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.

July 29, 2022

Consolidated Financial Results
for the First Three Months of Fiscal Year Ending March 31, 2023
(Under IFRS)
Company name: Members Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
2130
URL:
https://www.members.co.jp/
Representative:
Tadashi Kenmochi, Representative Director and President
Inquiries:
Akihiko Takano, Director and Senior Managing Executive Officer
Telephone:+81-3-5144-0660
Scheduled date to file quarterly securities report:
August 4, 2022
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months of fiscal year ending March 31, 2023 (from April
1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
RevenueThree months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit before tax

Millions of yen%

Millions of yen

June 30, 2022

3,831

23.3

(67)

―

(93)

―

(67)

―

June 30, 2021

3,108

24.9

9

―

7

―

17

―

Profit attributable toowners of parent
Three months ended

Millions of yen%

ProfitTotal comprehensive
income%Millions of yen

Millions of yen%

Basic earnings
per share%

Millions of yen%

Diluted earnings
per share
Yen

Yen

June 30, 2022

(67)

―

(67)

―

(5.10)(5.10)

June 30, 2021

17

―

17

―

1.38

1.34

Equity attributable toowners of parent

Ratio of equity
attributable to owners ofparent to total assets(2) Consolidated financial position
Total assets
As ofTotal equity

Millions of yen

Millions of yen

Millions of yen%

June 30, 2022

9,707

5,568

5,568

57.4

March 31, 2022

10,404

5,895

5,895

56.7

2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

Second quarter-end

Third quarter-end

Yen

Yen

Yen

―

0.00

0.00

Fiscal year-end

Total

Yen

Yen

―

25.00

25.00

―

30.00

30.00

―

Fiscal year ending
March 31, 2023
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (from April 1, 2022 to March(Percentages indicate year-on-year changes.)31, 2023)
Revenue

Operating profit

Profit before tax

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

First half(cumulative)

8,280

21.9

450

22.8

445

22.2

320

23.2

Full year

18,200

21.8

2,200

17.3

2,185

15.2

1,573

12.0

Profit attributable toowners of parent
First half(cumulative)
Full year

Basic earnings
per share

Millions of yen

%

320

23.2

24.55

Yen

1,573

12.0

120.65(Note) Changes from the latest financial forecast: None
1. The above consolidated earnings forecast is based on IFRS.
2. “Basic earnings per share” was calculated based on the average number of shares in FY 3/2022 (13,037,276).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: ―Excluded:―(2) Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies required by IFRS: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: Yes(3) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

13,346,400 shares

As of March 31, 2022

13,217,900 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2022

90,124 shares

As of March 31, 2022

90,124 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2022

13,216,614 shares

Three months ended June 30, 2021

12,983,331 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants oran audit corporation.
* Proper use of earnings forecasts, and other special matters(Notes regarding the description, etc. related to the future)
The descriptions about the future, such as the business forecast, in this document are based on the information the company has obtainedso far and certain assumptions that are considered reasonable, and our company does not guarantee that the results will be as forecasted.
There is a possibility that actual business performance, etc. will be considerably different from the forecast due to various factors. For
the assumptions for the earnings forecast, notes for the use of the forecast, etc., please refer to “1, Qualitative Information Regarding the
Financial Results for the Current Quarter, (3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings
Forecast” on page 4 of the Appendix.
(How to obtain the material for supplementary explanations on financial results and the contents of the session for briefing financial
results)
The material for supplementary explanations on financial results will be uploaded to the website of our company on Friday, July 29,
2022.

○Table of contents of the appendix
1. Qualitative Information Regarding the Financial Results for the Current Quarter…………………………………………..

2(1) Explanation Regarding Business Results…………………………………………………………………………………

2(2) Explanation Regarding the Financial Standing……………………………………………………………………………

4(3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings Forecast………………………

4

2. Summary of Consolidated Financial Statements and Major Notes………………………………………………………….

5(1) Summary of Quarterly Consolidated Balance Sheets…………………………………………………………………….

