Financial Results for 1Q FY2023
Members Co., Ltd. (TSE 2130)
July 29, 2022

Company Profile

Representative Director and President Tadashi Kenmochi

Members is the internet business partner that aims to create a spiritually rich society through “MEMBERSHIP” by
supporting digital business with digital creators.

Corporate nameMembers Co., Ltd.

Date of establishment June 26, 1995
MissionCreate a spiritually rich society through “MEMBERSHIP”

Locations

Headquarters (Tokyo), Web Garden Sendai, Web Garden Kitakyushu, Web Garden Kobe, Sapporo Office(VISION2030)

CapitalSales revenue

Securities codeNo. of employees(consolidated)

1,002 million yen (as of June 30, 2022)

14,938 million yen (fiscal year ended March 31, 2022)〔IFRS〕

2130; Prime Section of Tokyo Stock Exchange
2,303 (as of June 30, 2022)

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Management Policy and Service Features
Members is a platform on which digital creators (DCs), who play aleading role in value creation in the rapidly expanding digital
economy, can grow and play an active role.
We develop and provide optimal digital business operation services
that meet social needs in order to realize a prosperous society.

Supporting thedevelopment of digitalproducts and services

Pursuing happiness of digital creators

Technology-specific DC
human resources provision

PGT business(PGT: Product Growth Team)A group of creators who embody the corevalues of "contribution, challenge,
sincerity, and teamwork" and continue toimprove their skills to maximize theresults of client companies.

Dedicated team for digital business
operation support(EMC: Engagement Marketing Center)

EMCbusiness

An initiative to achieve
10,000 digital creators

Support tocreate social
problem-solving
business

Tech venture companies

Promoting CSV (*)
management and corporate
value marketing

Major
companies

Marketingtransformation

DC human resources
provision
comprehensive
service

Data
Scientists

UX DesignDX

Digital business support for mid-sized local companies

Digital business / Product development supportEngineering

Creating social value

SaaS

DevOpsAdvanced
technology
domainOptimizing the services provided* CSV (Creating Shared Value: A management method that simultaneously realizes economic and social value)3

1Q FY 2023 Overview
As enterprises proceeded with digitalization, our performance was healthy. Ourservice of supporting business in high value-added fields, including data and UX,
performed well continuously. Added-value sales kept growing by 25%. 484 newgraduates joined our company, increasing the loss, but it is in line with our plan.

Consolidated results
Sales revenue

3,831

millionyen+23.3%
y/y

Added-value sales

Operating loss

67

millionyen+48.7%-76
milliony/y
yen y/yBusiness situation
EMC business
Sales revenue

2,486

millionyen

Operation rate Up 4.3 pointsy/yduring 23/1Q

86.0 ％+16.8%y/y

PGT business
Sales revenue

1,559

millionyen

Ratio of sales ofservices other thanwebsite operation
during 23/1Q

36.0 ％+37.7%y/y

Up 7.4 points
compared to22/4Q

3,677

+25.6
28.0%%

millionyeny/yNo. of companies
we offer the EMC
model

53

-1 from theend of theprevious FY

No. of companies
we offer the PGT
model

43

+22 from theend of theprevious FY

No. of digitalcreators in
EMC businessNo. of digitalcreators in
PGT business

876733-24 from the endof the previous FY+10 from the endof the previous FY

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Income Statement Summary
Gross profit grew 31.4% year on year, and gross profit margin rose 1.9 points year
on year, as the increase in average sales price exceeded the increase inremuneration for DCs. As the assignment of tasks to new graduates waspostponed and we made more active investment in mid-career recruitment andsales marketing, SGA increased year on year. The profits in the first half and thefull year are expected to rise, and we aim to achieve the forecast profits.
Result in 1Q[Unit：million yen]

FY3/2022

FY3/2023

First half year in FY3/2023
y/yProgress rate
toward theforecast

Forecast

Full year in FY3/2023
Progress rate
toward theforecast

Forecast

Sales revenue

3,108

3,831

+23.3%

8,280

46.3%

18,20021.1%

Added value sales

2,927

3,677

+25.6%

―

―

―

―

892

1,173+31.4%

―

―

―

―

28.7%

30.6%

―

―

―

―

―

890

1,239

+39.2%――――

Operating profit

9(67)

―

450―

2,200―(Operating profitmargin)

0.3%(1.8%)

―

―

―

―

―

7(93)

―

445

―

2,185

―

17(67)

―

320

―

1,573

―

Gross profit(Gross profit margin)

SGA

Pretax profit
Net profit* Added value sales = Sales revenue ー Outsourcing and procurement costs ＝ Sales from in-house resources

