Consolidated Financial Statements for the Year Ended December 31, 2023 (IFRS)
These financial statements have been prepared for reference only.

February 13, 2024
Link and Motivation Inc.
Stock exchange listing: Tokyo, Prime Market
http://www.lmi.ne.jp/english
Code number: 2170
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer andManager of Group Design Office
Phone: +81-3-6853-8111
Ordinary General Meeting of Shareholders (scheduled):
March 28, 2024
Start of distribution of dividends (scheduled):
March 25, 2024
Filing of Securities Report (Yuka Shoken Hokokusho) (scheduled): March 28, 2024
Supplementary documents for quarterly results:
Yes
Quarterly results briefing:No(Amounts are rounded down to the nearest million.)

1. Consolidated Results for the Year Ended December 31, 2023
(January 1, 2023 – December 31, 2023)(Percentages represent change compared with the previous year.)(1) Revenues and Income
Revenues
Year ended
Dec. 31, 2023
Year ended
Dec. 31, 2022

Income before
income taxes

Operating income

Net income
attributable to ownersof the parent(¥ million)(%)

Net
income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)

33,969

3.6

4,623

27.4

4,567

30.4

3,137

41.1

2,842

38.1

32,776

0.4

3,627

75.6

3,501

83.9

2,223

—

2,058

—

Comprehensive
incomeDilutedearnings per
share
(¥)

Basic earnings
per share

Return on
equityReturn on
assetsOperatingmargin(¥ million)
(%)
(¥)
(%)
(%)
(%)
Year ended
Dec. 31, 2023
3,665
69.7
25.51
25.48
29.6
15.3
13.6
Year ended
Dec. 31, 2022
2,160
—
18.45
18.43
24.9
11.9
11.1
(Reference) Equity in earnings of affiliates: Year ended Dec. 31, 2023: ¥— million; Year ended Dec. 31, 2022: ¥— million
Note: The Company has adopted IAS 12 Income Taxes (May 2021 amendment) as of the fiscal year ended December 31, 2023, andfigures are retrospectively restated to reflect this change in accounting policy. The percentage change from the same period of theprevious year in the amounts of net income, net income attributable to owners of the parent, and comprehensive income are notpresented because retrospective adjustments were made in accordance with this change in accounting policy.

(2) Financial Position

Equity per share
Equity attributable
Ratio of equity
attributable toto owners of theattributable toparentowners of the parent owners of the parent(¥)(¥ million)
to total assets (%)
As of Dec. 31, 2023
30,843
12,94010,16533.0
92.88
As of Dec. 31, 2022
28,908
11,243
9,057
31.3
81.19
Note: The Company has adopted IAS 12 Income Taxes (May 2021 amendment) as of the fiscal year ended December 31, 2023, andfigures are retrospectively restated to reflect this change in accounting policy.
Total assets(¥ million)(3) Cash Flow

Year ended
Dec. 31, 2023
Year ended
Dec. 31, 2022

Cash flow fromoperating activities(¥ million)

2. Dividends

2022
2023

Total equity(¥ million)

Cash flow frominvesting activities(¥ million)

Cash flow fromfinancing activities(¥ million)

Cash and cash equivalents
at end of period(¥ million)

4,342

286

(3,353)

7,389

3,550

(269)

(2,085)

6,112

Dividends per share
1st Qtr.

2nd Qtr.

3rd Qtr.

Year-end

Full year

1.90
2.80

1.90
2.80

1.90
2.80

2.00
2.90

7.70
11.30

Total dividends
paid (full year)(¥ million)

Payout
ratio
(%)

859
1,254

41.7
44.3

Dividends/
Net assets(Consolidated)
(%)
10.4
13.0

2024 (est.)

2.90

2.90

2.90

2.90

11.60

35.9

3. Forecast of Consolidated Results for 2024 (January 1, 2024 – December 31, 2024)
Revenues
Full-year(¥ million)
36,900(%)
8.6(Percentages represent change compared with the previous fiscal year.)Net
Net income attributable
Basic earnings
Operating income
incometo owners of the parent
per share(¥ million)(%)(¥ million) (%)(¥ million)
(%)
(¥)
5,330
15.3
3,600
14.7
3,248
14.3
32.31

Notes
(1) Changes in Significant Subsidiaries during the Period (Change in Specified Subsidiaries Due to Change in Scopeof Consolidation): No(2) Changes in Accounting Policies and Changes in Accounting Estimates(a) Changes in accounting policies required by IFRS: Yes*(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No* Please refer to “(5) Notes to Consolidated Financial Statements” on page 14 for details.
(3) Number of Shares Issued and Outstanding (Common Stock)(a) Number of shares at the end of the period (including treasury stock)
Year ended December 31, 2023: 113,068,000; Year ended December 31, 2022: 113,068,000(b) Number of treasury shares at the end of the period:
Year ended December 31, 2023: 3,617,168; Year ended December 31, 2022: 1,506,468(c) Average number of shares outstanding:Year ended December 31, 2023: 111,437,425; Year ended December 31, 2022: 111,561,553(Reference) Summary of Non-consolidated Results
1. Non-consolidated Results for 2023 (January 1, 2023 – December 31, 2023)(Percentages represent change compared with the previous year.)(1) Revenues and Income
Net salesYear ended
December 31, 2023
Year ended
December 31, 2022