5(2) Summary of Quarterly Consolidated Statements of Income………………………………………………………………

7(3) Summary of Quarterly Consolidated Statements of Comprehensive Income……………………………………………

8(4) Summary of Quarterly Consolidated Statements of Changes in Equity…………………………………………………

9(5) Summary of Quarterly Consolidated Statements of Cash Flows…………………………………………………………

10(6) Notes to Summary of Consolidated Financial Statements………………………………………………………………

11(Notes on Going Concern Assumption) ……………………………………………………………………………………

11(Revision to Accounting Estimates)

11(Significant Subsequent Events) …...………………………………………………………………………………………

11

1

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation Regarding Business Results
Management’s Explanation and Analysis of Business Results
Due to the climate change caused by global warming, severe natural disasters have been occurring frequently all over the world. As
the Sixth Assessment Report of Intergovernmental Panel on Climate Change (IPCC) mentions “there is no doubt that human activities
have warmed the atmosphere, ocean, and land areas” (Japan Meteorological Agency, The Sixth Assessment Report of IPCC, the firstworking group report Climate Change 2021: Scientific grounds, Summary for Policymakers [SPM] Provisional Translation [the Sep. 1,
2021 version]), the entire society is at a crossroads to survive.
In Japan, the Carbon-Neutral policy to virtually eliminate the emission of greenhouse gases such as carbon dioxide, which are a major
cause of global warming, by 2050 was announced. We are expecting businesses, including marketing activities, to transform into a modelfor decarbonization or resolving societal issues by accelerate corporate transformations through the utilization of digital technologies
for continuous value creation.
As the digital business becomes more active, each company is having difficulty to recruit and train creative personnel who areversed in the Internet and digital technology on its own, and such personnel shortage is now a huge hurdle to digitalization. About 80%
of Japanese enterprises recognize the qualitative and quantitative insufficiency of personnel who can take charge of innovation inbusiness strategies. It has been reported that the ratio of enterprises that answered that their initiatives for digitalization called “digitaltransformation (DX)” was successful was less than 50% (Information-technology Promotion Agency: White Paper on DX 2021; issued
on Oct. 11, 2021).
Under such circumstances, we uphold to create a spiritually rich society through “MEMBERSHIP” as its mission, and aims toconvert our customer companies’ management style, marketing activities, services, and products into “Sustainable Ones for the Earthand Society.”
Our corporate group focuses on the following two social issues: “environmental changes due to global warming and climate change”
and “failure of the pension and medical systems due to population decline, the disappearance of local governments due to the local
decline, and financial bankruptcy,” and will work to realize a spiritually rich society in which people and companies not only pursue
their self-interest, but also have the hope for the future and the willingness to participate in society, and cooperate with each other for abetter sustainable future.
We are primarily developing two businesses (EMC business and PGT business) centered around the digital domain.
<EMC Business Outline>
In the EMC business centered on EMC Company, we have organized the Engagement Marketing Center (EMC), which consists ofteams dedicated to continuously improve business results and user engagement for the customers of large companies by using digitalmeans. It offers a comprehensive support service from discovering issues and requirement definition from the point of view of customer
companies, to the development and operation of digital services and products.
In the fiscal year ending March 2023, we will focus on customer success and set a policy of supporting the in-house development
of digital organizations of client companies. We will provide long-term operational support by a digital creator team dedicated tocustomers, mainly in the digital marketing area for the marketing departments of large companies and create CSV*1 and decarbonizationcase examples.
In this consolidated cumulative first quarter, transactions with existing customers grew steadily thanks to the acceleration of digital
shift among enterprises, so the sales revenue was as healthy as 2,486 million yen (IFRS*Reference Value: Up 16.8% year on year).
Although we have actively proposed the EMC model to new customers, the number of customers to whom we provide the EMC model
was 53 (down 1 from the end of the previous fiscal year) due to the transfer of some projects to the PGT business, etc., value-added sales
per client company reaching 36,659 thousand yen, and the number of digital creators belonging to the EMC business was 876 (down 24
from the end of previous fiscal year).
<PGT Business Outline>
In the PGT (Product Growth Team) business, since this fiscal year ended March 31, 2022, we have shifted the focus of its services
from “the conventional business that was offering creators with specialized skills,” to “supporting customer’s product growth in the fieldof new technology.”
The PGT business mainly provide services to Internet and start-up companies that have high growth potential and are also proactivein digital and IT technology investment, by sending autonomous teams of our digital creators supporting these clients’ product growth.