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Balance Sheet Summary[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
Trade receivables and other receivables
Inventory assets
Other current assets
Total current assets
Non-current assets
Tangible fixed assets
Rights to use as assets
Goodwill
Intangible assets
Other financial assets
Deferred tax assets
Total non-current assets
Total assets

5,226,706

3,800,140

3,075,859

2,493,998

48,632

77,222

224,303

312,570

8,575,502

6,683,931

237,803

358,000

713,578

801,389

116,115

116,115

12,425

11,819373,657

1,340,622

375,346

396,055

1,828,927

3,024,003

10,404,429

9,707,935

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Balance Sheet Summary[unit: thousand yen]
Liabilities and shareholders’ equity
Liabilities
Current liabilities
Lease liabilities
Trade payables and other payables
Income taxes payable
Contract liabilities
Other current liabilities
Total current liabilities

Previous consolidated
accounting year（Mar. 31, 2022）

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

400,434
1,068,471
370,219
30,2002,326,547
4,195,872

381,052
1,050,260
19,762
34,5762,240,467
3,726,119

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

197,817
115,362
313,180
4,509,052

219,112
193,986
413,099
4,139,218

Shareholders’ equity
Capital stock
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of the parentTotal shareholders’ equity
Total liabilities and equity

963,358
281,704(8,477)52,1904,606,602
5,895,377
5,895,377
10,404,429

1,002,154
320,500(8,477)43,544
4,210,994
5,568,716
5,568,716
9,707,935

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Sales by Segment-EMC Business
In EMC business, sales revenue(*1) was 2,486 million yen (+16.8% year on year), the number ofclient companies for the EMC model was 53 (down 1 from the end of the previous term), and addedvalue sales per client was 36,659 thousand yen (+2.0% year on year). This term, we willconcentrate on customer success, and mainly aim to improve added-value sales per clientcompany for the model as an indicator.
No. of clients for the EMC model(*2)・

Sales revenue of the EMC business

Added-value sales per client company(*3)[unit: million yen][unit: No. of clients]

12,000

8,000

7,549

6,000

2,366

4,000

1,842

2,000
0

125

10,51410,000

1,847

1,493
19/03

8,524
2,565

9,206
2,814
2,651

2,196

2,270

1,785

1,850

50

2Q

40,00044

35,00036,65935,92647

45,00043,464 44,00444,039

4446

54

30,00025,00053

20,00015,0002,648

10,000

25

21/03

5,000

2,486

2,129

0

22/03

23/03

4Q

1Q

3Q

4Q

2Q

3Q

4Q

1Q

4Q

0Goal
目標

21/03
1Q

50,00046,307

75

1,976

20/03

100

3,085

2,270

[unit: thousand yen]

22/03
No. of clients

EMC社数
for the EMC
model

23/03
顧客一社あたり付加価値売上高
Added-value sales per client company*1 Sales revenue was roughly estimated with reference to the IFRS standard (the transactions between the parent company and subsidiaries were not offset).
*2 The number of clients for the service provided by a team composed of 3 or more DCs is defined and counted as the number of clients for the EMC and PGT models.
*3 Added-value sales per client company [thousand yen] = Quarterly added-value sales ÷ Quarterly average number of clients8

Sales by Segment-PGT Business(*1)
In PGT business, sales revenue(*2) was 1,559 million yen (+37.7% year on year). In PGT business,too, we will use the number of clients for the service provided by a team composed of 3 ormore DCs(*3) and added-value sales per client company(*4) as major indicators from this term,
like in EMC business. We will increase clients and support many enterprises in in-houseproduction for digitalization.
[unit: million yen]

Sales revenue of the PGT business

6,000

No. of clients for the PGT model(*3)・
Added-value sales per client company(*4)

5,157[unit: No. of clients]

5,000

3,469
2,617

3,000

1,000
0

20,000

100

4,000

2,000

[unit: thousand yen]

1,701

791

489

714

461
387

599

19/03
1Q

17,633

75

878

1,215
25782

1,132

795

20/03

43

2Q

3Q

22/03
4Q

10,00021

5,000

1,559021/03

15,0001,332
50512364

1,013

1,476

23/03

4Q

1Q

4Q0

目標
Goal
22/03

No. of clients
PGT社数
for the PGT
model

23/03
顧客一社あたり付加価値売上高
Added-value sales per client company*1 In April 2021, “Digital Personnel business” was renamed “Product Growth Team (PGT) business.”*2 Sales revenue was roughly estimated with reference to the IFRS standard (the transactions between the parent company and subsidiaries were not offset).
*3 The number of clients for the service provided by a team composed of 3 or more DCs is defined and counted as the number of clients for the EMC and PGT models.
*4 Added-value sales per client company [thousand yen] = Quarterly added-value sales ÷ Quarterly average number of clients

