Summary of Consolidated Financial Statements for Fiscal Year Ended March 31, 2025 (Japan GAAP)

May 8, 2025

Company name: Ishihara Sangyo Kaisha, Ltd. Listing: Tokyo Stock Exchange

Securities Code: 4028

URL: https://www.iskweb.co.jp/eng Representative: Hiroshi Okubo, Executive Director President

Inquiries: Yasunobu Kawazoe, Director of Finance & Accounting Headquarters Telephone: +81-6-6444-1850

Scheduled date of annual general meeting of shareholders: June 26, 2025 Scheduled date to commence dividend payments: June 27, 2025 Scheduled date of file annual securities report: June 25, 2025

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted)

1. Consolidated Financial Results for the fiscal year ended March 31, 2025 (From April 1, 2024 to March 31, 2025)

   1. Consolidated Operating Results (cumulative)

      (Percentages indicates changes from the previous corresponding term)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2025	145,196	4.9	10,482	-8.8	11,392	-23.3	8,410	5.3
      March 31, 2024	138,456	5.5	11,491	33.1	14,850	43.5	7,988	15.0

      (Note) Comprehensive income: For the fiscal year ended March 31, 2025: ￥10,896 million ( 6.9 %)

      For the fiscal year ended March 31, 2024: ￥10,191million (13.9 %)

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended March 31, 2025 March 31, 2024	Yen 219.98 209.27	Yen - -	% 7.6 7.9	% 5.1 7.0	% 7.2 8.3

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2025: 1,502 million

      For the fiscal year ended March 31, 2024: 597 million

   2. Consolidated Financial Position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2025	225,097	114,448	50.8	2,986.82
      March 31, 2024	224,324	106,116	47.3	2,776.83

      (Reference) Equity: As of March 31, 2025: ￥114,272 million

      As of March 31, 2024: ￥106,068 million

   3. Consolidated Cash Flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 18,332 -2,811	Millions of yen -11,412 -7,044	Millions of yen -2,337 11,524	Millions of yen 24,948 19,982

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended March 31, 2024 March 31, 2025	Yen - -	Yen 0.00 0.00	Yen - -	Yen 70.00 85.00	Yen 70.00 85.00	Millions of yen 2,673 3,252	% 33.4 38.6	% 2.6 2.9
   Fiscal Year ending March 31, 2026 (Forecast)	-	30.00	-	70.00	100.00		41.6

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to March 31, 2026)

   (Percentages indicates changes from the previous corresponding term)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Profit per share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   First half	75,000	0.6	3,700	39.5	2,300	-7.5	-500	-	-13.06
   Full year	147,000	1.2	15,000	43.1	12,700	11.5	9,200	9.4	240.46

   ＊ Notes

   1. Significant changes in the scope of consolidation during the period: None (changes in specified subsidiaries resulting in the change in consolidation scope)

   2. Changes in accounting policies, changes in accounting estimates, and restatement

      1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

      2. Changes in accounting policies due to other reasons: None

      3. Changes in accounting estimates: None

      4. Restatement: None

   3. Number of Issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2025: 40,383,943 shares

         As of March 31, 2024: 40,383,943 shares

      2. Number of treasury shares at the end of the period As of March 31, 2025: 2,125,067 shares

         As of March 31, 2024: 2,186,519 shares

      3. Average number of shares outstanding during the period FY ended March 31, 2025: 38,233,823 shares

         FY ended March 31, 2024: 38,173,168 shares

         (Reference) Summary of the Non-Consolidated Operating Results

         1. Non-Consolidated Financial Results for the fiscal year ended March 31, 2025 (From April 1,2024 to March 31, 2025)

            1. Non-Consolidated Operating Results

               (Percentages indicates changes from the previous corresponding term)

               	Net sales		Operating profit		Ordinary profit		Net Profit
               Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
               March 31, 2025	117,924	8.1	6,803	-21.3	8,250	-36.7	6,542	9.2
               March 31, 2024	109,055	-1.3	8,640	19.0	13,034	32.6	5,990	-21.4