Operating income

Net
income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)

(%)

9,734

9.6

1,576

147.4

2,306

370.9

2,451

—

8,883

7.0

637

295.1

489

—

71

—

Basic earnings
per share
Year ended
December 31, 2023
Year ended
December 31, 2022

Ordinary income(¥)

Dilutedearnings per
share
(¥)

22.00

—

0.64

—

(2) Financial Position

Total assets
Net assets
Net assets/
Net assets(¥ million)(¥ million)
Total assets (%)
per share (¥)
As of December 31, 2023
23,267
6,526
28.0
59.63
As of December 31, 2022
22,613
6,431
28.4
57.65
(Reference) Net worth: As of December 31, 2023: ¥6,526 million; As of December 31, 2022: ¥6,431 million
Note: Figures for non-consolidated results are based on Japanese standards.
(Reason for Difference between Non-consolidated Results and Previous Year Results)
Ordinary income increased due to higher sales resulting from expansion of demand in the Cloud business and dividends fromsubsidiaries. In addition, net income increased due to proceeds from the sale of investment securities.

* These Financial Statement Are Not Subject to Review by a Certified Public Accountant or Auditing Firm

* Explanation of the Proper Use of Performance Forecasts and Other Special Instructions

Note regarding forward-looking statements:

Consolidated forecasts and other statements regarding the future contained in this document are based on information
currently available to the Company and certain reasonable assumptions. Actual performance may differ substantially due
to numerous factors.
How to obtain supplementary quarterly financial information:
Supplementary quarterly financial information is disclosed on the same day on TDnet in Japanese. For information in
English, please see the Company website.

Contents of Attachments
1. Overview of Results of Operations and Other Information............................................................................ 2(1) Overview of Results of Operations for 2023 ....................................................................................................... 2(2) Overview of Financial Position for 2023 ............................................................................................................. 6(3) Overview of Cash Flow for 2023 .......................................................................................................................... 6(4) Forecast ............................................................................................................................................................ ....7

2. Basic Policy Regarding Selection of Accounting Standards ........................................................................... 7
3. Consolidated Financial Statements and Main Notes ....................................................................................... 8(1) Consolidated Statements of Financial Position .................................................................................................. 8(2) Consolidated Statements of Operations and Comprehensive Income ............................................................ 10(3) Consolidated Statements of Changes in Equity ................................................................................................ 12(4) Consolidated Statements of Cash Flow ............................................................................................................. 13(5) Notes to Consolidated Financial Statements .................................................................................................... 14
Notes Regarding Assumption of Going Concern ....................................................................................... 14
Change in Accounting Policies .................................................................................................................... 14
Notes Regarding Significant Accounting Estimates and Judgements ...................................................... 14
Segment Information, Etc. ............................................................................................................................ 15
Per Share Information .................................................................................................................................. 17
Significant Subsequent Events ..................................................................................................................... 17-1-

1. Overview of Results of Operations and Other Information
Forward-looking statements in the following text are based on judgments as of December 31, 2023, the last day of theconsolidated accounting period under review. Because the Link and Motivation Group (the “Group”) transferred thedomestic temp staff business operated by its subsidiary Link Agent Inc. (formerly Link Staffing Inc.) to iDA K.K. as ofJanuary 1, 2022, these operations are classified as discontinued. Therefore, the amount from continuing operations isshown for revenues, gross profit and operating income, and the total from continuing and discontinued operations isshown for net income attributable to owners of the parent.
(1) Overview of Results of Operations for 2023
The Group supports the transformation of numerous organizations and individuals using “Motivation Engineering”(the Group’s core technology), incorporating academic results in business administration, social systems theory,
behavioral economics, psychology and other disciplines, under its mission: “Through Motivation Engineering, we
provide opportunities to transform organizations and individuals and create a more meaningful society.” During the
fiscal year ended December 31, 2023, the Japanese economy recovered gradually with the normalization of social andeconomic activity following the reclassification of COVID-19 as a Class 5 infectious disease. However, the economic
outlook remains unclear due to price increases in Japan and the risk of stagnation in the global economy due to long-term
interest rate hikes in various countries. Under these economic conditions, the Group perceives a growing need forcompanies to promote human capital management in order to deal with change, and more specifically, a need to improve
employee engagement (the degree of mutual understanding and affinity between a company and its employees), and tosecure and develop human resources.
In this economic environment, the Group’s revenues for 2023 were ¥33,969 million (a 3.6% increase compared withthe previous year), gross profit was ¥17,704 million (a 10.2% increase), operating income was ¥4,623 million (a 27.4%
increase) and net income attributable to owners of the parent was ¥2,842 million (a 38.1% increase).
The forecast for 2023 was revenues of ¥35,300 million (a 7.7% increase compared with the previous year), grossprofit of ¥17,700 million (a 10.2% increase), operating income of ¥4,670 million (a 28.7% increase), and net income
attributable to owners of the parent of ¥2,630 million (a 35.4% increase). Revenues fell short of the forecast, but
increased from the previous year. On the other hand, gross profit reached the forecast level, reflecting improvement in
the gross profit margin for the Group as a whole, and increased substantially year on year. Operating income, whileslightly below the forecast level, reached a new record high, well above the previous ¥3,825 million recorded in 2018.
Net income attributable to owners of the parent exceeded the forecast level and increased substantially compared withthe previous year.
The Group has adopted IAS 12 Income Taxes (May 2021 amendment) as of the fiscal year ended December 31, 2023.
This amendment has been applied retrospectively. As a result, net income attributable to owners of the parent increasedby ¥117 million in the previous year and decreased by ¥37 million in 2023. Net income attributable to owners of theparent for 2023 would have been ¥2,879 million before the retrospective application (a 48.3% increase compared withthe previous year before the retrospective application).
The segment and business classifications of the Group are as shown below, and an overview of 2023 by segment andbusiness follows.

