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.

May 10, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(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 of annual general meeting of shareholders:June 17, 2022
Scheduled date to commence dividend payments:
June 20, 2022
Scheduled date to file annual securities report:
June 20, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for analysts and institutional investors)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated operating results (cumulative)
Revenue(Percentages indicate year-on-year changes.)

Operating profit

Profit before tax

ProfitFiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

14,938

23.6

1,876

48.7

1,896

52.0

1,404

56.7

March 31, 2021

12,087

13.9

1,261

1.0

1,248

0.6

896

2.6

Profit attributable toowners of parent

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

Fiscal year ended

Millions of yen%

Millions of yen

%

Yen

Yen

March 31, 2022

1,404

56.7

1,404

56.4

107.73105.42

March 31, 2021

896

4.0

898

5.3

69.69

67.86

Return on equity
attributable to owners ofparentRatio of profit before tax
to total assets

Ratio of operating profit
to revenue

%

%

%

Fiscal year ended
March 31, 2022

26.7

19.9

12.6

March 31, 2021

20.5

15.5

10.4

Reference:

Share of profit (loss) of investments accounted for using equity method
For the fiscal year ended March 31, 2022:¥ - million
For the fiscal year ended March 31, 2021:¥ - million

(2) Consolidated financial position
Total assets
As ofEquity attributableto owners of parent

Total equity

Ratio of equity
attributable toowners of parent tototal assets

Equity attributableto owners of parent
per share

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

10,404

5,895

5,895

56.7

%

449.08

Yen

March 31, 2021

8,648

4,614

4,614

53.4

357.96(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

1,653

(98)

(468)

5,226

March 31, 2021

1,834

(57)

(751)

4,140

2. Cash dividends
Annual dividends per share

First
SecondThird
quarter-end quarter-end quarter-end

Yen
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio ofdividends toequityPayout ratio
attributable to(Consolidated)owners ofparent(Consolidated)

Yen Millions of yen

%

%

-

0.00

-

17.50

17.50

225

25.1

5.2

-

0.00

-

25.00

25.00

328

23.2

6.2

-

0.00

-

30.00

30.00

24.9

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

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: None
(3) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

13,217,900 shares

As of March 31, 2021

12,980,300 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

90,124 shares

As of March 31, 2021

90,046 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

13,037,276 sharesFiscal year ended March 31, 2021

12,861,722 shares* Financial results reports are exempt from the review conducted by certified public accountants or an 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. Overview of Business Results, (1)Overview of Business Results for the Current Fiscal Year and (4) Future Outlook” on page 2 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 Tuesday, May 10,2022.

○Table of contents of the appendix
1.

2.
3.
4.

Overview of Business Results……………………………………………………………………………………………...

2(1) Overview of Business Results for the Current Fiscal Year…………………………………………………….….………
(2) Overview of Financial Standing for the Current Fiscal Year……………………………………………….…….……….

2
3(3) Overview of Status of Cash Flows for the Current Fiscal Year……………………………………………..…….………
(4) Future Outlook……………………………………………………………………………………………..…….………..

44(5) Basic Policy for Profit Distribution, and Dividends in the Current Fiscal Year and the Following Fiscal Year.…………
(6) Business Risks………………………………………………………………………………………………….…………

5
5

Situation of Our Corporate Group………………………………………………………………………………………….
Basic Policy on Selection of Accounting Standards…………………………………………………………….…..……..

10
11

Consolidated Financial Statements and Major Notes………………………………………………………………………

12(1) Consolidated Balance Sheets……………………………………………………………………………………………

12(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………

14(3) Consolidated Statements of Changes in Equity………………………………………………………………………….

16(4) Consolidated Statements of Cash Flows…………………………………………………………………………………

18(5) Notes to Consolidated Financial Statements…………………………………………………………………………….

19(Notes of Going Concern Assumption)………………………………………………………………………………….

19(Changes in Presentation Method) ……………………………………………………..……………………………….

