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.

October 31, 2022

Consolidated Financial Results
for the First Six 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:
November 4, 2022
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly 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 first six months of fiscal year ending March 31, 2023 (from April 1,
2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
RevenueSix months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

September 30, 2022

8,213

20.9

September 30, 2021

6,795

25.6

Profit attributable toowners of parent
Six months ended

Profit before tax%

Millions of yen

288(21.2)

366

149.3

Total comprehensive
incomeProfit%Millions of yen

237(34.9)

157(39.5)

364

156.2

259

117.3

Basic earnings
per share%

Diluted earnings
per share

Millions of yen%

Millions of yen

%

Yen

Yen

September 30, 2022

157

(39.5)

157(39.5)

11.87

11.76

September 30, 2021

259

117.3

259

116.7

19.97

19.49

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%

September 30, 2022

9,697

5,820

5,820

60.0

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 ending
March 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

―

25.00

25.00

―

30.00

30.00

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
Full year

Operating profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

18,200

21.8

2,200

17.3

2,185

15.2

1,573

12.0

Profit attributable toowners of parent
Full year

Profit before tax

Basic earnings
per share

Millions of yen

%

1,573

12.0

Yen

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 September 30, 2022

13,361,800 shares

As of March 31, 2022

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

77,460 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)
Six months ended September 30, 2022

13,250,391 shares

Six months ended September 30, 2021

13,011,605 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 5 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 English material for supplementary explanations on financial results will be uploaded to the website of our company on Monday,
October 31, 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………………………

5

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

6(1) Summary of Quarterly Consolidated Balance Sheets…………………………………………………………………….

6(2) Summary of Quarterly Consolidated Statements of Income………………………………………………………………

8(3) Summary of Quarterly Consolidated Statements of Comprehensive Income……………………………………………

9(4) Summary of Quarterly Consolidated Statements of Changes in Equity…………………………………………………

10(5) Summary of Quarterly Consolidated Statements of Cash Flows…………………………………………………………

11(6) Notes to Summary of Consolidated Financial Statements………………………………………………………………

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

12(Revision to Accounting Estimates)

