Interim report
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DISCLAIMER : This document has been translated from a part of 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 . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) Tokyo Stock Exchange https://www.isb.co.jp/ Company name : Listing : ISB CORPORATION Securities code : 9702 URL : Representative : Inquiries : Telephone : Kazufumi Wakao , Representative Director and President Masaya Hirose , Director , Executive General Manager , Administrative Headquarters + 81-3-6775-3270 Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 14 , 2026 Yes Yes August 7 , 2026 ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 19,171 4.0 1,582 12.3 1,618 13.4 1,018 28.1 June 30 , 2025 18,439 10.6 1,409 ( 8.4 ) 1,426 ( 9.1 ) 795 ( 29.0 ) Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Basic earnings per share ¥ 980 million ¥ 795 million [ 23.2 % ] [ ( 36.6 ) % ] Diluted earnings per share Six months ended June 30 , 2026 June 30 , 2025 Yen Yen 88.83 69.46 ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Reference : Equity Total assets Millions of yen 20,806 21,610 As of June 30 , 2026 : As of December 31 , 2025 : ¥ 14,904 million ¥ 14,522 million 2 . Cash dividends Net assets Equity - to - asset ratio Millions of yen % 14,904 71.6 14,522 67.2 Fiscal year ended December 31 , 2025 Fiscal year ending December 31 , 2026 Fiscal year ending December 31 , 2026 ( Forecast ) First quarter - end Second quarter - end Yen Yen 0.00 Note : Revisions to the forecast of cash dividends most recently announced : None 0.00 Annual dividends per share Third quarter - end Fiscal year - end Total Yen Yen Yen 55.00 55.00 70.00 3. Forecast of consolidated financial results for the fiscal year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) 70.00 Fiscal year ending December 31 , 2026 Net sales Operating profit Ordinary profit ( Percentages indicate year - on - year changes . ) Profit attributable to Basic earnings per share owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 38,500 4.0 3,000 29.6 3,050 27.9 1,850 28.9 161.40 Note : Revisions to the earnings forecasts most recently announced : None
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* Notes (1) Significant changes in the scope of consolidation during the period: None (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 accoun ting 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 June 30, 2026 11,478,497 shares As of December 31, 2025 11,463,141 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 149 shares As of December 31, 2025 149 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 11,468,507 shares Six months ended June 30, 2025 11,446,431 shares * Semi-annual financial results reports ar e exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters (Cautions on forward-looking statements, etc.) The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual financial results, etc. may differ substantially due to various factors. For information on the conditions on which earnings forecasts are based and precautions to be taken when using earnings forecasts, please refer to "Explanation of Forward-Looking Information such as Consolidated Earnings Forecasts" on page 3 of the Interim Financial Results Summary (Appendix). (Method of accessing supplementary material on financial results and contents of the financial results briefing) Supplementary financial results materials are disclosed on TDnet on the same day and are also posted on the Company's website. A briefing for institutional investors and analysts is scheduled to be held on Monday, August 10, 2026, and a video of the briefing will be posted on the Company's website after the meeting.
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Semi-annual consolidated balance sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 9,078 9,039 Notes and accounts receivable - trade, and contract assets 6,388 5,739 Prepaid expenses 277 446 Merchandise 1,131 933 Work in process 0 1 Supplies 1 2 Other 73 77 Allowance for doubtful accounts (5) (4) Total current assets 16,947 16,236 Non-current assets Property, plant and equipment Buildings and structures 1,237 1,275 Accumulated depreciation and impairment (190) (232) Buildings and structures, net 1,047 1,043 Land 354 354 Other 1,067 1,127 Accumulated depreciation and impairment (544) (635) Other, net 522 492 Total property, plant and equipment 1,923 1,889 Intangible assets Goodwill 286 250 Customer-related intangible assets 368 347 Other 114 154 Total intangible assets 769 753 Investments and other assets Investment securities 803 714 Long-term prepaid expenses 13 82 Guarantee deposits 764 788 Deferred tax assets 328 282 Allowance for doubtful accounts (0) (0) Other 59 59 Total investments and other assets 1,969 1,927 Total non-current assets 4,663 4,569 Total assets 21,610 20,806
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(Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 2,373 1,424 Contract liabilities 185 192 Short-term borrowings 120 120 Accounts payable - other 1,586 1,276 Accrued expenses 294 282 Income taxes payable 600 603 Accrued consumption taxes 340 458 Provision for bonuses 34 57 Provision for bonuses for directors (and other officers) 54 36 Provision for loss on orders received 115 - Other 403 460 Total current liabilities 6,109 4,911 Non-current liabilities Retirement benefit liability 263 270 Provision for retirement benefits for directors (and other officers) 85 97 Asset retirement obligations 440 449 Deferred tax liabilities 172 156 Other 17 16 Total non-current liabilities 978 990 Total liabilities 7,087 5,902 Net assets Shareholders' equity Share capital 2,410 2,426 Capital surplus 3,014 3,030 Retained earnings 8,605 8,994 Treasury shares (0) (0) Total shareholders' equity 14,030 14,450 Accumulated other comprehensive income Valuation difference on available-for-sale securities 375 315 Foreign currency translation adjustment 116 138 Total accumulated other comprehensive income 492 454 Total net assets 14,522 14,904 Total liabilities and net assets 21,610 20,806
