Consolidated Financial Statements for the Six Months Ended June 30, 2024 (IFRS)
These financial statements have been prepared for reference only.
August 9, 2024
Link and Motivation Inc.

Stock exchange listing: Tokyo, Prime Market
Code number: 2170

http://www.lmi.ne.jp/english
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer andManager of Group Design OfficeFiling of Semiannual Securities Report (Hanki Hokokusho) (scheduled):
Start of distribution of dividends (scheduled):
Financial results briefing presentation materials:
Financial results briefing:

Phone: +81-3-6853-8111
August 9, 2024
September 25, 2024
Yes
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million.)

1. Consolidated Results for the Six Months Ended June 30, 2024
(January 1, 2024 - June 30, 2024)(1) Revenues and Income
Revenues(¥ million)
Six months ended
June 30, 2024
Six months ended
June 30, 2023

Six months ended
June 30, 2024
Six months ended
June 30, 2023

(Percentages represent change compared with the same period of the previous year.)
IncomeOperatingNet
ChangeChangebeforeChangeChangeincomeincome(%)(%)
income taxes(%)(%)(¥ million)(¥ million)(¥ million)

18,003

7.7

2,668

20.5

2,634

20.3

1,831

28.7

16,715

(0.3)

2,215

12.5

2,190

16.5

1,423

27.2

Net income
attributable toowners of theparent(¥ million)

Change(%)

Comprehensive
income(¥ million)

Change(%)

Basic earnings
per share (¥)

Dilutedearnings per
share (¥)

1,677

33.6

2,049

(12.1)

15.50

15.50

1,255

22.3

2,331

112.8

11.25

11.23

(2) Financial Position

As of June 30, 2024
As of December 31, 2023

Total assets(¥ million)

Total equity(¥ million)

31,28430,843

13,164
12,940Equity attributableto owners of theparent(¥ million)
10,213
10,165

Ratio of equity
attributable to ownersof the parent to total
assets (%)
32.6
33.0

2. Dividends
1st Qtr.
2.80
2.90

2nd Qtr.
2.80
3.00

Dividends per share
3rd Qtr.
Year-end
2.80
2.90

Total
11.30

3.00

11.90

2023
2024
2024 (est.)
3.00
Note: Revisions since the most recently announced dividend forecast: No

3. Forecast of Consolidated Results for 2024 (January 1, 2024 - December 31, 2024)(Percentages represent change compared with the previous fiscal year.)
Net income
Basic
Net
Revenues
attributable toearnings
incomeowners of the parent
per share(¥ million)(%) (¥ million) (%) (¥ million)(%)(¥ million)(%)(¥)
Full-year
36,900
8.6
5,330
15.3
3,600
14.7
3,248
14.3
32.31
Note: Revisions since the most recently announced forecast of results: No
OperatingincomeNotes(1) Significant Changes in Scope of Consolidation during the Period: Yes
Added: – company (Name: –)Removed: 1 company (Name: Link Interac Inc.)
We conducted an absorption-type merge in which Link Japan Careers Inc. is the surviving company and Link
Interac Inc. is dissolved as the absorbed company. Following the merger, Link Japan Careers Inc. changed its
name to Link Interac Inc.
(2) Changes in Accounting Policies and Changes in Accounting Estimates(a) Changes in accounting policies required by IFRS: No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No(3) Number of Shares Issued and Outstanding (Common Stock)(a) Number of shares at the end of the period (including treasury stock)Six months ended June 30, 2024: 113,068,000; Year ended December 31, 2023: 113,068,000(b) Number of treasury shares at the end of the period:
Six months ended June 30, 2024: 5,843,568; Year ended December 31, 2023: 3,617,168(c) Average number of shares outstanding (cumulative with earlier quarters):
Six months ended June 30, 2024: 108,224,825; Six months ended June 30, 2023: 111,588,051* These Financial Statements 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 financial information:
Supplementary financial information is disclosed on the same day in Japanese on TDnet and the Company website. 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 the Six Months Ended June 30, 2024......................................... 2(2) Overview of Financial Position for the Six Months Ended June 30, 2024 ............................................... 6(3) Overview of Cash Flow for the Six Months Ended June 30, 2024 ........................................................... 6(4) Forecast ......................................................................................................................................................... 6