-2-

Link and
Motivation Group

Organizational
Development Division

Individual
Development Division

Consulting &Cloud Business

Career School Business

Link and Motivation Inc.

Link Academy Inc.

Link Global Solution Inc.

Matching Division

ALT Placement Business
Link Interac Inc.
Link Japan Careers Inc.

Link Event Produce Inc.

IR Support Business

Cram School Business

Personnel Placement
Business

Link Corporate
Communications Inc.

Motivation Academia Inc.

Link Agent Inc.
Link-i Inc.
OpenWork Inc.

-3-

Organizational Development Division
The Organizational Development Division provides support for the creation of companies that are chosen byindividuals (“Motivation Companies”). In concrete terms, it offers services that provide support for increasing
engagement with a company’s stakeholders (employees, job applicants, customers, shareholders) by applying“Motivation Engineering,” which is the core technology of the Group.
In this segment, segment revenues for 2023 were ¥12,891 million (a 6.6% increase), and segment income was ¥9,035
million (a 9.5% increase). An overview of operating results by business for 2023 is as follows.
Consulting & Cloud BusinessTo increase employee engagement, the Consulting & Cloud business diagnoses engagement based on its original
diagnostic framework and offers one-stop solutions for innovations in recruiting, training, systems and corporate culture
related to organizations and personnel. The business also provides the Motivation Cloud series of cloud-based services
that allow customer companies to manage employee engagement themselves.
In this business, revenues for 2023 were ¥10,867 million (a 6.2% increase) and gross profit was ¥8,181 million (an11.8% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)(Figures in brackets are gross profit)

2022

YoY change
(%)

2023

Consulting & Cloud Business

10,236[7,320]10,867[8,181]

6.2%
11.8%

Consulting

6,641

6,195

-6.7%

Cloud

3,594

4,671

30.0%

In 2023, revenues achieved a greater-than-expected recovery from the third quarter on, after growth weakened
temporarily in the second quarter, resulting in a year-on-year increase. Gross profit increased significantly, reflecting thesubstantial growth of the high-margin Motivation Cloud series. The need to promote human capital management
continued to grow, primarily at major companies. Currently, this business is supporting approximately 1,500 companies,
but considering that there are roughly 100,000 companies with 50 or more employees in Japan, the potential for future
expansion is still significant. The Group will continue to expand its support by leveraging its unique ability tocomprehensively support the human capital management of companies through the cycle of identification of problems
through diagnosis, transformation of those problems, and disclosure of the transformation initiatives and results.
Monthly fee revenue increased substantially compared with the previous year for the Motivation Cloud series of
products, which are part of the Cloud category and are priority services. The number of deliveries and monthly fee
revenue were as follows.
Table 2. Number of Deliveries and Monthly Fee Revenue for the Motivation Cloud Series at Quarter-End
2022
2023
March

Number ofdeliveries
Monthly fee
revenue(¥ thousand)