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Semi-annual consolidated statement of income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 18,439 19,171 Cost of sales 13,839 14,428 Gross profit 4,600 4,743 Selling, general and administrative expenses 3,191 3,160 Operating profit 1,409 1,582 Non-operating income Interest income 7 6 Dividend income 12 19 Dividend income of insurance 0 - Insurance claim income - 5 Other 8 8 Total non-operating income 30 40 Non-operating expenses Interest expenses 0 0 Loss on sale of notes receivable - trade 0 0 Foreign exchange losses 4 2 Other 6 1 Total non-operating expenses 12 4 Ordinary profit 1,426 1,618 Profit before income taxes 1,426 1,618 Income taxes - current 602 540 Income taxes - deferred 28 59 Total income taxes 631 599 Profit 795 1,018 Profit attributable to owners of parent 795 1,018
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Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 795 1,018 Other comprehensive income V aluation difference on available-for-sale securities 55 (60) Foreign currency translation adjustment (54) 22 Total other comprehensive income 0 (38) Comprehensive income 795 980 Comprehensive income attributable to Comprehensive income attributable to owners of parent 795 980
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Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 1,426 1,618 Depreciation 193 181 Amortization of goodwill 35 35 Increase (decrease) in allowance for doubtful accounts (0) (0) Increase (decrease) in provision for bonuses 32 22 Increase (decrease) in provision for bonuses for directors (and other officers) (56) (17) Increase (decrease) in provision for loss on orders received 28 (115) Increase (decrease) in retirement benefit liability 0 7 Increase (decrease) in provision for retirement benefits for directors (and other officers) 5 12 Interest and dividend income (20) (25) Dividend income of insurance (0) - Interest expenses 0 0 Decrease (increase) in trade receivables 222 657 Decrease (increase) in inventories (201) 196 Increase (decrease) in trade payables (1) (949) Increase (decrease) in accounts payable - other (142) (308) Increase (decrease) in accrued consumption taxes (57) 117 Decrease (increase) in other current assets (95) (151) Increase (decrease) in other current liabilities 167 12 Other, net 15 (56) Subtotal 1,551 1,235 Interest and dividends received 20 25 Insurance amount of dividends received 0 - Proceeds from insurance income - 5 Interest paid (0) (0) Income taxes paid (441) (524) Net cash provided by (used in) operating activities 1,130 741 Cash flows from investing activities Purchase of property, plant and equipment (806) (94) Payments for asset retirement obligations (1) - Purchase of intangible assets (29) (46) Purchase of investment securities (1) (1) Payments of leasehold and guarantee deposits (14) (62) Proceeds from refund of leasehold and guarantee deposits 3 39 Proceeds from maturity of insurance funds 9 - Purchase of long-term prepaid expenses (10) (5) Other, net 0 0 Net cash provided by (used in) investing activities (851) (170) Cash flows from financing activities Repayments of lease liabilities (0) (0) Dividends paid (615) (628) Net cash provided by (used in) financing activities (615) (629) Effect of exchange rate change on cash and cash equivalents (49) 19 Net increase (decrease) in cash and cash equivalents (386) (39) Cash and cash equivalents at beginning of period 8,975 9,078 Cash and cash equivalents at end of period 8,588 9,039
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(Notes on segment information, etc.) Segment Information I. Previous interim consolidated accounting period (January 1, 2025 to June 30, 2025) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Adjustment amount (Note) Total Information service business Security system Sales Revenues from external customers 15,528 2,910 - 18,439 Transactions with other segments 57 29 (86) - Total 15,586 2,939 (86) 18,439 Segment Profit 876 514 18 1,409 Note: 1. Segment profit is adjusted to operating income in the interim consolidated statements of income. 2. In the previous fiscal year, the provisional accounting treatment for the business combination was finalized, and the segment information for the previous interim consolidated accounting period is shown after the revision is reflected. 2. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant impairment loss on fixed assets) Not applicable. (Significant fluctuations in the amount of goodwill) Not applicable. (Significant Negative Goodwill Accrual) Not applicable. II. Interim Consolidated Accounting Period (January 1, 2026 to June 30, 2026) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Adjustment amount (Note) Total Information service business Security system Sales Revenues from external customers 15,793 3,377 - 19,171 Transactions with other segments 58 19 (78) - Total 15,851 3,397 (78) 19,171 Segment Profit 865 708 8 1,582 Note: Segment profit is adjusted for operating income in the interim consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant impairment loss on fixed assets) Not applicable. (Significant fluctuations in the amount of goodwill) Not applicable. (Significant Negative Goodwill Accrual) Not applicable.