12(Significant Subsequent Events) …...………………………………………………………………………………………

12

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.
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 their marketing activities, to transform intoa model that facilitates decarbonization and resolution of societal issues by accelerating corporate transformations through the utilizationof 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 internally, 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 regard their initiatives for digitalization called “digitaltransformation (DX)” have been 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 client companies’ management style, marketing activities, services, and products into “Sustainable Ones for the Earth andSociety” through our support to clients’ digital business operation.
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 clientcompanies, 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 second quarter, the sales revenue was 5,392 million yen (IFRS*Reference Value: Up 12.9% fromthe same cumulative quarter of the previous fiscal year). The number of customers to whom we provide the EMC model was 54 (Sameas the end of the previous fiscal year), value-added sales per client company reaching 41,942 thousand yen, and the number of digitalcreators belonging to the EMC business was 1,127 (up 227 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 dedicatedto 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 support for 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, we keep actively launching in-house companies specializing in high-value-added engineering fields in order to create
occupations in new technology domain and the field of growth support and to enhance profitability by achieving high unit prices and2high operation rates accordingly. 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.
- Members XR(*2) Booster Company (established in August 2022), a company where XR creators support client companies inbusiness growth.
The PGT business continues to grow steadily due to the rapid expansion of support services mainly by Members Career Company
and also in specialized fields such as the data fields and UX (*3) fields against the backdrop of the thriving DX market, driving the entire
group’s growth.
In this consolidated cumulative second quarter, due to acquiring projects through sales activity under a new operational structure as
production and sales division separated, improved operation rates, the steady expansion of high-value-added support services in
specialized areas, and high profitability by transforming into a team-based operation, the sales revenue of the entire PGT business was
3,245 million yen (IFRS * Reference Value: Up 38.3% from the same cumulative quarter of the previous fiscal year ), the number ofcompanies that provide the PGT models, in which three or more digital creators work as a team dedicated to client companies, was 46(up 25 from the end of the previous fiscal year), value-added sales per client company were 17,736 thousand yen, and the number ofdigital creators belonging to the PGT business reached 936 (up 213 from the end of the previous fiscal year).
<Overview of Consolidated Financial Statements>
For the consolidated cumulative second quarter of the current term, revenue was 8,213 million yen (up 20.9% from the same
cumulative quarter of the previous fiscal year), operating profit was 288 million yen (down 21.2% from the same cumulative quarter ofthe previous fiscal year), profit before income taxes was 237 million yen (down 34.9% from the same cumulative quarter of the previous
fiscal year), and profit attributable to the owners of the parent was 157 million yen (down 39.5% from the same cumulative quarter ofthe previous fiscal year).
Sales revenue increased 20.9% from the same cumulative quarter of the previous fiscal year, recording the highest sales for the
cumulative second quarter. This was attributed to the progress of high-value-added support services and the results of sales activities
due to separation of production and sales in specialized fields in the PGT business.
Consolidated operating profit declined year on year due to the following reasons: operating rate of our creators was lower thanplanned due to the delay in increase of new customers and projects mainly in the EMC business, some projects turned out to be
unprofitable, proactive investment in sales, recruitment, and training, and the cost for expanding office space to accommodate anincreased number of creators, etc.
However, we fully expect that the investment in active recruitment and training for new graduates and mid-career creators and sales
activities will contribute to full-year performance and future revenues through the continuous growth of our corporate group. Accordingly,
we will continue our active investment, as companies are increasing their investments in digitalization.
The pretax profit of 237 million yen includes financial costs of 51 million yen for fund investment, etc.
<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. In response to the expansion of corporate investment in digitalization,
we will continuously recruit and educate digital creators to meet our clients’ needs sufficiently.
Our company decided to integrate the three major internal companies: EMC Company, Members Career Company, and Members
Edge Company in April 2023 (scheduled), for the purpose of executing our strategies for services, personnel development, and sales in
an integrated and group-wide manner. In the term ending March 2023, we will proceed with the establishment of an integrated system
for sales, recruitment, and personnel development. By consolidating the three companies, we will further enhance our unique model
focusing on the recruitment and development of new graduates, establish a management model for achieving higher added value,
operation rate, and mid/long-term growth, and realize the world’s best support for digital business operation and high-level customers’
success for completing our mission.
To do so, we newly established Sales & Marketing Dept. by integrating the sales and marketing divisions of each of the three internal
companies on October 1, 2022, to promote and strengthen group-wide sales strategies. We will apply the successful initiative ofseparating production and sales divisions in the PGT business, which performed well in the cumulative second quarter of the term ending
March 2023, to all other businesses in our corporate group, and accelerate the increase of number of new customers and the transactions
with existing customers in order to achieve the full-year earnings plan. In addition, we will expand the domain of our services in both3