June

September

December

March

June

September

December

745

768

820

831

846

851

883

915

256,155

284,692

306,934

328,505

339,179

358,792

395,398

427,345

Since its founding in 2000, the Group has not only diagnosed the engagement status of companies and employees but
has also supported their transformation. The Motivation Cloud series is a group of cloud-based services in the field of
HR Tech (human resources combined with technology) for improving employee engagement. The Group migrated theorganization diagnosis service it has offered since its founding to the cloud and started providing the Motivation Cloud
service in July 2016. Motivation Cloud is currently ranked number one in share of sales by vendor in the employee
engagement market (the sixth consecutive year: fiscal 2017 to fiscal 2022 forecast) in ITR Market View: Human
Resources Management Market 2023, a market research report published by ITR Corporation.
Monthly fee revenue from the Motivation Cloud series at the end of December 2023 was ¥427,345 thousand (a yearon-year increase of 30.1%). While slightly below the initial forecast of ¥430,000 thousand (a year-on-year increase of
30.9%), monthly fee revenue grew substantially by 30.1% year on year as a result of new introductions primarily bymajor companies. The Group will continue to promote the introduction of Motivation Cloud at major companies, whichhave substantial room for development, and will also introduce it at overseas subsidiaries of global Japanese companies,
with an eye on global expansion. In addition, for Stretch Cloud, a human resource development cloud service, we plan to-4-expand in the human resource development market, which exceeds ¥500 billion. By executing these growth strategies,
the Group will achieve further growth.
IR Support Business
The IR Support business provides one-stop support for corporate branding through various media and events centeredon the field of investor relations for the “creation of Motivation Companies” at corporations. In addition to printed media
such as integrated reports for shareholders and investors, web-based media such as investor relations (IR) sites, andvisual media such as videos that explain products and webcasts of shareholders’ meetings, the business creates physicaland virtual forums for shareholders’ meetings and other events.
In this business, revenues for 2023 were ¥2,187 million (a 5.9% increase) and gross profit was ¥959 million (a 6.5%
decrease).
In 2023, revenues increased compared with the previous year as production of integrated reports, the core service,
expanded in line with expectations. Gross profit decreased compared with the previous year due to an increase inproduction-related personnel expenses.
Needs for disclosure of non-financial capital, particularly human capital information, are increasing further with therequirement to disclose human capital information in securities reports. The number of companies disclosing thediagnosis results of Motivation Cloud, which we provide, was 116 at the end of December 2023. Disclosure of employee
engagement is also steadily increasing. The business will generate synergies with the Consulting & Cloud business bycontinuing to enhance disclosure of human capital information based on diagnosis and transformation.
Individual Development Division
The Individual Development Division supports the creation of individuals who are chosen by organizations (“iCompanies”). Specifically, it applies “Motivation Engineering,” which is the core technology of the Group, to businesses
in areas including career schools and cram schools, to provide one-stop services to customers from elementary school
students to working adults. These services range from helping to set goals to understanding individual issues andformulating and implementing study plans.
In this segment, segment revenues for 2023 were ¥6,418 million (a 7.8% decrease) and segment income was ¥2,931
million (a 6.4% increase). An overview of operating results by business for 2023 is as follows.
Career School Business
The Career School business provides five services aimed at the career advancement of university students andworking adults: “Aviva” personal computer schools, “Daiei” qualification schools, “Rosetta Stone Learning Center,”“Rosetta Stone Premium Club” and “Hummingbird” foreign language schools.
In this business, revenues for 2023 were ¥5,616 million (a 10.0% decrease) and gross profit was ¥2,571 million (a5.9% increase).
In 2023, we carried out restructuring to relocate or close schools and shift to online courses in response to changes inlearning needs accelerated by the COVID-19 pandemic. The number of schools has decreased to 53 from 81 at the startof the restructuring, and we successfully improved business efficiency faster than expected. As a result, the gross profit
margin for 2023 was 45.8%, a significant improvement compared with 38.9% in the previous fiscal year when the
restructuring began. Revenues from online courses were ¥507 million, a substantial increase compared with ¥320 million
in 2022. With the restructuring, the number of enrollees had been continuing to decrease, but bottomed out in 2023. In
2024, we will further improve business efficiency while maintaining revenues by expanding online services.
Cram School Business
The Cram School business operates two cram schools in both in-person and online formats—“SS-1,” anindividualized instruction school for students preparing for junior high school entrance exams, and “Motivation
Academia” cram schools for junior high and high school students—to improve the academic ability of elementary, juniorhigh and high school students. For Motivation Academia in particular, unlike typical cram schools, students can not only
improve their academic ability but also acquire skills to play an active role in society.
In this business, revenues for 2023 were ¥801 million (an 11.3% increase) and gross profit was ¥360 million (a 9.8%
increase).
Revenues increased substantially and gross profit also increased in 2023 due to expansion in the number of students
enrolled in classes. In addition to improving the continuation rate from SS-1 to Motivation Academia, this business willcontinue to increase the number of new enrollees by providing learning opportunities through online courses to a wide
range of students, not just those in areas where they can attend physical schools.
Matching Division
The Matching Division operates the ALT (assistant language teacher) Placement business and the Personnel
Placement business in order to provide opportunities to connect organizations and individuals. It creates matches with ahigh retention rate by applying “Motivation Engineering,” the core technology of the Group, to go beyond the skill
requirements of companies and local governments and provide support for matching organizations and individuals basedon the characteristics of each individual and other relevant data.

