Financial Results for FY2022
Members Co., Ltd. (TSE 2130)
May 10, 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: 37th floor (Reception on the 35th floor) of Harumi Island Triton Square Office Tower X, 1-8-10 Harumi, Chuo-ku, TokyoWeb Garden Sendai: 8th floor of Daiichi Seimei Tower Bldg., 4-6-1 Ichiban-cho, Aoba-ku, Sendai-shi, Miyagi
Web Garden Kitakyushu: 9th floor of Meiji Yasuda Seimei Kokura Bldg., 9-1 Konya-machi, Kokurakita-ku, Kitakyushu-shi, Fukuoka
Web Garden Kobe: 16th floor of Kobe Commerce Industry and Trade Center Bldg., 5-1-14 Hamabedori, Chuo-ku, Kobe-shi, Hyogo
Sapporo Office: 5th floor of 11.CONCEPT SPERARE Bldg., 1-1-65 Minami-Jujo-Nishi, Chuo-ku, Sapporo-shi, Hokkaido(VISION2030)

CapitalSales revenueSecurities code

No. of employees(consolidated)

963 million yen (as of March 31, 2022)

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

2130; Prime Section of Tokyo Stock Exchange
1,838 (as of March 31, 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)

EMC
business

A concept of 10,000 digitalcreators

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 support
Engineering

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

FY 2022 Overview
Both sales and operating income reached record highs for the ninth consecutive
term. As a result of companies conducting vigorous digital investments, theservice of supporting high-value-added specialized domains continues to perform
well, especially in domains such as engineering, data, and UX. The number of newcustomers acquired has also increased significantly.

Consolidated results
Sales revenue

14,938millionyen+23.6%
y/yOperating profit

1,876

millionyen

Added-value sales+48.7%
y/yBusiness situation
EMC business
Sales revenue

10,514
Educational
investment

280

millionyen+14.2%Up 45 million yen
y/ymillionyeny/y

PGT business
Sales revenue

5,157

Ratio of sales ofservices other thanwebsite operation
during 22/4Q

28.6 ％

13,961

millionyen

No. of companies
we offer the EMC
model

millionyen

Up 0.1 points
compared to22/3Q+48.6%y/y

No. of digitalcreators

Estimated term-end
dividend per share

25.0 yen

+24.2
28.0%
%

54900
PGT
business 723
EMC
businessy/y+7 from theend of theprevious FY＋125 from theend of theprevious FY+194 from theend of theprevious FY

Up 7.5 yen fromthe previous FY

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Income Statement Summary
Both sales and operating income have increased for the ninth consecutive term.
Although there were some unprofitable projects in the second quarter, theperformance was as planned, and it will not impact the next term. The recruitmentof mid-career workers got behind the initial forecast, reducing expenses andsecuring a significant profit.
Results in 4Q[Unit：million yen]

FY3/2021

FY3/2022

Cumulative results until 4Q
y/y

FY3/2021

FY3/2022y/y

Sales revenue

3,650

4,346

+19.1%

12,087

14,938+23.6%

Added value sales

3,396

3,995

+17.6%

11,24013,961+24.2%

Gross profit1,306

1,578+20.8%

3,855

4,756

+23.4%(Gross profit margin)

35.8%

36.3%

―

31.9%

31.8%

―

SGA

589

698

+18.6%

2,557

2,901

+13.4%

Operating profit

697

883

+26.7%

1,261

1,876

+48.7%

19.1%

20.3%

―

10.4%

12.6%

―

Pretax profit

691

907

+31.2%

1,248

1,896

+52.0%Net profit

488

717

+47.0%

896

1,404+56.7%(Operating profit margin)* Added value sales = Sales revenue ー Outsourcing and procurement costs ＝ Sales from in-house resources

5Balance Sheet Summary[unit: thousand yen]Previous consolidated
accounting year
（Mar. 31, 2021）

Current consolidated
accounting year
（Mar. 31, 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
Other non-current assets
Total non-current assets
Total assets