19(Segment Information)…………………………………………………………………..………………………………

19(Per Share Information)………………………………………………………………….………………………………

19(Significant Subsequent Events)…………………………………………………………………………………………

20

-1-

1. Overview of Business Results(1) Overview of Business Results for the Current Fiscal Year
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 theworld. As the Sixth Assessment Report of Intergovernmental Panel on Climate Change (IPCC) mentions “there is no doubt thathuman activities have warmed the atmosphere, ocean, and land areas” (Japan Meteorological Agency, The Sixth Assessment
Report of IPCC, the first working 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, and the debate around deregulation to proactively utilize thispolicy began. We are expecting businesses, including marketing activities, to transform into a model for 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
are versed 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 chargeof innovation in business strategies. It has been reported that the ratio of enterprises that answered that their initiatives for
digitalization called “digital transformation (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
to convert our customer companies’ management style, marketing activities, services, and products into “Sustainable Ones for
the Earth and Society.” During the 26th Regular General Meeting of Stockholders held in June 2021, we decided to specify“Initiatives Toward Societal Issues such as Climate Change and Depopulation” in the articles of incorporation.
In April 2021, we agreed with the recommendations of the Task Force on Climate related Financial Disclosures (TCFD), andfollowing these recommendations, we conducted a scenario analysis, etc. and disclosed the relevant information on our website.
(https://www.members.co.jp/company/tcfd/)
Our corporate group will continue to work toward building a sustainable society.
We are primarily developing two businesses (EMC business and PGT business) centered around the digital domain.
<EMC Business Outline>
In the EMC business, we have organized the Engagement Marketing Center (EMC), which consists of teams dedicated tocontinuously improve business results and user engagement for the customers of large companies centered on EMC Company
by using digital means. It offers a comprehensive support service from discovering issues and requirement definition from thepoint of view of customer companies, to the development and operation of digital services and products.
In the current consolidated fiscal year, existing customers grew steadily thanks to the acceleration of digital shift among
enterprises, so the sales revenue was as healthy as 10,514 million yen (IFRS*Reference Value: Up 14.2% year on year), andthe number of digital creators belonging to the EMC business was 900 (up 125 from the end of previous fiscal year).
In addition, we actively proposed the EMC model to new customers, and the number of customers to whom we provide the
EMC model increased significantly in the fourth quarter of the current fiscal year and was 54 at the end of the current fiscal
year (up 7 from the end of the 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 productgrowth in the field of new technology.”
The PGT business mainly provide services to Internet and start-up companies with high growth potential, which are also
proactive in digital and IT technology investment, by sending autonomous teams of our digital creators supporting these clients’product growth. The PGT business creates occupations in the New Technology and Growth Support domains, centered around
Members Career Company and Members Edge Company, which are core companies for this business.
In this fiscal year ended March 2022, we were actively launching companies specializing in high-value-added engineering
fields to enhance profitability by achieving high unit prices and high operation rates. Hence, we have established the following
in-house companies.
-SaaS Plus Company (established in April 2021), which offers a SaaS-based growth team business-DevOps (*1) Lead Company (established in July 2021), which supports the promotion of DevOps by offering a team ofprofessional personnel-2-

In the results, the sales revenue of the entire PGT business was 5,157 million yen (IFRS * Reference Value: Up 48.6% fromthe previous fiscal year) due to the improvement in profitability as a result of the steady expansion of high value-added
specialized field support services. The number of customer companies reached 212 (up 36 from the end of the previous fiscal
year), and the number of digital creators belonging to the PGT business reached 723 (up 194 from the end of the previous fiscal
year).
The business continues to grow steadily due to the rapid expansion of support services in specialized fields such as the data
fields and UX (*2) and engineering fields, driving the entire group's growth.
<Our Corporate Group’s Policies and Initiatives>
Our corporate group engages in continuous recruitment as upfront investment, predicting a significant shortage of creators
who are versed in digital technology and the Internet. We have been extensively recruiting graduates of art universities, technicalcolleges, technical schools on Web-related creation, four-year universities, and graduate schools. A total of 364 newly graduates
joined us in April 2021 (including local bases), up 128 from the previous fiscal year. We assigned new employees’ tasks earlier
than usual in this consolidated fiscal year ended March 2022 and started business operations with them in June. In April 2022,
481 new graduates joined our company as planned.
Through the continuous expansion in the service domain of both EMC and PGT businesses, along with the early training andearly 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, toestablish a work system that will produce even better results.
<Overview of Consolidated Financial Statements>
For this consolidated fiscal year ended March 2022, revenue was 14,938 million yen (up 23.6% in the same term of theprevious fiscal year), operating profit was 1,876 million yen (up 48.7% in the same term of the previous fiscal year), profit
before income taxes was 1,896 million yen (up 52.0% in the same term of the previous fiscal year), and profit attributable tothe owners of the parent was 1,404 million yen (up 56.7% in the same term of the previous fiscal year). In this consolidated
fiscal year ended March 2022, sales revenue and operating profit increased 23.6% and 48.7%, respectively, year on year,
recording the highest sales and profit ever and maintaining a high growth rate. This was attributed to the progress of high-valueadded support services in specialized fields and the good performance of digital marketing support for existing customers
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 toincrease new customers 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 toother in-house companies with high unit prices, to improve added value sales per person.
As
wecontinue
toworkon
fulfillingourlong-term
vision,VISION2030(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.
(*1) DevOps: Concept or system for offering swift and flexible services based on the close cooperation between developers and operators usingdevelopment methods and tools(*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) Overview of Financial Standing for the Current Fiscal Year
The total assets at the end of the consolidated fiscal year ended March 2022 were 10,404 million yen (up 1,755 million yen fromthe end of the previous consolidated fiscal year). This was primarily due to an increase of 1,085 million yen in cash and cash
equivalents, an increase of 233 million yen in trade receivables and other receivables, and an increase of 222 million yen in rights
to use as assets.
Total liabilities stood at 4,509 million yen (up 474 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to a decrease of 204 million yen in contract liabilities, along with an increase of 93 million yen in trade payables andother payables, an increase of 206 million yen in lease liabilities, and an increase of 355 million yen in other current liabilities.
Total equity was 5,895 million yen (up 1,281 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 52 million yen in capital stock, an increase of 52 million yen in capital surplus, and an increase of
1,178 million yen in retained earnings.