2. Condensed Consolidated Financial Statements and Main Notes ................................................................... 8(1) Condensed Consolidated Statements of Financial Position .................................................................... 8(2) Condensed Consolidated Statements of Operations and Comprehensive Income ............................... 10(3) Condensed Consolidated Statements of Changes in Equity ................................................................... 14(4) Condensed Consolidated Statements of Cash Flow................................................................................. 15(5) Notes to Condensed Consolidated Financial Statements ....................................................................... 16
Change in Accounting Policies ..............................................................................................................16
Significant Accounting Policies .............................................................................................................16
Notes Regarding Significant Accounting Estimates and Judgements ............................................ 16
Notes Regarding Assumption of Going Concern .............................................................................. 16
Significant Subsequent Events ............................................................................................................ 16--1--

1. Overview of Results of Operations and Other Information
Forward-looking statements in the following text are based on judgments as of June 30, 2024, the last day of theconsolidated accounting period under review.
(1) Overview of Results of Operations for the Six Months Ended June 30, 2024
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 six
months ended June 30, 2024 (the “first half of 2024”), the Japanese economy continued its gradual recovery with the
improvement of the employment and income environment. However, the economic outlook remains unclear because of
the continuing trend toward depreciation of the yen even after the end of negative interest rates, and geopolitical risks
due to the unstable international situation. 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 the first half of 2024 were ¥18,003 million (a 7.7% increase
compared with the same period of the previous year), gross profit was ¥9,889 million (an 11.9% increase), operating
income was ¥2,668 million (a 20.5% increase) and net income attributable to owners of the parent was ¥1,677 million (a33.6% increase).
In the first half, revenues increased year on year due to growth in the Consulting & Cloud business and the ALT
Placement business. Gross profit increased substantially year on year due to the growth of the high-margin Consulting &Cloud business and the Personnel Placement business, which includes OpenWork Inc. (“OpenWork”). Operating income
also increased substantially year on year, driven by the Consulting & Cloud business, which is a focal point for theGroup. Net income attributable to owners of the parent increased significantly due to the increase in operating income.
All items progressed as expected.
The segment and business classifications of the Group are as shown below, and an overview of the first half of 2024
by segment and business follows.

Link and
Motivation Group

Matching Division

Organizational
Development Division

Individual
Development Division

Consulting &Cloud Business

Career School Business

Link and Motivation Inc.

Link Academy Inc.

Link Interac Inc.

IR Support Business

Cram School Business

Personnel Placement
Business

Link Corporate
Communications Inc.

Motivation Academia Inc.

Link-i Inc.

ALT Placement Business

Link Event Produce Inc.

OpenWork Inc.

--2--

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 the first half of 2024 were ¥6,810 million (a 9.7% increase), and segment
income was ¥4,911 million (a 12.1% increase). An overview of operating results by business for the first half of 2024 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 the first half of 2024 were ¥5,945 million (a 10.0% increase) and gross profit was¥4,516 million (a 10.4% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)(Figures in brackets are gross profit)

Six months ended
June 30, 2023

Six months ended
June 30, 2024

YoY change(%)

Consulting & Cloud Business

5,403[4,092]

5,945[4,516]

10.0%
10.4%

Consulting

3,285

3,194

-2.8%

Cloud

2,117

2,750

29.9%

In the first half, revenues and gross profit increased substantially compared with the same period of the previous year
as a result of significant growth from an increase in new contracts for the Motivation Cloud series from April to June.
In the Consulting category, in order to increase profitability, the business is transitioning from consulting to the cloudand revising its product portfolio by focusing on high-margin areas such as human capital consulting. Revenues in thefirst half decreased compared with the previous year due in part to the impact of first-quarter results, but revenues per
customer have bottomed out and are recovering. By continuing to focus on providing comprehensive support for humancapital management to major companies, the business expects further recovery in the second half of the year.
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
2023
March

