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.

October 29, 2021

Consolidated Financial Results
for the First Six Months of Fiscal Year Ending March 31, 2022
(Under IFRS)
Company name:
Listing:

Members Co., Ltd.
Tokyo Stock Exchange

Securities code:
URL:

2130
https://www.members.co.jp/

Representative:
Inquiries:

Tadashi Kenmochi, Representative Director and President
Akihiko Takano, Director and Senior Managing Executive Officer

Telephone:+81-3-5144-0660
Scheduled date to file quarterly securities report:

November 4, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:―
Yes

Holding of quarterly financial results briefing:

Yes (for analysts and institutional investors)(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the first six months of fiscal year ending March 31, 2022 (from April 1, 2021 toSeptember 30, 2021)(Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
RevenueSix months ended

Operating profit

Profit before tax

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2021

6,795

25.6

366

149.3

364

156.2

259

117.3

September 30, 2020

5,411

10.4

146

(58.1)

142(59.1)

119(46.0)

Six months ended

Profit attributable toTotal comprehensive

Basic earnings

Diluted earnings

owners of parent

incomeper shareper share

Millions of yen%

Millions of yen

%

Yen

Yen

September 30, 2021

259

117.3

259

116.7

19.97

19.49

September 30, 2020

119(45.4)

119(45.8)

9.30

9.08

Equity attributable toowners of parent

Ratio of equity
attributable to owners ofparent to total assets(2) Consolidated financial position
Total assets
As ofTotal equity

Millions of yen

Millions of yen

Millions of yen%

September 30, 2021

8,278

4,702

4,702

56.8

March 31, 2021

8,648

4,614

4,614

53.4

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2021

―

0.00

Fiscal year ending
March 31, 2022

―

0.00

Fiscal year-end

Total

Yen

Yen

―

17.50

17.50

―

23.50

23.50

Fiscal year ending
March 31, 2022
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None3.

Consolidated earnings forecast for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes.)
Revenue

Full year

Full year

Operating profit

Profit before tax

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

14,800

22.4

1,600

26.8

1,590

27.4

1,065

18.8

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

1,065

18.8

Yen

82.83

(Note) Changes from the latest financial forecast: Yes
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 3/2021 (12,861,722).

* 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: None(ii)

Changes in accounting policies due to other reasons: None(iii)

Changes in accounting estimates: Yes(3) Number of issued shares (ordinary shares)
(i)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

13,129,800 shares

As of March 31, 2021

12,980,300 shares

Number of treasury shares at the end of the period
As of September 30, 2021

90,093 shares

As of March 31, 2021

90,046 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

13,011,605 shares

Six months ended September 30, 2020

12,850,989 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an 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
obtained so 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 Friday, October
29, 2021.

○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………………………………………………………….

6(1) Summary of Quarterly Consolidated Balance Sheets…………………………………………………………………….

6(2) Summary of Quarterly Consolidated Statements of Income………………………………………………………………

8(3) Summary of Quarterly Consolidated Statements of Comprehensive Income……………………………………………

9(4) Summary of Quarterly Consolidated Statements of Changes in Equity…………………………………………………

10(5) Summary of Quarterly Consolidated Statements of Cash Flows…………………………………………………………

11(6) Notes to Summary of Consolidated Financial Statements………………………………………………………………