-3-(3) Overview of Status of Cash Flows for the Current Fiscal YearThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of this consolidated term was 5,226 million yen, up
1,085 million yen from the end of the previous consolidated fiscal year. The status of each cash flow for this consolidated fiscal
year and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during this consolidated fiscal year as a result of operating activities amounted to 1,653 million yen (1,834
million yen in the same period of the previous year). The income was mainly from 1,896 million yen of profit before income taxes,
and 366 million yen of depreciation and amortization, the expenditure was mainly from 578 million yen as income taxes paid, andan increase in trade and other receivables of 437 million yen.
(Cash Flows from Investing Activities)
The funds used during this consolidated fiscal year as a result of investing activities amounted to 98 million yen (57 million yen
in the same period of the previous year). The expenditure was mainly from 87 million yen in payments for leasehold deposits andguarantee deposits.
(Cash Flows from Financing Activities)
The funds used during this consolidated fiscal year as a result of financing activities amounted to 468 million yen (751 million
yen in the same period of the previous year). The income was mainly from 92 million yen of proceeds from exercise of shareacquisition rights. The expenditure was mainly from 345 million yen in repayment of lease liabilities and 225 million yen as
dividends paid.
The variations in cash flow-related indicators of our corporate group are as tabulated below.
FY 3/2018

FY 3/2019

FY 3/2020

FY 3/2021

FY 3/2022

Ratio of equity attributable to theowners of the parent company [%]Ratio of market value-based equity
attributable to the owners of theparent company [%]Ratio of interest-bearing liabilities /cash flow [years]

56.8

56.1

55.6

53.4

56.7

303.4

364.7

234.4

371.9

404.4

0.4

0.2

0.48

0.21

0.36

Interest coverage ratio

550.5

316.9

250.2

465.7

352.8

Ratio of equity attributable to the owners of the parent company: Equity attributable to the owners of the parent company / total
assetsRatio of market value-based equity attributable to the owners of the parent company: Market capitalization / total assets
Ratio of interest-bearing liabilities / cash flow: Interest-bearing liabilities / cash flow
Interest coverage ratio: Cash flow / interest paid
Notes
1. Each indicator was calculated from the figures in the consolidated financial statements.
2. Market capitalization was obtained by multiplying the closing price at the end of the term by the number of outstanding
shares as of the end of the term (after deduction of treasury shares).
3. Interest-bearing liabilities mean all of the liabilities posted in the consolidated financial statements for which interest ispaid.
4. Cash flow and interest paid were taken from “Cash flow from operating activities” and “Interest paid” posted in the
consolidated cash flow statement.

(4) Future Outlook
Our corporate group expects that enterprises will be required to keep up with the speed of digitalization through insourcing instead ofoutsourcing since the digitalization and digital investments of the society and enterprises are going to progress at an accelerated paceand digital business is going to expand from now on as well.
In the term ending March 2023, in both of our businesses, the EMC and the PGT businesses, the teams comprising more than 3 digitalcreators exclusively in charge of customer companies will engage in the digitalization and the support for establishing an in-housesection for digital business of the customer companies.
Moreover, we shall strive for further expansion of our services by investing mainly in recruitment and training, especially on elevating
profitability through the reinforcement of mid-career worker employment and the training of new graduates for their early deployment.
In addition, sales function will be enhanced by establishing a dedicated sales organization and focusing on acquiring new customers.

-4-

＜EMC Business＞
Mainly on the digital marketing field of large enterprises, our digital creators shall support customer companies in establishingcustomer’s own digital organizations in the long term, based on their skills and know-how fostered in digital business management
support, while devising and implementing measures as if they were employees of the customer companies.
＜PGT Business＞
Mainly for the companies offering digital services, our digital creators shall support customers’ digital product and service
development from the planning phase and support insourcing for customers’ organization. Our corporate group shall achieve high unit
price in order to expand high added value and engineering field, etc. by establishing new in-house companies specialized in technologicalfields, proactively.
Our corporate group shall contribute to the society by promoting the digitalization of more companies along with our customer
companies. To this end, we offer high value to our customers by supporting customer’s digital organization into insourcing through bothbusinesses: the EMC business and the PGT business.
Based on the above-mentioned policy, for the term ending March 2023, we are forecasting a consolidated sales revenue of 18,200
million yen (up 21.8% year on year), an operating profit of 2,200 million yen (up 17.3% year on year), a profit before income tax of
2,185 million yen (up 15.2% year on year) and a net profit of 1,573 million yen (up 12.0% year on year).

(5) Basic Policy for Profit Distribution, and Dividends in the Current Fiscal Year and the Following Fiscal YearAs our corporate group’s basic policy, we maintain internal reserves for new business investments and business expansions for longterm growth of profitability, from our standpoint to adequately return profits to our shareholders and to strive to further improve ourcorporate value, and we properly distribute profits commensurate with the growth of operating results and continuously increase thedividend amount. Our mid-term goal is to achieve a ratio of Consolidated Dividend to Equity Attributable to Owners of the Parent(DOE) of around 5%. In the term ended March 2022, we plan to pay a year-end dividend of 25.00 yen/share (up 7.5 yen/share year on
year from the previous term).
Furthermore, we plan to raise the year-end dividend to 30.00 yen in the term ending March 2023, as a result of the comprehensive
consideration of DOE and payout ratio.