In this business, we will also focus on customer success in the fiscal year ending March 2023. Our team of digital creators dedicated2to our clients will work together with client companies, mainly at digital service companies and large companies, and through therealization of in-house digital organizations and the provision of Product Growth Studio, a new service that supports the development
of digital products (products and services), we will support not only the planning and initial construction/implementation of digitalization
but also the organizations that enable long-term operation.
In addition, as we were actively launching in-house companies specializing in high-value-added engineering fields to create
occupations in new technology domain and the field of growth support then enhance profitability by achieving high unit prices and highoperation rates. Hence, we have established the following in-house companies.
- Members AI Reach Company (established in July 2022), a company where AI specialists support client companies in selecting andinstalling AI platforms, and identifying issues in AI utilization and operations.
The PGT business continues to grow steadily due to the rapid expansion of support services in specialized fields such as the data
fields and UX (*2) fields against the backdrop of the thriving DX market, driving the entire group’s growth.
In this consolidated cumulative first quarter, due to improved profitability attributed to the steady expansion of high-value-added
support services in specialized areas and high operation rates, the sales revenue of the entire PGT business was 1,559 million yen (IFRS* Reference Value: Up 37.7% from the previous fiscal year), the number of companies that provide the PGT models, in which three ormore digital creators work as a team dedicated to client companies, is 43 (up 22 from the end of the previous fiscal year), value-added
sales per client company were 17,633 thousand yen, and the number of digital creators belonging to the PGT business reached 733 (up10 from the end of the previous fiscal year).
<Our Corporate Group’s Policies and Initiatives>
Our corporate group engages in continuous recruitment as upfront investment, predicting a significant shortage of creators who areversed in digital technology and the Internet. We have been extensively recruiting graduates of art universities, technical colleges, fouryear universities, and graduate schools. A total of 484 newly graduates joined us in April 2022 (including local bases), up 120 from theprevious fiscal year. We assigned new employees’ tasks in July.
Through the continuous expansion in the service domain of both EMC and PGT businesses, along with the early training and early
operation for new employees, we will increase profitability and strengthen our investments in recruitment and training.
Further, our corporate group has been promoting a company-wide work-from-home workstyle and the utilization of remoteenvironments. We will continue capital investment for office strategy and the implementation of a smooth remote work, to establish awork system that will produce even better results.
<Overview of Consolidated Financial Statements>
For the first quarter of the current consolidated term, revenue was 3,831 million yen (up 23.3% from the same quarter of the previous
fiscal year), operating loss was 67 million yen (operating profit of 9 million yen in the same quarter of the previous fiscal year), loss
before income taxes was 93 million yen (profit before income taxes of 7 million yen in the same quarter of the previous fiscal year), andloss attributable to the owners of the parent was 67 million yen (profit attributable to the owners of the parent of 17 million yen in thesame quarter of the previous fiscal year).
Sales revenue increased 23.3% year on year, recording the highest sales for the first quarter. This was attributed to the progress ofhigh-value-added support services in specialized fields in the PGT business.
In the fiscal year ending March 2023, we are actively investing in mid-career recruitment, human resource development, and sales
and marketing to further accelerate growth in the future, and we were unable to cover the increase in labor costs for new graduates whojoined the company in April before operations began, resulting in an operating loss in the first quarter of the current consolidated term.
The pretax quarterly loss of 93 million yen includes financial costs of 26 million yen for fund management, etc.
The impacts of COVID-19 and geopolitical issues on the Japanese economy are still uncertain, but we expect that enterprises will
invest in digitalization at an accelerated pace. Under these circumstances, our corporate group will enhance our efforts to increase newcustomers and concentrate on the recruitment of mid-career workers, to increase the number of digital creators, who will become profit
sources. In parallel, we will further invest in education in specialized fields and transfer creators to other in-house companies with highunit prices, to improve added value sales per person.
As we continue to work on fulfilling our long-term vision, VISION 2030 (https://www.members.co.jp/ir/pdf/20200508_04.pdf), we
will take initiatives with the aim of achieving the important KPIs of 100,000 social creators (*3), the total amount of social engagement(*4) of 10 billion, 10,000 employees, and an operating profit of 10 billion yen in 2030.
3