-5-

In this segment, segment revenues for 2023 were ¥15,398 million (a 5.7% increase) and segment income was ¥6,377
million (a 10.4% increase). An overview of operating results by business for 2023 is as follows.
ALT Placement Business
The ALT Placement business dispatches non-Japanese assistant language teachers (ALTs) to elementary, junior highand high schools throughout Japan and provides English-language instruction services on contract, in order to match
non-Japanese people who want to work in Japan with local governments. In this business, barriers to entry are extremely
high due to the importance placed on relationships of trust with customers and a company’s track record, and the Grouphas established the predominant number-one share among private companies.
In this business, revenues for 2023 were ¥12,011 million (a 0.0% increase) and gross profit was ¥3,046 million (a7.4% decrease).
In 2023, revenues were essentially unchanged from the previous year, but gross profit decreased. From October 2022,
a law requiring ALTs who work 20 or more hours per week to be enrolled in the social insurance program is being
applied, starting with companies that have 101 or more employees. As the private company with the largest share, thelaw was applied to our company earlier than our competitors. Consequently, the Group was aware that the competitiveenvironment in fiscal 2023 would be challenging, but even under these conditions, revenues were maintained at the levelof the previous year, and progressed in line with the Group’s original expectations. From October 2024, this law will also
be applied to companies with 51 or more employees, and we expect the competitive environment to flatten. The Groupwill continue to aim for recovery of revenues and expansion of market share by shifting some services online andutilizing ICT, in addition to dispatching high-quality ALTs, one of its strengths.
Personnel Placement Business
The Personnel Placement business operates a referral service for human resources that introduces the humanresources necessary for business growth in order to find the right fit between job applicants and companies. Mainly, it
provides mid-career referrals that match working adults looking to change jobs with companies, and conducts new
graduate recruiting and referrals that match university students looking for employment with companies.
In this business, revenues for 2023 were ¥3,411 million (a 32.7% increase) and gross profit was ¥3,354 million (a34.2% increase).
In 2023, OpenWork Inc., which has a particularly high growth rate, continued to steadily accumulate registered users
as well as employee online reviews and evaluation scores. The direct recruiting service (OpenWork Recruiting) saw anincrease in the number of website visits resulting from continued investment in marketing, which led to an increase in thenumber of new online resume registrations. The cumulative number of online resume registrations (working adults andstudents) has grown to approximately 1,010,000. In addition, as a result of efforts to stimulate recruiting activity among
existing customers, recruiting by employers and registered agencies increased, and revenues from this service were
¥1,867 million (a 103.3% increase).
This business will continue to expand synergy with the Organizational Development Division, and will ramp up its
matching services by considering not only the skills of individuals but also the type of job seekers.
Venture Incubation
In addition to its divisions, the Group conducts venture incubation. In venture incubation, the Group provides its
know-how in organizational and personnel consulting in addition to funding, as well as support on an organizational
level for growing venture companies that aim to list their stock. The two main criteria for selection of investees are
sympathy with the idea of “creation of Motivation Companies” and aim to list stock. Gains on sales and other results
generated from venture incubation are recorded in retained earnings on the consolidated statements of financial position,or under other income or other expenses on the consolidated statements of operations.
(2) Overview of Financial Position for 2023
Total assets as of December 31, 2023 were ¥30,843 million, an increase of ¥1,934 million from the end of theprevious year. This was mainly due to a ¥1,277 million increase in cash and cash equivalents and a ¥420 million increasein other current assets.
Total liabilities as of December 31, 2023 were ¥17,902 million, an increase of ¥237 million from the end of theprevious year. This was mainly due to factors including a ¥216 million decrease in contract liabilities and a ¥323 million
increase in income tax payable.
Total equity as of December 31, 2023 was ¥12,940 million, an increase of ¥1,697 million from the end of theprevious year. This was mainly due to factors including a ¥2,011 million increase in capital surplus associated withposting net income attributable to owners of the parent.
(3) Overview of Cash Flow for 2023
Cash and cash equivalents (“cash”) as of December 31, 2023 were ¥7,389 million, an increase of ¥1,277 million
during the period.
Cash flow during 2023 was as follows.
Cash Flow from Operating Activities-6-

Net cash provided by operating activities was ¥4,342 million, an increase of ¥791 million compared with the previous
year. The principal factors decreasing cash were an ¥891 million increase in trade and other receivables and a ¥708
million increase in income taxes paid compared with the previous year, while the principal factors increasing cash
included a ¥1,065 million increase in income before income taxes compared with the previous year and a ¥1,286 million
increase in other.
Cash Flow from Investing Activities
Net cash provided by investing activities was ¥286 million (compared with net cash used of ¥269 million in theprevious year). Principal factors decreasing cash included the non-recurrence of proceeds from business transfer that
occurred in the previous year and a decrease of ¥827 million in proceeds from recovery of security deposits andguarantees, while the principal factors increasing cash included a ¥365 million decrease in payments for acquisition of
intangible assets, a ¥987 million increase in proceeds from sale of investment securities, and a ¥377 million decrease inpayments for fulfillment of asset retirement obligations.
Cash Flow from Financing Activities
Net cash used in financing activities was ¥3,353 million, an increase of ¥1,268 million compared with the previous
year. The principal factor increasing cash was a ¥1,507 million net increase in long-term financial liabilities comparedwith the previous year, while the principal factors decreasing cash included a decrease of ¥996 million in proceeds frompayments from non-controlling interests and an increase of ¥1,328 million in payments for acquisition of treasury shares.
(4) Forecast
For the fiscal year ending December 31, 2024, the Company has forecast revenues of ¥36,900 million (an 8.6%
increase), operating income of ¥5,330 million (a 15.3% increase), and net income attributable to owners of the parent of¥3,248 million (a 14.3% increase).
In recent years, the decline in the population of workers, the shift to information- and service-based businesses, andthe diversification of work motivation have made it increasingly important and difficult for companies to continue to be
selected by employees and applicants. In addition, competition to attract top talent is expected to intensify further as thetechnological advancement of AI progresses. Under these conditions, companies will need to improve their humanresource capabilities to get the best performance from existing employees, and to improve employee engagement to
attract and retain talent. The Group perceives these changes in the operating environment as an important opportunity. In
addition, more attention is being paid to human capital management, which views human resources as capital, leading tomedium- and long-term enhancement of corporate value, and the maximization of that capital’s value. Therefore, ourpolicy in the near term is to focus on the Consulting & Cloud business of the Organizational Development Division,
which has high growth potential. The Group believes that there is still ample room for growth in providing support todomestic companies, and plans to leverage its ability to comprehensively support human capital management through thecycle of identification of organizational problems through diagnosis, transformation of those problems, and disclosure of
the transformation results.
Specifically, the Group plans to focus on expanding the Motivation Cloud series. The Group released the cloudservice Motivation Cloud in 2016 based on its belief that medium- and long-term support is essential to solvingorganizational and human resource challenges. Monthly fee revenue from the Motivation Cloud series, which includes
that product, has grown strongly to ¥427,345 thousand as of the end of 2023. As a result of efforts to expand sales of
Motivation Cloud by concluding contracts to introduce the series, the backlog of order (total orders for future projects
obtained at a given point in time) has increased. As of the end of 2023, orders for projects to be delivered in 2024 havereached ¥7.0 billion. The Group is making steady progress in securing sales for 2024. Going forward, the Group will
promote introduction at major domestic companies, which have substantial room for development, and will also
introduce it at overseas subsidiaries of global Japanese companies. The Group projects that monthly fee revenue of the
Motivation Cloud series at the end of 2024 will be ¥530,000 thousand, up 24.0% compared with the previous year. The
Group will also achieve substantial growth in 2024 through the recovery of revenues with the improvement of businessefficiency in the Career School business and the flattening of the competitive environment in the ALT Placementbusiness, in addition to substantial growth of revenues in the Personnel Placement business, including OpenWork.
2. Basic Policy Regarding Selection of Accounting Standards
The Group has applied International Financial Reporting Standards (IFRS), in place of Japanese GAAP, since thefirst quarter of the fiscal year ended December 31, 2017 to improve the international comparability of its financial
information in capital markets.