(6) Business Risks
Out of matters concerning the business situation, accounting situation, etc. of our corporate group, mainly the following matters may
possibly have a significant impact on the judgement of investors. In addition, unless otherwise specified, matters related to future in thissection are based on the judgement by our corporate group at the date of the announcement of the financial report and may differ from
actual results as they are subject to uncertainties.
1) Environment surrounding the business of our corporate group
The forte of our corporate group is to provide services with high added value, such as the consulting, planning and project managementof website operation and digital business, and services related to Internet advertising. However, as the barriers for entry into the digitalbusiness field and Internet-related industry are low and the speed of the technology evolution is high, the forte of our corporate group
may disappear due to the emergence of new entrants, technologies and services, and there is a possibility that the core service of ourcorporate group will be downsized, price competition will grow fierce, and so on.
Furthermore, the advertising market tends to be easily influenced by economic trends. While Internet advertising is a growing market
compared to other advertising, the growth rate may slow down due to economic trends. Therefore, the fluctuations in Japan’s economic
climate may influence the business results of our corporate group.
2) Variation in performance due to new businesses, etc.
Our corporate group has proactively operated new businesses, etc., but not all new businesses have achieved results as planned. Our
corporate group plans to proactively keep operating new businesses centered on services in the digital business field in order to avoid
our business contents becoming obsolete, but the new business may not meet the demand of society after they are launched in somecases. It may be difficult to recoup the investment costs in such cases, impacting the business results and financial standing of ourcorporate group.
3) Seasonality of revenue and profit
As the proportion of commissioned tasks for website creation, advertising, etc. is comparatively high in our corporate group, thedeliveries thereof tend to concentrate in September and March, i.e. the end of the second quarter and the end of the accounting period,
leading to larger sales revenues. In addition, as we systematically recruit and train a considerable number of new graduates with theobjective of securing excellent digital creators, SGA (selling, general and administrative) expenses tend to increase at the beginning of
the term. Since the amount of orders grows toward the end of the term in addition to the increase in the operation rate of new employees
fresh out of college owing to the improvement of their skills and productivity, profit tends to increase toward the end of each accounting
period.
The variation in performance in the previous fiscal year and the current fiscal year is as follows.

-5-Previous fiscal year (April 1st, 2020 to March 31st, 2021)
Cumulative second quarter

Full fiscal year

Revenue (thousand yen)(Composition ratio)

5,411,183(44.8%)

12,087,276(100%)

Operating profit (thousand yen)(Composition ratio)
Net profit (thousand yen)(Composition ratio)

146,970(11.6%)
119,563(13.3%)

1,261,855(100%)
896,363(100%)

Current fiscal year (April 1st, 2021 to March 31st, 2022)
Revenue (thousand yen)(Composition ratio)
Operating profit (thousand yen)(Composition ratio)
Net profit (thousand yen)(Composition ratio)

Cumulative second quarter
6,795,096(45.5%)
366,387(19.5%)
259,835(18.5%)

Full fiscal year
14,938,719(100%)
1,876,325(100%)
1,404,546(100%)

4) Business practices in the advertising industry
As a business practice in the advertising industry, an advertising company engages in transactions with media companies, etc. under
its own name and responsibility, which is no different in the Internet advertising industry. Therefore, even in case when an advertiser
becomes incapable of paying the advertising fee due to bankruptcy, etc., our corporate group undertakes the duty to pay the advertising
fee to the media company, etc., and bears the credit risk of the advertiser. In order to keep such credit risk as low as possible, ourcorporate group usually engages in transactions with quality companies which have a certain level of credibility, but such risks remain.
In addition, as a business practice of the advertising industry, it can be said that contracts and other written documents are rarely
exchanged in regard to contracts pertaining to advertising transactions including Internet advertising. This is because of the highnecessity to swiftly and flexibly conclude and change the contract based on the trust relationship between transaction parties, while there
is a risk that discrepancies in the agreements between the transaction parties occur and develop into trouble. Our corporate group ismaking efforts to leave the contract contents in writing such as requesting the submission of an order form from our customers when an
advertising transaction arises in order to avoid such risk as much as possible, but there are cases where the customer does not comply
with the submission request. Therefore, trouble may occur in regard to the conclusion or contents of contracts pertaining to advertisingtransactions which have not been put into writing and impact the business results of our corporate group.
5) Utilization of outsourcing
Our corporate group selects specific partner companies in each specialized field and provides services to customers in cooperation
with the partner companies. In such case, if an unexpected situation occurs to the partner company or the cost of ordering from thepartner company rises due to the stringency of the market, it may influence the business and business results of our corporate group.
In addition, our corporate group takes care in selecting partner companies by taking into account their performance, reputation in theindustry, previous trade relations with our corporate group, etc., and on top of that strictly monitors the business operations of eachpartner company, inspects the deliverables and evaluates the quality level thereof even after the selection of partner companies. However,it cannot be said that there is no possibility of a concealed defect existing in the deliverables provided by a partner company, and in casedamage is inflicted on a customer of our corporate group due to such defect, the business results of our corporate group may be impacted
by claims for damages and other liability claims made against our corporate group or the fall of our corporate group’s social credibility.
6) System trouble
Our corporate group’s business is dependent on computer systems, and as we conduct some business transactions with customer
companies through Internet connections, we set up almost all of our servers in the data centers and take measures focusing on system
protection and system security when we select office properties. However, when our computer systems shut down or Internet connections
become unavailable due to unexpected system failure, natural disasters, cyberattacks, or terrorism, there is a risk that our corporategroup’s business will be interrupted. If such risk is materialized, our corporate group’s business performance may be impacted byopportunity loss, refunds, payment of damages, loss of social credibility, etc.