(*1) CSV (Creating Shared Value): It is a concept proposed by Professor Michael Porter of Harvard University, who is known as a world leader in corporate competitive
strategies, in a paper he submitted to the Harvard Business Review January/February 2011 issue (the Japanese version is Diamond’s “DIAMOND Harvard Business
Review” June 2011 issue). CSV stands for “initiatives to create value for both society and companies by solving social issues and improving corporate profits andcompetitiveness at the same time.”(*2) UX (User Experience): The experience one gains by using a product or service.
(*3) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion of business, systemic design, and output.
(*4) Social Engagement: The number of contacts with the contents, products, and services worked on by Members Group as its policy to resolve societal issues.

(2) Explanation Regarding the Financial Standingi)Status of Assets, Liabilities, and Shareholders’ Equity
The total assets at the first quarter of the current consolidated term were 9,707 million yen (down 696 million yen from theend of the previous consolidated fiscal year). This is primarily due to an increase of 966 million yen in other financial assets,
an increase of 120 million yen in tangible fixed assets, an increase of 88 million yen in other current assets and an increase of
87 million yen in right to use as assets, along with a decrease of 1,426 million yen in cash and cash equivalents and a decreaseof 581 million yen in trade receivables and other receivables.
Total liabilities stood at 4,139 million yen (down 369 million yen from the end of the previous consolidated fiscal year). Thiswas primarily due to an increase of 78 million yen in allowance, along with a decrease of 350 million yen in income taxes
payable and a decrease of 86 million yen in other current liabilities.
Total equity was 5,568 million yen (down 326 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 38 million yen in capital stock and an increase of 38 million yen in capital surplus, along with adecrease of 395 million yen in retained earnings.
ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the first quarter of the current consolidated term
was 3,800 million yen, down 1,426 million yen from the end of the previous consolidated fiscal year. The status of each cash
flow for the first quarter and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during the first quarter as a result of operating activities amounted to 57 million yen (74 million yen usedduring the same quarter of the previous year). The income was mainly from a decrease of 586 million yen in trade and otherreceivables and 119 million yen in depreciation and amortization while the expenditure was mainly from 304 million yen paid
as income taxes paid, a decrease of 152 million yen in trade and other payables, 94 million yen in others, and 93 million yen inloss before income taxes.
(Cash Flows from Investing Activities)
The funds used during the first quarter as a result of investing activities amounted to 1,124 million yen (2 million yen acquiredin the same quarter of the previous year). The expenditure was mainly from 992 million yen in proceeds from sales of investments
and 131 million yen in purchase of property, plant and equipment.
(Cash Flows from Financing Activities)
The funds used during the first quarter as a result of financing activities amounted to 359 million yen (258 million yen usedin the same quarter of the previous year). The income was mainly from 68 million yen in proceeds from exercise of shareacquisition rights and the expenditure was mainly from 320 million yen as dividends paid and 107 million yen in expenditure forthe repayment of lease liabilities.
(3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings Forecast
There are no changes in the consolidated earnings forecast for the cumulative second quarter of FY 3/2023 as well as the entire
fiscal year, announced on May 10, 2022.
(Regarding the Dividend Forecast)
From the point of enhancing the return of profits to all of our shareholders and further increasing enterprise value, we willretain earnings in preparation for new business investment for long-term profit growth and the expansion in business activities,
as well as set a fundamental policy of the distribution of profits according to the improvement of business results and a continuous
increase in the dividend amount. Our medium-term target of an equity dividend ratio attributable to owners of the consolidated
parent company is about 5%.
After comprehensively taking into account of the DOE and dividend payout ratio, the term-end dividend for FY 3/2023 isplanned to be 30.00 yen.
4