businesses, brush up the skills of new graduates, assign them to actual tasks early to increase the ratio of creators in service, raise
profitability by expanding the domain with high added value, and continuously enhance investment in mainly the recruitment andtraining of new graduates and mid-career creators.
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 our
profit sources. In parallel, we will further invest in education in specialized fields and transfer creators to other in-house companies withhigh unit 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 (*4), the total amount of social engagement(*5) of 10 billion, 10,000 employees, and an operating profit of 10 billion yen in 2030.
(*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) XR: Extended reality that refers to VR (virtual reality), AR (augmented reality), and MR (mixed reality).
(*3) UX (User Experience): The experience one gains by using a product or service.
(*4) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion of business, systemic design, and output.
(*5) 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 cumulative second quarter of the current consolidated term were 9,697 million yen (down 707 million
yen from the end of the previous consolidated fiscal year). This is primarily due to an increase of 930 million yen in otherfinancial assets, an increase of 114 million yen in tangible fixed assets, along with a decrease of 1,304 million yen in cash andcash equivalents and a decrease of 442 million yen in trade receivables and other receivables.
Total liabilities stood at 3,876 million yen (down 632 million yen from the end of the previous consolidated fiscal year). Thiswas primarily due to an increase of 79 million yen in allowance, along with a decrease of 360 million yen in trade payables andother payables, a decrease of 225 million yen in income taxes payable and a decrease of 108 million yen in lease liabilities.
Total equity was 5,820 million yen (down 75 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 52 million yen in capital stock and an increase of 53 million yen in capital surplus, along with adecrease of 170 million yen in retained earnings.
ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the cumulative second quarter of the current
consolidated term was 3,922 million yen, down 1,304 million yen from the end of the previous consolidated fiscal year. The
status of each cash flow for the cumulative second quarter and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during the cumulative second quarter as a result of operating activities amounted to 272 million yen (293
million yen acquired during the same cumulative quarter of the previous year). The income was mainly from a decrease of 423
million yen in trade and other receivables, 242 million yen in depreciation and amortization, and 237 million yen of profit
before income taxes while the expenditure was mainly from a decrease of 354 million yen in trade and other payables and 288
million yen paid as income taxes paid.
(Cash Flows from Investing Activities)
The funds used during the cumulative second quarter as a result of investing activities amounted to 1,126 million yen (8 million
yen used in the same cumulative quarter of the previous year). The expenditure was mainly from 992 million yen in purchase ofinvestments and 133 million yen in purchase of property, plant and equipment.
(Cash Flows from Financing Activities)
The funds used during the cumulative second quarter as a result of financing activities amounted to 450 million yen (332million yen used in the same cumulative quarter of the previous year). The income was mainly from 93 million yen in proceeds
4from exercise of share acquisition rights and the expenditure was mainly from 326 million yen as dividends paid and 217 million
yen in expenditure for the 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 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.

5

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)

2nd quarter of the current
consolidated accounting year
(Sep. 30, 2022)

AssetsCurrent assets
Cash and cash equivalents

5,226,706

3,922,129

3,075,859
48,632

2,633,368
51,514

Other current assets

224,303

238,112

Total current assets

8,575,502

6,845,124

Non-current assets
Tangible fixed assets

237,803351,916

Rights to use as assets
Goodwill

713,578
116,115

687,766
116,115

Intangible assets
Other financial assets

12,425
373,657

11,214
1,304,293

Trade receivables and other receivables
Inventory assets

Deferred tax assets
Total non-current assets
Total assets

6375,346

380,870

1,828,927

2,852,177

10,404,429

9,697,302

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

2nd quarter of the current
consolidated accounting year
(Sep. 30, 2022)

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

400,434
1,068,471

334,628
707,877

Income taxes payable
Contract liabilities

370,219
30,200145,156
10,754

Other current liabilities

2,326,547

2,328,543

Total current liabilities

4,195,872

3,526,960

197,817

155,569

115,362

194,455

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

313,180

350,024

4,509,052

3,876,985

Capital stock
Capital surplus

963,358
281,704

1,016,065
335,567

Treasury shares
Other components of equity(8,477)52,190(7,628)40,656

Retained earnings

4,606,602

4,435,656

Total equity attributable to owners of the parent

5,895,377

5,820,316

Total shareholders’ equity

5,895,377

5,820,316

10,404,429

9,697,302

Total liabilities
Shareholders’ equity

Total liabilities and equity7(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
1H FY2022(Apr. 1, 2021 to Sep. 30, 2021)

1H FY2023(Apr. 1, 2022 to Sep. 30, 2022)