-6-7) Data security and personal data protection
Our corporate group considers that appropriately protecting our customers’ confidential information and personal data by preventing
risks of system failure, information outflow, leakage, and falsification arising from system defects, computer viruses, unauthorizedaccess, etc., as well as ensuring data security, form the foundation on which our customers build their confidence in us, and that it is our
top management priority. As such, our corporate group obtained Privacy Mark and Information Security Management System“ISO/IEC27001 (JISQ27001)” qualified and granted by the Japan Information Economy and Society Promotion Association, andestablishes and operates our data security system by consistently conducting proper data management based on these management
methods. Nevertheless, even though we have been taking such measures, no data security system can ever be perfect, and if these issues
arise due to some sort of cause, there may be room for outflow, falsification, and unauthorized usage of our customers’ confidential
information and personal data to occur. In such cases, there is a risk that our corporate group’s business performance will be impacted
by damage claims and liabilities against us, or loss of social credibility of our corporate group, etc.
8) Statutory regulations
i. Regulations pertaining to internet advertising
At present, there are no statutory regulations or voluntary regulations in the Internet advertising industry that can be a direct detrimentto our corporate group’s business. However, while Internet transactions have become prevalent, there is a possibility that regulations
pertaining to Internet advertising business or voluntary regulations in the Internet advertising industry will be tightened if the social
situation changes drastically, due to frequent occurrence of crimes exploiting Internet advertising. At this point, it is difficult to predictthe details of regulations that may be tightened, however, depending on the contents, it could significantly affect our corporate group’sbusiness operation.
Further, there are some laws that regulate advertisers, such as the Act against Unjustifiable Premiums and Misleading Representations
and the Act on Specified Commercial Transactions. Even though advertisers’ violation of such laws will not make advertisingtransactions by an advertising agency unlawful instantly, behavior of our corporate group as an advertising agency can be subject todamage claims for facilitating unlawful behavior, or there is a risk that it will diminish our corporate group’s social credibility. As ourbasic policy, our corporate group makes advertising transactions only with advertisers with a certain degree of credibility and we shallnot make advertising transactions pertaining to adult entertainment business, and we take preventive measures not to get involved in
posting illegal advertisements, however, it does not completely eliminate room for the above-mentioned risk to rise up to the surface.
Moreover, as mentioned above, our corporate group co-operates with outside vendors for providing services, but in the case where
we select small business owners as our subcontractors, if we abuse its dominant bargaining position and delay payments or the like,there is a risk that the Fair Trade Commission will deem our action as a violation of the Act against Delay in Payment of Subcontract
Proceeds, etc., and recommend us to rectify or demand restitution from us. Our corporate group has never allowed such risk to materialize,
and we have been managing contracts to prevent any risks from materializing, however, it cannot be stated that absolutely no such risk
exists.
ii. Regulations pertaining to worker dispatching services
The worker dispatching service our corporate group provides in PGT business has been licensed by the Minister of Health Labor as
General Worker Dispatching Business based on “Act for Securing the Proper Operation of Worker Dispatching Undertakings andImproved Working Conditions for Dispatched Workers (Worker Dispatch Law)” to provide such service.
To ensure a proper operation of worker dispatching business, the Worker Dispatch Law stipulates that the Minister of Health Labor
may revoke a business license or order the suspension of business operations, if a corporate group is disqualified as a general worker
dispatching business owner (Worker Dispatch Law Article 6) and becomes subject to the Revocation of License (Article 14).
As far as we are currently aware, there is no fact on our end that is subject to such disqualification or revocation as specified by theselaws. However, in the future, if revocation of our license, etc. occurs for some reason, our corporate group’s service operation may beinterrupted in a great deal, and our performance and financial conditions may get impacted significantly.
9) Intellectual property
Our corporate group runs business such as system development and website production so that we do not infringe third party’s
intellectual property such as copyright and patents, however, it is impossible to conduct rigorous research on all of such developments
and productions to identify if there is any copyright infringement, and there is no guarantee that such developments and productions are
not infringing on the intellectual property rights. By any chance, if our corporate group infringe third party’s intellectual property rights,
our corporate group’s business performance may be impacted by injunction claims against the use of such developments and productions,
damage compensation claims, and claims for payment of license charges, etc.
10) New accounting systems and changes in the taxation system
Our corporate group calculates its taxes in accordance with the accounting system and the taxation system of our country, and files
our taxes appropriately.
Nonetheless, there is a possibility that our business performance and financial conditions will be impacted by unexpected additions
and changes to the accounting standards and the taxation system. Moreover, our corporate group may incur more tax burden than
anticipated as a consequence of changes made to the taxation system or a divergence in opinions with Tax Authority on the tax return.

