Financial Results for 3Q FY2022
Members Co., Ltd. (TSE 2130)
February 2, 2022

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)

936 million yen (as of December 31, 2021)

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

2130; First Section of Tokyo Stock Exchange
1,828 (as of December 31, 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

3Q FY 2022 Overview
As enterprises actively invested in digital technologies, both sales revenue andoperating profit hit a record high in the cumulative third quarter. The service of
supporting high value-added specialized domains, including engineering, data,and UX, performed well.

Consolidated results
Sales revenue

10,592

millionyen+25.5%
y/yOperating profit

992

millionyen

Added-value sales+75.8%
y/yBusiness situation
EMC business
Sales revenue

7,429
Educational
investment

206

millionyen+16.2%Up 37 million yen
y/ymillionyeny/y

PGT business
Sales revenue

3,680

Ratio of sales ofservices other thanwebsite operation
during 22/3Q

28.5 ％

9,966

millionyen

No. of companies
we offer the EMCmodelmillionyen

Up 2.7 points
compared to22/2Q+49.8%y/y

No. of digitalcreators

Estimated term-end
dividend per share

23.5 yen

Proprietary and Confidential to Members Co.,LTD

+27.1
28.0%
%

46921
PGT
business 707
EMC
businessy/y-1 from theend of theprevious FY＋146 from theend of theprevious FY+178 from theend of theprevious FY

Up 6.0 yen fromthe previous FY

4

Income Statement Summary
Both sales revenue and operating profit hit a record high for 3Q and cumulative 3Q.
As new transactions increased and average unit selling price rose, gross profit
margin and operating profit margin increased in 3Q. Unprofitable transactions,which emerged in 2Q, are progressing as planned, and it is expected that there will
be no additional costs or the like.
Results in 3Q[Unit：million yen]

FY3/2021

FY3/2022

Cumulative results until 3Q
y/y

FY3/2021

FY3/2022y/y

Sales revenue

3,025

3,797

+25.5%

8,436

10,592+25.5%

Added value sales

2,859

3,584

+25.3%

7,843

9,966

+27.1%

968

1,288+33.0%

2,549

3,178

+24.7%

32.0%

33.9%―

30.2%

30.0%

―

SGA

554

663

+19.6%

1,968

2,202

+11.9%

Operating profit

417

626

+49.9%

564

992+75.8%

13.8%

16.5%

―

6.7%

9.4%

―

Pretax profit

414

625

+50.8%

557

989+77.7%Net profit

288

427

+48.0%

408

687+68.3%

Gross profit(Gross profit margin)(Operating profit margin)* Added value sales = Sales revenue ー Outsourcing and procurement costs ＝ Sales from in-house resources
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Balance Sheet Summary
Previous consolidated
accounting year（Mar. 31, 2021）[unit: thousand yen]

3rd quarter of the current
consolidated accounting year
（Dec. 31, 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
Goodwill
Intangible 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

4,299,482

2,842,456

2,892,082

31,80387,945

173,103

233,083

7,188,210

7,512,593

252,811240,536

491,002545,750

116,115

116,1158,436

10,430266,909

264,594

323,802247,154

1,309

130

1,460,387

1,424,713

8,648,597

8,937,3076

Balance Sheet Summary
Previous consolidated
accounting year
（Mar. 31, 2021）[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

3rd quarter of the current
consolidated accounting year（Dec. 31, 2021）

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

297,322
1,068,823
41,639119,292
2,024,459
3,551,536

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

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

148,466
106,985
255,452
3,806,988

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

910,405228,752(8,240)55,622
3,427,635
4,614,175
4,614,175
8,648,597

936,484
254,831(8,477)58,3383,889,141
5,130,318
5,130,318
8,937,307

Proprietary and Confidential to Members Co.,LTD7

Sales by Segment-EMC Business
In EMC business, sales revenue(*1) was 7,429 million yen (+16.2% year on year) andthe number of digital creators (DCs) was 921 (＋146 from the end of the previous term).
The service of supporting existing customers in digital marketing performed well.
Added value sales per person declined 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

