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.
Consolidated Financial Results
October 29, 2021
for the First Six Months of Fiscal Year Ending March 31, 2022
(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: | 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 to September 30, 2021)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||||
Revenue | Operating profit | Profit before tax | Profit | ||||||||||
Six months ended | Millions 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) | |||||
Profit attributable to | Total comprehensive | Basic earnings | Diluted earnings | ||||||||||
owners of parent | income | per share | per share | ||||||||||
Six months ended | 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 | |||||||
(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 | % | |||||||||
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 share | ||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended | ― | 0.00 | ― | 17.50 | 17.50 | |
March 31, 2021 | ||||||
Fiscal year ending | ― | 0.00 | ||||
March 31, 2022 | ||||||
Fiscal year ending | ||||||
March 31, 2022 | ― | 23.50 | 23.50 | |||
(Forecast) | ||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated earnings forecast for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022) (Percentages indicate year-on-yearchanges.)
Revenue | Operating profit | Profit before tax | Profit | |||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
Full year | 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 | % | Yen | ||||||||
Full year | 1,065 | 18.8 | 82.83 | |||||||
(Note) Changes from the latest financial forecast: Yes
- The above consolidated earnings forecast is based on IFRS.
- "Basic earnings per share" was calculated based on the average number of shares in FY 3/2021 (12,861,722).
- 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 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 |
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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" (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 this policy 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 charge of 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, then announced 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.
We have organized the Engagement Marketing Center (EMC), which consists of teams dedicated to continuously improve business results and user engagement for the clients of large companies by using digital means. EMC Company is the center of this business and supporting the pursuit of DX for client companies. It offers a comprehensive support service from discovering issues and requirement definition from the point of view of client companies, to the development and operation of digital services and products.
As companies are accelerating digital shift, the EMC business has been increasing the sales especially from existing client companies steadily. Although the number of client companies implemented by the EMC model decreased to 44 (down 3 from the end of the previous fiscal year) since some projects were shifted to the PGT business, digital marketing-related sales for existing 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).
In the PGT (Product Growth Team) business, we have shifted the focus of its services from the conventional business that was offering creators with specialized skills, to supporting client's product growth in the field of new technology by autonomous 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 in- house 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-house companies 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 of professional personnel
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Members Co. Ltd. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 06:11:29 UTC.