2. Summary of Consolidated Financial Statements and Major Notes(1) Summary of Quarterly Consolidated Balance Sheets[unit: thousand yen]Previous consolidated
accounting year
(Mar. 31, 2022)

1st quarter of the current
consolidated accounting year
(Jun. 30, 2022)

AssetsCurrent assets
Cash and cash equivalents

5,226,706

3,800,140

3,075,859
48,632

2,493,998
77,222Other current assets

224,303

312,570

Total current assets

8,575,502

6,683,931

Non-current assets
Tangible fixed assets

237,803

358,000

Rights to use as assets
Goodwill

713,578
116,115801,389
116,115

Intangible assets
Other financial assets

12,425
373,657

11,8191,340,622

Trade receivables and other receivables
Inventory assets

Deferred tax assets
Total non-current assets
Total assets

5375,346

396,055

1,828,927

3,024,003

10,404,429

9,707,935

[unit: thousand yen]Previous consolidated
accounting year
(Mar. 31, 2022)

1st quarter of the current
consolidated accounting year
(Jun. 30, 2022)

Liabilities and shareholders’ equity
Liabilities
Current liabilities
Lease liabilities
Trade payables and other payables

400,434
1,068,471

381,052
1,050,260

Income taxes payable
Contract liabilities

370,219
30,20019,762
34,576

Other current liabilities

2,326,547

2,240,467

Total current liabilities

4,195,872

3,726,119

Non-current liabilities
Lease liabilities
Allowance
Total non-current liabilities

197,817

219,112

115,362

193,986

313,180

413,099

4,509,052

4,139,218

Capital stock
Capital surplus

963,358
281,704

1,002,154
320,500

Treasury shares
Other components of equity(8,477)52,190(8,477)43,544Retained earnings

4,606,602

4,210,994

Total equity attributable to owners of the parent

5,895,377

5,568,716

Total shareholders’ equity

5,895,377

5,568,716

10,404,429

9,707,935

Total liabilities
Shareholders’ equity

Total liabilities and equity6(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
1Q FY2022(Apr. 1, 2021 to Jun. 30, 2021)

1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

Revenue

3,108,629

3,831,740

Cost of sales

2,216,001

2,658,477

Gross profit

892,628

1,173,263

Selling, general and administrative expenses
Other income

890,483
8,261

1,239,555
4,254

Other expenses

1,349

5,353

Operating profit (loss)
Finance income

9,056
0

(67,390)

Finance costs

1,544

26,177

Profit (loss) before income taxes

7,512(93,567)

Income taxes(10,429)(26,134)

Profit (loss) for the period

17,941(67,432)

Profit (loss) attributable to
Owners of parent

17,941(67,432)

17,941(67,432)

1.38
1.34

(5.10)(5.10)Net profit (loss)－

Earnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)7(3) Summary of Quarterly Consolidated Statements of Comprehensive Income[unit: thousand yen]
1Q FY2022(Apr. 1, 2021 to Jun. 30, 2021)

1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

Profit (loss) for the period

17,941(67,432)

Comprehensive income

17,941(67,432)

Owners of parent

17,941(67,432)

Comprehensive income

17,941(67,432)

Comprehensive income attributable to8(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated first quarter of the prior fiscal year ended March 2022 (Apr. 1, 2021 to Jun. 30, 2021)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2021

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total

Total
equity910,405

228,752(8,240)55,622

3,427,635

4,614,175

4,614,175

－

－

－

－

17,941

17,941

17,941－－－－

17,941

17,941

17,941

25,08725,087－(6,601)－

43,573

43,573Purchase of treasury shares

－

－

(129)

－

－

(129)

(129)

Dividends

－

－

－

－

(225,579)(225,579)(225,579)

Total transactions with owners

25,08725,087(129)(6,601)(225,579)(182,135)(182,135)

Balance on June 30, 2021

935,493

253,839(8,370)49,021

3,219,996

4,449,980

4,449,980

Profit for the period
Total comprehensive income
Exercise of share acquisition rights

