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.

July 31, 2023

Consolidated Financial Results
for the First Three Months of Fiscal Year Ending March 31, 2024
(Under IFRS)

Company name: Members Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
2130
URL:
https://www.members.co.jp/
Representative:
Akihiko Takano, Representative Director and President
Inquiries:
Shinya Yonezawa, Executive Officer and General Manager of Business Platform Department
Telephone:+81-3-5144-0660
Scheduled date to file quarterly securities report:
August 3, 2023
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months of fiscal year ending March 31, 2024 (from April
1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
RevenueThree months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit before tax

Millions of yen%

Millions of yen

June 30, 2023

4,498

17.4

(562)

―

(548)

―

(389)

―

June 30, 2022

3,831

23.3

(67)

―

(93)

―

(67)

―

Profit attributable toowners of parent
Three months ended
June 30, 2023

Millions of yen

Total comprehensive
income%(389)%

Profit―Millions of yen(389)

Millions of yen%

Basic earnings
per share%―

Millions of yen%

Diluted earnings
per share
Yen

Yen(29.71)(29.71)

June 30, 2022
(67)
―
(67)
―
(5.10)(5.10)
Note: Due to the application of IAS 12 “Income Taxes” (amended in May 2021), results for the three-month period ended June 30, 2022,
have been retrospectively restated.

(2) Consolidated financial position
Total assets
As ofJune 30, 2023

Equity attributable toowners of parent

Total equity

Millions of yen

Millions of yen

Millions of yen

10,412

5,659

5,659

Ratio of equity
attributable to owners ofparent to total assets%

54.4

March 31, 2023
11,305
6,366
6,366
56.3
Note: Due to the application of IAS 12 “Income Taxes” (amended in May 2021), figures as of March 31, 2023, have been retrospectively
restated.

2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Second quarter-end

Third quarter-end

Yen

Yen

Yen

―

0.00

0.00

Fiscal year-end

Total

Yen

Yen

―

30.00

30.00

―

31.00

31.00

―

Fiscal year ending
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (from April 1, 2023 to March(Percentages indicate year-on-year changes.)31, 2024)
Revenue

Operating profit

Profit before tax

Millions of yen%

Millions of yen

First half(cumulative)

9,940

21.0

(160)

―

(165)

―

(169)

―

Full year

21,500

21.7

1,500

4.0

1,480

5.8

1,051

4.4

Profit attributable toowners of parent
Millions of yen

First half(cumulative)(200)

Millions of yen%

Millions of yen%

Basic earnings
per share%―%

ProfitYen(15.10)

Full year
1,051
4.4
79.34
(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 3/2023 (13,246,173).
3. Due to the application of IAS 12 “Income Taxes” (amended in May 2021), the percentage of change from the same period of theprevious year has been calculated using retrospectively restated figures.

* 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: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
Note: Please refer to “2. Summary of Consolidated Financial Statements and Major Notes (6) Notes to Summary of Consolidated
Financial Statements (Changes in Accounting Policies)” for details.

(3) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

13,421,500 shares

As of March 31, 2023

13,363,700 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

277,518 shares

As of March 31, 2023

277,518 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2023

13,110,372 shares

Three months ended June 30, 2022

13,216,614 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 4 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 Monday, July 31,
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………………………

4

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

5(1) Summary of Quarterly Consolidated Balance Sheets…………………………………………………………………….

5(2) Summary of Quarterly Consolidated Statements of Income………………………………………………………………

7(3) Summary of Quarterly Consolidated Statements of Comprehensive Income……………………………………………

8(4) Summary of Quarterly Consolidated Statements of Changes in Equity…………………………………………………

9(5) Summary of Quarterly Consolidated Statements of Cash Flows…………………………………………………………

10(6) Notes to Summary of Consolidated Financial Statements………………………………………………………………

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

11(Changes in Accounting Policies)

