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.

February 2, 2023

Consolidated Financial Results
for the First Nine 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:
February 8, 2023
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first nine months of fiscal year ending March 31, 2023 (from April
1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Revenue
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Profit before tax

Millions of yen%

ProfitMillions of yen%

Millions of yen%

December 31, 2022

12,61019.1

607(38.8)

558(43.6)

379(44.8)

December 31, 2021

10,592

25.5

992

75.8

989

77.7

687

68.3

Profit attributable toowners of parent
Nine months ended

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

Millions of yen%

Millions of yen

%

Yen

Yen

December 31, 2022

379

(44.8)

379(44.8)

28.59

28.37

December 31, 2021

687

68.3

687

68.2

52.77

51.58

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%

December 31, 2022

10,174

6,046

6,046

59.4

March 31, 2022

10,404

5,895

5,895

56.7

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

Second quarter-end

Third quarter-end

Yen

Yen

Yen

―

0.00

―

―

0.00

―

Fiscal year-end

Fiscal year ending
March 31, 2023
(Forecast)

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
31, 2023)(Percentages indicate year-on-year changes.)
Revenue

Full year

Operating profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

17,300

15.8

1,200

(36.0)

1,180(37.8)

850(39.5)

Profit attributable toowners of parent
Full year

Profit before tax

Basic earnings
per share

Millions of yen%

850(39.5)

Yen

65.20(Note) Changes from the latest financial forecast: Yes
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 December 31, 2022

13,362,900 shares

As of March 31, 2022

13,217,900 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

77,518 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)
Nine months ended December 31, 2022

13,262,025 shares

Nine months ended December 31, 2021

13,021,337 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 Thursday,
February 2, 2023.

○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. In Japan, thejobs-to-applicants ratio for IT engineers in December 2022 was 12.09, showing a significantly high demand compared to the overall
average ratio of 2.54 (Persol Career Co., Ltd.: Jobs-to-Applicants Ratio Report, published on January 19, 2023). There is a conspicuous
shortage of human resources.
Under such circumstances, we uphold to create a spiritually rich society through “MEMBERSHIP” as our mission, and aim 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 fiscal failure,” and will work to realize a spiritually rich society in which people and companies not only pursue their selfinterest, but also cooperate each other by sharing hopes for a better sustainable future and willingness to participate in society..
We are primarily developing two businesses (EMC business and PGT business) centered around the digital domain.
<Overview of Consolidated Financial Statements>
For the consolidated cumulative third quarter of the current term, revenue was 12,610 million yen (up 19.1% from the same
cumulative quarter of the previous fiscal year), operating profit was 607 million yen (down 38.8% from the same cumulative quarter ofthe previous fiscal year), profit before income taxes was 558 million yen (down 43.6% from the same cumulative quarter of the previous
fiscal year), and profit attributable to the owners of the parent was 379 million yen (down 44.8% from the same cumulative quarter ofthe previous fiscal year).
Sales revenue increased 19.1% from the same cumulative quarter of the previous fiscal year, recording the highest sales for the
cumulative third quarter. Centered on specialized companies, revenue from the PGT business maintained a high growth rate of 35.9%
year-on-year, and the sales ratio of non-website operations increased by 7.1 percentage points from the end of the previous fiscal year.
On the other hand, operating profit decreased compared with the same period of the previous fiscal year due to delays in acquiring
customers and a decline in the operation rate, as well as aggressive upfront investment such as recruitment aimed at achieving the target
sales growth rate of 25%.
Against the backdrop of the expansion of the digital economy and the shortage of IT human resources, we have set a growth rate
target of 25% in VISION2030. To meet this target, we have successfully secured a sufficient number of digital creators, mainly new
graduates, as 2,020 (up 24.5% from the end of the previous fiscal year) on a consolidated basis. However, the operating rate of thosecreators declined because of the delay in customer development due to our sales tactics depending on existing customers and the factthat the non-web operation area of large customers in the EMC business, which was targeted as a growth area, is still under development.
In addition, compared to the strong hiring of new graduates, the number of mid-career hires has fallen below the target since the fiscal
year ending March 31, 2021. As a result, the ratio of new graduates to the total number of employees has increased significantly, and theoperating rate and service capabilities have declined. Accordingly, the sales growth rate will not catch up with the growth rate of digitalcreators, and we expect a decrease in profit in the fiscal year ending March 31, 2023.
In the next fiscal year as well, we anticipate a decline in operating rates and profitability similar to this fiscal year by investing in new
graduates and mid-career recruits and expanding human capital with a medium- to long-term perspective. However, we aim to establish
a high-growth model by executing the following three policies; (1) Strengthen our sales capabilities by separating sales from production,(2) further expand specialized companies in non-website operation fields, and (3) improve the human resource portfolio by expanding
investment in mid-career recruitment / drastically strengthening training. Then, we will aim to realize our target growth rate of 25% invalue-added sales and a 10% operating profit margin from the fourth quarter of the fiscal year ending March 31, 2024 onwards.