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

12(Revision to Accounting Estimates) ………………………………………………………………………………………

12(Significant Subsequent Events) …...………………………………………………………………………………………

12

- 1 -

1. Qualitative Information Regarding the Financial Results for the Current Quarter(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 theworld. As the Sixth Assessment Report of Intergovernmental Panel on Climate Change (IPCC) mentions “there is no doubtthat human activities have warmed the atmosphere, ocean, and land areas” (the Ministry of Economy, Trade and Industry:
The Sixth Assessment Report of IPCC, the first working group report [scientific grounds], Summary for Policymakers [SPM][Headline Statement]; announced on Aug. 9, 2021), the entire society is at a crossroads to survive.
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, and the debate around deregulation to proactively utilize thispolicy began. We are expecting businesses, including marketing activities, to transform into a model for decarbonization or
resolving societal issues by accelerate corporate transformations through Digital Shift or DX (Digital Transformation) for
continuous value creation.
As the DX Market gradually becomes more active, each company is having difficulty to recruit and train creative personnel
who are versed in the Internet and digital technology on its own, and such personnel shortage is now a huge hurdle in DX.
About 80% of Japanese enterprises recognize the qualitative and quantitative insufficiency of personnel who can take chargeof innovation in business strategies. And the percentage of enterprises whose efforts for DX have not paid off is about 50%(Information-technology Promotion Agency: White Paper on DX 2021; issued on Oct. 11, 2021).
Under such circumstances, we uphold to create a spiritually rich society through “MEMBERSHIP” as its mission, and aims
to convert our client companies’ management style, marketing activities, services, and products into “Sustainable Ones for the
Earth and Society.” During the 26th Regular General Meeting of Stockholders held in June 2021, we decided to specify“Initiatives Toward Societal Issues such as Climate Change and Depopulation” in the articles of incorporation, thenannounced that we would become a leading force in the accelerating actualization of a sustainable society.
We are primarily developing two businesses centered around the DX domain.
<EMC Business Outline>
We have organized the Engagement Marketing Center (EMC), which consists of teams dedicated to continuously improvebusiness results and user engagement for the clients of large companies by using digital means. EMC Company is the centerof this business and supporting the pursuit of DX for client companies. It offers a comprehensive support service fromdiscovering issues and requirement definition from the point of view of client companies, to the development and operation ofdigital services and products.
As companies are accelerating digital shift, the EMC business has been increasing the sales especially from existing clientcompanies steadily. Although the number of client companies implemented by the EMC model decreased to 44 (down 3 fromthe end of the previous fiscal year) since some projects were shifted to the PGT business, digital marketing-related sales forexisting clients expanded, and the revenue of this consolidated cumulative second quarter reached 4,777 million yen (IFRS*Reference Value: Up 15.9% year on year), showing a favorable trend. Further, the number of digital creators belonging to
the EMC business rose to 933 (up 158 from the end of the previous fiscal year).
<PGT Business Outline>
In the PGT (Product Growth Team) business, we have shifted the focus of its services from the conventional business thatwas offering creators with specialized skills, to supporting client’s product growth in the field of new technology byautonomous teams of digital creators, for Internet and start-up companies with high growth potential, which are also proactive
in mainly digital and IT technology investment. The PGT business creates occupations in the New Technology and New
Growth Support domains, centered around Members Career Company and Members Edge Company. We plan to start up inhouse companies proactively this term especially in the engineering domain, which has a high added value, and make efforts
to enhance profitability by achieving high average price and high performance. We have established the following in-housecompanies in FY 3/2022.
-SaaS Plus Company (established in April 2021), which offers a SaaS-based growth team business-DevOps (*4) Lead Company (established in July 2021), which supports the promotion of DevOps by offering a team ofprofessional personnel- 2 -The PGT business has continued to grow steadily through support services in specialized domains such as data and UX(*1) domains, as well as through the rapid growth of the engineering domain, driving the growth of our corporate group. Dueto an increase in profitability owing to the steady growth of the specialized domain support services with high added value
during the first half of the current fiscal year, the overall revenue of the PGT business reached 2,347 million yen (IFRS*Reference Value: Up 48.8% from the same term of the previous fiscal year), the number of client companies reached 167(up 38 from the end of the same quarter of the previous fiscal year), and the number of digital creators belonging to the PGTbusiness reached 698 (up 169 from the end of the previous fiscal year).
<Our Corporate Group’s Policies and Initiatives>
Our corporate group engages in continuous recruitment as upfront investment, predicting a significant shortage of creators
who are versed in digital technology and the Internet. We have been extensively recruiting graduates of art universities,
technical colleges, technical schools on Web-related creation, four-year universities, and graduate schools. A total of 364
newly graduates joined us in April 2021 (including local bases), up 128 from the previous year. We assigned new employees’tasks earlier than usual in the current consolidated fiscal year and started business operations with them in June. In April
2022, 481 new graduates plan to join our company as planned.
Through the continuous expansion in the service domain of both EMC and PGT businesses, along with the early training