-7-11) Risk of goodwill impairment losses
Our corporate group also carries out M&A for acceleration of business growth if necessary. As a result, we hold goodwill.
Regarding goodwill, we perform impairment tests at least once a year or more frequently whenever a sign of impairment is recognized.
In the event this impairment test determines that these assets no longer generate enough cash flow, a need to recognize an impairment
emerges. When a large amount of impairment loss is recognized, our financial conditions as well as our business performance may be
impacted in a great deal.
12) Securing, training and labor management for human resources
In order for our corporate group to continue to provide high value-added services and keep expanding in the digital business area aswell as in the Internet industry where the barrier of entry is low and technology advances rapidly, securing human resources withadvanced specialized knowledge and abilities and developing them are the highest priority. However, because the digital business area
and the Internet industry are relatively new and fast-growing, the variety of human resources is limited, and recruiting talented personnel
has been challenging due to increasing demand for engineers, mainly in the digital business area.
Our corporate group reinforced its policy to recruit and educate college graduates, on top of any other measures such as recruitmentof excellent mid-career talents and reduction of the turnover rate of existing employees; and additionally, we have been strengthening
our recruitment efforts in regional centers including Sendai and the global recruitment. On the other hand, when we face challenges insecuring human resources due to Japan’s dwindling population and further acceleration in the declining birthrate and aging population,
as well as delays in securing mid-career recruitment and training of college graduates to become the substantial part of workforce
compared to the speed of business expansion, or when the turnover rate of recruited and trained employees is high, our corporate group’sbusiness performance may be affected.
Also, our corporate group has established our internal control system and training system appropriately through the setting andapplication of regulations, etc. We develop and operate our internal control system thoroughly according to the business circumstances,
and are committed to preventing unlawful actions and adhering to compliance, by establishing a Risk Management and Compliance
Committee, etc. However, regardless of defects of our corporate group, its executives and employees, unexpected trouble may arise
among executives and employees, which may affect our corporate group’s business performance.
13) Dividend policy
As our corporate group’s basic policy, we maintain internal reserves for new business investments and business expansions for longterm growth of profitability, from our standpoint to adequately return profits to our shareholders and to strive to further improve ourcorporate value, and we properly distribute profits commensurate with the growth of operating results and continuously increase thedividend amount. Our mid-term goal is to achieve a ratio of Consolidated Dividend to Equity Attributable to Owners of the Parent (DOE)of around 5%. However, depending on our business performance and financial conditions in the future, we may face challenges in
returning profits to our shareholders by dividends, etc.
14) Stock options
Our corporate group issues stock options to motivate our executives and employees to improve our long-term corporate value. Upon
exercise of currently issued stock options or stock options to be issued in the future, the total number of outstanding shares will increase,which may dilute the stock value per share, and such dilution of stock value may impact stock price.
15) Natural disaster, etc.
As mentioned above, our corporate group implements measures against disasters and accidents when installing our servers in a data
center and selecting an office. We have improved our systems for telework and working from home and formulated a business continuity
plan (BCP), in order to minimize the impacts of the pandemics of contagious and infectious diseases, large-scale disasters, such as
earthquakes and floods, crimes, such as terrorism, the malfunction of information systems, etc., which would hinder our business
operations.
However, if an unexpected natural disaster or the like happens, it may cause a huge loss to our office, equipment, and personnel,
leading to the temporary or mid/long-term suspension of all or part of our business, affecting the business results of our corporate group.
In addition, if electric power supply becomes insufficient due to a power outage, power restriction, a planned power outage, or the
like in the wake of disaster, our corporate group’s business activities and services may be suspended, significantly affecting the businessresults, etc. of our corporate group.
Even in the case where our corporate group is not directly affected by a natural disaster or the like, it may lead to the slowdown of the
global economy, affect our customers or affiliates, decrease consumer spending, and enterprises’ voluntary restraint of advertisement,
resulting in the curtailment of costs for advertisement, sales promotion, etc. and then affecting the business results of our corporate group.

-8-16) Risks related to climate change
Our corporate group has declared that we would focus on “environmental changes due to global warming and climate change,” which
are social issues induced by conventional marketing activities, and tackle these social issues. In addition, our corporate group agreed
with the final recommendation of “Task Force on Climate-related Financial Disclosures (TCFD)” and joined the TCFD consortium in
April 2021. Following the recommendation of TCFD, we analyze scenarios for identifying business risks and opportunities attributable
to climate change, and strive to grasp, analyze, and manage risks further and disclose appropriate information on them.
As a result of qualitative evaluation based on scenario analysis, we identified the following risks that could degrade our corporategroup’s business execution, financial status, and performance moderately or seriously.
<Risk of new regulations> Augmentation of costs for dealing with them by strengthening energy-saving measures, etc.
<Market risk> (1) Uncertainty of procurement of electric power, (2) Skyrocketing prices of environmental value certificates for electric
power; Augmentation of costs for procuring electric power and certificates<Physical risk of emergency> Increase of business operations and costs due to the rise in the seriousness and frequency of abnormal
weather, such as typhoons and floods<Chronic physical risk> Impact of the augmentation of costs for air-conditioning, etc. due to the increase of scorching hot days and thetight power supply, and the rise in sea level
Our corporate group grasps and grades risks as mentioned above, discloses more information, and takes measures against risks, but if
national policies, laws, and regulations regarding climate change, etc. are tightened further than expected or climate change progresses
further than assumed, it may further affect the financial standing and business performance of our corporate group.
17) Risks related to large-scale projects
Our corporate group sometimes undertakes a project for large-scale system development or the like through transactions withcustomers, so we recognize that it is indispensable to acquire and improve project management skills for dealing with large-scale projects.
However, the number of project managers engaging in large-scale projects is insufficient in the entire market, actual costs may deviate
from the initial estimates due to the differences in recognition of man-hours and specifications, increasing additional costs, unexpectedtrouble may occur, and specifications may be changed. Such various factors may lead to the change of delivery time, affect sales andprofit more seriously than small/medium-scale projects, require manpower and induce the loss of opportunities. As a result, they may
affect the financial standing and business performance of our corporate group.
To cope with these kinds of risks, our corporate group has multiple audit systems for the stage of estimating prices before receiving
orders, checks man-hours, etc. at a specialized audit division, shift to agile development, refrain from receiving orders for projects thathave a long delivery schedule and choose projects with a short delivery schedule, to enhance the check system.
In addition, when undertaking a project of a certain scale that would probably affect our business performance and financial standing,our group management council monitors it, to reduce risk.