11(Significant Subsequent Events) …...………………………………………………………………………………………

11

- 1 -

1. Qualitative Information Regarding the Financial Results for the Current Quarter
From the first three months of Fiscal Year ending March 31, 2024, IAS 12 “Income Taxes” (amended in May 2021) has been appliedand comparative analysis with the same period of the previous fiscal year has been made using retrospectively restated figures. The
application of this standard did not have a material impact on this Summary of Consolidated Financial Statements. The details of thechanges in accounting policies are stated in “(6) Notes to Summary of Consolidated Financial Statements (Changes in Accounting
Policies)” in “2. Summary of Consolidated Financial Statements and Major Notes.”(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 are versedon the Internet and digital technology internally, and such personnel shortage is now a huge hurdle to digitalization. According to theDX (Digital Transformation) White Paper 2023, more than 80% of Japanese companies answered that they lack both the quality andquantity of human resources to promote DX (Information-technology Promotion Agency, Japan, DX White Paper 2023, Issued March
16, 2023).
Under such circumstances, we uphold to create a spiritually rich society through “MEMBERSHIP” as our mission, and aim to convert
our client companies’ management style, marketing activities, services, and products into “Sustainable Ones for the Earth and Society”
through our support to clients’ digital business operation.
<Overview of Consolidated Financial Statements>
From the first quarter of this consolidated cumulative period, we started offering the “DGT (Digital Growth Team)” service byintegrating the existing EMC and PGT businesses. The DGT service is a hands-on service that promotes and supports the digitalizationof client companies by a customer-dedicated team that consists of 3 or more digital creators with various specialized skills, including
data analysis, UX(*1), and engineering. Our Digital creators directly pursue the improvement of digital business results of clientcompanies, and continuously support their operation through hypothesis verification process. In addition, starting this fiscal year, we
will support improvement of our clients’ carbon productivity (*2) through digital business operation and implement various actions thatlead to decarbonization in our daily operation work.
In this fiscal year ending March 31, 2024, we will steadily increase the operating rate of our digital creators by further strengthening
our sales structure through the separation of production and sales with the aim of increasing the number of companies we offer services
by DGTs or Result-oriented Team Models (*3). To this end, we will attempt to improve profitability and accelerate the area of non-web
operation by launching in-house companies that specialize in high-value-added and advanced technology areas other than conventional
web operation and thereby increasing the number of digital creators belonging to those specialized companies. Concurrently, we actively
promote skill development and job transfer of all digital creators under the leadership of the Skill Development Department. In addition,
we will strategically expand mid-career recruitment in order to improve human resource portfolio of the entire group and build afoundation for enhancing our service capabilities.
For the first quarter of the current consolidated term, revenue was 4,498 million yen (up17.4% from the same quarter of the previous
fiscal year), operating loss was 562 million yen (operating loss of 67 million yen in the same quarter of the previous fiscal year), loss
before income taxes was 548 million yen (loss before income taxes of 93 million yen in the same quarter of the previous fiscal year),and loss attributable to the owners of the parent was 389 million yen (loss attributable to the owners of the parent of 67 million yen in
the same quarter of the previous fiscal year).
Sales revenue increased 17.4% year-on-year and added-value sales (revenue generated by internal resources calculated by subtracting
outsourcing and purchasing costs from sales revenue), a key indicator, increased 16.2% year-on-year, reaching a record high as the firstquarter of consolidated cumulative period. Operating profit turned into an operating loss due to a temporary decline in the operating rateby the sluggish growth in the number of active digital creators caused by taking time to establish the new organization, and the continued
upfront investment in recruitment.
On the other hand, the number of companies we offer the result-oriented team model increased by 7 from the end of the previous
fiscal year, and the total number of all customers also increased by 15 from the end of the previous fiscal year. 3 new specialized- 2 -companies were established, and the number of digital creators belonging to specialized companies were 501 (an increase of 63 fromthe end of the previous fiscal year). The added-value sales of specialized companies increased steadily by 41.9% year-on-year. As aresult, the sales ratio of non-web operations was 39.0%, up 3.2 points from the end of the previous fiscal year.
Regarding the number of digital creators, we are actively expanding new graduates and mid-career recruitment, aiming for a 25%
growth in added-value sales, which is our target growth rate. In this first quarter of consolidated cumulative period, 585 new graduates
joined the company in April 2023, and the number of mid-career hires increased to 60. At the end of the first quarter, the number ofdigital creators was 2,579 on a consolidated basis (an increase of 567 from the end of the previous fiscal year).
We will continue to accelerate our sales strategy through the separation of production and sales as well as the expansion strategy of
specialized companies; then aim to complete shifting to a high-growth and high-profit model with added-value sales growth rate of 25%
and 10% of operating profit margin in the fourth quarter and eventually achieve the full-year consolidated earnings forecast.
Since this corporate group has only one segment, “Internet business support business,” segment information is omitted.
<Our Corporate Group’s Policies and Initiatives>
Our company integrated the four internal companies: EMC Company, Members Career Company, Members Edge Company, andBusiness Platform Company and reorganized them into departments in April 2023, for the purpose of executing our strategies for sales,
service, and human resources in a more integrated and group-wide manner. Through this integration, we will accelerate the developmentof services in non-web operation areas for clients of the former EMC business, and the provision of results-oriented team service toclients of the former PGT business. We have introduced a Digital Growth Team (DGT) service, which is a hands-on continuous execution
and growth support service by a dedicated team composed of digital creators with various digital skills, on a groupwide basis.
The details of the strategies for sales, service, and human resources are described on <Overview of Consolidated Financial
Statements> above.
The impacts of COVID-19 and energy and geopolitical issues on the Japanese economy are still uncertain, but we believe that digital
investment by companies will accelerate further, and at the same time, the shortage of IT/digital human resources will further expand,against the backdrop of further evolution of digital technology, the global effort toward decarbonization, and decline in population in
Japan. In such an environment, we will continue to strive to increase the number of high-skilled digital creators, who are the source ofvalue creation for our customers and improve employee engagement by actively recruiting new graduates and mid-career workers andby investing in education and training; then, will realize the position of “World no.1 digital business operation support provider” bysophisticating our DGT service.
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.
(*1) UX (User Experience): The experience one gains by using a product or service.
(*2) Carbon Productivity: Gross domestic product (GDP) per unit of greenhouse gas emissions. We design for customers our support toformulate and operate their business model with calculating profits per carbon emitted during manufacturing, sales, and collection ofcustomers’ products and services as the carbon productivity.
(*3) The number of companies we offer our unique “result-oriented team” service: The number of companies we offer our unique “resultoriented team” service is counted if the customer was provided services as a dedicated team of 3 or more digital creators.
(*4) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion ofbusiness, 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.

