Financial Results for FY2023
Members Co., Ltd. (TSE 2130)
May 10, 2023

Company Profile
Company nameMembers Co., Ltd.

Locations

Headquarters (Tokyo),
Web Garden Sendai,
Web Garden Kitakyushu,
Web Garden Kobe,
Sapporo Office

Date ofestablishment

June 26, 1995

Consolidated
capital1,017 million yen (as of March 31, 2023)

No. ofemployees(consolidated)

2,274 (as of March 31, 2023)

Consolidated
sales revenue

17,662 million yen(fiscal year ended March 31, 2023)〔IFRS〕

Securities code

2130; Prime Section of Tokyo Stock ExchangeBusinesscontent

Digital marketing businessCreate a spiritually rich society through“MEMBERSHIP”

To achieve our mission, we will establish the world's best
digital business operation support and achieve a high level ofcustomer success.
Tadashi Kenmochi,
Representative Director and Chairman

Promoting “decarbonized DX” for companies
and society

By realizing the world's best digital business operation and asystem of 10,000 digital creators, we will make a significant
contribution to our client companies and society in an era
where digital transformation and green transformation arerequired.
Akihiko Takano,
Representative Director and PresidentJoined Japan Climate
Leaders’ Partnership inOctober, 2020.

Selected as “NadeshikoBrand” in 2023 as theenterprise for theoutstanding efforts inencouraging women’s
success by METI and TSE2

FY 2023 Overview
Consolidated sales revenue increased by 18.2%, and added-value sales(*1) increased by 20.9%, marking a record
high. Operating rate declined due to the upfront investment in human capital and operating profit dropped year onyear; however, we secured a profit margin of over 8%. As the improvement policy proceeded, the number ofcompanies we offer our unique “result-oriented team” service has increased by 41 from the end of the previous FY.
Sales revenue of the PGT business, centered on specialized companies, maintained a high growth rate of +33.7%
year-on-year, and the ratio of sales of services other than website operation increased by 7.2 points from theprevious fiscal year.

Consolidated results
Sales revenue

17,662

millionyen

Added-value sales(*1)+18.2%
y/y16,886

million
yen

+20.9
28.0%
%
y/y

Operating profit

1,441

millionyen

No. of companies
we offer our unique“result-orientedteam” service(*2)

116+41 from
the end ofthe previous
FY

2,012

+389, +24.0%
from the endof theprevious FY+48.7%(23.2%)y/yy/yBusiness situation
EMC business
Sales revenue

11,212
Operation rateduring 23/4Q

83.1 ％

millionyen+6.6%

Down 4.7 points
y/y

y/y

PGT business
Sales revenue

6,894

millionyen

Ratio of sales ofservices other thanwebsite operation
during 23/4Q

35.8 ％+33.7%y/y

Up 7.2 points
compared to theend of theprevious FY

No. ofconsolidated
digital creators(DCs)*1 Added value sales = Sales revenue ー Outsourcing and procurement costs ＝ Sales from in-house resources*2 No. of companies we offer our unique “result-oriented team” service is counted if the customer was provided services as a dedicated team of 3 or more DCs.

3

Income Statement Summary
The improvement policy started to show results from the 4Q, and the full-year consolidated
earnings forecast announced on February 2, 2023 was achieved. Gross profit margindecreased year-on-year due to a decline in operating rate compared to the steady increase in
the number of DCs secured and SGA expenses increased due to aggressive business
investment for future growth and expansion of investment in mid-career recruitment. But wesecured an operating profit margin of over 8%.
Full year forecast in
FY3/2023(revised)

Full year result[Unit：million yen]

FY3/2022

FY3/2023

y/y

Revised Forecast

Progress rate
toward the revised
forecast

Sales revenue

14,93817,662+18.2%

17,300102.1%

Added value sales

13,961

16,886+20.9%――

Gross profit

4,756

5,201+9.3%――(Gross profit margin)

31.8%

29.4%

―

――

SGA

2,901

3,758

+29.6%――

Operating profit

1,876

1,441(23.2%)

1,200

120.1%(Operating profit margin)

12.6%

8.2%

―

――

Pretax profit

1,896

1,399(26.2%)

1,180

118.6%Net profit

1,404

1,010(28.0%)

850

118.9%
4

Balance Sheet Summary[unit: thousand yen]Previous consolidated
accounting year
（Mar. 31, 2022）

Current consolidated
accounting year
（Mar. 31, 2023）

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
Total non-current assets
Total assets

5,226,706

4,479,967

3,075,859

3,387,822

48,632

68,547224,303234,3118,575,502

8,170,648

237,803

349,032

713,578

918,446

116,115

116,115

12,425

9,897

373,657

1,340,550

375,346

410,580

1,828,927

3,144,623

10,404,429

11,315,271

5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, 2022）

Current consolidated
accounting year
（Mar. 31, 2023）

400,434
1,068,471
370,219
30,2002,326,547
4,195,872

360,860
1,201,535
204,338
66,7372,551,526
4,384,998

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

197,817
115,362
313,180
4,509,052

301,917
252,658554,5764,939,574

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

963,358
281,704(8,477)52,1904,606,602
5,895,377
5,895,377
10,404,429

1,017,504
342,670(300,140)
30,8455,284,816
6,375,696
6,375,696
11,315,271

6Consolidated Earnings Forecasts for the Term Ending March 2024
In addition to the hiring of 585 new graduates in April 2023, we will increase human capital with a medium- to long-term
perspective by actively investing in mid-career recruitment; therefore, operating profit in 1Q will significantly be in the red,and it is expected to land in the red in the first half as well due to decrease in operating rate and profitability.
On the other hand, due to the implementation of the policies for this fiscal year, in the 4Q, we will realize a shift to a highgrowth, high-profit model with 25% quarterly growth in value-added sales on a stand-alone basis and the same level ofprofitability as before (10% operating margin for the full year). In FY03/25, the company aims for value-added sales growth ofover 25% and operating profit margin of 10%.
FY03/25 aims for over 25% ofConsolidated Value-added Sales & Operating Profit Margin Progress(Unit: million yen)

7,000

Value-added Sales

6,000

70.0%

Operating profit margin

5,000
4,000
3,000

2,277

2,707

2,859

2,000
1,000
0
-1,000

3,396

13.8%

7.0%

2,927

2Q

3,453

3,584

3,995

3,677

16.5%

4Q

9.7%

1Q

21/03

50.0%
40.0%

20.0%

16.5%
8.1%

10.0%

7.3%

0.0%

-1.8%
2Q

3Q

4Q

1Q

2Q

22/03

y/y increase/decrease rate

3Q

4Q

23/03

Full-year results for
FY 2023 (IFRS)
Full year

4,221

20.3%

0.3%
3Q

4,164

60.0%

4,822

30.0%

19.1%

-2.3%
1Q

value-added sales and 10%
operating margin for the full year

1Q

2Q

3Q

4Q

-10.0%

24/03 plan

Forecast for FY2024 (IFRS)
1st halfyear

y/y increase/decrease rate

Full yeary/y increase/decrease rate

Sales revenue (million yen)

17,662

18.2%

9,940

21.0%

21,50021.7%

Operating profit (million yen)

1,441

(23.2%)(160)-1,500

4.0%

7

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

8