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.

February 2, 2022

Consolidated Financial Results
for the First Nine 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:

February 7, 2022

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

Holding of quarterly financial results briefing:

No(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the first nine months of fiscal year ending March 31, 2022 (from April 1, 2021 to
December 31, 2021)(Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
Revenue
Nine months ended

Operating profit

Profit before tax

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2021

10,592

25.5

992

75.8

989

77.7

687

68.3

December 31, 2020

8,436

13.0

564

(10.8)

557(11.4)

408(2.5)

Nine months ended

Profit attributable toTotal comprehensive

Basic earnings

Diluted earnings

owners of parent

incomeper shareper share

Millions of yen%

Millions of yen

%

Yen

Yen

December 31, 2021

687

68.3

687

68.2

52.77

51.58

December 31, 2020

408

(1.8)

408

2.6

31.77

30.97

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%

December 31, 2021

8,937

5,130

5,130

57.4

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: No
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 December 31, 2021

13,132,300 shares

As of March 31, 2021

12,980,300 shares

Number of treasury shares at the end of the period
As of December 31, 2021

90,124 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)
Nine months ended December 31, 2021

13,021,337 shares

Nine months ended December 31, 2020

12,852,703 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 Wednesday,
February 2, 2022.

○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………………………………………………………….

5(1) Summary of Quarterly Consolidated Balance Sheets…………………………………………………………………….

5(2) Summary of Quarterly Consolidated Statements of Income………………………………………………………………

7(3) Summary of Quarterly Consolidated Statements of Comprehensive Income……………………………………………

8(4) Summary of Quarterly Consolidated Statements of Changes in Equity…………………………………………………

9(5) Summary of Quarterly Consolidated Statements of Cash Flows…………………………………………………………

10(6) Notes to Summary of Consolidated Financial Statements………………………………………………………………

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

11(Revision to Accounting Estimates) ………………………………………………………………………………………

11(Significant Subsequent Events) …...………………………………………………………………………………………

11

- 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.
In April 2021, we agreed with the recommendations of the Task Force on Climate related Financial Disclosures (TCFD),
and following these recommendations, we conducted a scenario analysis, etc. and disclosed the relevant information on our
website. (https://www.members.co.jp/company/tcfd/)
Our corporate group will continue to work toward building a sustainable society.
We are primarily developing two businesses (EMC business and PGT business) 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 centered on EMC companies by using digital means.
It offers a comprehensive support service from discovering issues and requirement definition from the point of view of clientcompanies, to the development and operation of digital services and products.
In the EMC business, sales to existing customers are steadily expanding against the backdrop of the accelerating digitaltransformation of companies, and we are also actively making proposals to new customers. In this consolidated cumulative
third quarter, although there was a decrease in the number of EMC model providers due to the shift of some projects to the
PGT business, the number reached 46 (down one from the end of the previous fiscal year) due to the increase of new clientsduring this third quarter.
In addition, digital marketing-related sales to existing customers are steadily expanding, and the sales revenue in thisconsolidated cumulative third quarter was 7,429 million yen (IFRS * Reference Value: Up 16.2% year on year), showing
healthy performance.
Further, the number of digital creators belonging to the EMC business rose to 921 (up 146 from the end of the previous
fiscal year).
<PGT Business Outline>
In the PGT (Product Growth Team) business, since fiscal year ending March 31, 2022, we have shifted the focus of its
services from “the conventional business that was offering creators with specialized skills,” to “supporting client’s productgrowth in the field of new technology.”
For Internet and start-up companies with high growth potential, which are also proactive in mainly digital and IT
technology investment, the PGT business has conducted supporting of these clients’ product growth by autonomous teams ofdigital creators. The PGT business creates occupations in the New Technology and Growth Support domains, centered around
Members Career Company and Members Edge Company, which are core companies for this business.