               	Profit per share	Fully diluted profit per share
               Fiscal year ended March 31, 2025 March 31, 2024	Yen 171.11 156.94	Yen - -

            2. Non-Consolidated Financial Position

               	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
               As of	Millions of yen	Millions of yen	%	Yen
               March 31, 2025	191,987	88,550	46.1	2,314.49
               March 31, 2024	192,658	84,649	43.9	2,216.10

               (Reference) Equity: As of March 31, 2025: 88,550million yen,

               As of March 31, 2024: 84,649million yen

               * Financial results reports are exempt from audit 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.

4. Consolidated Financial Statements

   1. Consolidated Balance Sheet

      (Millions of yen)

      Account Category	As of March 31, 2024	As of March 31, 2025
      Assets Current Assets Cash and deposits Notes receivable - trade Accounts receivable - trade Electronically recorded monetary claims - operating Contract assets Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Software Software in progress Leased assets Others Total intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total Assets	19,982 3,053 39,025 1,617 779 52,371 8,132 30,871 5,640 -302	24,948 3,149 36,733 2,637 534 49,248 6,116 27,500 4,274 -315
      	161,173	154,830
      	43,176 -30,192	43,999 -30,969
      	12,983	13,030
      	111,877 -98,911	114,449 -102,010
      	12,966	12,438
      	6,844 1,835 -1,070	6,851 2,556 -1,196
      	765	1,360
      	7,143 4,143 -3,287	11,959 4,386 -3,448
      	856	938
      	41,560	46,579
      	368 1,669 2 11	1,856 12 1 11
      	2,052	1,881
      	9,648 7,630 29 2,281 -52	11,488 6,557 36 3,782 -58
      	19,537	21,806
      	63,150	70,267
      	224,324	225,097

      (Millions of yen)

      Account Category	As of March 31, 2024	As of March 31, 2025
      Liabilities Current Liabilities Notes and accounts payable - trade Electronically recorded obligations - operating Short-term borrowings Current portion of long-term borrowings Current portion of bonds payable Lease liabilities Income taxes payable Contract liabilities Accrued expenses Provision for bonuses Provision for repairs Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Lease liabilities Reserve for implementation of environmental and safety arrangement Provision for repairs Retirement benefit liability Asset retirement obligations-NCL Other Total non-current liabilities Total Liabilities Net Assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total Liabilities and Net Assets	20,974	14,809
      	1,979	1,335
      	7,680	7,680
      	7,600	8,197
      	968	812
      	343	472
      	1,439	883
      	39	39
      	4,317	5,180
      	903	929
      	405	-
      	6,404	6,327
      	53,056	46,667
      	1,991	1,779
      	47,839	49,013
      	492	988
      	195	-
      	-	68
      	12,007	10,067
      	68	68
      	2,554	1,996
      	65,150	63,981
      	118,207	110,648
      	43,420	43,420
      	10,672	10,645
      	50,489	56,226
      	-2,653	-2,591
      	101,928	107,699
      	817	727
      	2,989	4,497
      	333	1,348
      	4,139	6,572
      	48	175
      	106,116	114,448
      	224,324	225,097

   2. Consolidated Statements of Income and Comprehensive income

      Consolidated Statements of Income

      (Millions of yen)