- 3 -(2) Explanation Regarding the Financial Standingi)Status of Assets, Liabilities, and Shareholders’ Equity
The total assets at the first quarter of the current consolidated term were 10,412 million yen (down 893 million yen from theend of the previous consolidated fiscal year). This is primarily due to an increase of 176 million yen in deferred tax assets andan increase of 73 million yen in other current assets, along with a decrease of 570 million yen in cash and cash equivalents anda decrease of 556 million yen in trade receivables and other receivables.
Total liabilities stood at 4,753 million yen (down 186 million yen from the end of the previous consolidated fiscal year). Thiswas primarily due to an increase of 265 million yen in other current liabilities, along with a decrease of 217 million yen in trade
payables and other payables, a decrease of 155 million yen in income taxes payable and a decrease of 32 million yen in leaseliabilities.
Total equity was 5,659 million yen (down 706 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 43 million yen in capital surplus and an increase of 40 million yen in capital stock, along with adecrease of 781 million yen in retained earnings.
ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the first quarter of the current consolidated term
was 3,909 million yen, down 570 million yen from the end of the previous consolidated fiscal year. The status of each cash flow
for the first quarter and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds used during the first quarter as a result of operating activities amounted to 117 million yen (57 million yen acquired
during the same quarter of the previous year). The income was mainly from a decrease of 529 million yen in trade and otherreceivables, 192 million yen in others, and 128 million yen in depreciation and amortization while the expenditure was mainly
from 548 million yen in loss before income taxes, a decrease of 238 million yen in trade and other payables, and 147 million
yen paid as income taxes paid.
(Cash Flows from Investing Activities)
The funds used during the first quarter as a result of investing activities amounted to 23 million yen (1,124 million yen usedin the same quarter of the previous year). The expenditure was mainly from 23 million yen in purchase of property, plant andequipment.
(Cash Flows from Financing Activities)
The funds used during the first quarter as a result of financing activities amounted to 430 million yen (359 million yen usedin the same quarter of the previous year). The income was mainly from 72 million yen in proceeds from exercise of shareacquisition rights and the expenditure was mainly from 385 million yen as dividends paid and 117 million yen in expenditure forthe 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 cumulative second quarter of FY 3/2024 as well as the entire
fiscal year, announced on May 10, 2023.
(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 3/2024 isplanned to be 31.00 yen.

