Financial Results for 2Q FY2022
Members Co., Ltd. (TSE 2130)
October 29, 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(VISION2030)

CapitalSales revenue

Securities code

No. of employees(consolidated)

935 million yen (as of September 30, 2021)

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

2130; First Section of Tokyo Stock Exchange
1,827 (as of September 30, 2021)

Proprietary and Confidential to Members Co.,LTD2

Service Features

EMC business

PGT business (*)

OutlineOutline(Engagement Marketing Center business)
Digital business operation support service
Websites, EC, SNS, apps, marketing automation (MA),digital transformation (DX), etc.

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 thededicated 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

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.

(Product Growth Team business)
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• 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• 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

2Q FY 2022 Overview
We received many business inquiries from existing customers in the digital marketing field, and thespecialized business domain with high added value kept growing year on year. On the other hand, a valuation
loss of inventory assets of 92 million yen and an allowance of 78 million yen were posted due to theemergence of unprofitable transactions in the EMC business. In addition, plans for acquiring new customers
were delayed somewhat, so sales revenue and operating profit fell below the forecasted amounts for thecumulative second quarter.

Consolidated results
Sales revenue

6,795

millionyen+25.6%
y/y

Added-value sales

Operating profit

366

millionyen+149.3%y/yBusiness situation
EMC business
Sales revenue4,777
Educational
investment

139

millionyen+15.9%Up 20 million yen
y/ymillionyeny/yPGT business
Sales revenue

2,347

Ratio of sales ofservices other thanwebsite operation
during 22/2Q

25.8 ％

6,381

millionyen

No. of companies
we offer the EMC
model

millionyen

Up 0.7 points
compared to22/1Q+48.8%+28.0%%

44

No. of digitalcreators

933
PGT
business 698

Estimated term-end
dividend per share

Up 6.0 yen fromthe previoustermy/y23.5 yen

Proprietary and Confidential to Members Co.,LTDEMC
businessy/y-3 from theend of theprevious term
＋158 from theend of theprevious term

+169 from theend of theprevious term4Income Statement Summary
Both sales revenue and operating profit were healthy compared with those in the same periodof the previous year. Gross profit margin declined year on year, as a valuation loss ofinventory assets of 92 million yen and an allowance of 78 million yen were posted due to theemergence of unprofitable transactions.

Results in 2Q[Unit：million yen]

FY3/2021

FY3/2022

Cumulative results in 1Hy/y

FY3/2021

FY3/2022y/y

Sales revenue

2,921

3,686

+26.2%

5,411

6,795

+25.6%

Added value sales

2,707

3,453

+27.6%

4,984

6,381

+28.0%

859

997+16.1%

1,580

1,890

+19.6%

29.4%

27.1%

―

29.2%

27.8%

―

SGA

613

650

+6.1%

1,414

1,539

+8.9%

Operating profit

205

357

+74.3%

146366+149.3%(Operating profitmargin)

7.0%

9.7%

―

2.7%

5.4%

―

Pretax profit

202

356

+76.5%

142364+156.2%

Net profit

131241+84.5%

119259+117.3%Gross profit(Gross profit margin)* 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]

2nd quarter of the current
consolidated accounting year
（Sep. 30, 2021）

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
Other non-current assets
Total non-current assets
Total assets

Proprietary and Confidential to Members Co.,LTD

4,140,847

4,093,617

2,842,456

2,352,462

31,803

49,118173,103

196,004

7,188,210

6,691,203

252,811

243,652

491,002582,088

116,115

116,115

8,436

9,523

266,909268,638

323,802366,733

1,309

523

1,460,387

1,587,276

8,648,597

8,278,479

6

Balance Sheet Summary
Previous consolidated
accounting year（Mar. 31, 2021）[unit: thousand yen]
Liabilities and shareholders’ equityLiabilities
Current liabilities
Lease liabilities
Trade payables and other payables
Income taxes payable
Allowance
Contract liabilities
Other current liabilities
Total current liabilities

2nd quarter of the current
consolidated accounting year
（Sep. 30, 2021）

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

287,894
653,383
209,00378,135
126,752
1,921,474
3,276,643

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

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

193,114106,716
299,830
3,576,474

Shareholders’ equity
Capital stock
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of the parent
Total shareholders’ equity
Total liabilities and equity

910,405
228,752(8,240)55,622
3,427,635
4,614,175
4,614,175
8,648,597

935,834
254,181(8,370)58,4693,461,891
4,702,005
4,702,005
8,278,479

Proprietary and Confidential to Members Co.,LTD7

Sales by Segment-EMC Business
The sales revenue*1 and the number of digital creators in the EMC business were 4,777 million
yen (up 15.9% year on year) and 933 (up 158 from the end of the previous term), respectively. Digitalmarketing-related sales from existing customers increased, but the acquisition of newcustomers was delayed a little compared with the plan and added value sales per person
decreased slightly year on year.
No. of digital creators and monthly added value