Number ofdeliveries
Monthly fee
revenue(¥ thousand)

June

2024
September

December

March

June

846

851

883

915

883

915

339,179

358,792

395,398

427,345424,550

458,130

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 seventh consecutive year: fiscal 2017 to fiscal 2023 forecast) in ITR Market View: Human
Resources Management Market 2024, a market research report published by ITR Corporation.
Monthly fee revenue from the Motivation Cloud series at the end of June 2024 was ¥458,130 thousand (a 27.7%
increase), exceeding the target for the end of June 2024 of ¥450,000 thousand in monthly fee revenue. Monthly fee--3--revenue is progressing as expected toward the target of ¥530,000 thousand at the end of December 2024. The businesswill continue to focus on introductions at major companies to achieve further expansion.
For Stretch Cloud, a human resource development cloud service, business is expanding steadily in the humanresource development market, which exceeds ¥500 billion. The Group will continue to focus on introducing Stretch
Cloud at major companies, where there is substantial room for development, and will accelerate growth by improving
customer satisfaction, thereby further extending the length of contracts.
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 the first half of 2024 were ¥970 million (a 5.7% increase) and gross profit was ¥468
million (a 32.6% increase).
In the first half, revenues increased compared with the previous year as production of integrated reports, the coreservice, expanded in line with expectations. Gross profit increased significantly compared with the previous year as
productivity rose.
Needs for disclosure of non-financial capital, particularly human capital information, are continuing to increase withthe requirement to disclose human capital information in securities reports. The number of companies disclosing thediagnosis results of Motivation Cloud, which we provide, was 149 at the end of June 2024. 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 the first half of 2024 were ¥3,215 million (a 1.8% increase) and segment
income was ¥1,470 million (a 5.7% increase). An overview of operating results by business for the first half of 2024 is asfollows.
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 the first half of 2024 were ¥2,838 million (a 0.8% increase) and gross profit was ¥1,319
million (a 4.7% increase).
In the first half of 2024, revenues increased compared with the same period of the previous year as a result of anincrease in revenues per enrollee due to the expansion of new courses and other factors. Furthermore, as a result of
restructuring that has been taking place since October 2022, the gross profit margin for the first half was 46.5%, an
improvement in line with expectations, compared with 44.8% in the first half of the previous year. The business will
work to improve efficiency and customer satisfaction by continuing to expand 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 the first half of 2024 were ¥377 million (a 10.3% increase) and gross profit was ¥151
million (a 16.0% increase).
In the first half, revenues and gross profit both increased substantially year on year as a result of increased enrollment
and revenues per enrollee. This business will continue to increase the number of new enrollees by providing learning--4--

opportunities through online courses to a wide range of students, not just those in areas where they can attend physicalschools.
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.
In this segment, segment revenues for the first half of 2024 were ¥8,356 million (a 6.7% increase) and segment
income was ¥3,856 million (a 10.5% increase). An overview of operating results by business for the first half of 2024 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 the first half of 2024 were ¥6,369 million (a 5.5% increase) and gross profit was ¥1,900
million (a 9.9% increase).
In the first half of 2024, the number of ALTs dispatched increased in line with expectations, resulting in increases inboth revenues and gross profit compared with the same period of the previous year. This business faced an intenselycompetitive environment until 2023 due to the impact of the requirement to enroll ALTs in social insurance. In 2024, thecompetitive environment has flattened, and the business has strengthened communication activities to target customers.
As a result, contracts for the new fiscal year that began in April recovered as expected, and the average number of ALTs
dispatched from April to June exceeded 3,100. The Group will continue aiming to expand market share by shifting some
services online and utilizing 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. It provides awide range of matching opportunities, including an information platform for people looking to find or change jobs, andemployment referrals for university students.
In this business, revenues for the first half of 2024 were ¥2,006 million (a 10.4% increase) and gross profit was¥1,975 million (a 10.8 % increase).
In the first half, OpenWork, which has a particularly high growth rate, continued to steadily accumulate registeredusers as well as employee online reviews and evaluation scores. The direct recruiting service (OpenWork Recruiting)continued to make an active investment in marketing, which led to an increase in the number of online resume
registrations. The cumulative number of online resume registrations (working adults and students) has grown toapproximately 1,190,000. In addition, as a result of efforts to stimulate recruiting activity among existing customers andincrease employment opportunities, recruiting by employers and applications from job seekers expanded, and revenues
from this service were ¥1,140 million (a 28.5% 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 condensed consolidated statements offinancial position, or under other income or other expenses on the consolidated statements of operations.

