TSE . For official purposes , the Japanese version takes preference over this English translation . -1- 80.00 130.00
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -2- 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (From April 1, 2026 to March 31, 2027) (Percentages indicate changes from the previous corresponding term) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half 75,000 -1.9 3,100 -57.9 3,800 -55.3 700 -87.6 18.29 Full year 150,000 -3.2 14,200 -25.6 13,300 -38.8 － － － (Note) Revision to the financial results forecast most recently announced: Yes ＊ Notes (1) Significant changes in the scope of consolidation during the period: No change (changes in specified subsidiaries resulting in the change in consolidation scope) (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of Issued shares (common shares) (i) Total number of Issued shares at the end of the period (including treasury shares) As of Jun 30, 2026: 40,383,943 shares As of March 31, 2026: 40,383,943 shares (ii) Number of treasury shares at the end of the period As of Jun 30, 2026: 2,119,089 shares As of March 31, 2026: 2,117,170 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended Jun 30, 2026: 38,265,560 shares Three months ended Jun 30, 2025: 38,258,245 shares Notes: The Company has introduced a stock-based compensation plan by means of a trust for the Company’s Directors. The number of shares held in this trust account is included in the number of treasury stock. * Quarterly financial results reports are exempt from review conducted by certified public accountants or an audit firm. *Notes on proper use of forecast and other matters The forecast of financial results presented in this document is the result of management’s assessment based upon currently available assumptions, prospects and plans for the future. Actual results and dividend payments may differ from these forecasts, due to risks and uncertain factors, such as the global economy, competition, and foreign currency fluctuations.
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -3- 4. Consolidated Financial Statements (1) Consolidated Balance Sheet (Millions of yen) Account Category As of March 31, 2026 As of June 30 , 2026 ASSETS Current Assets Cash and deposits 29,424 29,741 Notes and accounts receivable-trade and contract assets 46,749 47,603 Electronically recorded monetary claims - operating 1,974 3,145 Merchandise and finished goods 41,504 44,997 Work in process 5,793 6,403 Raw materials and supplies 32,882 24,386 Other 3,766 2,885 Allowance for doubtful accounts -286 -238 Total current assets 161,808 158,924 Non-current assets Property, plant and equipment Machinery and equipment, net 14,599 13,265 Others, net 38,902 36,912 Total property, plant and equipment 53,502 50,177 Intangible assets 2,314 2,363 Investments and other assets Investment securities 13,625 16,336 Deferred tax assets 6,966 7,169 Retirement benefit asset 42 47 Other 2,195 2,042 Allowance for doubtful accounts -48 -48 Total investments and other assets 22,782 25,548 Total non-current assets 78,599 78,090 Total Assets 240,408 237,014
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -4- (Millions of yen) Account Category As of March 31,2026 As of June 30, 2026 LIABILITIES Current Liabilities Accounts payable - trade 11,434 10,362 Electronically recorded obligations - operating 976 970 Short-term borrowings 22,049 22,009 Current portion of bonds payable 854 854 Income taxes payable 3,367 1,325 Provisions 1,511 2,389 Other 11,827 14,484 Total current liabilities 52,021 52,396 Non-current liabilities Bonds payable 924 924 Long-term borrowings 45,440 43,225 Provisions 198 210 Retirement benefit liability 9,722 9,667 Other 2,921 2,849 Total non-current liabilities 59,207 56,877 Total Liabilities 111,229 109,274 NET ASSETS Shareholders’ equity Share capital 43,420 43,420 Capital surplus 11,227 11,227 Retained earnings 68,658 66,188 Treasury shares -3,143 -3,146 Total shareholders’ equity 120,162 117,689 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,281 2,002 Deferred gains or losses on hedges ― -3 Foreign currency translation adjustment 6,128 6,461 Remeasurements of defined benefit plans 1,419 1,395 Total accumulated other comprehensive income 8,829 9,856 Non-controlling interests 187 194 Total net assets 129,178 127,740 Total Liabilities and Net Assets 240,408 237,014
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -5- (2) Consolidated Statements of Income (Cumulative) and consolidated Statements of Comprehensive income (Cumulative) Consolidated Statements of Income (Cumulative) (Millions of yen) Account Category Three months ended Jun 30,2025 Three months ended Jun 30,2026 Net sales 42,561 39,289 Cost of sales 30,245 27,901 Gross profit 12,316 11,388 Selling, general and administrative expenses 7,110 9,182 Operating profit 5,206 2,206 Non-operating income Interest income 66 45 Dividend income 99 259 Share of profit of entities accounted for using equity method 1,210 1,562 Foreign exchange gains ― 439 Other 149 71 Total non-operating income 1,526 2,378 Non-operating expenses Interest expenses 223 232 Financial commission 118 48 Foreign exchange losses 160 ― Other 41 160 Total non-operating expenses 542 441 Ordinary profit 6,190 4,142 Extraordinary income Gain on sale of investment securities 19 102 Total extraordinary income 19 102 Extraordinary losses Impairment losses 93 2,523 Loss on disposal of non-current assets 380 150 Total extraordinary losses 474 2,674 Profit before income taxes 5,736 1,570 Income taxes-current 1,001 1,068 Income taxes-deferred -12 -519 Total income taxes 988 548 Profit 4,747 1,021 Profit attributable to non-controlling interests 9 7 Profit attributable to owners of parent 4,737 1,013