9No. of DC and Added Value Sales per Person by Segment
In EMC business, the number of digital creators (DCs) was 876 (-24 from the end of the previousterm). The service of supporting existing customers in digital marketing performed well. Addedvalue sales per person rose 10.1% year on year. In PGT business, the number of digitalcreators (DCs) was 733 (＋10 from the end of the previous term). Data and UX domains expanded
as well as EC services, and added value sales per person rose 11.8% year on year.
No. of digital creators(*1) and monthly added value
sales per person(*2) in the EMC business[unit: person][unit: yen]

1,000

950

900

826

800

795

933

921

900

876

775

678

No. of digital creators(*1) and monthly added value
sales per person(*2) in the PGT business[unit: person]

1,000,000

1,000

1,000,000

950,000900

950,000

900,000

800

850,000

700

800,000

600

750,000500

700,000

400

300

650,000

300

200

600,000

200

100

550,000100

700

863,679

600
500
400

834,324
822,731
797,423
781,793

808,339
792,146
748,083

747,524500,000

0
1Q

2Q

3Q

21/03
DC数
DC

4Q

1Q

2Q

3Q

22/03

4Q

[unit: yen]

1Q
23/03

Monthly added value sales per person
月額一人あたり付加価値売上高

0697

511

516

698

707

723

733

900,000
850,000
800,000529

750,000

437

700,000
689,431616,695

588,902551,902 551,002

1Q

2Q

3Q

21/03
DC数
DC

586,974

572,906

4Q

1Q

2Q

598,801

3Q

22/03

650,000
600,000

614,740

550,000
4Q

1Q

500,000

23/03

Monthly added value sales per person
月額一人あたり付加価値売上高*1 No. of digital creators is the figure as of the end of Q. New graduates were assigned to tasks in Aug. in FY 3/21 and Jun. in FY 3/22, and will be assigned in Jul. in FY 3/23.
*2 Monthly added value sales per person ＝ Cumulative quarterly added value sales÷ Average number of digital creators during the term

10Consolidated Earnings and Dividend Forecasts for the Term Ending March 2023
By supporting client companies in digitization and forming a digital organization in house,
we aim to keep increasing sales by over 20%. For further accelerating growth, we will
actively invest in the recruitment of mid-career workers, personnel training, and sales andmarketing in this term, and aim to continue increasing sales and profit.
Full-year results for
FY 2022 (IFRS)

Full year

Forecast for FY2023(IFRS)

y/y increase/decrease rate

First half yeary/y increase/decrease ratey/y increase/decrease rate

Full year

Sales revenue (million yen)

14,938

23.6%

8,280

21.9%

18,20021.8%

Operating profit (million yen)

1,876

48.7%

45022.8%

2,200

17.3%

Pretax profit (million yen)

1,896

52.0%

445

22.2%

2,185

15.2%

Net profit (million yen)

1,404

56.7%

320

23.2%

1,573

12.0%

Profit attributable to owners ofparent (million yen)

1,404

56.7%

320

23.2%

1,573

12.0%

Dividend
配当

Payout Ratio

Dividends and DOE(*)[unit: yen]
（単位：円）

Commemorative dividend
記念配当
DOE (Japanese Standard)
DOE(日本基準)

7.0%

6.2%

DOE (IFRS)DOE（IFRS)

6.0%
5.0%

4.0%

4.0%
3.9%

3.0%
2.0%
1.0%

1.7%

0.0%

2.0

1.9%
2.5

2.2%
3.0

1.5

4.3%

4.6% 4.8%

30.0
25.0

4.2%

7.5

5.2%

6.7%

11.5

2515

14.0

1054.5

13/03 14/03 15/03 16/03 17/03 18/03 19/03 20/03 21/03 22/03 23/03※= DOE＝連結親会社所有者帰属持分配当率*DOE
Dividend on equity ratio

30

20

17.5

9.535

予想
Forecast

030.0%
25.0%
20.0%

24.5%

23.6%
19.9%

25.1%

23.5%
26.4%

19.1%

23.2%

24.9%

20.8%

20.1%

15.0%
10.0%
5.0%
0.0%

Payout Ratio(Japanese Standard)

配当性向（日本基準）

Payout Ratio(IFRS)

配当性向（IFRS）

13/03 14/03 15/03 16/03 17/03 18/03 19/03 20/03 21/03 22/03 23/03
予想Forecast11

Cautionary Statement

This document has been translated from a part of the Japanese original forreference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

For IR inquiries
Members Co., Ltd.
Corporate Planning Office IR Team
ir@members.co.jp

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