--5--(2) Overview of Financial Position for the Six Months Ended June 30, 2024
Total assets as of June 30, 2024 were ¥31,284 million, an increase of ¥441 million from the end of the previous year.
This was mainly due to factors including an ¥826 million increase in trade and other receivables, offset by a ¥302 million
decrease in other non-current financial assets.
Total liabilities as of June 30, 2024 were ¥18,119 million, an increase of ¥216 million from the end of the previous
year. This was mainly due to factors including a ¥415 million increase in interest-bearing and other financial liabilities,
offset by a ¥386 million decrease in lease liabilities.
Total equity as of June 30, 2024 was ¥13,164 million, an increase of ¥224 million from the end of the previous year.
This was mainly because the Group posted net income attributable to owners of the parent and other comprehensive
income, among other factors, offset by decreases due to acquisition of treasury shares and payments of cash dividends.
(3) Overview of Cash Flow for the Six Months Ended June 30, 2024
Cash and cash equivalents (“cash”) as of June 30, 2024 were ¥7,529 million, an increase of ¥139 million during theperiod.
Cash flow during the six months ended June 30, 2024 was as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities was ¥2,267 million, an increase of ¥125 million compared with the same
period of the previous year. The principal factors decreasing cash compared with the same period of the previous year
included a ¥427 million increase in trade and other receivables, a ¥133 million increase in inventories, a ¥208 million
decrease in other, and a ¥364 million increase in income taxes paid, while the principal factors increasing cash comparedwith the same period of the previous year included a ¥444 million increase in income before income taxes, a ¥432
million increase in trade and other payables, and a ¥440 million increase in income tax refund.
Cash Flow from Investing Activities
Net cash provided by investing activities was ¥10 million (compared with net cash used totaling ¥257 million in thesame period of the previous year). Principal factors decreasing cash compared with the same period of the previous year
included an ¥89 million increase in payments for acquisition of property, plant and equipment, a ¥74 million increase inpayments for acquisition of intangible assets, and a ¥220 million increase in payments for acquisition of investment
securities, while the principal factors increasing cash compared with the same period of the previous year included a¥758 million increase in proceeds from sale of investment securities.
Cash Flow from Financing Activities
Net cash used in financing activities was ¥2,141 million, an increase of ¥1,270 million compared with the same
period of the previous year. The principal factor increasing cash was a ¥4,100 million increase in proceeds from longterm financial liabilities compared with the same period of the previous year, while the principal factors decreasing cash
compared with the same period of the previous year included a net decrease of ¥3,200 million in short-term financial
liabilities, the non-recurrence of proceeds from payments from non-controlling interests that occurred in the same periodof the previous year, an increase of ¥1,193 million in payments for acquisition of treasury shares, and a net increase indeposits of ¥216 million.
(4) Forecast
In the first half of 2024, revenues increased compared with the same period of the previous year due to growth in theConsulting & Cloud business and the ALT Placement business. In addition, operating income increased substantiallycompared with the same period of the previous year, driven by the Consulting & Cloud business, which is a focal point
for the Group. Progress toward the performance forecasts for the year ending December 31, 2024 of revenues of ¥36,900
million (an 8.6% increase) and operating income of ¥5,330 million (a 15.3% increase) is proceeding as expected. In
particular, by focusing on expanding sales of the Motivation Cloud series in the Consulting & Cloud business, where
substantial growth is expected, the backlog of orders (total orders for future projects obtained at a given point in time)
has increased significantly. As of June 30, 2024, the backlog of orders was approximately ¥14.0 billion, an increase ofaround 20% from a year earlier, and approximately ¥5.0 billion of this amount is the backlog of orders scheduled fordelivery during the current year, an increase of around 25% from a year earlier, indicating steady progress.
For the time being, given the rising importance of and difficulty for companies in adapting to the labor market, we
will focus on the Consulting & Cloud business of the Organizational Development Division, which has high growthpotential. Considering that this business supports approximately 1,500 companies in Japan, and that there are--6--approximately 100,000 companies in Japan with 50 or more employees, we believe there is still ample room for
expansion. First, we will expand sales by focusing on major domestic companies, where there is substantial room fordevelopment. At the same time, we will also roll out the Motivation Cloud series to domestic small and medium-sizedcompanies and overseas subsidiaries of Japanese companies to accelerate medium- to long-term growth.
To expand sales channels, the Group plans to proactively invest in M&As and business alliances. Most recently, on
August 9, 2024, the Group concluded a business alliance agreement with FCE Inc. (“FCE”) in accordance with the basic
agreement on a capital and business alliance it entered into in May 2024. FCE has strengths in enhancing humanresource capabilities, including in areas such as education and training, and Smart Boarding, its platform for creating
employee education systems, has been introduced at 900 companies, mainly small and medium-sized companies in Japan.
To begin with, FCE will sell the Motivation Cloud series to small and medium-sized companies, and the Group will sell
FCE’s robotic process automation tool RPA Robo-Pat DX and generative AI prompt platform FCE Prompt Gate toapproximately 1,500 customers, mainly major companies, as part of the Motivation Cloud series. By recording both asmonthly fee revenue for the Motivation Cloud series, the Group will accelerate the growth of the Motivation Cloud seriesin 2025 and thereafter.

