Financial Results for 1Q FY2022
Members Co., Ltd. (TSE 2130)
July 30, 2021

Proprietary and Confidential to Members Co.,LTD

Company Profile

Representative Director and President Tadashi Kenmochi
Members is the internet business partner that aims to create a spiritually rich society through “MEMBERSHIP” by
supporting digital business with digital creators.
Corporate nameMembers Co., Ltd.

Date of establishment June 26, 1995
MissionCreate a spiritually rich society through “MEMBERSHIP”

Locations

Headquarters: 37th floor of Harumi Island Triton Square Office Tower X, 1-8-10 Harumi, Chuo-ku, TokyoWeb Garden Sendai: 8th floor of Daiichi Seimei Tower Bldg., 4-6-1 Ichiban-cho, Aoba-ku, Sendai-shi, Miyagi
Web Garden Kitakyushu: 9th floor of Meiji Yasuda Seimei Kokura Bldg., 9-1 Konya-machi, Kokurakita-ku, Kitakyushu-shi, Fukuoka
Web Garden Kobe: 16th floor of Kobe Commerce Industry and Trade Center Bldg., 5-1-14 Hamabedori, Chuo-ku, Kobe-shi, Hyogo
Sapporo Office: 5th floor of 11.CONCEPT SPERARE Bldg., 1-1-65 Minami-Jujo-Nishi, Chuo-ku, Sapporo-shi, Hokkaido

Capital935 million yen (as of June 30, 2021)

Sales revenue

12,087 million yen (fiscal year ended March 31, 2021)〔IFRS〕

Securities code

2130; First Section of Tokyo Stock Exchange

No. of employees(consolidated)

1,824 (as of June 30, 2021)(VISION2030)

Proprietary and Confidential to Members Co.,LTD2

Service Features

EMC business

PGT business (*)(Engagement Marketing Center business)(Product Growth Team business)

OutlineOutlineDigital business operation support service
Websites, EC, SNS, apps, marketing automation (MA),digital transformation (DX), etc.

Provision of personnel for supporting the growth ofdigital products of clients
DX producers, UX designers, data scientists,marketing planners, data engineers, website directors,
website designers, engineers, and others

Features• Dedicated teams of digital creators for the clientcompanies, which deeply understand themanagement strategies, goals, products, andservices of the clients, drive the digital business.
• Methodization of the operation know-how by the
dedicated teams①Improvement in outcomes ②Enhancement of
productivity ③Quality and security④Promotion of CSV marketing ⑤Team building ⑥
Account plan ⑦Shift of cutting-edge technology
fields• Specializing in large client companies, large-scaletransactions, and continuous projects

Features• Provision of autonomous teams of digital creators• To support growth in the cutting-edge technology
fieldsTo support the growth of digital products of clientsby using the skills in the cutting-edge technology
field with high added value• Creators first
System of appointing creators as executive officers,
remote work, and development of a sound working
environment

Major clients
Major clients
Shiseido Co., Ltd., SKY Perfect JSAT Corporation,
Daikyo Inc., Trend Micro Inc., Panasonic Corporation,Benesse Corporation, Mizuho Bank, Ltd., Sumitomo
Mitsui Card Co., Ltd., etc.

• Internet-related enterprises with great growthpotential• Social innovation ventures for solving social issues• Local medium-sized enterprises* In April 2021, “Digital Personnel business” was renamed “Product Growth Team (PGT) business.”
Proprietary and Confidential to Members Co.,LTD3

1Q FY 2022 Overview
Thanks to the active digital shift and DX in enterprises, sales revenue increased 24.9%
year on year. Operating profit turned positive in 1Q for the first time in 6 terms, due to theprofitability enhancement through the improvement in utilization rate in the PGT business.

Consolidated results
Sales revenue

3,108

Added-value sales

Operating profit+24.9%

million
yen

y/y

9+67

millionyen

million yen
y/y

2,927

millionyen+28.6%
y/yBusiness situation
EMC business
Sales revenue

2,129

millionyen

Educational
investment

Down 11 million
yen y/y73

millionyen

No. of companies
we offer the EMC
model

44

-3 from theend of theprevious term

No. of digitalcreators

950
PGT
business 697＋175 from theend of theprevious term

Estimated term-end
dividend per share

Up 6.0 yen fromthe previousterm

PGT business
Sales revenue+15.1%y/y

1,132

Ratio of sales ofservices other thanwebsite operation

25.1 ％

millionyen

Up 4.7 points
y/y+42.4%
y/yEMC
business+168 from theend of theprevious term

23.5 yen

Proprietary and Confidential to Members Co.,LTD4

Income Statement Summary
The y/y growth rate of sales revenue was as high as 24.9%. New graduates were assigned
to on-site duties earlier than usual, but gross profit margin was almost unchanged year onyear. From 2Q, we will accelerate the assignment of new graduates to on-site duties toimprove profitability.
Results for 1Q Results for 1Q
of FY 3/2021
of FY 3/2022y/yForecast for
1H of FY
3/2022