-7-3. Consolidated Financial Statements and Main Notes(1) Consolidated Statements of Financial Position(Millions of yen, rounded down to the nearest million)
As of
As of
December 31, 2022
December 31, 2023

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Other non-current financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

-8-

6,112
3,299
183
12
1,025
10,633

7,389
3,627
225
12
1,446
12,701

599
3,308
9,347
2,417
1,947
572
81
18,27528,908

604
3,586
9,347
2,194
1,753
584
70
18,14130,843

(Millions of yen, rounded down to the nearest million)
As of
As of
December 31, 2022
December 31, 2023
LIABILITIES AND EQUITY
LIABILITIESCurrent liabilities
Trade and other payables
Contract liabilities
Interest-bearing and other financial liabilities
Lease liabilities
Income tax payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing and other financial liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EQUITY
Equity attributable to owners of the parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

-9-

1,858
1,461
5,064
905
712
8
1,725
11,737

1,821
1,244
6,158
1,005
1,036
43
1,816
13,127

2,332
2,824
318
328
124
5,927
17,664

1,264
2,669
335
386
119
4,774
17,902

1,380
4,464
(320)
5,385
(1,851)
9,057
2,185
11,24328,9081,380
4,619(1,539)7,396(1,690)10,165
2,774
12,94030,843

(2) Consolidated Statements of Operations and Comprehensive Income
Consolidated Statements of Operations(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2022
December 31, 2023
Continuing Operations
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating income
Financial revenues
Financial expenses
Income before income taxes
Income taxes
Net income from continuing operations
Discontinued Operations
Profit (loss) from discontinued operations

32,776
16,70816,06812,780
779
439
3,627
20
146
3,501
1,336
2,165

Net income(Attributable to)
Owners of the parent
Non-controlling interests
Total

33,96916,264
17,704
13,129
331
282
4,623
16
72
4,567
1,430
3,137

58

—

2,223

3,137

2,058
164
2,223

2,842
294
3,137
(Yen)

Earnings per share attributable to owners of the parent
Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic earnings (loss) per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted earnings (loss) per share- 10 -

17.93
0.52
18.45

25.51

17.91
0.52
18.43

25.48

—

25.51

—

25.48

Consolidated Statements of Comprehensive Income(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2022 December 31, 2023

Net income
Other comprehensive income
Items that will not be reclassified to profit or loss:
Net gain (loss) on revaluation of financial assets
measured at fair value through othercomprehensive income
Total of items that will not be reclassified to profit or loss

2,223

3,137

(57)
(57)

526
526

Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign
operations
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Total comprehensive income

(5)
(5)
(62)
2,160

1
1
528
3,665

(Attributable to)
Owners of the parent
Non-controlling interests
Comprehensive income

1,995
164
2,160

3,370
294
3,665

- 11 -

(3) Consolidated Statements of Changes in Equity
Year ended December 31, 2022

(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent
SharecapitalJanuary 1, 2022
Cumulative effect ofchange in accounting
policyBalance at beginning of
period reflecting changein accounting policy
Net income
Other comprehensive
incomeTotal comprehensive
incomeAcquisition of treasury
sharesChange in ownershipinterest in subsidiaries
Dividends from surplus
Exercise of stock
options
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theowners
December 31, 2022

CapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Noncontrollinginterests

Total
equity

7,493

1,154

8,648

1,380

3,879

(320)

4,406

(1,853)

—

—

—

(219)