-9-

2. Situation of Our Corporate GroupThe core business of our corporate group, which is composed of 13 in-house companies and 1 consolidated subsidiary (as of
May 10, 2022), is the support for Internet business.
3 in-house companies operate EMC business, 10 in-house companies operate PGT business, 1 in-house company and 1
consolidated subsidiary operate other business.
<Internet business support business>
・EMC business
Based on EMC Company, the dedicated team of digital creators operates Engagement Marketing Center (EMC), to support
leading companies in establishing an in-house section for digital business. By utilizing their skills and know-how nurtured throughdigital business operation support so far, we will trigger innovation in “business processes,” “relationships between enterprises andcustomers,” and “business models,” and contribute to the actualization of a sustainable society.
・PGT (Product Growth Team) business
In PGT business, we support digital service providers in growing products with an autonomous team. In this business, we will
actively establish a company specializing in the high value-added engineering field, create jobs in new technological fields andgrowth support fields, and realize high unit price and high operation rate, to enhance profitability.
・Other businessWe offer the service of supporting the employment of disabled people and operate the business of generating power fromrenewable energy.
(Note)The number of business segments of our corporate group is only one, that is, the Internet business support business. Accordingly,
we do not omit the section for performance in each business segment.

- 10 -

The positioning related to business of our corporate group is as follows.

Members Co., Ltd.

Other business
Members Energy

Internet business support businessCo., Ltd.

In-house company of Members Co., Ltd.
PGT businessBusiness Platform

Members Carrer

Members Edge

Company

Company

Company

EMC business
Members UX One

Members Data

Company

Adventure Company

Members Roots

Members EC Grow

Company

Company

EMC Company

Members Medical
Marketing Company

Members Good
Communications
Popinsight Company

Company

SaaS Plus Company

Members DX Compass
Company

DevOps Lead Company

Other business

Members Gifted
Company

Customer companies(as of May 10, 2022)

3. Basic Policy on Selection of Accounting Standards
Our company has been using IFRS since the term ended March 2018, for the purpose of improving international comparabilityof our financial information in the capital market.

- 11 -

4.

Consolidated Financial Statements and Major Notes(1)

Consolidated Balance Sheets
Previous consolidated
accounting year
(Mar. 31, 2021)[unit: thousand yen]
Current consolidated
accounting year
(Mar. 31, 2022)

AssetsCurrent assets
Cash and cash equivalents
Trade receivables and other receivables
Inventory assets
Other current assets
Total currents assets

4,140,847
2,842,456
31,803
173,103
7,188,210

5,226,706
3,075,859
48,632
224,3038,575,502

Non-current assets
Tangible fixed assets
Rights to use as assets
Goodwill
Intangible assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

252,811491,002
116,1158,436
266,909323,8021,309
1,460,387
8,648,597

237,803
713,578
116,115
12,425
373,657
375,346－
1,828,927
10,404,429- 12 -

Previous consolidated
accounting year
(Mar. 31, 2021)[unit: thousand yen]
Current consolidated
accounting year
(Mar. 31, 2022)

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

234,773
974,844356,050
234,351
1,970,892
3,770,912

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

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

157,327
106,181263,509
4,034,422

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

910,405
228,752(8,240)55,622
3,427,635
4,614,175
4,614,175
8,648,597

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

Shareholders’ equity
Capital stock
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of the parent
Total shareholders’ equity
Total liabilities and equity- 13 -

(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)[unit: thousand yen]
FY2021(Apr. 1, 2020 to Mar. 31, 2021)
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit (loss)
Finance income
Finance costs
Profit (loss) before income taxes
Income taxes
Profit (loss) for the period
Profit (loss) attributable to
Owners of parent
Net profit (loss)
Earnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)- 14 -FY2022(Apr. 1, 2021 to Mar. 31, 2022)

12,087,276
8,231,592
3,855,684
2,557,698
37,85473,984
1,261,855
30
13,752
1,248,133
351,770
896,363

14,938,719
10,182,290
4,756,429
2,901,342
27,063
5,825
1,876,325
26,9436,539
1,896,729
492,182
1,404,546

896,363896,363

1,404,546
1,404,546

69.69
67.86

107.73105.42

(Consolidated Statements of Comprehensive Income)[unit: thousand yen]
FY2021(Apr. 1, 2020 to Mar. 31, 2021)
Profit (loss) for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Total of items that will not be reclassified to profit orloss
Total comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Comprehensive income- 15 -FY2022(Apr. 1, 2021 to Mar. 31, 2022)

896,363

1,404,546

1,881

－

1,881

－

1,881
898,245－
1,404,546

898,245898,245

1,404,546
1,404,546

(3)Consolidated Statements of Changes in Equity
Previous consolidated fiscal year (Apr. 1, 2020 to Mar. 31, 2021)[unit: thousand yen]
Equity attributable to owners of parent
Retainedearnings

Total

Noncontrollinginterests

Total
equityCapitalstock

Capitalsurplus901,143474,594(7,922)

44,6272,709,135

4,121,578

67,513

4,189,092

Profit for the period

－

－

－

－

896,363896,363－896,363

Other comprehensive income

－

－

－

1,881

－

1,881

－

1,881

－

－

－

1,881

896,363898,245－898,245

Exercise of share acquisition rights

9,262

9,262

－

(2,270)－

16,254－

16,254Issuance of share acquisition rights

－

－

－

13,395－

13,395－

13,395

Expiration of share acquisition rights

－

－

－

(129)

129

－

－

－

Purchase of treasury shares

－

－

(318)

－

－

(318)

－

(318)

Dividends

－

－

－

－

(179,874)(179,874)－(179,874)

Transfer to retained earnings

－

－

－

(1,881)

1,881

－

－

－

Purchase of non-controlling interests－(255,104)－－－(255,104)(67,513)(322,618)

Total transactions with owners

9,262(245,842)

(318)

9,113

(177,863)(405,648)(67,513)(473,162)