--7--

2. Condensed Consolidated Financial Statements and Main Notes(1) Condensed Consolidated Statements of Financial Position(Millions of yen, rounded down to the nearest million)

As ofDecember 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--

As of
June 30, 2024

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

7,529
4,453
374
46
1,164
13,568

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

728
3,300
9,347
2,214
1,451
606
66
17,71531,284

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

As ofDecember 31, 2023

As ofJune 30, 2024

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

1,934
1,359
3,819
910
1,138
16
1,794
10,972

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

4,019
2,378
370
260
117
7,147
18,1191,380
4,619(1,539)7,396(1,690)10,165
2,774
12,94030,843

1,380
4,591(2,722)
8,042(1,078)
10,213
2,951
13,16431,284

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--(2) Condensed Consolidated Statements of Operations and Comprehensive Income
Condensed Consolidated Statements of Operations
Six Months Ended June 30(Millions of yen, rounded down to the nearest million)

Six months ended
June 30, 2023

Six months ended
June 30, 2024

16,715
7,877
8,838
6,613
138
147
2,215
10
35
2,190
766
1,423

18,003
8,114
9,889
7,123
20
117
2,668
7
41
2,634
803
1,831

1,255
167
1,423

1,677
153
1,831

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

(Yen)

Earnings per share attributable to owners of the parent
Basic earnings per share
Diluted earnings per share

11.25
11.23

- - 10 - -

15.50
15.50

Three Months Ended June 30(Millions of yen, rounded down to the nearest million)

Three months ended
June 30, 2023

Three months ended
June 30, 2024

8,707
4,023
4,684
3,376
49
7
1,349
9
17
1,341
425
915

9,696
4,263
5,432
3,559
8
12
1,868
1
19
1,849
565
1,284

833
82
915

1,152
131
1,284

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

(Yen)

Earnings per share attributable to owners of the parent
Basic earnings per share
Diluted earnings per share

7.47
7.45

- - 11 - -

10.68
10.68

Condensed Consolidated Statements of Comprehensive Income
Six Months Ended June 30(Millions of yen, rounded down to the nearest million)

Six months ended
June 30, 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 other comprehensive income
Total of items that will not be reclassified to profit or loss

Six months ended
June 30, 2024

1,423

1,831

910
910

219
219

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

(1)
(1)
908
2,331

(1)
(1)
218
2,049

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

2,164
167
2,331

1,895
153
2,049

- - 12 - -Three Months Ended June 30(Millions of yen, rounded down to the nearest million)