and early operation for new employees, we will increase profitability and strengthen our investments in recruitment andtraining.
Further, our corporate group has been promoting a company-wide work-from-home workstyle and the utilization of remoteenvironments. We will continue capital investment for the reduction of office space and the implementation of a smooth
remote work, to establish a work system that will produce even better results.
<Overview of Consolidated Financial Statements>
For the first half of the current consolidated term, revenue was 6,795 million yen (up 25.6% in the same term of theprevious fiscal year), operating profit was 366 million yen (up 149.3% in the same term of the previous fiscal year), quarterly
profit before income taxes was 364 million yen (up 156.2% in the same term of the previous fiscal year), and profit
attributable to the owners of the parent was 259 million yen (up 117.3% in the same term of the previous fiscal year). In the
cumulative second quarter of the current consolidated term, sales revenue and operating profit increased 25.6% and 149.3%,
respectively, year on year, showing high growth rates, as our support service in specialized domains with high added value
progressed and our service of supporting existing clients in digital marketing performed well. On the other hand, in the EMC
business, we posted a valuation loss of inventory assets of 92 million yen and an allowance of 78 million yen because of theemergence of unprofitable transactions, and the plans for acquiring new customers were delayed somewhat, so the results fell
below the earnings forecast for the cumulative second quarter of the current consolidated term. Accordingly, we have revised
the full-year consolidated earnings forecast, while considering the difference between the results and forecast for the
cumulative second quarter, the recent performance trend, etc.
In the second half, we expect that corporate investment in digitalization will accelerate after the lifting of the state of
emergency in Japan. Under such circumstances, our corporate group will enhance the activities to reel in new clients andconcentrate on the recruitment of mid-career workers, to increase digital creators, who are the sources of profits. In parallel,
we will further invest in education in specialized fields and transfer creators to more profitable fields, to improve added value
sales per person.
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 (*2), the total amount of social engagement (*3) of 10 billion, 10,000 employees, and an operating
profit of 10 billion yen in 2030.
(*1) UX (User Experience): The experience one gains by using a product or service.
(*2) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion of business, systemic
design, and output.
(*3) Social Engagement: The number of contacts with the contents, products, and services worked on by Members Group as its policy to resolve societal
issues.
(*4) DevOps: Concept or system for offering swift and flexible services based on the close cooperation between developers and operators using- 3 -development methods and tools(2) Explanation Regarding the Financial Standing(i)Status of Assets, Liabilities, and Shareholders’ Equity
The total assets at the end of the second quarter of the current consolidated term were 8,278 million yen (down 370 million
yen from the end of the previous consolidated fiscal year). This is primarily due to an increase of 91 million yen in right-touse assets and an increase of 42 million yen in deferred tax assets, along with a decrease of 489 million yen in trade and otherreceivables and a decrease of 47 million yen in cash and cash equivalents.
Total liabilities stood at 3,576 million yen (down 457 million yen from the end of the previous consolidated fiscal year).
This was primarily due to an increase of 88 million yen in lease liabilities of both current and non-current liabilities, anincrease of 78 million yen in allowances, along with a decrease of 321 million yen in trade and other payables, a decrease of
147 million yen in income taxes payable, a decrease of 107 million yen in contract liabilities, and a decrease of 49 million yen
in other current liabilities.
Total equity was 4,702 million yen (up 87 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 34 million yen in retained earnings, an increase of 25 million yen in capital stock, and anincrease of 25 million yen in capital surplus.
(ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the second quarter of the current consolidated
term was 4,093 million yen, down 47 million yen from the end of the previous consolidated fiscal year. The status of each cash
flow for the first half of this consolidated fiscal year and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during the first half of this consolidated fiscal year as a result of operating activities amounted to 293
million yen (down 219 million yen from the same period of the previous year). The income was mainly from a decrease of
382 million yen in trade and other receivables, the expenditure was mainly from 348 million yen paid as income taxes paid,
and a decrease in trade and other payables of 324 million yen.
(Cash Flows from Investing Activities)
The funds used during the first half of this consolidated fiscal year as a result of investing activities amounted to 8 million
yen (up 2 million yen from the same period of the previous year). The expenditure was mainly from 4 million yen in purchasesof property, plant and equipment.
(Cash Flows from Financing Activities)
The funds used during the first half of this consolidated fiscal year as a result of financing activities amounted to 332
million yen (down 294 million yen from the same period of the previous year). The expenditure was mainly from 225 million
yen as dividends paid and 160 million yen in expenditure for the repayment of lease liabilities.
(3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings Forecast
We have revised the full-year consolidated earnings forecast for the term ending March 2022, which was announced on May
7, 2021, while considering the results for the cumulative second quarter of the current consolidated term and the current
outlook.
Revision to the full-year consolidated earnings forecast for the term ending March 2022 (Apr. 1, 2021 to Mar. 31, 2022)
ProfitSales revenue