2

1.

Strengthen our sales capabilities by separating sales from production
From October 2022, we have established a new Sales & Marketing Division that integrates the sales and marketing
departments of the entire group, develop a company-wide separation of production and sales, and promote and strengthen oursales strategy. During the third quarter of the fiscal year ending March 31, 2023, the amount of sales investment increased byabout two times compared to the previous fiscal year, and the number of active digital creators and customers is on the rise. In
the fourth quarter of the fiscal year ending March 31, 2024, we will build a sales system to increase the number of digital creators
operating on a quarterly basis by 250 compared to the previous quarter. In addition, out of the number of our customers, thenumber of “performance-based team model companies” (the total number of companies providing the former EMC and PGTmodel) were 103 companies at the end of this quarter (an increase of 28 companies from the end of the previous fiscal year).
“Performance-based team model companies” are the customers we provide services with three or more digital creators pursue
results and provide services as a team dedicated to client companies. Aiming for 200 companies by the end of March 2024, we
will accelerate the conversion of PGT business customers to a performance-based team model, increase unit prices, and acquire
new customers.

2.

Further expansion of specialized companies in non-website operation fields
Towards 2030, we will increase the sales ratio of the conventional website operation area to 20% and expand the sales ratioof the non-website operation area to 80%. We aim to develop value-added services that require specialized knowledge over the
medium to long term. We are continuing to launch specialized companies focused on non-website operation areas, and the growthof these specialized companies has led to an upward trend in sales ratios other than website operation areas. Value-added sales
per employee of specialized companies are higher than the company-wide average, contributing to the improvement ofconsolidated value-added sales per employee. In the current fiscal year, we established three new in-house companies
specializing in XR (virtual reality, etc.), AI (artificial intelligence), and QA (quality assurance) to expand our specialized areas.
In the fiscal year ending March 31, 2024, we will also establish four or more new in-house companies annually, aiming to reach
700 digital creators in this area with an annual growth rate of 65% or more.

3.

Improving the human resources portfolio by expanding investment in mid-career recruitment and drastically strengthening
training
From the fiscal year ending March 2023, based on the strategy of the entire group, we have shifted to group-wide recruitment
activities, which had been conducted by each in-house company until the fiscal year ended March 2022. We are beginning to
see results, such as hiring more than 200 digital creators per year due to our active recruitment investment. In the fiscal year
ending March 31, 2024, we plan to further accelerate this move and increase the number of mid-career hires more strategically.
Although there will be no change to the existing “new graduate hiring and training model,” we will limit the number of new
graduates hired from April 2024 onwards until the favorable balance between mid-career hires and new graduates hires isachieved, and we will increase the ratio of mid-career hires among all digital creators. This is a policy to create a foundation forimproving service capabilities. Through this, we aim to improve the operating rate and unit price over the medium to long term
and increase value-added sales per employee. In addition, regardless of whether they are mid-career or new graduates, we willcontinue to secure an investment amount of 2% or more of value-added sales for employee education and training. We have also
launched such initiatives as establishing a skill development headquarters, introducing a specialized skills certification system,and transferring young employees to specialized companies. We will radically speed up the development of young employees.

<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 third quarter, the sales revenue of EMC business was 8,046 million yen (IFRS*Reference Value:
Up 8.3% from the same cumulative quarter of the previous fiscal year). The number of digital creators belonging to the EMC business
was 1,088 (up 188 from the end of previous fiscal year).

