Financial Results for 1Q FY2024
Members Co., Ltd. (TSE 2130)
July 31, 2023

Members Co.,Ltd.

Company Profile
Company nameMembers Co., Ltd.

Locations

Headquarters (Tokyo),
Web Garden Sendai,
Web Garden Kitakyushu,
Web Garden Kobe,
Sapporo Office

Create a spiritually rich society through “MEMBERSHIP”
To achieve our mission, we will establish the world's best digitalbusiness operation support and achieve a high level of customer
success.
Tadashi Kenmochi,
Representative Director and Chairman

Date ofestablishment

June 26, 1995

Consolidatedcapital

1,057 million yen (as of June 30, 2023) 〔IFRS〕

Promoting “decarbonized DX” for companies and society
By realizing the world's best digital business operation and a systemof 10,000 digital creators, we will make a significant contribution to
our client companies and society in an era where digitaltransformation and green transformation are required.
Akihiko Takano,
Representative Director and President

No. of employees
2,861 (as of June 30, 2023)(consolidated)
Consolidated
sales revenue

17,662 million yen(fiscal year ended March 31, 2023)〔IFRS〕

Securities code

2130; Prime Section of Tokyo Stock ExchangeBusiness content

Digital marketing business

Members Co.,Ltd.

Joined Japan Climate Leaders’Partnership in October, 2020.

Selected as “Nadeshiko Brand”
in 2023 as the enterprise for theoutstanding efforts inencouraging women’s successby METI and TSE

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Financial Summary
FY2024 Policy
Due to the expansion of human capital through recruitment by looking ahead to the medium and long term, the operating rate andprofitability will temporarily decline, and the first half is expected to be in the red. In 4Q, we aim to achieve 25% quarterly added-value
sales growth and the same level of profitability (OP margin of 10% pace.)

1Q Performance
Consolidated sales revenue and added-value sales(*1) made a record high. Operating profit dropped year on year due to temporary
decline of operating rate by organization change and continuing the upfront investment in human capital.
Sales revenue
Added-value sales
Operating profit
No. of digital creators(495)Million+17.4%+28.2%+16.2%
585 new graduate(DC)millionmillionmillionyen y/y4,498 yeny/y

4,271 yen

Sales situation (1Q)••••

No. of all customers: 365 (+15 from PY)
No. of companies we offer DGT: 123 (+7 from PY)* Target: 200 at the end of this FY
Initial operating rate was sluggish due toorganization change taking time.

y/y(562) yen

2,579

y/y

joined in April, 2023.

Service situation (1Q)

HR situation (1Q)

• New specialized companies (SCs): 3• Growth rate of all SCs: 41.9%• SCs maintain high price and high growth. We
will continue expanding SCs by new
establishment and the cross-selling.

• Mid-career recruitment: 60 people (+93.5％ y/y)
• Turnover rate: 1.6%(Same level of PY)• Strengthen training of specialized HR byinvesting in education and introducing guilds
by occupation.

On & after 2Q
We aim to achieve the first half and full year plans by increasing no. of companies we offer DGT(*2) by focusing on customer success,accelerating sales strategy by separating production and sales, and expansion of specialized companies.
*1 Added-value sales = Sales revenue – Outsourcing and procurement costs = Sales from in-house resources*2 DGT (Digital Growth Team): A service that promotes and supports the digitization of client companies by forming a customer-dedicated team of three or more digitalcreators with various specialized skills while actually working hand in hand with the customers, in order to contribute to the business growth of the client company.
Members Co.,Ltd.

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Income Statement Summary
Since assignment of new graduates is earlier than usual from May (July last year), cost of sales increased drastically; then, the gross profit
margin declined. The establishment of service (DGT) and sales strategies are still in progress. On the other hand, the number of customers isincreasing and the demand for specialized companies remains strong. We will improve the profit margin by expanding these services.
Result in 1Q(Unit: million yen)

FY3/2023

FY3/2024

First half year in FY3/2024y/yProgress rate toward
the forecast

Forecast

Sales revenue

3,831

4,498

+17.4%

9,940

45.3%

Added- value sales

3,677

4,271

+16.2%――

Gross profit[Excl. new graduates]

1,173712[988](39.3%)[(15.8%)]

―

―

―

―

―

(Gross profit margin)[Excl. new graduates]

30.6%

15.8%
[22.0%]

SGA

1,239

1,275

+2.9%

―

―

Operating profit

(67)

(562)

―

(160)

―

(1.8%)(12.5%)―――

Pretax profit

(93)

(548)

―

(165)

―

Net profit

(67)

(389)

―

(169)

―

(Operating profit margin)

Members Co.,Ltd.