4,140,847

5,226,706

2,842,456

3,075,859

31,803

48,632

173,103

224,303

7,188,210

8,575,502252,811

237,803

491,002713,578

116,115

116,1158,436

12,425

266,909373,657

323,802375,3461,309

01,460,387

1,828,927

8,648,597

10,404,429

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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, 2021）

Current consolidated
accounting year
（Mar. 31, 2022）

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

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

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

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Sales by Segment-EMC Business
In EMC business, sales revenue(*1) was 10,514 million yen (+14.2% year on year) andthe number of digital creators (DCs) was 900 (＋125 from the end of the previous term).
The service of supporting existing customers in digital marketing performed well.
Value-added sales per person decreased year on year because the acquisition of
new customers was delayed longer than expected while the number of DCs
increased.
[unit: million yen]

10,51410,000

6,000
4,000
2,000
0

sales per person in the EMC business[unit: person]

12,0008,000

No. of digital creators and monthly added value

Sales revenue of the EMC business

9,206

8,524
6,777
1,987
1,587

3,085

7,549
2,366
1,842

2,814

2,565
1,976

2,270

2,196

2,270

2,648

1,847

1,403

1,493

1,785

1,850

2,129

18/03

19/03

20/03

21/03

22/03

2Q

3Q

860,299

700 818,956

500

4Q

826

1,000,000
950,000

795 775

900,000

678

681 691 693

850,000

834,324

863,679
808,339
792,146600

800,000

797,423
781,793
747,524

748,083

400

1,799

1Q

907,093882,686

800

600

2,651

950 933
921 900

1,000900[unit: yen]

750,000
700,000300

650,000

200

600,000100

550,000

0

20/03 20/03 20/03 20/03 21/03 21/03 21/03 21/03 22/03 22/03 22/03 22/03
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

500,000

4Q

No. of digital creators
デジタルクリエイター数
月額一人あたり付加価値売上高
Monthly added value sales per person*1 Sales revenue was roughly estimated with reference to the IFRS standard (the transactions between the parent company and subsidiaries were not offset).
*2 No. of digital creators is the figure as of the end of 4Q.
*3 Monthly added value sales per person ＝ Cumulative quarterly added value sales÷ Average number of digital creators during the term

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Sales by Segment-PGT Business(*1)
In PGT business, sales revenue(*2) was 5,157 million yen (+48.6% year on year) andthe number of digital creators (DCs) was 723 (＋194 from the end of the previous term).
The high value-added domains, mainly engineering, expanded steadily, and added
value sales per person rose 7.3% year on year.
[unit: million yen]

No. of digital creators and monthly added value

Sales revenue of the PGT business

6,000

5,157

1,476

4,000

3,469
2,617

3,000

1,701

791

1,057

489

714

327
268
242
220

461

387
364

18/03

19/03

2,000

0

800

1Q

2Q

1,215

782
1,132

795

512

20/03
3Q

400

355

398

21/03
4Q

22/03

600,000

616,695

588,902598,801
586,974

572,906

551,902535,578
515,572
494,483100
473,018750,000

650,000
614,740429 437 437

200

0800,000

700,000

511 516 529

300878599

600
500

1,332

1,013

[unit: yen]723697 698 707

700

5,000

1,000sales per person in the PGT business[unit: person]

550,000
500,000

551,002450,000

20/03 20/03 20/03 20/03 21/03 21/03 21/03 21/03 22/03 22/03 22/03 22/03
1Q

2Q

3Q

4Q

1Q

No. of digital creators
デジタルクリエイター数

2Q

3Q

4Q

1Q

2Q

3Q

400,000

4Q

月額一人あたり付加価値売上高
Monthly added value sales per person*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 No. of digital creators is the figure as of the end of 4Q.
*4 Monthly added value sales per person ＝ Cumulative quarterly added value sales÷ Average number of digital creators during the term

9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%

450

22.8%

2,200

17.3%

Pretax profit (million yen)

1,896

52.0%

44522.2%

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%

7.55.2%

6.7%

11.52515

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

3020

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Forecast

10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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