OperatingprofitProfit before
tax

Profitmillion yen
15,200

million yen
1,800

million yen
1,790

million yen
1,199

million yen
1,199

yen
93.22

Forecast announced
this time (B)14,800

1,600

1,590

1,065

1,065

82.83

Change (B-A)

(400)

(200)

(200)

(134)

(134)

Change rate (%)(2.6)(11.1)(11.1)(11.1)(11.1)

Forecast announced
previously (A)attributable toowners of parent

Basic earnings
per share(Regarding the Dividend Forecast)
From the point of enhancing the return of profits to all of our shareholders and further increasing enterprise value, we will

- 4 -

retain 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 acontinuous increase in the dividend amount. Our medium-term target of an equity dividend ratio attributable to owners of theconsolidated parent company is about 5%.
After comprehensively taking into account of the DOE and dividend payout ratio, the term-end dividend for FY 3/2022 is planned
to be 23.50 yen.

- 5 -

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, 2021)

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

AssetsCurrent assets
Cash and cash equivalents
Trade receivables and other receivables

4,140,847
2,842,456

4,093,617
2,352,462

Inventory assets
Other current assets

31,803
173,103

49,118196,004

Total current assets

7,188,210

6,691,203

Tangible fixed assets
Rights to use as assets

252,811491,002

243,652
582,088

Goodwill
Intangible assets

116,115
8,436

116,115
9,523

Other financial assets
Deferred tax assets

266,909323,802

268,638
366,733

Other non-current assets

1,309

523

Total non-current assets

1,460,387

1,587,276

8,648,597

8,278,479

Non-current assets

Total assets- 6 -[unit: thousand yen]Previous consolidated
accounting year
(Mar. 31, 2021)

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

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

234,773
974,844

287,894
653,383

Income taxes payable
Allowance

356,050-

209,00378,135Contract liabilities
Other current liabilities

234,351
1,970,892

126,752
1,921,474

Total current liabilities

3,770,912

3,276,643

157,327
106,181

193,114106,716

Non-current liabilities
Lease liabilities
Allowance

263,509299,830

Total liabilities

Total non-current liabilities

4,034,422

3,576,474

Shareholders’ equity
Capital stock

910,405

935,834

Capital surplus
Treasury shares

228,752(8,240)254,181(8,370)