3

<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 digital product growth.”
The PGT business mainly provide services to companies that have high growth potential and are also proactive in digital and IT
technology investment, by sending autonomous teams of our digital creators supporting these clients’ product growth. Our team of digitalcreators dedicated to our clients will work together with client companies, and through the support for the development of digital products,
we will support not only the planning and initial construction/implementation of digitalization but also the organizations that enablelong-term operation.
In this consolidated cumulative third quarter, the sales revenue of PGT business was 5,000 million yen (IFRS*Reference Value: Up
35.9% from the same cumulative quarter of the previous fiscal year). The number of digital creators belonging to the PGT business was
931 (up 208 from the end of previous fiscal year).
<Our Corporate Group’s Policies and Initiatives>
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 personnel development, sales and services in
an integrated and group-wide manner. In the term ending March 2023, we proceed with the establishment of an integrated system forsales, recruitment, and personnel development. The other internal companies that are not subject to the integration this time specializein their respective specialized fields, so we will expand our business with an eye to expanding non-web operation fields. Going forward,
we will continue to launch multiple companies specializing in specialized fields. In order to fully back up the digitalization of ourcustomers, we will establish the world's best digital business operation support from various technological fields and achieve a highlevel of customer success.
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 company group will actively invest in human capital,
especially mid-career recruitment, to increase the number of digital creators who are the source of value creation for customers. In
addition, we will focus on cultivating new customers, expanding new projects for existing customers and further strengthening our sales
structure. In parallel, we will further invest in education in specialized fields and transfer creators to other in-house companies with highunit prices, to improve added value sales per person.
As we continue to work on fulfilling our long-term vision, VISION 2030 (https://www.members.co.jp/ir/pdf/20200508_04.pdf), we
will take initiatives with the aim of achieving the important KPIs of 100,000 social creators (*2), the total amount of social engagement(*3) of 10 billion, 10,000 employees, and an operating profit of 10 billion yen.
(*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) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion of business, systemic design, and output.
(*3) 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 third quarter of the current consolidated term were 10,174 million yen (down 230 million
yen from the end of the previous consolidated fiscal year). This is primarily due to an increase of 935 million yen in otherfinancial assets, an increase of 217 million yen in other current assets, along with a decrease of 1,343 million yen in cash andcash equivalents.
Total liabilities stood at 4,127 million yen (down 381 million yen from the end of the previous consolidated fiscal year). Thiswas primarily due to an increase of 79 million yen in allowance and an increase of 60 million yen in other current liabilities,
along with a decrease of 366 million yen in income taxes payable and a decrease of 186 million yen in lease liabilities.
Total equity was 6,046 million yen (up 151 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 57 million yen in capital surplus, an increase of 53 million yen in capital stock and an increaseof 50 million yen in retained earnings.

4ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the cumulative third quarter of the current
consolidated term was 3,882 million yen, down 1,343 million yen from the end of the previous consolidated fiscal year. The
status of each cash flow for the cumulative third quarter and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during the cumulative third quarter as a result of operating activities amounted to 350 million yen (581
million yen acquired during the same cumulative quarter of the previous year). The income was mainly from 558 million yenof profit before income taxes and 364 million yen in depreciation and amortization while the expenditure was mainly from 334
million yen paid as income taxes paid and 212 million yen in other.
(Cash Flows from Investing Activities)
The funds used during the cumulative third quarter as a result of investing activities amounted to 1,129 million yen (10 million
yen used in the same cumulative quarter of the previous year). The expenditure was mainly from 992 million yen in purchase ofinvestments and 137 million yen in purchase of property, plant and equipment.
(Cash Flows from Financing Activities)
The funds used during the cumulative third quarter as a result of financing activities amounted to 563 million yen (411 million
yen used in the same cumulative quarter of the previous year). The income was mainly from 95 million yen in proceeds fromexercise of share acquisition rights and the expenditure was mainly from 332 million yen in expenditure for the repayment oflease liabilities and 326 million yen as dividends paid.
(3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings Forecast
We have revised the full-year consolidated earnings forecast for the term ending March 2023, which was announced on May
10, 2022, while considering the results for the cumulative third quarter of the current consolidated term and the current outlook.
Revision to the full-year consolidated earnings forecast for the term ending March 2023 (Apr. 1, 2022 to Mar. 31, 2023)
ProfitSales revenue

Operating profit

Profit before tax

Profitattributable toowners of parent

Forecast

Basic earnings
per share

millions of yen

millions of yen

millions of yen

millions of yen

millions of yen

yen

18,200

2,200

2,185

1,573

1,573

120.6517,300

1,200

1,180

850

850

65.20

Change (B-A)(900)(1,000)(1,005)

(723)

(723)

Change rate (%)(4.9)(45.5)(46.0)(46.0)(46.0)

announced
previously (A)Forecast
announced
this time (B)(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.
Although we have revised our full-year earnings forecast as described above, we have not changed our dividend forecast inlight of our financial situation and future growth prospects. In the fiscal year ending March 31, 2023, we will see a temporary
decrease in profit, but we will continue to pursue improvement policies, continue to invest in future growth, and continue to aim
to realize VISION2030.

