Members Co., Ltd. · TSE:2130

Members — Q1 FY2027 Earnings Presentation

37 slides from Members's earnings presentation, 2026

  1. Slide 1: FY2027 1Q Financial Results Presentation Materials

    FY2027 1Q Financial Results Presentation Materials Members Co., Ltd. (Prime Market, Tokyo Stock Exchange, Securities code: 2130) Members Co., Ltd. URL: https://www.members.co.jp/ Members Co.,Ltd.

  2. Slide 2: FY2027 1Q Results

    FY2027 1Q Results Members Co.,Ltd. 2

  3. Slide 3: FY2027 1Q Financial Results Highlights

    FY2027 1Q Financial Results Highlights = Overall growth rate slowed due to the withdrawal from low-unit-price projects, a reduction in investment by some clients due to the situation in the Middle East, and clients accelerating in-house development with Al. Operating profit was -395 million yen (dow

  4. Slide 4: FY2027 1Q Consolidated P/L

    FY2027 1Q Consolidated P/L Both revenue and value-added sales reached record highs for the first quarter. = Gross margin declined YoY due to a lower utilization rate and an increase in the hiring of new graduates (247 new hires in April 2026). While SG&A expenses are on an upward trend, investments

  5. Slide 5: Consolidated Revenue / Value-added Sales

    Consolidated Revenue / Value-added Sales m Revenue: 5,750 million yen (YoY +5.2% ). =m Value-added sales: 5,546 million yen (YoY +4.8% ). Revenue (Non-consolidated from 25/3 3Q to 26/3 3Q, consolidated otherwise) Value-added Sales (Non-consolidated from 25/3 3Q to 26/3 3Q. consolidated otherwise) (m

  6. Slide 6: Consolidated Operating profit / SG&A Expenses/Ratio/Gross margin

    Consolidated Operating profit / SG&A Expenses/Ratio/Gross margin = Operating profit: -395 n yen (YoY -325 million yen). m= Due to a decline in utilization rate and an increase in the number of new graduates hired, the gross margin decreased by 0.6 pt YoY. With increased investment in hiring, trainin

  7. Slide 7: Number of DCs/Number of New Graduates & Mid-career Hires / Turnover Rate

    Number of DCs/Number of New Graduates & Mid-career Hires / Turnover Rate @ The number of Digital Creators (DC) at the end of 1Q was 2,666, up 210 from the end of the previous period. The number of DCs in their second year or more was 2,419 (up 50 from the end of the previous period), securing the pe

  8. Slide 8: FY2027 Policy, Strategy, and Progress

    FY2027 Policy, Strategy, and Progress Members Co.,Ltd. 8

  9. Slide 9: FY2027 Policy / Strategy

    FY2027 Policy / Strategy Evolution into a Digital Implementation Partner and Expansion of the AX Domain Establishment and Evolution of 2] Virtuous Cycle of High Unit Price, High Company-wide Promotion of CSV DX Field Support Growth, and High Compensation (Creating Shared Value) Toward Achieving the

  10. Slide 10: Analysis of 1Q Growth Slowdown and Future Direction

    Analysis of 1Q Growth Slowdown and Future Direction @ Overall growth rate slowed due to the withdrawal from low-unit-price projects, investment cuts by some clients due to the situation in the Middle East, and clients accelerating in-house development with Al. ™@ The FDE (Forward Deployed Engineer,

  11. Slide 11: Evolution into a Digital Implementation Partner - specific Future Policies and Execution Strategies

    Evolution into a Digital Implementation Partner - specific Future Policies and Execution Strategies = To “work together from the inside to transform clients into digital enterprises," we will hone three capabilities: (1) deep understanding of clients, (2) implementation capabilities to complete proj