Three months ended
June 30, 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 other comprehensive income
Total of items that will not be reclassified to profit or loss

Three months ended
June 30, 2024

915

1,284

767
767

(130)
(130)

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

(1)
(1)
765
1,681

(0)
(0)
(131)
1,153

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

1,599
82
1,681

1,021
131
1,153

- - 13 - -(3) Condensed Consolidated Statements of Changes in Equity
Six Months Ended June 30, 2023
(Millions of yen, rounded down to the nearest million)
Equity attributable to owners of the parent

January 1, 2023
Net income
Other comprehensive
incomeTotal comprehensive
incomeChange in ownershipinterest in subsidiaries
Dividends fromsurplus
Exercise of stock options
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theownersJune 30, 2023

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

1,380
—

4,464
—

(320)
—

5,385
1,255

(1,851)
—

9,057
1,255

2,185
167

11,243
1,423

—

—

—

—

908

908

—

908

—

—

—

1,255

908

2,164

167

2,331

—

175

—

—

—

175

337

512

—
—

—
30

—
—

(535)
—

—
(30)

(535)
—

—
—

(535)
—

—

(30)

31

—

0

1

—

1

—

—

—

(200)

200

—

—

—

—
1,380

174
4,639

31
(288)

(735)
5,905

170
(773)

(358)
10,862

337
2,690

(21)
13,553Six Months Ended June 30, 2024
(Millions of yen, rounded down to the nearest million)
Equity attributable to owners of the parent

January 1, 2024
Net income
Other comprehensive
incomeTotal comprehensive
incomeAcquisition of treasury
sharesChange in ownershipinterest in subsidiaries
Dividends fromsurplus
Exercise of stock options
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theownersJune 30, 2024

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

1,380
—

4,619
—

(1,539)
—

7,396
1,677

(1,690)—10,165
1,677

2,774
153

12,940
1,831

—

—

—

—

218

218

—

218

—
—

—
—

—
(1,193)

1,677
—

218
—

1,895
(1,193)

153
—

2,049
(1,193)

—

(38)

—

—

—

(38)

22

(16)

—
—

—
5

—
—

(631)
—

—
(5)

(631)
—

—
—

(631)
—

—

6

10

—

(1)

15

—

15

—

—

—

(400)

400

—

—

—

—
1,380

(27)
4,591

(1,182)(2,722)(1,031)8,042

394(1,078)(1,848)
10,21322
2,951(1,825)
13,164- - 14 - -(4) Condensed Consolidated Statements of Cash Flow
(Millions of yen, rounded down to the nearest million)

Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Loss on impairment
Loss (gain) on sales of fixed assets
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 (used in) operating activities
Cash flow from investing activities
Payments for acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for acquisition of intangible assets
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 exercise of stock options
Payments of cash dividends
Repayment of lease liabilities
Proceeds from payments from non-controlling interests
Payments for acquisition of treasury shares
Net (increase) decrease in deposits
Net cash provided by (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 period
Cash and cash equivalents at end of period- - 15 - -Six months ended
June 30, 2023

Six months ended
June 30, 2024

2,190
810
137
—
24
(398)
(16)
(340)
395
2,801
8
(33)
45
(680)
2,141

2,634
851
40
(0)
34
(826)
(149)
91
186
2,861
4
(39)
485
(1,044)
2,267

(66)
—
(261)
(79)
120
(35)
131
(39)
(28)
(257)