Other components of equity
Retained earnings

55,622
3,427,635

58,4693,461,891

Total equity attributable to owners of the parent

4,614,175

4,702,005

Total shareholders’ equity

4,614,175

4,702,005

8,648,597

8,278,479

Total liabilities and equity- 7 -(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
1H FY2021(Apr. 1, 2020 to Sep. 30, 2020)

1H FY2022(Apr. 1, 2021 to Sep. 30, 2021)

Revenue
Cost of sales

5,411,183
3,830,804

6,795,096
4,905,053

Gross profit
Selling, general and administrative expenses

1,580,378
1,414,143

1,890,043
1,539,726

Other income
Other expenses

27,152
46,416

18,5182,447

Operating profit (loss)

146,970

366,387

15
4,902

445
2,756

Profit (loss) before income taxes
Income taxes

142,084
22,520364,076
104,240

Profit (loss) for the period

119,563

259,835

Owners of parent

119,563

259,835

Net profit (loss)

119,563

259,835

9.30

19.97

9.08

19.49

Finance income
Finance costs

Profit (loss) attributable toEarnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)- 8 -(3) Summary of Quarterly Consolidated Statements of Comprehensive Income[unit: thousand yen]
1H FY2021(Apr. 1, 2020 to Sep. 30, 2020)

1H FY2022(Apr. 1, 2021 to Sep. 30, 2021)

119,563

259,835

Financial assets measured at fair value through othercomprehensive income

346－

Total of items that will not be reclassified to profit or loss

346－

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

346－

Comprehensive income

Total comprehensive income

119,910259,835

Comprehensive income attributable to
Owners of parent

119,910259,835

119,910259,835

Comprehensive income9(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated first half of the prior fiscal year ended March 2021 (Apr. 1, 2020 to Sep. 30, 2020)[unit: thousand yen]
Equity attributable to owners of parent

Noncontrollinginterests

Total
equityTreasurysharesOther
componentsof equity

Retainedearnings

Total

474,594(7,922)

44,6272,709,135

4,121,578

67,513

4,189,092

－

－

－

－

119,563

119,563－

119,563

－

－

－

346

－

346

－

346

－

－

－

346

119,563

119,910－

119,910

Exercise of share acquisition rights

2,003

2,003

－

(442)

－

3,565

－

3,565

Issuance of share acquisition rights

－

－

－

13,395－

13,395－

13,395

Dividends

－

－

－

－

(179,874)(179,874)－(179,874)

Transfer to retained earnings

－

－

－

(346)

346

－

－

－

Purchase of non-controllinginterests－(255,104)－－－(255,104)(67,513)(322,618)

Total transactions with owners

2,003(253,101)－

12,606(179,528)(418,019)(67,513)(485,533)

Balance on September 30, 2020

903,147

221,493(7,922)

57,5792,649,170

3,823,469－

3,823,469

Capitalstock

Capitalsurplus901,143

Profit for the period
Other comprehensive income

Balance on April 1, 2020

Total comprehensive income

Consolidated first half of the current fiscal year ending March 2022 (Apr. 1, 2021 to Sep. 30, 2021)[unit: thousand yen]
Equity attributable to owners of parent
Capitalstock
Balance on April 1, 2021

Capitalsurplus

Other
components ofequityTreasurysharesRetainedearnings

Total

Total
equity910,405

228,752(8,240)55,622

3,427,635

4,614,175

4,614,175

－

－

－

－

259,835

259,835

259,835

－

－

－

－

259,835

259,835

259,835

Exercise of share acquisition rights

25,42825,428－(6,668)－44,18844,188Issuance of share acquisition rights

－

－

－

9,516

－

9,516

9,516

Purchase of treasury shares

－

－

(129)

－

－

(129)

(129)

Dividends

－

－

－

－

(225,579)(225,579)(225,579)

Total transactions with owners

25,42825,428

(129)

2,847

(225,579)(172,005)(172,005)