- 2 -In the fiscal year ending March 2022, we are actively launching companies specializing in high-value-added engineering
fields to enhance profitability by achieving high unit prices and high operation rates. Hence, we have established thefollowing in-house companies.
-SaaS Plus Company (established in April 2021), which offers a SaaS-based growth team business-DevOps (*1) Lead Company (established in July 2021), which supports the promotion of DevOps by offering a team ofprofessional personnel
In this consolidated cumulative third quarter, the sales revenue of the entire PGT business was 3,680 million yen (IFRS *Reference Value: Up 49.8% from the same term of the previous fiscal year) due to the improvement in profitability as a resultof the steady expansion of high value-added specialized field support services. The number of client companies reached 187(up 39 from the end of the same quarter of the previous fiscal year), and the number of digital creators belonging to the PGTbusiness reached 707 (up 178 from the end of the previous fiscal year).
The business continues to grow steadily due to the rapid expansion of support services in specialized fields such as the data
fields and UX (*2) and engineering fields, driving the entire group's growth.
<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 fiscal 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 office strategy and the implementation of a smooth remote work, toestablish a work system that will produce even better results.
<Overview of Consolidated Financial Statements>
For this consolidated cumulative third quarter, revenue was 10,592 million yen (up 25.5% in the same term of the previous
fiscal year), operating profit was 992 million yen (up 75.8% in the same term of the previous fiscal year), quarterly profit
before income taxes was 989 million yen (up 77.7% in the same term of the previous fiscal year), and profit attributable to theowners of the parent was 687 million yen (up 68.3% in the same term of the previous fiscal year). In this consolidated
cumulative third quarter, sales revenue and operating profit increased 25.5% and 75.8%, respectively, year on year, recording
the highest sales and profit ever and maintaining a high growth rate. This was attributed to the progress of high-value-added
support services in specialized fields and the good performance of digital marketing support for existing customers.
Although the economic impact of COVID-19 is still unclear, we believe that corporate digital investment will accelerate
further. In such an environment, our corporate group will enhance our efforts to increase new customers and focus on midcareer recruitment to increase the number of digital creators, which are the source of profits. At the same time, we will expand
investments in specialized field education and strive to increase value-added sales per person by transferring creators tocompanies in high-priced fields.
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) DevOps: Concept or system for offering swift and flexible services based on the close cooperation between developers and operators usingdevelopment methods and tools(*2) UX (User Experience): The experience one gains by using a product or service.
(*3) Social Creator: A motivated creator (artisan) with design thinking, who tries to resolve societal issues through the promotion of business, systemic
design, and output.
(*4) Social Engagement: The number of contacts with the contents, products, and services worked on by Members Group as its policy to resolve societal- 3 -issues.

(2) Explanation Regarding the Financial Standing(i)Status of Assets, Liabilities, and Shareholders’ Equity
The total assets at the end of the third quarter of the current consolidated term were 8,937 million yen (up 288 million yen
from the end of the previous consolidated fiscal year). This was primarily due to an increase of 158 million yen in cash andequivalents, an increase of 59 million yen in other current assets, and an increase of 56 million yen in inventory, along with adecrease of 76 million yen in deferred tax assets.
Total liabilities stood at 3,806 million yen (down 227 million yen from the end of the previous consolidated fiscal year).
This was primarily due to an increase of 93 million yen in trade payables and other payables, an increase of 53 million yen inlease liabilities of both current and non-current liabilities, and an increase of 53 million yen in other current liabilities, alongwith a decrease of 314 million yen in income taxes payable, and a decrease of 115 million yen in contract liabilities.
Total equity was 5,130 million yen (up 516 million yen from the end of the previous consolidated fiscal year). This wasprimarily due to an increase of 461 million yen in retained earnings, an increase of 26 million yen in capital stock, and anincrease of 26 million yen in capital surplus.
(ii)Status of Cash FlowsThe cash and cash equivalent (hereinafter referred to as “funds”) at the end of the third quarter of the current consolidated
term was 4,299 million yen, up 158 million yen from the end of the previous consolidated fiscal year. The status of each cash
flow for this consolidated cumulative third quarter and the factors behind them are as follows.
(Cash Flows from Operating Activities)
The funds acquired during this consolidated cumulative third quarter as a result of operating activities amounted to 581
million yen (down 184 million yen from the same period of the previous year). The income was mainly from 989 million yenof profit before income taxes, and 262 million yen of depreciation and amortization, the expenditure was mainly from 577
million yen as income taxes paid, and an increase in trade and other payables of 164 million yen.
(Cash Flows from Investing Activities)
The funds used during this consolidated cumulative third quarter as a result of investing activities amounted to 10 million
yen (down 22 million yen from the same period of the previous year). The expenditure was mainly from 5 million yen inpurchases of property, plant and equipment.
(Cash Flows from Financing Activities)
The funds used during this consolidated cumulative third quarter as a result of financing activities amounted to 411 million
yen (down 282 million yen from the same period of the previous year). The expenditure was mainly from 240 million yen in
expenditure for the repayment of lease liabilities and 225 million yen as dividends paid.
(3) Explanation Regarding the Future Forecast Information such as Consolidated Earnings Forecast
There are no changes in the consolidated earnings forecast for the entire fiscal year ending on March 31, 2022, announced on
October 29, 2021.
(Regarding the Dividend Forecast)
From the point of enhancing the return of profits to all of our shareholders and further increasing enterprise value, we willretain 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 isplanned to be 23.50 yen.