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

3rd quarter of the current
consolidated accounting year
(Dec. 31, 2022)

5,226,706
3,075,859
48,632
224,3033,882,944
3,155,597
96,014
441,690

Total current assets

8,575,502

7,576,247

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

237,803
713,578
116,115
12,425
373,657
375,346

344,070
608,557
116,115
10,4881,309,153
209,566

Total non-current assets

1,828,927

2,597,951

10,404,429

10,174,198

Total assets

6

[unit: thousand yen]Previous 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
Non-current liabilities
Lease liabilities
Allowance
Total non-current liabilities

3rd quarter of the current
consolidated accounting year
(Dec. 31, 2022)

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

284,083
1,117,498
3,810
12,6502,387,223

4,195,872

3,805,266

197,817
115,362

127,566
194,924

313,180

322,491

4,509,052

4,127,757

963,358
281,704(8,477)52,1904,606,602

1,016,922
339,256(7,750)40,477
4,657,535

Total equity attributable to owners of the parent

5,895,377

6,046,440

Total shareholders’ equity

5,895,377

6,046,440

10,404,429

10,174,198

Total liabilities
Shareholders’ equity
Capital stock
Capital surplus
Treasury shares
Other components of equity
Retained earnings

Total liabilities and equity7(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

Cumulative 3Q FY2023(Apr. 1, 2022 to Dec. 31, 2022)

Revenue
Cost of sales

10,592,147
7,413,801

12,610,779
9,131,476

Gross profit
Selling, general and administrative expenses
Other income
Other expenses

3,178,346
2,202,995
21,621
4,294

3,479,302
2,876,023
12,695
8,575

Operating profit
Finance income
Finance costs

992,677
1,535
4,567

607,39922
49,194

Profit before income taxes
Income taxes

989,645
302,560

558,228
179,121

Profit for the period

687,085

379,107

Profit attributable to
Owners of parent

687,085

379,107

687,085

379,107

52.77
51.58

28.59
28.37

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]
Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

Cumulative 3Q FY2023(Apr. 1, 2022 to Dec. 31, 2022)

Profit for the period

687,085

379,107

Comprehensive income

687,085

379,107

Comprehensive income attributable to
Owners of parent

687,085

379,107

687,085

379,107

Comprehensive income9(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated third quarter of the prior fiscal year ended March 2022 (Apr. 1, 2021 to Dec. 31, 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

－

－

－

－

687,085

687,085

687,085

－

－

－

－

687,085

687,085

687,085

Exercise of share acquisition rights

26,07826,078－(6,799)－45,35845,358Issuance 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

26,07826,078

(236)

2,716

(225,579)(170,942)(170,942)

Balance on December 31, 2021

936,484

254,831(8,477)58,3383,889,141

5,130,318

5,130,318

Profit for the period
Total comprehensive income

Consolidated third quarter of the current fiscal year ending March 2023 (Apr. 1, 2022 to Dec. 31, 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

－

－

－

－

379,107379,107379,107

－

－

－

－

379,107379,107379,10753,56453,564－(11,693)－

95,43595,435Purchase of treasury shares

－

－

(476)

－

－

(476)

(476)

Disposition of treasury shares

－

3,987

1,203

－

－

5,190

5,190

Expiration of share acquisitionrights

－

－

－

(19)

19

－

－

Dividends

－

－

－

－

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

Total transactions with owners

53,56457,551

726(11,713)(328,174)(228,044)(228,044)

Balance on December 31, 2022

1,016,922

339,256(7,750)40,477

4,657,535

6,046,440

6,046,440

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]
Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

Cumulative 3Q FY2023(Apr. 1, 2022 to Dec. 31, 2022)

989,645
262,387(1,535)
3,967(56,141)(164,644)
89,409(39,845)558,228364,293(22)
48,001(47,382)(97,261)
55,351(212,018)

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Finance income
Finance costs(Increase) decrease in inventories(Increase) decrease in trade and other receivables
Increase (decrease) in trade and other payables
Other
Subtotal

1,083,243

669,189

Interest and dividends received
Proceeds from subsidy income
Proceeds from insurance income
Interest paid
Income taxes paid
Income taxes refund

5,404
1,508
6,000
(3,163)(577,420)

13,942
1,383
6,000(6,138)(334,345)

65,578

4

Cash flows from operating activities

581,150

350,034

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments
Other(5,448)(3,960)－(1,554)(137,151)(2,904)(992,459)
2,588(10,963)(1,129,926)(240,599)
9,516
45,358(236)(225,589)(332,110)－
95,435(476)(326,719)(411,551)(563,870)

Net increase (decrease) in cash and cash equivalents

158,635(1,343,762)

Cash and cash equivalents at beginning of period

4,140,847

5,226,706

Cash and cash equivalents at end of period

4,299,482

3,882,944

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
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 third 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 third quarter is minor.
(Significant Subsequent Events)
Acquisition of treasury stock
At the meeting of the board of directors held on February 2, 2023, we made a resolution about the acquisition of treasury
shares in accordance with Article 156 of the Companies Act, which will be applied mutatis mutandis pursuant to Article 165,
Paragraph 3 of the Companies Act. For details, please refer to “Notification on the decision about the acquisition of treasury
shares” released on the same date.

12