Balance on March 31, 2021

910,405

228,752(8,240)55,622

3,427,635

4,614,175－

4,614,175

Balance on April 1, 2020

Total comprehensive income

TreasurysharesOther
componentsof equity- 16 -

Current consolidated fiscal year (Apr. 1, 2021 to Mar. 31, 2022)[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

Profit for the period

－

－

－

－

1,404,546

1,404,546

1,404,546

Other comprehensive income

－

－

－

－

－

－

－

－

－

－

－

1,404,546

1,404,546

1,404,546

Exercise of share acquisition rights

52,952

52,952－(12,948)－

92,956

92,956

Issuance of share acquisition rights

－

－

－

9,516

－

9,516

9,516

Purchase of treasury shares

－

－

(236)

－

－

(236)

(236)

Dividends

－

－

－

－

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

Total transactions with owners

52,952

52,952(236)(3,432)(225,579)(123,344)(123,344)

Balance on March 31, 2022

963,358

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

5,895,377

5,895,377

Total comprehensive income- 17 -

(4)Consolidated Statements of Cash Flows[unit: thousand yen]
FY2021(Apr. 1, 2020 to Mar. 31, 2021)

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Finance income
Finance costs(Increase) decrease in inventories(Increase) decrease in trade and other receivables
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Proceeds from subsidy income
Proceeds from insurance income
Interest paid
Income taxes paid
Income taxes refund
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investments
Payments for leasehold deposits and guarantee deposits
Proceeds from collection of leasehold deposits andguarantee deposits
Payments for asset retirement obligations
Other
Cash flows from investing activities
Cash flows from financing activities
Repayments of lease liabilities
Proceeds from issuance of share acquisition rights
Proceeds from exercise of share acquisition rights
Payments for purchase of treasury shares
Dividends paid
Purchase of non-controlling interests
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 18 -FY2022(Apr. 1, 2021 to Mar. 31, 2022)

1,248,133
350,61350,196(30)
13,213
5,636(14,032)(72,524)
582,486
2,163,694
3,533
6,558
3,000
(3,939)(345,705)
7,489
1,834,630

1,896,729
366,653－(26,943)
5,771(16,829)(437,538)
87,302
283,167
2,158,312
5,425
1,508
6,000
(4,687)(578,884)
65,9401,653,616(56,722)－
7,746(24,550)(8,302)(5,277)－(87,466)

37,005

2,236(22,970)
1,687(57,803)－－(98,810)(278,437)
13,395
16,254(318)(179,950)(322,618)(751,675)
1,025,151
3,115,696
4,140,847(345,470)
9,516
92,956(236)(225,711)－(468,947)
1,085,858
4,140,847
5,226,706

(5) Notes to Consolidated Financial Statements(Notes of Going Concern Assumption)
There is no related information.
(Changes in Presentation Method)(Consolidated statement of changes in equity)
The items “Exercise of stock options,” “Issue of stock options,” and “Invalidation of stock options” in “Total transactions
with owners” used in the consolidated fiscal year 2021 were changed to “Exercise of share acquisition rights,” “Issuance ofshare acquisition rights,” and “Expiration of share acquisition rights,” respectively, to indicate the actual situation more explicitly,
and we started using these new titles in the consolidated fiscal year 2022.
(Consolidated statements of cash flow)
In the consolidated fiscal year 2022, we started indicating the items “Payments for leasehold deposits and guarantee deposits”
and “Proceeds from collection of leasehold deposits and guarantee deposits,” which were included and indicated in “Other” of“Cash flows from investing activities,” as separate categories, in order to indicate the actual situation more explicitly. In orderto reflect this change in the presentation method, we revised the consolidated financial statements for the previous consolidated
fiscal year. As a result, the 14,142 thousand yen indicated in “Other” of “Cash flows from investing activities” in the consolidated
cash flow statement for the consolidated fiscal year 2021 was divided into negative 24,550 thousand yen in “Payments forleasehold deposits and guarantee deposits,” 37,005 thousand yen in “Proceeds from collection of leasehold deposits andguarantee deposits,” and 1,687 thousand yen in “Other.”
The items “Proceeds from issuance of stock options” and “Proceeds from exercise of stock options” in “Cash flows fromfinancing activities” in the consolidated fiscal year 2021 were changed to “Proceeds from issuance of share acquisition rights”
and “Proceeds from exercise of share acquisition rights,” respectively, to indicate the actual situation more explicitly, and we
started using these new titles in the consolidated fiscal year 2022.
(Segment Information)
The number of business segments of our corporate group is only one, that is, the Internet business support business. Accordingly,
we omit the section for performance in each business segment.
(Per Share Information)
Basic earnings per share, diluted earnings per share, and items for calculating them are as follows.
Consolidated fiscal year 2021
(From Apr. 1, 2020 to Mar. 31,
2021)

Consolidated fiscal year 2022
(From Apr. 1, 2021 to Mar. 31,
2022)

896,363

1,404,546－－

896,363

1,404,546

12,861,722

13,037,276

346,776285,752

13,208,498

13,323,028

Basic earnings per share [yen]69.69

107.73

Diluted earnings per share [yen]67.86

105.42

Net income attributable to the owners of the parent company[thousand yen]
Profit adjustment [thousand yen]
Net income used for calculating diluted earnings per share[thousand yen]
Weighted average number of outstanding common shares
Increase of common shares
Increase from the exercise of stock options
Weighted average number of diluted common shares

Issuable shares not included in the calculation because they do The 16th share acquisition rightnot have the dilutive effect(67,100 common shares)- 19 -

The 18th share acquisition right(146,400 shares)

(Significant Subsequent Events)
There is no related information.

- 20 -