- 4 -

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)

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

AssetsCurrent assets
Cash and cash equivalents
Trade receivables and other receivables

4,140,847
2,842,456

4,299,482
2,892,082

Inventory assets
Other current assets

31,803
173,103

87,945233,083

Total current assets

7,188,210

7,512,593

Tangible fixed assets
Rights to use as assets

252,811491,002240,536545,750

Goodwill
Intangible assets

116,115
8,436

116,115
10,430

Other financial assets
Deferred tax assets

266,909323,802

264,594
247,154

Other non-current assets

1,309

130

Total non-current assets

1,460,387

1,424,713

8,648,597

8,937,307

Non-current assets

Total assets- 5 -[unit: thousand yen]Previous consolidated
accounting year
(Mar. 31, 2021)

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

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

234,773
974,844297,322
1,068,823

Income taxes payable
Contract liabilities

356,050
234,351

41,639119,292

Other current liabilities

1,970,892

2,024,459

Total current liabilities

3,770,912

3,551,536

Lease liabilities

157,327

148,466

Allowance

106,181

106,985

Total non-current liabilities

263,509

255,452

4,034,422

3,806,988

Capital stock
Capital surplus

910,405

936,484

228,752

254,831

Treasury shares
Other components of equity(8,240)55,622(8,477)58,338Retained earnings

3,427,635

3,889,141

Total equity attributable to owners of the parent

4,614,175

5,130,318

Total shareholders’ equity

4,614,175

5,130,318

8,648,597

8,937,307

Non-current liabilities

Total liabilities
Shareholders’ equity

Total liabilities and equity- 6 -(2) Summary of Quarterly Consolidated Statements of Income[unit: thousand yen]
Cumulative 3Q FY2021(Apr. 1, 2020 to Dec. 31, 2020)

Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

Revenue
Cost of sales

8,436,801
5,887,496

10,592,147
7,413,801

Gross profit
Selling, general and administrative expenses

2,549,305
1,968,658

3,178,346
2,202,995

Other income
Other expenses

32,98648,946

21,621
4,294

Operating profit (loss)

564,687

992,677

15
7,688

1,535
4,567

Profit (loss) before income taxes
Income taxes

557,014
148,748

989,645
302,560

Profit (loss) for the period

408,266

687,085

Owners of parent

408,266

687,085

Net profit (loss)

408,266

687,085

31.77

52.77

30.97

51.58

Finance income
Finance costs

Profit (loss) attributable toEarnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)- 7 -(3) Summary of Quarterly Consolidated Statements of Comprehensive Income[unit: thousand yen]
Cumulative 3Q FY2021(Apr. 1, 2020 to Dec. 31, 2020)

Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

408,266

687,085

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

408,612

687,085

Comprehensive income attributable to
Owners of parent

408,612

687,085

408,612

687,085

Comprehensive income8(4) Summary of Quarterly Consolidated Statements of Changes in Equity
Consolidated third quarter of the prior fiscal year ended March 2021 (Apr. 1, 2020 to Dec. 31, 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

－

－

－

－

408,266

408,266－

408,266

－

－

－

346

－

346

－

346

－

－

－

346

408,266

408,612－408,612

Exercise of share acquisition rights

3,064

3,064

－

(679)

－

5,449

－

5,449

Issuance of share acquisition rights

－

－

－

13,395－

13,395－

13,395

Expiration of share acquisitionrights

－

－

－

(129)

129

－

－

－

Purchase of treasury shares

－

－

(318)

－

－

(318)

－

(318)

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

3,064(252,040)(318)

12,240(179,399)(416,453)(67,513)(483,967)

Balance on December 31, 2020

904,207

222,554(8,240)57,213

2,938,002

4,113,737－

4,113,737

Capitalstock

Capitalsurplus901,143

Profit for the period
Other comprehensive income

Balance on April 1, 2020

Total comprehensive income

Consolidated third quarter of the current fiscal year ending March 2022 (Apr. 1, 2021 to Dec. 31, 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

－

－

－

－

687,085

687,085

687,085

－

－

－

－

687,085

687,085

687,085

Exercise of share acquisition rights

26,07826,078－(6,799)－45,35845,358Issuance of share acquisition rights

－

－

－

9,516

－

9,516

9,516

Purchase of treasury shares

－

－

(236)

－

－

(236)

(236)

Dividends

－

－

－

－

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

Total transactions with owners

26,07826,078

(236)

2,716

(225,579)(170,942)(170,942)

Balance on December 31, 2021

936,484

254,831(8,477)58,3383,889,141

5,130,318

5,130,318

Profit for the period
Total comprehensive income- 9 -(5) Summary of Quarterly Consolidated Statements of Cash Flows[unit: thousand yen]
Cumulative 3Q FY2021(Apr. 1, 2020 to Dec. 31, 2020)

Cumulative 3Q FY2022(Apr. 1, 2021 to Dec. 31, 2021)

Profit before income taxes
Depreciation and amortization

557,014
269,181

Impairment loss
Finance income

28,000(15)

989,645
262,387－

Finance costs(Increase) decrease in inventories

7,271(27,812)

3,967(56,141)(Increase) decrease in trade and other receivables
Increase (decrease) in trade and other payables

234,673(152,786)(164,644)
89,409Cash flows from operating activities

Other(1,535)

177,988(39,845)

1,093,515

1,083,243

Interest and dividends received

3,547

5,404

Proceeds from subsidy income
Proceeds from insurance income

6,260
3,000

1,508
6,000

(2,917)(345,705)(3,163)(577,420)

SubtotalInterest 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

7,491

65,578765,191

581,150(28,320)－(5,448)(22,970)(3,960)－

Proceeds from sales of investments
Other

5,346
12,700(1,554)

Cash flows from investing activities(33,243)(10,963)

Repayments of lease liabilities
Proceeds from issuance of share acquisition rights(210,373)(240,599)

13,395

9,516

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

5,449
(318)

45,358(236)

Dividends paid
Purchase of non-controlling interests(179,919)(322,618)(225,589)－

Cash flows from financing activities(694,385)(411,551)－

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

37,562

158,635

Cash and cash equivalents at beginning of period

3,115,696

4,140,847

Cash and cash equivalents at end of period

3,153,259

4,299,482

10

(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 third quarter of thecurrent consolidated period. Accordingly, the cost of sales augmented by 138,388 thousand yen.
(Significant Subsequent Events)
The absorption-type merger of Members Gifted Co., Ltd. (simple merger/short-form merger)
Based on the merger agreement concluded on October 21, 2021, our company as the surviving company absorbed and merged
Members Gifted Co., Ltd., which was a consolidated subsidiary of our company, as the absorbed company, on the effective
date being January 1, 2022.
(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(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 December 31, 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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