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

10,000

9,206

8,524
8,000

6,000

4,000

2,000

0

1,987
1,587

2,814

2,565
2,366

1,842

1,799

1,847

1,403

1,493

18/03

19/03

1Q

2Q

[unit: yen]933

907,093826
795 775
882,686800
860,299
818,956693 678681
700
691
792,146
863,679600
748,083600
808,339
500

4,777

2,270

1,976

2,196

2,270

1,785

1,850

20/03
3Q

21/03

2,648

2,129

850,000
800,000

781,793750,000
700,000300

650,000

200

600,000100

550,000

0

22/03 2Q

900,000

747,524400

1,000,000
950,000

900

7,549
6,777

950

1,000

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

2Q3Q4Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

No. of digital creators
デジタルクリエイター数Monthly added value sales per person
月額一人あたり付加価値売上高*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 2Q.
*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.,LTD500,000

8Sales by Segment-PGT Business(※1)
The sales revenue*2 and the number of digital creators in the PGT business were 2,347 million
yen (up 48.8% year on year) and 698 (up 169 from the end of the previous term), respectively. Thebusiness domain with high added value grew, and added value sales per person increased
6.4% year on year. In order to increase creators in the specialized business domain, in which
average spending is high, we enhanced investment in education for honing their skills.
[unit: million yen]

Sales revenue of the PGT business

4,000

3,000

2,617

1,701

1,5001,000
500
0

1,057

489

327

461

268
242

387

600

2,347

1,215

782

18/03

19/03
2Q

1,132

795

512

3Q

398

437

21/03

22/03 2Q

516

750,000
700,000

529

650,000

437

600,000

535,578
515,572
494,483100
473,018

586,974
550,000

572,906
551,002588,902500,000

551,902450,000

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

2Q

3Q

4Q

4Q

1Q

2Q

3Q

4Q

1Q

400,000

2Q

No. of digital creators
デジタルクリエイター数
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 2Q.
*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[unit: yen]

800,000

698

616,695300

020/03

355

429

200

599

364

511

500
400

878

714

220

1Q791

697

700

1,013

2,500
2,000

sales per person in the PGT business

800

3,469

3,500

No. of digital creators and monthly added value

9Consolidated earnings and dividend forecasts for the term ending March 2022
A valuation loss of 92 million yen and an allowance of 78 million yen were posted due to the emergenceof unprofitable transactions in the EMC business, and plans for acquiring new customers were delayed
somewhat, so the results fell below the earnings forecast for the cumulative second quarter. Therefore,
we have revised the full-year consolidated earnings forecast while considering the trend, etc. in theconsolidated cumulative second quarter. There is no revision to the dividend forecast.
Full-year forecast for FY 2022 (IFRS)

Full-year results for FY
2021 (IFRS)【Before revision】

y/y increase/decrease rate

Full year

Full year【After revision】

y/y increase/decrease ratey/y increase/decrease rate

Full year

Sales revenue (million yen)

12,08713.9%

15,20025.8%

14,80022.4%

Operating profit (million yen)

1,261

1.0%

1,800

42.6%

1,600

26.8%

Pretax profit (million yen)

1,248

0.6%

1,790

43.4%

1,590

27.4%

Net profit (million yen)

896

2.6%

1,199

33.8%

1,065

18.8%

Profit attributable toowners of parent (million yen)

896

4.0%

1,199

33.8%

1,065

18.8%

Dividends and DOE(*)

Dividend
Commemorative dividend
DOE (Japanese standard)
DOE (IFRS)

6.0%
4.0%

3.9%
2.0%
0.0%

1.7%
2.0
13/03

1.9%
2.5
14/03

2.2%
3.0
15/03

1.5

4.5
16/03

*DOE = Dividend on equity ratio

4.0%

4.3%

4.6%

4.8%

17/03[unit: yen]

9.5

18/03

11.5

19/03

14.0

30.0%

30
25

23.5

4.2%

7.5

5.2%

6.0%

2015

17.5

1020.0%

21/03

22/03

024.5%

23.6%

28.4%
23.5%

19.9% 19.1%

26.4%

25.1%
20.8%

20.1%

10.0%
Payout ratio (Japanese standard)

5
20/03

Payout Ratio

0.0%

Payout ratio (IFRS)

13/03 14/03 15/03 16/03 17/03 18/03 19/03 20/03 21/03 22/03…

Forecast

Proprietary and Confidential to Members Co.,LTD

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