  12. Slide 12: Evolution into a Digital Implementation Partner Position- Dx ratio / Al & data-related sales

    Evolution into a Digital Implementation Partner Position- Dx ratio / Al & data-related sales @ The DX domain ratio is 58.3% (+6.2pt YoY). While the DX domain growth rate is +17.2% YoY, it was partially affected by Al and grew slower than expected. We will continue to boldly accelerate our evolution

  13. Slide 13: Accelerating AX - Al Implementation Support Case Studies (1)

    Accelerating AX - Al Implementation Support Case Studies (1) Major Infrastructure & Energy Company Automation of Inquiry Operations Major IT Comp: Generation of "Drafts" for UX Concepts Operational Efficiency Improvement Using Dify and Copilot Studio @ Challenges -Significant time required to refere

  14. Slide 14: Accelerating AX - Al Implementation Support Case Studies (2)

    Accelerating AX - Al Implementation Support Case Studies (2) Food Service Company Generative Al Environment Architecture Concept Support -Promoted a project to introduce a search tool utilizing vast internal knowledge -Proposed optimal architecture design and data infrastructure construction conside

  15. Slide 15: Number of specialty companies / Value-added sales

    Evolution into a Digital Implementation Partner Position - Number of specialty companies / Value-added sales ™ Value-added sales of all specialty companies were 2,927 million yen, with a growth rate of +22.3% YoY. While advertising in-housing support and data drove growth, the growth of UX and Digit

  16. Slide 16: List of Specialty Companies/Subsidiaries

    Evolution into a Digital Implementation Partner Position -List of Specialty Companies/Subsidiaries = Launched the Al-PROX company for Al agents and business transformation. We will continue to launch AX-related companies. Members Data Adventure Company ade Data Domain Professional outers ‘On-site Se

  17. Slide 17: Maximize revenue per client

    Evolution into a Digital Implementation Partner Position -Maximize revenue per client ™ Due to the strengthening of cross-selling, the number of clients with transactions of 300 million yen or more increased by +2 YoY, and those with 100 million yen or more increased by +2. The number of clients wit

  18. Slide 18: Unit price per person / Utilization rate / DX talent ratio

    Evolution into a Digital Implementation Partner Position -unit price per person / Utilization rate / DX talent ratio ™ Unit price per person is 958 thousand yen ( YoY +7.8% ). Unit prices have steadily improved due to the planned withdrawal from low-unit-price projects and a focus on the DX/AX domai

  19. Slide 19: Establish All-Hands Management - Improving Employee Engagement and Shareholder Awareness

    Establish All-Hands Management - Improving Employee Engagement and Shareholder Awareness = Establish a field-centered, All-Hands management style that operates as a team based on team management and team/individual vision in DX /AX field support, and pursue a challenging culture and employee happine

  20. Slide 20: Performance Targets / Shareholder Returns

    Performance Targets / Shareholder Returns Members Co.,Ltd. 20

  21. Slide 21: FY2027 Policy / Performance Targets

    FY2027 Policy / Performance Targets = Expect a slowdown in growth in the Web operation field due to planned withdrawal from low-unit-price projects and the substitution effect of Al. = The 1H and full-year plans remain unchanged at this stage. To increase the growth rate and achieve an operating pro

  22. Slide 22: Capital Policy / Shareholder Return Policy

    4 Capital Policy / Shareholder Return Policy = Pursue the optimal balance between sustainable improvement of corporate value and shareholder returns. Prioritize medium- to long-term growth investment (human capital and DX domains) while balancing stable shareholder returns and the maintenance of a s

  23. Slide 23: Shareholder Returns / ROE

    Shareholder Returns / ROE The dividend plan for the fiscal year ending March 2027 is 35 yen (+2 yen YoY). This will mark the 15th consecutive fiscal year of dividend increases since our first dividend payment. We will continue to pay a dividend of at least 5% DOE. The target dividend payout ratio is