—

(219)

—

(219)

1,380
—

3,879
—

(320)
—

4,187
2,058

(1,853)
—

7,274
2,058

1,154
164

8,429
2,223

—

—

—

—

(62)

(62)

—

(62)

—

—

—

2,058

(62)

1,995

164

2,160

—

—

(0)

—

—

(0)

—

(0)

—
—

581
—

—
—

—
(847)

—
—

581
(847)

866
—

1,447
(847)

—

2

—

—

(2)

—

—

—

—

—

—

—

53

53

—

53

—

—

—

(12)

12

—

—

—

—
1,380

584
4,464

(0)
(320)

(860)
5,385

64
(1,851)

(212)
9,057

866
2,185

653
11,243

Year ended December 31, 2023

(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent
SharecapitalJanuary 1, 2023
Net income
Other comprehensive
incomeTotal comprehensive
incomeAcquisition of treasury
sharesChange in ownershipinterest in subsidiaries
Dividends from surplus
Exercise of stock
options
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theowners
December 31, 2023

Total equity
attributableto owners of
the parent

CapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

9,057
2,842

2,185
294

11,243
3,137

1,380
—

4,464
—

(320)
—

5,385
2,842

(1,851)
—

—

—

—

—

528

528

—

528

—

—

—

2,842

528

3,370

294

3,665

—

—

(1,234)——(1,234)—(1,234)

—
—

125
—

—
—

—
(1,160)——125(1,160)294—

419(1,160)

—

40

—

—

(40)

—

—

—

—

(11)

15

—

2

7

—

7

—

—

—

329

(329)

—

—

—

—
1,380

154
4,619

(1,218)(1,539)

(831)
7,396

(367)
(1,690)(2,262)
10,165294
2,774(1,968)12,940- 12 -

(4) Consolidated Statements of Cash Flow

(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2022 December 31, 2023

Cash flow from operating activities
Income before income taxes
Profit (loss) before income taxes from discontinued operations
Depreciation and amortization
Loss on impairment(Profit) loss from business transfer
Loss (gain) on valuation of investment securities
Stock listing expenses
Financial revenues and financial expenses
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income tax refund
Income taxes paid
Net cash provided by operating activities
Cash flow from investing activities
Payments for acquisition of property, plant and equipment
Payments for acquisition of intangible assets
Proceeds from business transfer
Payments for acquisition of investment securities
Proceeds from sale of investment securities
Payments for security deposits and guarantees
Proceeds from recovery of security deposits and guarantees
Payments for fulfillment of asset retirement obligations
Other
Net cash provided by (used in) investing activities
Cash flow from financing activities
Net increase (decrease) in short-term financial liabilities
Proceeds from long-term financial liabilities
Repayment of long-term financial liabilities
Proceeds from issuance of stock resulting from exercise of stock
options
Payments of stock listing expenses
Payments of cash dividends
Repayments of lease liabilities
Proceeds from payments from non-controlling interests
Payments for acquisition of treasury shares
Net (increase) decrease in deposits
Net cash used in financing activities
Cash and cash equivalents translation adjustment
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

- 13 -

3,501
19
1,724
351
(50)
20
22
125
552
16
(237)
(1,216)
4,830
6
(131)
5
(1,159)
3,550

4,567
—
1,675
232
—
26
—
55
(339)
(42)
(24)
69
6,221
10
(67)
45
(1,867)
4,342

(135)
(898)
441
(169)
1
(46)
990
(452)
(0)
(269)

(123)
(533)
—
(79)
989
(60)
162
(74)
6
286

(1,800)2,400(2,081)

1,300
100(1,373)

5
(18)
(847)
(1,191)1,449(0)—(2,085)
(1)
1,194
4,917
6,112

84
—
(1,156)(1,079)452(1,329)(351)(3,353)
1
1,277
6,112
7,389

(5) Notes to Consolidated Financial Statements(Notes Regarding Assumption of Going Concern)
None applicable(Change in Accounting Policies)(Income Taxes)
The Group has adopted the following standard as of the fiscal year ended December 31, 2023.
IFRS
Summary of New Establishment or Amendment
IAS 12

Income Taxes
amendment)(May

2021 Clarifies deferred tax accounting for leases and decommissioning
obligations

This amendment clarifies that entities should recognize deferred tax liabilities and deferred tax assets on certaintransactions (e.g., leases and decommissioning obligations) that give rise to equal amounts of taxable and deductible
temporary differences on initial recognition.
This amendment is applied retrospectively to the consolidated financial statements for the previous fiscal year.
As a result, in the consolidated statements of financial position for the previous fiscal year, deferred tax assets
decreased by ¥44 million, deferred tax liabilities increased by ¥58 million and retained earnings decreased by ¥102
million compared with the amounts before the retrospective application. In the consolidated statements of operations forthe previous fiscal year, income taxes increased by ¥25 million and profit from continuing operations decreased by ¥25
million. In addition, profit from discontinued operations increased by ¥143 million and net income increased by ¥117
million.
Basic earnings per share from continuing operations and diluted earnings per share from continuing operations for theprevious fiscal year each decreased by ¥0.23. Basic earnings per share from discontinued operations and diluted earnings
per share from discontinued operations each increased by ¥1.28, and basic earnings per share and diluted earnings per
share each increased by ¥1.05.
Because the cumulative effect was reflected in equity at the beginning of the fiscal year ended December 31, 2022,
the beginning balance of retained earnings in the consolidated statements of changes in equity after retrospective
application decreased by ¥219 million.
(Notes Regarding Significant Accounting Estimates and Judgements)
In preparing the consolidated financial statements, management makes judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The
results of accounting estimates may differ from actual results.
The estimates and their underlying assumptions are reviewed on an ongoing basis. The effects of a review ofaccounting estimates are recognized in the accounting period in which the estimates are reviewed as well as in future
periods.
Estimates and estimate-related judgments that have a significant impact on the consolidated financial statements are
the same as those in the consolidated financial statements for the previous fiscal year.