8,000

6,000

4,000

2,000

0

8,524
7,549
6,777
1,987
1,587

2,565

1,842

1,799

1,847

1,403

1,493

18/03
1Q

9,206
7,429

2,814

19/03
2Q

2,651

2,196

1,785
20/03
3Q

907,093826
795 775
882,686800
860,299
678
818,956
700
900

2,366
1,976

950 933921

1,000

2,270600
500

2,648

2,270

2,129

1,850
21/03

22/03 3Q

900,000
850,000

863,679
808,339781,793
792,146
748,083
747,524400

1,000,000
950,000

681 691 693
600[unit: yen]

800,000

797,423750,000
700,000300

650,000

200

600,000100

550,000

020/03 20/03 20/03 20/03 21/03 21/03 21/03 21/03 22/03 22/03 22/03
1Q

2Q

3Q

4Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

500,000

3Q

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 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 3Q.
*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 PGT business, sales revenue(*2) was 3,680 million yen (+49.8% year on year) andthe number of digital creators (DCs) was 707 (＋178 from the end of the previous term).
The high value-added domains, mainly engineering, expanded steadily, and addedvalue sales per person rose 8.7% year on year.
[unit: million yen]

No. of digital creators and monthly added value

Sales revenue of the PGT business

4,000

3,469

3,500

3,680

2,617

1,332

1,013

2,500

1,701

1,500

1,057

489

327

461

268
242

387

0

697 698 707

600

18/03
1Q

878

714

400

1,215

782

19/03
2Q

1,132

795

512

3Q

398

21/03

22/03 3Q

586,974

572,906

551,902535,578
515,572
494,483100
473,018

500,000

551,002450,000

20/03 20/03 20/03 20/03 21/03 21/03 21/03 21/03 22/03 22/03 22/031Q

2Q

3Q

4Q

4Q

750,000

600,000
598,801
550,000

616,695

588,902

300

0

20/03

355

800,000

650,000

429 437 437

200599364220

791[unit: yen]

700,000

511 516 529

500

2,000

500

800
700

3,000

1,000sales per person in the PGT business

1Q

2Q

3Q

4Q

1Q

2Q

400,000

3Q

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 3Q.
*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.,LTD9

Consolidated earnings and dividend forecasts for the term ending March 2022

Full-year results for FY 2021
(IFRS)

Full-year forecast for FY 2022
(IFRS)

y/y increase/decrease rate

Full yeary/y increase/decrease rate

Full year

Sales revenue (million yen)

12,08713.9%

14,80022.4%

Operating profit (million yen)

1,261

1.0%

1,600

26.8%

Pretax profit (million yen)

1,248

0.6%

1,590

27.4%

Net profit (million yen)

896

2.6%

1,065

18.8%

Profit attributable to owners of parent (million yen)

896

4.0%

1,065

18.8%

Dividend

Dividends and DOE(*)

Commemorative dividend

6.0%

DOE (Japanese standard)

6.0%

DOE (IFRS)

5.0%

4.0%

4.0%
3.9%

3.0%

4.3%

4.6%

4.8%

5.2%

23.5

4.2%
17.5
14.0

2.0%
1.0%

1.7%

0.0%

2.0
13/03

1.9%
2.5

14/03

2.2%
1.5

3.0
15/03

7.5

9.5

11.5

4.5
16/03

*DOE = Dividend on equity ratio

17/03

18/03

19/03

20/03

Payout Ratio[unit: yen]

21/03

22/03
Forecast

30

30.0%

25

25.0%

20

20.0%

15

15.0%

10

10.0%

5

5.0%

0

0.0%

28.4%
24.5%

23.6%
19.9%

25.1%

23.5%
26.4%

19.1%

20.8%

20.1%

Payout ratio (Japanese standard)

Payout ratio (IFRS)

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

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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

Proprietary and Confidential to Members Co.,LTD11