(156)
0
(336)
(300)
879
(22)
70
(90)
(33)
10

300
100
(708)
61
(533)
(542)
452
(0)
—
(871)
1
1,013
6,112
7,126

(2,900)
4,200
(884)
10
(631)
(525)
—
(1,193)(216)(2,141)
3
139
7,389
7,529

(5) Notes to Condensed Consolidated Financial Statements(Change in Accounting Policies)
None applicable(Significant Accounting Policies)
The significant accounting policies applied in these condensed consolidated financial statements are the same as
those applied in the consolidated financial statements for the previous fiscal year.
Income taxes expense for the six months ended June 30, 2024 was calculated using the estimated average annual
effective tax rate.
(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 these condensed consolidated financial
statements are the same as those in the condensed consolidated financial statements for the same period of the previous
fiscal year.
(Notes Regarding Assumption of Going Concern)
None applicable(Significant Subsequent Events)(Conclusion of a Business Alliance Agreement)
On May 14, 2024, the Group entered into a basic agreement on a capital and business alliance with FCE Inc. (“FCE”)
and has held discussions on the details of their respective businesses and the capital alliance. At a Board of Directors
meeting held on August 9, 2024, the Group resolved to enter into a business alliance (“the Business Alliance”) with FCE
as detailed below, and concluded a business alliance agreement on the same day.
Discussions to finalize the specific details of a capital alliance with FCE are underway. Upon conclusion, it isexpected that FCE will become an equity method affiliate.
(1) Reason for the Business Alliance
The Group provides support for creating companies that are chosen by individuals (“Motivation Companies”),
individuals who are chosen by organizations (“i-Companies”) and matching that connects organizations and individuals
based on its mission: “Through Motivation Engineering, we provide opportunities to transform organizations andindividuals and create a more meaningful society.” FCE’s purpose is to “create a world in which everyone can approachand solve challenges with all their might” and its mission is to “contribute to maximizing human capital through“People” x “Tech.” It has strengths in enhancing human resource capabilities through education, training, and otherprograms. The Group concluded this business alliance agreement in order to combine the strengths of the Group and
FCE, and to enable both organizations to offer unique value in realizing their respective visions.
(2) Details of the Business Alliance
The Group and FCE have agreed to collaborate in respective business areas and will continue to build a cooperative
framework going forward.
The main details are as follows. By recording cross-sold products as monthly fee revenue for the Motivation Cloud
series, the Group will accelerate the growth of the Motivation Cloud series in 2025 and thereafter.
1) Sales of the Group’s Motivation Cloud Series Cloud-based Services to Small and Medium-sized Companies by FCE
FCE has developed Smart Boarding, a platform for creating employee education systems for small and medium-sizedcompanies throughout Japan, and has a track record of introducing it at more than 900 companies. With the aim of
expanding sales channels for the Motivation Cloud series through the Business Alliance, FCE will use its sales
capabilities to roll out the Motivation Cloud series to small and medium-sized companies, in addition to companies thathave introduced Smart Boarding.
2) Sales of FCE’s Robotic Process Automation Tool RPA Robo-Pat DX and Generative AI Prompt Platform FCE
Prompt Gate to Major Companies by the Group- - 16 - -FCE is rolling out its personal RPA tool RPA Robo-Pat DX, which won first place* in a ranking of most powerful IT
tools, and the generative AI prompt platform FCE Prompt Gate. With the aim of increasing revenue per customer
through the Business Alliance, the Group will offer RPA Robo-Pat DX and FCE Prompt Gate to the approximately 1,500
customers of its Consulting & Cloud business. In addition to improving human resource and organizational capabilities,
through this alliance the Group will also support enhanced productivity, thereby achieving true improvement in customer
engagement.
* First out of approximately 7,300 products in the “Ranking of 50 Most Powerful IT Tools, Selected by Users” in the
ITreview Best Software in Japan 2023 survey
In addition, the two companies will also consider collaboration in areas other than those mentioned above.
(3) Summary of the Other Party in the Business Alliance1) NameFCE Inc.
2) Location
Shinjuku NS Building, 10F, 2-4-1 Nishi-Shinjuku, Tokyo
3) Name and Title of
Ishikawa Junetsu, President and Representative Director
Representative
4) Business
Provision of information on corporate management, business,
products, technologies and real estate, and consulting business.
5) Capital¥181 million (As of December 31, 2023)
6) Date of Establishment
April 21, 2017(4) Schedule
1) Date of Signing of Basic Agreement on Capitaland Business Alliance2) Date of Board of Directors Resolution on
Business Alliance Agreement
3) Date of Signing of Business Alliance Agreement

May 14, 2024
August 9, 2024
August 9, 2024

- - 17 - -