- 14 -

(Segment Information, Etc.)(Segment Information)
1. Overview of Reportable Segments
The reportable segments of the Group are based on available financial information divided among the constituent
units of the Group and are subject to periodic analysis by the Board of Directors to determine allocation of management
resources and to evaluate operating results.
The Group draws up comprehensive strategies and conducts business activities for the services it handles.
The Group is composed of divisional segments based on the form in which services are provided, with threereportable segments: the “Organizational Development Division,” the “Individual Development Division,” and the“Matching Division.”
2. Revenues, Income or Loss, and Other Items in Reportable Segments
The accounting policies for reportable segments are the same as the Group’s accounting policies.
Income of reportable segments is based on gross profit on the Consolidated Statement of Operations.
Values of intersegment transactions are decided using the same method as for sales to outside customers.
Revenues, income or loss, and other items for each reportable segment of the Group are as follows.
Year ended December 31, 2022

(Millions of yen)
Reportable Segment

Organizational
Development
Division

Individual
Development
Division

Matching
Division

Total

Other
(Note 1)

Adjustment(Note 2)

Consolidated

Segment revenues
Revenue to outside
customers
11,728
6,817
14,227
32,773
3—
32,776
Intersegment revenues
and transfers
364
143
336
844
24
(868)
—
Total
12,092
6,960
14,56433,61728(868)
32,776
Segment income (profit)(Note 1)
8,248
2,755
5,778
16,782(32)(681)
16,068Selling, general andadministrative expenses
12,780
Other revenue/expenses
(net)
339
Financial
revenue/expenses (net)(125)
Income before income
taxes
3,501
Other items
Depreciation andamortization
1,021
648
56
1,727
0
—
1,727
Impairment loss
—
276
18
295
48
—
343
Notes: 1. The Other segment consists of the restaurant business and other operations not included in the other reportable segments.
2. Adjustment is the elimination of intersegment transactions.

- 15 -

Year ended December 31, 2023

(Millions of yen)
Reportable Segment

Organizational
Development
Division

Individual
Development
Division

Matching
Division

Total

Other
(Note 1)

Adjustment(Note 2)

Consolidated

Segment revenues
Revenue to outside
customers
12,533
6,273
15,15533,963
6—
33,969Intersegment revenues
and transfers
357
144
243
745
41
(786)
—
Total
12,891
6,418
15,39834,70847(786)
33,969Segment income (profit)(Note 1)
9,035
2,931
6,377
18,343(25)(613)
17,704
Selling, general andadministrative expenses
13,129Other revenue/expenses(net)
48
Financial
revenue/expenses (net)(55)
Income before income
taxes
4,567
Other items
Depreciation andamortization
990
583
113
1,688
0
—
1,688
Impairment loss
15
214
—
230
—
—
230
Notes: 1. The Other segment consists of the restaurant business and other operations not included in the other reportable segments.
2. Adjustment is the elimination of intersegment transactions.

- 16 -

(Per Share Information)
1. Basic earnings per share and diluted earnings per share
Year ended
December 31, 2022
17.93
0.52
18.45
17.91
0.52
18.43

Continuing operations
Discontinued operations
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Diluted earnings per share (Yen)Year ended
December 31, 2023
25.51
—

25.51
25.48
—

25.48

2. Basis for calculating basic earnings per share and diluted earnings per share

Profit used to calculate basic and diluted earnings per share
Net income attributable to owners of the parent(Millions of yen)Amount not attributable to ordinary shareholders of theparent (Millions of yen)
Profit used to calculate basic earnings per share(Millions of yen)
Continuing operations
Discontinued operations
Profit adjustment amount
Adjustment for share options to be issued by associates(Millions of yen)
Profit used to calculate diluted earnings per share(Millions of yen)
Continuing operations
Discontinued operations
Weighted average number of ordinary shares used to calculate
basic and diluted earnings per share (Shares)
Weighted average number of ordinary shares used to
calculate basic earnings per share (Shares)
Effect of dilutive shares: stock options
Weighted average number of ordinary shares used to calculate
diluted earnings per share (Shares)(Significant Subsequent Events)
None applicable- 17 -

Year ended
December 31, 2022

Year ended
December 31, 2023

2,058

2,842

—

—

2,058
2,000
58

2,842
2,842

(2)

(3)

2,056
1,997
58

2,839
2,839

111,561,553—

111,437,425—

111,561,553

111,437,425——