Individual Passion Inspires the World
Link and Motivation Inc.
https://www.lmi.ne.jp/english/

Integrated Report

IR BOOK

2020

Structure of This Report

P. 5

LM Mission

Continued Growth throughEngagement Management
The COVID-19 pandemic has changed the world dramaticallyand the world will continue to change. One thing, however,that will not change is the fact that society is the productof organizations and individuals.
The Link and Motivation Group (LMG) promotes Engagement
Management that increases the engagement (mutual
understanding and affinity) between the Group and its
stakeholders using Motivation Engineering, its coretechnology, in order to carry out its mission to create amore meaningful society.

P. 10

P. 23
Business Strategy

Organizational Strategy

Providing organizations
and individuals with
opportunities fortransformation

Organizations that
continue to be united
around a philosophy
P. 42

Corporate GovernanceIntroduction

Message fromManagement

Corporate Data

P. 1

P. 3

P. 48

LINK AND MOTIVATION GROUP - IR BOOK 2020

Through Motivation Engineering,
we provide opportunities totransform organizations andindividuals and create a moremeaningful society.

At a Glance
LMG in Numbers (As of December 31, 2020)

Business Strategy

Organizational Strategy

Providing opportunities totransform organizations andindividuals

Organizations that
continue to be united
around a philosophy

Consolidated Results

Introduction

Revenues
Adjusted operating
income*Stable Business Portfolio

Engagement Rating

¥35.2
¥2.05

AAA

billion11

companies(Out of 13)

billionExtensive Value Provided

Market Evaluation

Unique Databases

Organizational Development Division
Number of customers

Moved to First Section ofTokyo Stock Exchange
8 years after founding

Organizational
diagnostic data

Improving Employee Engagement(Share of total gross profit)

Organizational
Development
Division
Individual
Development
Division

Approx.

45 %Approx.

14%

Matching Division

Approx.

41 %2,165 companies

468%

Individual Development Division
Number of enrollees

5-year stock
growth rate(December 31, 2020 vs. December
31, 2015)

16,245 people(Average number of enrollees per year)

Matching Division
Number of matches

Number of
online reviews

4,797 people

https://www.lmi.ne.jp/english/

Introduction

Approx.

400 thousand people

Employee reviews/
Group general
meetings
Internal media
access rate
(January 2021)

4 times yearly
84.5%

Approx.

10.5 million reviews* Adjusted operating income is a profit indicator that measures operating results by excluding temporary
factors such as impairment of goodwill, right-of-use assets and fixed assets from operating income.

(Average number of workers dispatched per year)

IR BOOK 2020

Individual
diagnostic
data

1.83 million employees
at 7,350 companies

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

2

LINK AND MOTIVATION GROUP - IR BOOK 2020

Management Indicators

Growing as a new prototype for corporate management that links businesses and organizations

with the aim of becoming a true
one-of-a-kind presence
About 20 years ago, before the English word “motivation” was generally
known in Japan, I was certain about one thing: As Japan’s working
Introduction

population decreases and the source of companies’ competitive
advantages shifts from tangible goods to intangibles, human resourcesand organizations will become crucial assets for corporate management.
To convey this message to society, I established the world’s firstmanagement consulting company focused on motivation.
Over the past two decades, we have grown substantially, based on“Motivation Engineering,” our core technology. In addition to theOrganizational Development Division, where we make work moremeaningful for employees and provide organizations with opportunities
for growth, we created the Individual Development Division to makelife more meaningful for individuals, as well as the Matching Division,
where we connect organizations and individuals. We take pride in
the new values we have provided to Japanese society, including theimportance of employee engagement and independent career development.

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

Messagefrom Management

LM Mission

Ozasa Yoshihisa

Chairman and
Representative Director
Link and Motivation Inc.