      Account Category	Fiscal year ended March 31,2024	Fiscal year ended March 31,2025
      Net sales	138,456	145,196
      Cost of sales	101,354	105,665
      Gross profit	37,101	39,531
      Selling, general and administrative expenses	25,609	29,048
      Operating profit	11,491	10,482
      Non-operating income
      Interest income	191	261
      Dividend income	236	458
      Share of profit of entities accounted for using equity method	597	1,502
      Foreign exchange gains	2,642	28
      Gain on sales of raw materials	150	-
      Reversal of reserve for implement environmental and safety maintenance-NOI	674	-
      Other	464	455
      Total non-operating income	4,955	2,706
      Non-operating expenses
      Interest expenses	625	759
      Financial commission	633	606
      Other	338	430
      Total non-operating expenses	1,597	1,796
      Ordinary profit	14,850	11,392
      Extraordinary income
      Gain on sale of non-current assets	39	-
      Gain on sale of investment securities	47	47
      Settlement income	2,077	-
      Total extraordinary income	2,165	47
      Extraordinary losses
      Loss on disposal of non-current assets	534	531
      Impairment losses	6,967	102
      Total extraordinary losses	7,502	633
      Profit before income taxes	9,512	10,806
      Income taxes - current	1,911	1,707
      Income taxes - deferred	-416	636
      Total income taxes	1,495	2,344
      Net Profit	8,017	8,462
      Profit attributable to non-controlling interests	28	51
      Profit attributable to owners of parent	7,988	8,410

      Consolidated Statements of Comprehensive Income

      (Millions of yen)

      Account Category	Fiscal year ended March 31,2024	Fiscal year ended March 31,2025
      Net Profit	8,017	8,462
      Other comprehensive income
      Valuation difference on available-for-sale securities	431	-90
      Foreign currency translation adjustment	1,309	1,437
      Remeasurements of defined benefit plans, net of tax	61	1,014
      Share of other comprehensive income of entities accounted for using equity method	370	71
      Total other comprehensive income	2,173	2,433
      Comprehensive income	10,191	10,896
      (Comprehensive income attributable to)
      Comprehensive income attributable to owners of parent	10,162	10,784
      Comprehensive income attributable to non-controlling interests	28	111

   3. Consolidated Statement of Changes in Net Assets

      Fiscal year ended March 31, 2024

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	43,420	10,653	44,102	-2,710	95,466
      Changes during period
      Dividends of surplus			-1,601		-1,601
      Profit attributable to owners of parent			7,988		7,988
      Purchase of treasury shares				-5	-5
      Disposal of treasury shares		19		61	80
      Net changes in items other than shareholders' equity
      Total changes during period	-	19	6,386	56	6,462
      Balance at end of period	43,420	10,672	50,489	-2,653	101,928

      	Accumulated other comprehensive income				Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	384	1,309	271	1,965	-	97,431
      Changes during period
      Dividends of surplus						-1,601
      Profit attributable to owners of parent						7,988
      Purchase of treasury shares						-5
      Disposal of treasury shares						80
      Net changes in items other than shareholders' equity	432	1,679	61	2,173	48	2,222
      Total changes during period	432	1,679	61	2,173	48	8,685
      Balance at end of period	817	2,989	333	4,139	48	106,116

      Fiscal year ended March 31, 2025

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	43,420	10,672	50,489	-2,653	101,928
      Changes during period
      Dividends of surplus			-2,673		-2,673
      Profit attributable to owners of parent			8,410		8,410
      Purchase of treasury shares				-5	-5
      Disposal of treasury shares		32		67	99
      Change in ownership interest of parent due to transactions with non-controlling interests		-60			-60
      Net changes in items other than shareholders' equity
      Total changes during period	-	-27	5,737	61	5,771
      Balance at end of period	43,420	10,645	56,226	-2,591	107,699

      	Accumulated other comprehensive income				Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	817	2,989	333	4,139	48	106,116
      Changes during period
      Dividends of surplus						-2,673
      Profit attributable to owners of parent						8,410
      Purchase of treasury shares						-5
      Disposal of treasury shares						99
      Change in ownership interest of parent due to transactions with non-controlling interests						-60
      Net changes in items other than shareholders' equity	-89	1,508	1,014	2,433	126	2,560
      Total changes during period	-89	1,508	1,014	2,433	126	8,331
      Balance at end of period	727	4,497	1,348	6,572	175	114,448

   4. Consolidated Statement of Cash Flows

      (Millions of yen)