  24. Slide 24: Appendix

    Appendix Members Co.,Ltd. 24

  25. Slide 25: FUTURE VISION (Vision for years from now)

    FUTURE VISION (Vision for 10 years from now) = Based on our External Environment and materiality, we have formulated FUTURE VISION to define where we aim to be in 10 years. = Together with all stakeholders, we aim to create 1,000 impact cases and achieve Operating profit of 10 billion yen. al for Ho

  26. Slide 26: Value Creation Process for Realizing FUTURE VISION

    Value Creation Process for Realizing FUTURE VISION aqua ing and Value Prop Human Capital / Organizational Capital Imagine it. Make Digital for Hope. Unleashing the creativity of digital Rapid climate Power of recruitment and development . A diaita npererener rat on the creators, turning climate chan

  27. Slide 27: The power to shape technology - Transforming the value chain with Al and the latest technology

    The power to shape technology - Transforming the value chain with Al and the latest technology m= We predict that the evolution of Al will accelerate the digital transformation of major companies. We are expanding our support from DX support in the traditional sales, marketing, and service areas to

  28. Slide 28: The power of Design x CSV

    The power of Design x CSV - Elevating social issues into business value through deep human understanding and a future-oriented approach Achieve both social issue resolution and business results through the power of advanced human-centered design thinking and UX design. We provide end-to-end support

  29. Slide 29: The Power of Trust - Long-term partnership with clients = ATAKAMO-SHAIN

    The Power of Trust - Long-term partnership based on trust with clients = ATAKAMO-SHAIN® = We cultivate and produce many of our own unique ATAKAMO-SHAIN who support the implementation of the nt's entire value chain. We build long-term partnership support relationships based on trust with clients and

  30. Slide 30: External Environment: Expanding DX and Al Markets, Lack of Human Resources to Promote DX

    External Environment: Expanding DX and Al Markets, Lack of Human Resources to Promote DX = The domestic DX (Digital Transformation) market is expected to reach 10.2757 trillion yen*’ in FY2030, and the Al-related market size is expected to reach 3.1779 trillion yen*? in FY2029. = Many companies feel

  31. Slide 31: Rationale for Expanding Human Capital Investment in the Al Era

    Rationale for Expanding Human Capital Investment in the Al Era = The main battleground for Al will shift from infrastructure competition to implementation in the field and society. Al will replace routine tasks centered on administrative work and desktop-based professional tasks. On the other hand,

  32. Slide 32: Company Profile

    Company Profile Members Co.,Ltd. 32

  33. Slide 33: Company Profile

    Company Profile Company name Locations Date of establishment Share capital No. of employees Consolidated sales revenue Securities code Business description Members Co, Ltd. Headquarters (Tokyo) 1-8-10 Harumi, Chuo-ku, Tokyo 104-6037 Harumi Island Triton Square Office Tower X 37F (Reception on 35F) -

  34. Slide 34: Trends in Sales/Revenue and Number of Employees

    Trends in Sales/Revenue and Number of Employees Revenue (million yen) 14 consecutive years of revenue growth. Last 5 years CAGR (compound annual growth rate): 13.1%. 26,000 24,000 April 2022: 967 22,000 Transition to the Prime 20,467 2-805] 20,000 Market 17,662 18,000 2.274 16,000 14.938 April 2017:

  35. Slide 35: Disclaimer

    Disclaimer Forward-looking statements such as business plans and earnings forecasts contained in this document are based on information available to us at this time that we believe to be reasonable. These forward-looking statements are subject to various uncertainties, including market conditions an

  36. Slide 36: Cautionary Statement

    Cautionary Statement This document is an English translation of portions of the Japanese original, prepared solely for reference. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. For IR inquiries Members Co., Ltd. Group Corporate

  37. Slide 37: Driving societal transformation together with clients as a digital implementation partner

    Driving societal transformation together with clients as a digital implementation partner Members Co., Ltd. DX. httes://x.com/Members IR, https:/Awww.members.co jg https//www.facebook.com/Memberscor

Members — Q1 FY2027 Earnings Presentation on 6ix