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

Previous consolidated
accounting year
（Mar. 31, 2023）[unit: thousand yen]
AssetsCurrent assets
Cash and cash equivalents
Trade receivables and other receivables
Inventory assets
Other current assets
Total current assets
Non-current assets
Tangible fixed assets
Rights to use as assets
GoodwillIntangible assets
Other financial assets
Deferred tax assets
Total non-current assets
Total assets

Members Co.,Ltd.

4,479,967

3,909,848

3,387,822

2,830,925

68,547

84,778234,311

307,7318,170,648

7,133,283

349,032

352,182

918,446

865,454

116,115

116,115

9,897

9,416

1,340,550

1,358,498

401,188577,820

3,135,231

3,279,488

11,305,879

10,412,772
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Balance Sheet Summary
Previous consolidated
accounting year
（Mar. 31, 2023）[unit: thousand yen]
Liabilities and shareholders’ equity
Liabilities
Current liabilities
Lease liabilities
Trade payables and other payables
Income taxes payable
Contract liabilities
Other current liabilities
Total current liabilities

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

360,860
1,201,535
204,338
66,7372,551,526
4,384,998

346,196
983,807
48,356
39,131
2,817,115
4,234,607

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

301,917
252,658554,576
4,939,574284,480
233,960
518,440
4,753,048

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

1,017,504
342,670(300,140)
30,8455,275,424

1,057,702
385,699(300,140)
22,4204,494,042

6,366,305
11,305,879

5,659,723
10,412,772

6,366,305

Total equity attributable to owners of the parent
Total shareholders’ equity
Total liabilities and equity
Members Co.,Ltd.

5,659,723

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Consolidated Earnings Forecasts for the Term Ending March 2024••In addition to the hiring of 585 new graduates in April 2023, we will increase human capital with a medium- to long-term perspective by
actively investing in mid-career recruitment; therefore, operating profit is expected to land in the red in the first half as well due todecrease in operating rate and profitability.
On the other hand, due to the implementation of the policies for this fiscal year, in the 4Q, we will realize a shift to a high-growth, highprofit model with 25% quarterly growth in added-value sales on a stand-alone basis and the same level of profitability as before (10%operating margin for the full year). In FY03/25, the company aims for value-added sales growth of over 25% and operating profit margin of10%.
Consolidated added-value sales/Operating profit margin（Unit: million yen）
8,000
Added-value
付加価値売上高
Sales
6,000
4,000

2,277

2,707

2,859

2,000
0-2,000

1Q

2Q

3,396

2,927

3,453

19.1%

13.8%

7.0%

-2.3%

80.0%

Operating profit
営業利益率margin

4Q

1Q

21/03

2Q

3,677

8.1%

-1.8%
3Q

4,822

4Q

1Q

40.0%
20.0%

16.5%

7.3%

0.0%

2Q3Q

4Q

1Q

23/03

Full-year results for FY2023 (IFRS)
y/y growth rate

60.0%

4,271-12.5%

22/03

Full year

4,221

4,164

20.3%

16.5%

9.7%

0.3%
3Q

3,584

3,995

2Q計画
Plan

3Q計画
Plan

4Q計画
Plan

-20.0%

24/03

Forecast for FY2024(IFRS)
1st half yeary/y growth rate

Full yeary/y growth rate

Sales revenue (million yen)

17,662

18.2%

9,940

21.0%

21,50021.7%

Operating profit (million yen)

1,441(23.2%)

(160)

-

1,500

4.0%

Members Co.,Ltd.

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Cautionary Statement

This document has been translated from a part of the Japanese original forreference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

For IR inquiries
Members Co., Ltd.
Corporate Planning Office IR Team
ir@members.co.jp

Members Co.,Ltd.

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