      Account Category	Fiscal year ended March 31,2024	Fiscal year ended March 31,2025
      Cash flows from operating activities
      Profit before income taxes	9,512	10,806
      Depreciation and amortization	5,312	5,743
      Impairment losses	6,967	102
      Increase (decrease) in allowance for doubtful accounts	35	14
      Increase (decrease) in retirement benefit liability	-92	-510
      Reserve for implementation of environmental and safety arrangements	-949	-195
      Increase (decrease) in other provisions	161	-323
      Interest and dividend income	-427	-720
      Settlement income	-2,077	-
      Interest expenses	625	759
      Foreign exchange losses (gains)	-44	-240
      Share of loss (profit) of entities accounted for using equity method	-592	-1,485
      Loss (gain) on sale of non-current assets	126	233
      Decrease (increase) in trade receivables	-3,825	2,149
      Decrease (increase) in inventories	-15,069	9,970
      Decrease (increase) in other current assets	902	382
      Increase (decrease) in trade payables	-3,569	-7,288
      Increase (decrease) in other current liabilities	254	43
      Other, net	-25	-61
      Subtotal	-2,777	19,379
      Interest and dividends received	418	694
      Interest paid	-580	-769
      Proceeds from insurance income	6	22
      Settlement received	1,038	1,151
      Income taxes paid	-917	-2,144
      Net cash Provided by (Used in) operating activities	-2,811	18,332

      (Millions of yen)

      Account Category	Fiscal year ended March 31,2024	Fiscal year ended March 31,2025
      Cash flows from investing activities
      Purchase of investment securities	-8	-408
      Purchase of non-current assets	-7,538	-9,804
      Proceeds from sale of non-current assets	1,962	0
      Loan advances	-636	-167
      Proceeds from collection of loans receivable	173	195
      Others, net	-995	-1,227
      Net cash provided by (used in) investing activities	-7,044	-11,412
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	-5,790	-
      Proceeds from long-term borrowings	29,400	9,400
      Repayments of long-term borrowings	-8,564	-7,628
      Proceeds from the issuance of bonds	-	600
      Redemption of bonds	-938	-968
      Repayments of lease liabilities	-459	-464
      Repayments of installment payables	-536	-611
      Dividends paid	-1,601	-2,673
      Net decrease (increase) in treasury shares	-5	-5
      Proceeds from sale of shares of subsidiaries not resulting in change in scope of consolidation	20	15
      Net cash provided by (used in) financing activities	11,524	-2,337
      Effect of exchange rate change on cash and cash equivalents	651	382
      Net increase (decrease) in cash and cash equivalents	2,320	4,965
      Cash and cash equivalents at beginning of period	17,662	19,982
      Cash and cash equivalents at end of period	19,982	24,948

5. Segment Information

   【Business Segment Information】

   For the fiscal year ended March 31, 2024(From April 1, 2023 to March 31, 2024)

   (Millions of yen)

   	Reportable Segment				Adjustments (Note1)	Total
   	Organic Chemicals	Inorganic Chemicals	Others	Sub Total
   Net sales	67,171 0	68,043 -	3,241 3,878	138,456 3,878	- -3,878	138,456 -
   Total	67,172	68,043	7,119	142,334	-3,878	138,456
   Segment profit or loss (Note2)	11,326	3,278	291	14,897	-3,405	11,491
   Segment assets	91,242	106,043	4,848	202,134	22,190	224,324
   Other elements Depreciation/ Amortization expenses	957	3,989	49	4,996	211	5,207
   Impairment loss	-	6,763	-	6,763	204	6,967
   Increase in tangible and intangible Fixed Assets	987	7,751	9	8,748	900	9,648

   1. Sales to external customers

   2. Intersegment sales and transfers

   (Note) 1. Adjustments include the following items

   1. Adjustments in segment profit (-￥3,405million) include elimination of transaction between segments(￥106million) and corporate expenses not allocated to reportable segments(-￥3,512million). Corporate expenses mainly comprise general expenses not allocated segments.

   2. "Adjustments in segment assets" (￥22,190million) includes offsetting of receivables and payables between segments (−￥5,524million) and corporate assets not allocated to reportable segments (￥27,715million). Corporate assets mainly comprise surplus funds (cash and securities), long-term investments (investment securities) and corporate assets, all held by the parent company and not allocable to reportable segments.