Progress
rate toward
the forecast
for 1H of FY
3/2022Full-year
forecast for
FY 3/2022

Progress
rate toward
the full-year
forecast for
FY 3/2022

15,20020.5%[unit: million yen]

Sales revenue

2,489

3,108

+24.9%

7,000

44.4%

Added value
sales

2,277

2,927

+28.6%―――

Gross profit

721892+23.8%

―

―

―

（Gross profitmargin）

29.0%

28.7%

―

――

―

SGA

801890+11.2%―――

Operating profit(58)

9+67504

1.8%（Operating profitmargin）

―

0.3%

―

―

―

Pretax profit(59)

7+67490

1.5%

1,790

0.4%

Net profit(11)

17+29328

5.5%

1,199

1.5%

1,800

0.5%
―

* Added value sales = Sales revenue ー Outsourcing and procurement costs ＝ Sales from in-house resources
Proprietary and Confidential to Members Co.,LTD5Balance Sheet Summary
Previous consolidated
accounting year
（Mar. 31, 2021）[unit: thousand yen]

1st quarter of the current
consolidated accounting year
（Jun. 30, 2021）

AssetsCurrent assets
Cash and cash equivalents

4,140,847

3,810,108

Trade receivables and other receivables

2,842,456

2,088,082

Inventory assets

31,80387,540

Other current assets

173,103335,759

7,188,210

6,321,491

Tangible fixed assets

252,811248,648

Rights to use as assets

491,002410,963

Goodwill

116,115

116,115

8,436

6,926

Other financial assets

266,909

264,627

Deferred tax assets

323,802322,350

1,309

916

Total non-current assets

1,460,387

1,370,548

Total assets

8,648,597

7,692,039

Total current assets

Non-current assets

Intangible assets

Other non-current assets

Proprietary and Confidential to Members Co.,LTD6

Balance Sheet Summary[unit: thousand yen]
Liabilities and shareholders’ equity
Liabilities
Current liabilities
Lease liabilities
Trade payables and other payables
Income taxes payable
Contract liabilities
Other current liabilities
Total current liabilities

Previous consolidated
accounting year（Mar. 31, 2021）

Non-current liabilities
Lease liabilities
AllowanceTotal non-current liabilities
Total liabilities
Shareholders’ equity
Capital stock
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of theparent
Total shareholders’ equity
Total liabilities and equity

Proprietary and Confidential to Members Co.,LTD

1st quarter of the current
consolidated accounting year
（Jun. 30, 2021）

234,773
974,844356,050
234,351
1,970,892
3,770,912

194,119806,051
20,885
145,765
1,853,487
3,020,310

157,327
106,181263,509
4,034,422

115,300
106,448
221,748
3,242,059

910,405
228,752-8,24055,622
3,427,635

935,493
253,839-8,37049,021
3,219,996

4,614,175

4,449,980

4,614,175
8,648,597

4,449,980
7,692,039

7

Sales by Segment-EMC BusinessIn the EMC business, sales revenue(*1) was 2,129 million yen (+15.1% year on year) and thenumber of digital creators was 950 (+175 from the end of the previous term). Through theacceleration of digital shift, the sales from existing clients steadily expanded. While employees
increased, added-value sales per person were almost unchanged from the same quarter of theprevious year.
No. of digital creators and monthly added value

Sales revenue of the EMC business[unit: million yen]

10,0009,206

sales per person in the EMC business
950

1,000

[unit: yen]

1,000,000

8,524
900

8,000

2,814

6,777

800

2,565
700

6,000

2,366
1,987

600

1,976

4,000

1,587

2,270

2,196
2,000

818,956

600

1,799

1,847

1,403

1,493

1,785

1,850

2,129

18/03

19/03

20/03

21/03

22/03 1Q

1Q

2Q

0

950,000

795

775

900,000

678
681

691

693

2,270

1,842

826

907,093882,686
860,299

7,549

850,000

808,339
792,146
863,679
748,083

800,000

747,524500

750,000

400

700,000300

650,000

200

600,000100

550,000

0

3Q

4Q

500,000

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

2Q

3Q

4Q

No. of digital creators
デジタルクリエイター数

1Q

2Q

3Q

4Q

1Q

月額一人あたり付加価値売上高
Monthly added value sales per person*1 Sales revenue was roughly estimated with reference to the IFRS standard (the transactions between the parent company and subsidiaries were not offset).
*2 No. of digital creators is the figure as of the end of 1Q.
*3 Monthly added value sales per person ＝ Cumulative quarterly added value sales÷ Average number of digital creators during the term
Proprietary and Confidential to Members Co.,LTD8