Revenue

6,795,096

8,213,871

Cost of sales

4,905,053

5,947,917

Gross profit

1,890,043

2,265,953

Selling, general and administrative expenses
Other income

1,539,726
18,518

1,981,753
11,275

Other expenses

2,447

6,941

Operating profit
Finance income

366,387445

288,534
22

Finance costs

2,756

51,470

Profit before income taxes

364,076

237,086

Income taxes

104,240

79,858

Profit for the period

259,835

157,228

Profit attributable to
Owners of parent

259,835

157,228

259,835

157,228

19.97
19.49

11.87
11.76

Net profit
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)8(3) Summary of Quarterly Consolidated Statements of Comprehensive Income[unit: thousand yen]
1H FY2022(Apr. 1, 2021 to Sep. 30, 2021)

1H FY2023(Apr. 1, 2022 to Sep. 30, 2022)

Profit for the period

259,835

157,228

Comprehensive income

259,835

157,228

Owners of parent

259,835

157,228

Comprehensive income

259,835

157,228

Comprehensive income attributable to9(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated cumulative second quarter of the prior fiscal year ended March 2022 (Apr. 1, 2021 to Sep. 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

－

－

－

－

259,835

259,835

259,835

－

－

－

－

259,835

259,835

259,835

Exercise of share acquisition rights

25,42825,428－(6,668)－44,18844,188Issuance of share acquisition rights

－

－

－

9,516

－

9,516

9,516

Purchase of treasury shares

－

－

(129)

－

－

(129)

(129)

Dividends

－

－

－

－

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

Total transactions with owners

25,42825,428

(129)

2,847

(225,579)(172,005)(172,005)

Balance on September 30, 2021

935,834

254,181(8,370)58,4693,461,891

4,702,005

4,702,005

Profit for the period
Total comprehensive income

Consolidated cumulative second of the current fiscal year ending March 2023 (Apr. 1, 2022 to Sep. 30, 2022)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2022

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total

Total
Equity963,358

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

5,895,377

5,895,377

－

－

－

－

157,228

157,228

157,228

－

－

－

－

157,228

157,228

157,228

52,70752,707－(11,514)－93,89993,899Purchase of treasury shares

－

－

(353)

－

－

(353)

(353)

Disposition of treasury shares

－

1,156

1,203

－

－

2,359

2,359

Expiration of share acquisitionrights

－

－

－

(19)

19

－

－

Dividends

－

－

－

－

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

Total transactions with owners

52,70753,863849(11,534)(328,174)(232,289)(232,289)

Balance on September 30, 2022

1,016,065

335,567(7,628)40,656

4,435,656

5,820,316

5,820,316

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

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

1H FY2023(Apr. 1, 2022 to Sep. 30, 2022)

364,076
174,730

237,086
242,288

(20)
2,018

(22)
50,494(Increase) decrease in inventories(Increase) decrease in trade and other receivables(17,315)
382,508(2,881)
423,104

Increase (decrease) in trade and other payables
Other(324,074)(6,847)(354,783)(37,160)

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Finance income
Finance costs

575,075

558,125

Interest and dividends received
Proceeds from subsidy income

Subtotal

20
1,508

22
1,383

Proceeds from insurance income
Interest paid

6,000
(1,908)6,000(4,240)

Income taxes paid
Income taxes refund(348,187)
61,170(288,562)
4

Cash flows from operating activities

293,679

272,732(4,439)(2,356)－(133,730)(2,904)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments
Other(1,304)(992,459)
2,588(8,100)(1,126,506)

Repayments of lease liabilities
Proceeds from issuance of share acquisition rights(160,838)
9,516(217,748)－

Proceeds from exercise of share acquisition rights
Payments for purchase of treasury shares

44,188(129)

93,899(353)

Dividends paid

(225,545)(326,600)

Cash flows from financing activities(332,809)(450,803)

Net increase (decrease) in cash and cash equivalents(47,230)(1,304,577)

Cash and cash equivalents at beginning of period

4,140,847

5,226,706

Cash and cash equivalents at end of period

4,093,617

3,922,129

Cash flows from investing activities
Cash flows from financing activities11(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 second 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 second quarter is minor.
(Significant Subsequent Events)
There is no related information.

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