1. Segment profit or loss is adjusted to be consistent with operating profit shown on the consolidated statement of income (Cumulative).

For the fiscal year ended March 31, 2025(From April 1, 2024 to March 31, 2025)

(Millions of yen)

(Note) 1. Adjustments include the following items

1. Adjustments in segment profit (-￥4,302million) include elimination of transaction between segments(-￥67million) and corporate expenses not allocated to reportable segments(-￥4,234million). Corporate expenses mainly comprise general expenses not allocated segments.

2. "Adjustments in segment assets" (￥24,725million) includes offsetting of receivables and payables between segments (−￥6,186million) and corporate assets not allocated to reportable segments (￥30,911million). Corporate assets mainly comprise surplus funds (cash and securities), long-term investments (investment securities) and corporate assets, all held by the parent company and not allocable to reportable segments.

2. Segment profit or loss is adjusted to be consistent with operating profit shown on the consolidated statement of income (Cumulative).

【Related information】

For the fiscal year ended March 31, 2024(From April 1, 2023 to March 31, 2024)

1. Information by product and service

   Disclosure of this information is omitted since its classification is identical with the classification of reporting segments.

2. Geographical information

   1. Net Sales

      (Millions of yen)

      Japan	Asia	Americas		Europe	Other	Total
      			United States
      60,567	27,731	25,895	14,417	23,444	816	138,456

      (Note) 1. Net sales are classified by country or region based on the location of customers..

      1. Grouping of countries and regions is 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, Indonesia, Singapore, and India

         2. Americas : United States of America, Canada, Brazil, Argentina, and Mexico

         3. Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions

         4. Other : Australia, New Zealand and Africa

   2. Tangible fixed assets

      (Millions of yen)

      Japan	Asia	Americas	Europe	Total
      40,233	164	982	179	41,560

      (Notes) 1. Tangible fixed assets are classified by country or region based on the location of the company and the consolidated subsidiaries.

      1. Grouping of countries and regions is based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are as follows, excluding Japan:

         1. Asia: Taiwan

         2. Americas: United States of America

         3. Europe: Belgium

For the fiscal year ended March 31, 2025(From April 1, 2024 to March 31, 2025)

1. Information by product and service

   Disclosure of this information is omitted since its classification is identical with the classification of reporting segments.

2. Geographical information

   1. Net Sales

      (Millions of yen)

      Japan	Asia	Americas	Europe	Other	Total
      58,341	35,287	23,835	25,682	2,049	145,196

      (Note) 1. Net sales are classified by country or region based on the location of customers.

      1. Grouping of countries and regions is 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, Indonesia, Singapore, and India

         2. Americas : United States of America, Canada, Brazil, Argentina, and Mexico

         3. Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions

         4. Other : Australia, New Zealand and Africa

   2. Tangible fixed assets

      (Millions of yen)

      Japan	Asia	Americas	Europe	Total
      44,915	164	1,335	162	46,579

      (Notes) 1. Tangible fixed assets are classified by country or region based on the location of the company and the consolidated subsidiaries.

      1. Grouping of countries and regions is based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are as follows, excluding Japan:

         1. Asia: Taiwan

         2. Americas: United States of America

            	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
            Net assets per share	￥2,776.83	￥2,986.82
            Profit per share	￥209.27	￥219.98

         3. Europe: Belgium (Per Share Information)

(Notes) 1. Fully diluted profit per share is not stated since the Company does not have residual securities.

1. The basis for calculation of profit per share is as follows:

   (Millions of yen unless otherwise stated)

   	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Profit attributable to owners of parent	7,988	8,410
   Profit not attributable to common shareholders	-	-
   Profit related to common stock attributable to owners of parent	7,988	8,410
   Average number of shares of common stock outstanding during the fiscal year	38,173 thousand shares	38,233thousand shares

2. The basis for calculation of net assets per share is as follows:

(Millions of yen unless otherwise stated)