Sales by Segment-PGT Business(*1)
In the PGT business, sales revenue(*2) was 1,132 million yen (+42.4% year on year) and thenumber of digital creators was 697 (+168 from the end of the previous term). Higher unit priceservices such as in the specialized domains of data, UX, and product/service development
kept growing steadily; therefore, added value sales per person grew 4.7% year on year.
No. of digital creators and monthly added value

Sales revenue of the PGT businesssales per person in the PGT business[unit: million yen]

4,000

800,000

3,469

697

3,500

700

3,000

2,617

750,000

600

1,013

511

2,500

500

398

791

1,000
500
0

878

1,701

2,000
1,500

[unit: yen]

800

1,057

489

327

461

268
242

387

400

437

782
200

599

1,132

795

364

512

18/03

19/03

20/03

100

700,000

529

650,000

437

616,695
600,000

355
588,902

300

714

220

550,000

572,906551,902551,002

535,578
515,572
494,483
473,018

500,000
450,000

021/0322/03 1Q

400,000
20/03 20/03 20/03 20/03 21/03 21/03 21/03 21/03 22/03
1Q

1Q

429

516

2Q

3Q

4Q

2Q

3Q

4Q

デジタルクリエイター数
No. of digital creators

1Q

2Q

3Q

4Q

1Q

月額一人あたり付加価値売上高
Monthly added value sales per person*1 In April 2021, “Digital Personnel business” was renamed “Product Growth Team (PGT) business.”*2 Sales revenue was roughly estimated with reference to the IFRS standard (the transactions between the parent company and subsidiaries were not offset).
*3 No. of digital creators is the figure as of the end of 1Q.
*4 Monthly added value sales per person ＝ Cumulative quarterly added value sales÷ Average number of digital creators during the term
Proprietary and Confidential to Members Co.,LTD

9

Dividend
In FY 3/2022, we will actively expand the DX domain under the management policy of ourcorporate group, and plan to increase sales by 25%. As we will offer high value-added
services and assign 364 new graduates to tasks earlier than usual, full-year operating
profit is estimated to rise 42.6% year on year.
Full-year results for FY
2021 (IFRS)

Full-year forecast for FY 2022 (IFRS)

Full yeary/y increase/decrease rate

Cumulative
2Q

y/y increase/decrease rate

Sales revenue (million yen)

12,087

13.9%

7,000

29.4%

15,20025.8%

Operating profit (million yen)

1,261

1.0%

504

242.9%

1,800

42.6%

Pretax profit (million yen)

1,248

0.6%

490

244.9%

1,790

43.4%

Net profit (million yen)

896

2.6%

328

174.3%

1,199

33.8%

Profit attributable to owners ofparent (million yen)

896

4.0%

328

174.3%

1,199

33.8%

5.9%

30.0%

Dividends and DOE(*)
Dividend
Commemorative dividend
DOE (Japanese standard)
DOE (IFRS)

6.0%

4.0%

4.3%

4.6%

4.8%

25

4.2%

1.9%

2.2%

2.0

2.5

3.0

13/03

14/03

15/03

10

11.5
1.5

4.5
16/03

*DOE = Dividend on equity ratio

9.5
7.5

17/03

18/03

19/03

20/03

21/03

22/03

25.0%

24.5%

23.6%

20.8%

26.4%

20.0%

25.1% 25.2%

23.5%

19.9% 19.1%

20.1%

20
15

17.5
14.0

1.7%
0.0%

30

5.2%

23.52.0%

y/y increase/decrease rate

Payout Ratio

4.0%
3.9%

Full year

15.0%
10.0%
Payout ratio (Japanese standard)

55.0%

00.0%

Payout ratio (IFRS)

13/03

14/03

Forecast

Proprietary and Confidential to Members Co.,LTD

15/03

16/03

17/03

18/03

19/03

20/03

21/03

22/03
Forecast

10Cautionary Statement

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

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

Proprietary and Confidential to Members Co.,LTD11