- 4 -

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, 2023)

1st quarter of the current
consolidated accounting year
(Jun. 30, 2023)

AssetsCurrent assets
Cash and cash equivalents

4,479,967

3,909,848

3,387,822
68,5472,830,925
84,778Other current assets

234,311

307,731

Total current assets

8,170,648

7,133,283

Non-current assets
Tangible fixed assets

349,032

352,182

Rights to use as assets
Goodwill

918,446
116,115

865,454
116,115

Intangible assets
Other financial assets

9,897
1,340,550

9,416
1,358,498

Trade receivables and other receivables
Inventory assets

Deferred tax assets
Total non-current assets
Total assets- 5 -401,188577,820

3,135,231

3,279,488

11,305,879

10,412,772

[unit: thousand yen]Previous consolidated
accounting year
(Mar. 31, 2023)

1st quarter of the current
consolidated accounting year
(Jun. 30, 2023)

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

360,860
1,201,535

346,196
983,807

Income taxes payable
Contract liabilities

204,338
66,73748,356
39,131Other current liabilities

2,551,526

2,817,115

Total current liabilities

4,384,998

4,234,607

301,917

284,480

252,658

233,960

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

554,576

518,440

4,939,574

4,753,048

Capital stock
Capital surplus

1,017,504
342,670

1,057,702
385,699

Treasury shares
Other components of equity(300,140)
30,845(300,140)
22,420Retained earnings

5,275,424

4,494,042

Total equity attributable to owners of the parent

6,366,305

5,659,723

Total shareholders’ equity

6,366,305

5,659,723

11,305,879

10,412,772

Total liabilities
Shareholders’ equity

Total liabilities and equity- 6 -(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

1Q FY2024(Apr. 1, 2023 to Jun. 30, 2023)

Revenue

3,831,740

4,498,469

Cost of sales

2,658,477

3,786,278

Gross profit

1,173,263

712,191

Selling, general and administrative expenses
Other income

1,239,555
4,254

1,275,150
2,240

5,353

1,956

(67,390)－(562,674)
18,343

Other expenses
Operating profit (loss)
Finance income
Finance costs

26,177

3,771

Profit (loss) before income taxes(93,567)(548,102)

Income taxes(26,154)(158,606)

Profit (loss) for the period(67,414)(389,496)

Profit (loss) attributable to
Owners of parent(67,414)(389,496)(67,414)(389,496)(5.10)(5.10)(29.71)(29.71)

Net profit (loss)
Earnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)- 7 -(3) Summary of Quarterly Consolidated Statements of Comprehensive Income[unit: thousand yen]
1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

1Q FY2024(Apr. 1, 2023 to Jun. 30, 2023)(67,414)(389,496)

Financial assets measured at fair value through othercomprehensive income－

180

Total items that will not be reclassified to profit or loss

－

180

－

180

Comprehensive income total(67,414)(389,316)

Comprehensive income attributable to
Owners of parent(67,414)(389,316)(67,414)(389,316)

Profit (loss) for the period
Other comprehensive income
Items that will not be reclassified to profit or loss

Other comprehensive income after tax

Comprehensive income- 8 -(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated first quarter of the prior fiscal year ended March 2023 (Apr. 1, 2022 to Jun. 30, 2022)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2022

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total
EquityTotal

963,358

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

5,895,377

5,895,377

－

－

－

－

(7,857)(7,857)(7,857)963,358

281,704(8,477)52,1904,598,744

5,887,519

5,887,519

Profit (loss) for the period

－

－

－

－

(67,414)(67,414)(67,414)

Total comprehensive income

－

－

－

－

(67,414)(67,414)(67,414)

38,796

38,796－(8,625)－68,966

68,966

Expiration of share acquisitionrights

－

－

－

(19)

19

－

－

Dividends

－

－

－

－

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

38,796

38,796－(8,645)(328,174)(259,227)(259,227)

1,002,154

320,500(8,477)43,5444,203,156

5,560,877

5,560,877

Changes in accounting policies
Restated balance

Exercise of share acquisition rights

Total transactions with owners
Balance on June 30, 2022

Consolidated first quarter of the current fiscal year ending March 2024 (Apr. 1, 2023 to Jun. 30, 2023)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2023

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total
EquityTotal

1,017,504

342,670(300,140)

30,8455,275,424

6,366,305

6,366,305

Profit (loss) for the period

－

－

－

－

(389,496)(389,496)(389,496)

Other comprehensive income

－

－

－

180

－

180

180

－

－

－

180

(389,496)(389,316)(389,316)