Balance on September 30, 2021

935,834

254,181(8,370)58,4693,461,891

4,702,005

4,702,005

Profit for the period
Total comprehensive income- 10 -

(5) Summary of Quarterly Consolidated Statements of Cash Flows[unit: thousand yen]
1H FY2021(Apr. 1, 2020 to Sep. 30, 2020)

1H FY2022(Apr. 1, 2021 to Sep. 30, 2021)

Profit before income taxes
Depreciation and amortization

142,084
180,750

Impairment loss
Finance income

28,000(15)

364,076
174,730－

Finance costs(Increase) decrease in inventories

4,722
5,599

2,018
(17,315)

730,591(521,041)

382,508(324,074)

Cash flows from operating activities(Increase) decrease in trade and other receivables
Increase (decrease) in trade and other payables
Other
Subtotal(20)

115,466(6,847)686,158

575,075

Interest and dividends received

3,547

20

Proceeds from subsidy income
Proceeds from insurance income

6,158
－

1,508
6,000

(2,026)(184,781)(1,908)(348,187)

Interest paid
Income taxes paid
Income taxes refund
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations

3,651

61,170512,708

293,679(6,766)－(4,439)(6,900)(2,356)－

Proceeds from sales of investments
Other

5,346
3,076

(1,304)

Cash flows from investing activities(5,244)(8,100)

Repayments of lease liabilities
Proceeds from issuance of share acquisition rights(141,878)
13,395(160,838)
9,516

Proceeds from exercise of share acquisition rights
Payments for purchase of treasury shares

3,565
－

44,188(129)

Dividends paid
Purchase of non-controlling interests(179,849)(322,618)(225,545)－

Cash flows from financing activities(627,386)(332,809)(119,921)(47,230)

Cash and cash equivalents at beginning of period

3,115,696

4,140,847

Cash and cash equivalents at end of period

2,995,774

4,093,617－

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents11(6) Notes to Summary of Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no related information.
(Revision to Accounting Estimates)
We have revised the estimated cost, because the possibility of outflow of economic benefits increased due to the augmentationof man-hours, which was not expected at the time of the previous estimation of total costs, in the cumulative second quarter of thecurrent consolidated period. Accordingly, the cost of sales augmented by 138,388 thousand yen.
(Significant Subsequent Events)
Conclusion of a contract for merger with Members Gifted Co., Ltd.
At the meeting of the board of directors held on October 21, 2021, our company resolved to absorb Members Gifted Co.,
Ltd. through merger with our company being the surviving company and Members Gifted being the absorbed company and thescheduled effective date being January 1, 2022, and signed a merger contract with them.
(1) Outline of the transaction(i) Name and business of the company to be absorbed
Name of the company to be absorbed: Members Gifted Co., Ltd.
Business description: Support for employment of disabled people(ii) Schedule for the merger
Date of resolution of the board of directors: Oct. 21, 2021
Date of conclusion of the contract for absorption-type merger: Oct. 21, 2021
Date of merger (effective date): Jan. 1, 2022 (scheduled)(iii) Merger method
It is the absorption-type method with our company being the surviving company and Members Gifted being the absorbed
company. Members Gifted was insolvent as of March 31, 2021, but was no longer insolvent as of September 30, 2021.
This merger falls under the short form merger set forth in Article 796, Paragraph 2 of the Companies Act from theviewpoint of our company, and the short form merger set forth in Article 784, Paragraph 1 of the Companies Act from theviewpoint of the absorbed company, so the merger will be carried out without holding a general meeting of shareholders forapproving the absorption-type merger contract in either company.
(iv) Other items related to this transaction
This merger is aimed at conducting sales, marketing, foothold strategy, recruitment, staffing, training, and management
operations in a more integrated, group-wide manner, to further accelerate the growth of our corporate group.
Since it is an absorption-type merger with a 100% subsidiary of our company, we will not conduct the issuance of newshares, the allocation of funds, or the like through this merger.
(2) Impact on business performance
Since this is a merger with a consolidated subsidiary of our company, there will be no impact on our consolidated
performance.

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