Consolidated first quarter of the current fiscal year ending March 2023 (Apr. 1, 2022 to Jun. 30, 2022)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2022
Profit for the period
Total comprehensive income
Exercise of share acquisition rights

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total

Total
Equity963,358

281,704(8,477)52,1904,606,602

5,895,377

5,895,377

－

－

－

－

(67,432)(67,432)(67,432)

－

－

－

－

(67,432)(67,432)(67,432)

38,796

38,796－(8,625)－68,966

68,966

Expiration of share acquisitionrights

－

－

－

(19)

19

－

－

Dividends

－

－

－

－

(328,194)(328,194)(328,194)

38,796

38,796－(8,645)(328,174)(259,227)(259,227)

1,002,154

320,500(8,477)43,544

4,210,994

5,568,716

5,568,716

Total transactions with owners
Balance on June 30, 20229

(5) Summary of Quarterly Consolidated Statements of Cash Flows[unit: thousand yen]
1Q FY2022(Apr. 1, 2021 to Jun. 30, 2021)

1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

Profit (loss) before income taxes
Depreciation and amortization

7,512
87,316

Finance income
Finance costs

(0)
1,384

(93,567)
119,828－

Cash flows from operating activities

25,495(Increase) decrease in inventories(Increase) decrease in trade and other receivables(55,736)
665,931(28,589)
586,345

Increase (decrease) in trade and other payables
Other(173,233)(259,709)(152,984)(94,318)

273,464

362,208

0
1,508

－
1,383

Interest paid
Income taxes paid

(1,071)(348,187)(2,120)(304,197)

Cash flows from operating activities(74,284)

57,273Purchase of property, plant and equipment
Purchase of intangible assets－－(131,582)(2,904)

Proceeds from sales of investments
Other

－
2,236

(992,459)
2,588

Cash flows from investing activities

2,236(1,124,358)

Repayments of lease liabilities
Proceeds from exercise of share acquisition rights(81,257)
43,573

Payments for purchase of treasury shares
Dividends paid

(129)
(220,876)(107,781)
68,966－

Cash flows from financing activities(258,690)(359,481)

Net increase (decrease) in cash and cash equivalents(330,739)(1,426,566)

Cash and cash equivalents at beginning of period

4,140,847

5,226,706

Cash and cash equivalents at end of period

3,810,108

3,800,140

SubtotalInterest and dividends received
Proceeds from subsidy income

Cash flows from investing activities

Cash flows from financing activities

10(320,666)

(6) Notes to Summary of Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no related information.
(Revision to Accounting Estimates)
In this consolidated cumulative first quarter, regarding the asset retirement obligation, recorded as the restoration costassociated with the real estate lease contracts, we have changed the restoration cost estimate because of new information due tothe expansion of the head office and Sendai Office. 6,196 thousand yen was added to the balance of asset retirement obligations
due to the change in the restoration cost estimate, and it was recorded as an allowance.
The effect of this change on the financial statements for this consolidated cumulative first quarter is minor.
(Significant Subsequent Events)(Disposal of Treasury Stocks as Restricted Stock)
At the Board of Directors meeting held on June 17, 2022, we resolved to dispose of treasury stocks as restricted stock(hereinafter referred to as “treasury stock disposal” or “disposal”). On July 15, 2022, we disposed of treasury stocks andcompleted the payment procedure as follows.
Disposal Overview(1) Type and number of sharesdisposed of(2) Disposal price(3) Total disposal amount(4) Buyers of the treasury stocks, thenumber of the buyers, and the numberof shares to be disposed of(5) Disposal date(6) Other

12,792 common shares of the company
2,656 yen per share
33,975,552 yen
Directors of the company (excluding directors who are Audit Committee
Members and Outside Directors)
2 directors, 3,528 shares
Executive officers who do not concurrently serve as directors of the Company
17 officers, 9,264 shares
July 15, 2022
Regarding the treasury stock disposal, we have submitted a securities notice inaccordance with the Financial Instruments and Exchange Act.

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