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -6- Consolidated Statements of Comprehensive Income (Cumulative) (Millions of yen) Account Category Three months ended Jun 30,2025 Three months ended Jun 30,2026 Profit 4,747 1,021 Other comprehensive income Valuation difference on available-for-sale securities 26 719 Deferred gains or losses on hedges ― -3 Foreign currency translation adjustment -779 217 Remeasurements of defined benefit plans, net of tax -38 -23 Share of other comprehensive income of entities accounted for using equity method 351 116 Total other comprehensive income -439 1,026 Comprehensive income 4,307 2,048 (Comprehensive income attributable to) Comprehensive income attributable to owners of parent 4,298 2,040 Comprehensive income attributable to non-controlling interests 9 7
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -7- 5. Segment Information 【Business Segment Information 】 For the three months ended Jun 30, 2025(From April 1, 2025 to Jun 30, 2025) (1) Information on sales and profit or loss by repo rtable segment (Millions of yen) Reportable Segment Adjustments Total Organic Chemicals Inorganic Chemicals Other Sub Total Net sales (1) Sales to external customers 25,345 16,379 836 42,561 ― 42,561 (2) Intersegment sales and transfers ― ― 549 549 -549 ― Total 25,345 16,379 1,385 43,111 -549 42,561 Segment profit or loss 4,413 1,914 7 6,336 -1,129 5,206 (Note) 1. Adjustments include the following items (1) Adjustments in segment profit ( -￥1,129million) include elimination of transaction be tween segments (￥55million) and corporate expenses not allocated to reporting segments( -￥1,185million). Corporate expenses mainly comprise general expenses not allocated segments. (2) Segment profit or loss is adjusted to be consis tent with operating profit shown on the consolidated statement of income (Cumulative). (2) Geographical information Net Sales (Millions of yen) Japan Asia Americas Europe Other Total 13,573 5,854 9,008 13,507 619 42,561 (Note) 1. Net sales by geographic segment are base d on nations or regions where customers reside. 2. Grouping of countries and regions are based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are follows, excluding Japan: (1) Asia : China, Taiwan, South Korea, Thailand, In donesia, Singapore, and India (2) Americas : United States of America, Canada, Br azil, Argentina, and Mexico (3) Europe : Germany, Netherlands, France, the Unit ed Kingdom, Belgium, Italy, and East Europe and Middle East regions (4) Other : Australia, New Zealand and Africa (3) Information concerning impairment loss or goodwill on fixed assets by segment (Material Impairment loss on Fixed Assets) Not applicable. (Material Change in the Amount of Goodwill) Not applicable.
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* This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation. -8- For the three months ended Jun 30, 2026(From April 1, 2026 to Jun 30, 2026) (1) Information on sales and profit or loss by reportable segment (Millions of yen) Reportable Segment Adjustments Total Organic Chemicals Inorganic Chemicals Other Sub Total Net sales (1) Sales to external customers 21,124 17,032 1,133 39,289 ― 39,289 (2) Intersegment sales and transfers 0 ― 996 996 -996 ― Total 21,124 17,032 2,130 40,286 -996 39,289 Segment profit 1,838 1,574 40 3,453 -1,247 2,206 (Note) 1. Adjustments include the following items (1) Adjustments in segment profit ( -￥1,247million) include elimination of transaction between segments (￥55million) and corporate expenses not allocated to reporting segments( -￥1,303million). Corporate expenses mainly comprise general expenses not allocated segments. (2) Segment profit is adjusted to be consistent wit h operating profit shown on the consolidated statement of income (Cumulative). (2) Geographical information Net Sales (Millions of yen) Japan Asia Americas Europe Other Total 15,018 6,620 5,225 11,924 501 39,289 (Note) 1. Net sales by geographic segment are based on nations or regions where customers reside. 2. Grouping of countries and regions are based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are follows, excluding Japan: (1) Asia : China, Taiwan, South Korea, Thailand, In donesia, Singapore, and India (2) Americas : United States of America, Canada, Br azil, Argentina, and Mexico (3) Europe : Germany, Netherlands, France, the Unit ed Kingdom, Belgium, Italy, and East Europe and Middle East regions (4) Other : Australia, New Zealand and Africa (3) Information concerning impairment loss or goodwill on noncurrent assets by segment (Material Impairment loss on Fixed Assets) An impairment loss of ¥2,523 million has been recognized in the Inorganic Chemicals segment. (Material Change in the Amount of Goodwill) Not applicable.