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.
July 29, 2022
Consolidated Financial Results
for the First Three Months of Fiscal Year Ending March 31, 2023
(Under IFRS)
Company name: | Members Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 2130 |
URL: | https://www.members.co.jp/ |
Representative: | Tadashi Kenmochi, Representative Director and President |
Inquiries: | Akihiko Takano, Director and Senior Managing Executive Officer |
Telephone: | +81-3-5144-0660 |
Scheduled date to file quarterly securities report: | August 4, 2022 |
Scheduled date to commence dividend payments: | ― |
Preparation of supplementary material on quarterly financial results: Yes | |
Holding of quarterly financial results briefing: | None |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the first three months of fiscal year ending March 31, 2023 (from April 1, 2022 to June 30, 2022)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||||
Revenue | Operating profit | Profit before tax | Profit | ||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
June 30, 2022 | 3,831 | 23.3 | (67) | ― | (93) | ― | (67) | ― | |||||
June 30, 2021 | 3,108 | 24.9 | 9 | ― | 7 | ― | 17 | ― | |||||
Profit attributable to | Total comprehensive | Basic earnings | Diluted earnings | ||||||||||
owners of parent | income | per share | per share | ||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Yen | Yen | |||||||
June 30, 2022 | (67) | ― | (67) | ― | (5.10) | (5.10) | |||||||
June 30, 2021 | 17 | ― | 17 | ― | 1.38 | 1.34 | |||||||
(2) Consolidated financial position | |||||||||||||
Equity attributable to | Ratio of equity | ||||||||||||
Total assets | Total equity | attributable to owners of | |||||||||||
owners of parent | |||||||||||||
parent to total assets | |||||||||||||
As of | Millions of yen | Millions of yen | Millions of yen | % | |||||||||
June 30, 2022 | 9,707 | 5,568 | 5,568 | 57.4 | |||||||||
March 31, 2022 | 10,404 | 5,895 | 5,895 | 56.7 | |||||||||
2. Cash dividends
Annual dividends per share | |||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended | ― | 0.00 | ― | 25.00 | 25.00 | ||
March 31, 2022 | |||||||
Fiscal year ending | ― | ||||||
March 31, 2023 | |||||||
Fiscal year ending | |||||||
March 31, 2023 | 0.00 | ― | 30.00 | 30.00 | |||
(Forecast) | |||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (from April 1, 2022 to March
31, 2023) | (Percentages indicate year-on-year changes.) | ||||||||||
Revenue | Operating profit | Profit before tax | Profit | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
First half(cumulative) | 8,280 | 21.9 | 450 | 22.8 | 445 | 22.2 | 320 | 23.2 | |||
Full year | 18,200 | 21.8 | 2,200 | 17.3 | 2,185 | 15.2 | 1,573 | 12.0 | |||
Profit attributable to | Basic earnings | ||||||||||
owners of parent | per share | ||||||||||
Millions of yen | % | Yen | |||||||||
First half(cumulative) | 320 | 23.2 | 24.55 | ||||||||
Full year | 1,573 | 12.0 | 120.65 | ||||||||
(Note) Changes from the latest financial forecast: None
- The above consolidated earnings forecast is based on IFRS.
- "Basic earnings per share" was calculated based on the average number of shares in FY 3/2022 (13,037,276).
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: ―
Excluded: ― - Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: Yes
- Number of issued shares (ordinary shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022 | 13,346,400 shares |
As of March 31, 2022 | 13,217,900 shares |
(ii) Number of treasury shares at the end of the period
As of June 30, 2022 | 90,124 shares |
As of March 31, 2022 | 90,124 shares |
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022 | 13,216,614 shares |
Three months ended June 30, 2021 | 12,983,331 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, July 29, 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 |
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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 the world. As the Sixth Assessment Report of Intergovernmental Panel on Climate Change (IPCC) mentions "there is no doubt that human activities have warmed the atmosphere, ocean, and land areas" (Japan Meteorological Agency, The Sixth Assessment Report of IPCC, the first working group report Climate Change 2021: Scientific grounds, Summary for Policymakers [SPM] Provisional Translation [the Sep. 1, 2021 version]), 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. We are expecting businesses, including marketing activities, to transform into a model for decarbonization or resolving societal issues by accelerate corporate transformations through the utilization of digital technologies for continuous value creation.
As the digital business 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 to digitalization. About 80% of Japanese enterprises recognize the qualitative and quantitative insufficiency of personnel who can take charge of innovation in business strategies. It has been reported that the ratio of enterprises that answered that their initiatives for digitalization called "digital transformation (DX)" was successful was less than 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 customer companies' management style, marketing activities, services, and products into "Sustainable Ones for the Earth and Society."
Our corporate group focuses on the following two social issues: "environmental changes due to global warming and climate change" and "failure of the pension and medical systems due to population decline, the disappearance of local governments due to the local decline, and financial bankruptcy," and will work to realize a spiritually rich society in which people and companies not only pursue their self-interest, but also have the hope for the future and the willingness to participate in society, and cooperate with each other for a better sustainable future.
We are primarily developing two businesses (EMC business and PGT business) centered around the digital domain.
In the EMC business centered on EMC Company, we have organized the Engagement Marketing Center (EMC), which consists of teams dedicated to continuously improve business results and user engagement for the customers of large companies by using digital means. It offers a comprehensive support service from discovering issues and requirement definition from the point of view of customer companies, to the development and operation of digital services and products.
In the fiscal year ending March 2023, we will focus on customer success and set a policy of supporting the in-house development of digital organizations of client companies. We will provide long-term operational support by a digital creator team dedicated to customers, mainly in the digital marketing area for the marketing departments of large companies and create CSV*1 and decarbonization case examples.
In this consolidated cumulative first quarter, transactions with existing customers grew steadily thanks to the acceleration of digital shift among enterprises, so the sales revenue was as healthy as 2,486 million yen (IFRS*Reference Value: Up 16.8% year on year). Although we have actively proposed the EMC model to new customers, the number of customers to whom we provide the EMC model was 53 (down 1 from the end of the previous fiscal year) due to the transfer of some projects to the PGT business, etc., value-added sales per client company reaching 36,659 thousand yen, and the number of digital creators belonging to the EMC business was 876 (down 24 from the end of previous fiscal year).
In the PGT (Product Growth Team) business, since this fiscal year ended March 31, 2022, we have shifted the focus of its services from "the conventional business that was offering creators with specialized skills," to "supporting customer's product growth in the field of new technology."
The PGT business mainly provide services to Internet and start-up companies that have high growth potential and are also proactive in digital and IT technology investment, by sending autonomous teams of our digital creators supporting these clients' product growth.
In this business, we will also focus on customer success in the fiscal year ending March 2023. Our team of digital creators dedicated
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Members Co. Ltd. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 07:56:18 UTC.