Total comprehensive income
Exercise of share acquisition rights

40,19740,197－(8,102)－

72,29372,293

Share-based compensationtransactions

－

2,831

－

－

－

2,831

2,831

Issuance of share acquisition rights

－

－

－

195

－

195

195

Expiration of share acquisitionrights

－

－

－

(700)

700

－

－

Dividends

－

－

－

－

(392,585)(392,585)(392,585)

40,19743,028－(8,606)(391,885)(317,265)(317,265)

1,057,702

385,699(300,140)

22,4204,494,042

5,659,723

5,659,723

Total transactions with owners
Balance on June 30, 2023

- 9 -

(5) Summary of Quarterly Consolidated Statements of Cash Flows[unit: thousand yen]
1Q FY2023(Apr. 1, 2022 to Jun. 30, 2022)

1Q FY2024(Apr. 1, 2023 to Jun. 30, 2023)(93,567)
119,828－(548,102)
128,606

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

25,495(18,343)
3,160(Increase) decrease in inventories(Increase) decrease in trade and other receivables(28,589)
586,345(16,230)
529,388

Increase (decrease) in trade and other payables
Other(152,984)(94,318)(238,198)
192,644362,208

32,925

1,383(2,120)－(2,693)(304,197)－(147,289)
28

57,273(117,028)

Purchase of property, plant and equipment
Purchase of intangible assets(131,582)(2,904)(23,668)－

Expenditure on acquisition of investments
Proceeds from collection of deposits and security deposits(992,459)－－

Subtotal
Grant received
Interest paid
Income taxes paid
Income taxes refund
Cash flows from operating activities
Cash flows from investing activities

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
Dividends paid
Cash flows from financing activities

2,588

656
－

(1,124,358)(23,012)(107,781)－(117,315)

68,966

195
72,293(320,666)(385,250)(359,481)(430,077)

Net increase (decrease) in cash and cash equivalents(1,426,566)(570,118)

Cash and cash equivalents at beginning of period

5,226,706

4,479,967

Cash and cash equivalents at end of period

3,800,140

3,909,848- 10 -

(6) Notes to Summary of Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no related information.
(Changes in Accounting Policies)
This corporate group applied IAS 12 “Income Taxes” (amended in May 2021) from the first three-month period of fiscal year
ending March 31, 2024.
Compulsory
FY applicable to
Description of new standard, interpretations
application period
Statement
Criteria namethe corporate group
and amendments(Start year after)
Clarification of accounting treatment for
Period ending
IAS 12
Income taxes
January 1, 2023
deferred taxes related to assets and liabilities
March 31, 2024
arising from a single transaction
The application of this standard clarifies the accounting treatments on initial recognition for transaction that give rise to equal
taxable and deductible temporary differences at the time of the transaction, and results in the recognition of taxable and deductible
temporary differences as deferred tax liabilities and assets, respectively, in the Condensed Interim Consolidated Statements ofFinancial Position.
As a result of the application of the standard, the previous fiscal year’s consolidated financial statements have been retrospectively
restated. The effect of the application decreased deferred tax assets by 9,391 thousand yen and retained earnings by 9,391 thousand
yen. In addition, the effect decreased income tax expenses by 19 thousand yen and decreased profit for the period by the sameamount in the Consolidated Statements of Income for the first three-month period of fiscal year ended March 31, 2023.
Due to the cumulative effect of application of this standard, the beginning balance of retained earnings for the first three-month
period of previous fiscal year decreased by 7,857 thousand yen in the Consolidated Statements of Changes in Equity.
(Significant Subsequent Events)(Disposal of Treasury Stocks as Restricted Stock)
At the Board of Directors meeting held on June 16, 2023, we resolved to dispose of treasury stocks as restricted stock(hereinafter referred to as “disposal”). On July 14, 2023, we disposed of treasury stocks and completed the payment procedure
as follows.
Disposal Overview(1) Type and number of sharesdisposed of(2) Disposal price(3) Total disposal amount(4) Buyers of the treasury stocks, thenumber of the buyers, and the numberof shares to be disposed of(5) Disposal date

1,822 common shares of the company
1,585 yen per share
2,887,870 yen
Directors of the company (excluding directors who are Audit Committee
Members and Outside Directors)
2 directors, 752 shares
Executive officers who do not concurrently serve as directors of the Company
5 officers, 1,070 shares
July 14, 2023

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