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

3

LINK AND MOTIVATION GROUP - IR BOOK 2020

Looking Back over the 20 Years since theCompany’s FoundingMessage from Management
Social Change and Our Mission

issue in our medium-to-long-term growth. To achieve

We are still in the first phase of our growth. The COVID-19
pandemic has changed the world dramatically. Change,
which continues at an unprecedented pace, includes
advances in the digital transformation of society and majorchanges in work styles. But without a doubt, one thing thatorganizations and individuals. The only way to deal with therisks companies and individuals face is to improve theIntroduction

capabilities of organizations and human resources. We will

databases on “employee engagement,” “individual careerdevelopment,” “learning” and “matching” of each division
to rapidly improve engagement between organizations andindividuals—in other words, we will build an “engagement
chain.” In so doing, we will support the sustainable growthof Japanese society.

LINK AND MOTIVATION GROUP - IR BOOK 2020

will not change is the fact that society is a product of

discontinuous growth going forward, we will link the unique

For Medium-to-Long-Term Growth

grow further as we position LMG as the organizational

To build an engagement chain, the Link and Motivation

development department and the human resource

Group must make itself a “Motivation Company” with highdevelopment department of Japan Inc. (a way of viewing

employee engagement where each employee embodies

Japan as one company).

the “i-Company” (an individual who independently andautonomously develops his or her own career) concept.

Building an Engagement Chain between
Organizations and Individuals
In the process of improving their competitive advantage intheir respective fields, the Organizational Development
Division, Individual Development Division and Matching

In addition to our business strategy, we will promoteorganizational and human resource strategies that are a
step ahead of the times as we continue to offer products andservices that we truly believe are valuable. You can lookforward to our progress in the years to come.
March 2021

Division have acquired various data on organizations andindividuals. This includes extensive personnel-related data,some of which correlates with corporate performance.
Naturally, utilization of this data will be a key strategic

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

Ozasa Yoshihisa

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

4

LM Mission
LINK AND MOTIVATION GROUP - IR BOOK 2020

Through Motivation Engineering,LM Mission

we provide opportunities to transformorganizations and individuals andcreate a more meaningful society.

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

5

A Changing Environment
for Organizations andIndividuals
Increasing polarization of organizations
and individuals, into ones that arechosen and ones that are not chosen
LINK AND MOTIVATION GROUP - IR BOOK 2020

LM Mission

Working
population decline1
Shift to intangible
products and services
with shorter cycles2
Diversifying motivation
for working3
Organization

Individual

1. D ue to a declining birthrate and aging population, Japan’s working-age population
is decreasing. The ratio to the total population was 67.4% in 1980, but decreased
to 59.5% in 2019 and is expected to decrease further to 51.8% by 2050.
2. The proportion of tertiary industries is rising. The value of intangible products andservices in business increased from 54.8% in 1980 to 73.4% in 2019.
3. Engel’s coefficient has decreased year by year, from 41.6% in 1960 to 25.7% in 2018.
With the decrease in the Engel’s coefficient, the motivation for working is shifting tosatisfying higher-level desires for self-actualization.
Sources: In-house calculation based on materials from the Statistics Bureau, Ministryof Internal Affairs and Communications and the National Institute of Populationand Social Security Research

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

6

We Will Create a More
Meaningful Society
The affluence of society is determinedby the amount of “meaning” thatarises from the connection between
diverse organizations and individuals
and stakeholders.

As a company grows,
the “meaning” ofits stakeholders
increases.

As an individual grows,
the “meaning” of work,
learning and life
increases.

LM Mission

Individual

LINK AND MOTIVATION GROUP - IR BOOK 2020

Organization

Contribution to SDGs

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

7

Providing
Opportunities toTransform
Organizations andIndividuals
LINK AND MOTIVATION GROUP - IR BOOK 2020

LM Mission

A three-division system based on
Motivation Engineering

Creating
Motivation
Companies

Creating
i-Companies
Individual
Development
Division

Organizational
Development
Division

Motivation
Engineering

Maximizing the Value ofMotivation Companies andi-Companies
Matching Division

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

8

Motivation
Engineering,
Our Core Technology

ag
Di

LINK AND MOTIVATION GROUP - IR BOOK 2020

LM Mission

The foundation for building businessmodels, it is a unique technology basedon academic findings

tic technolo
n os
gie
s

Motivation
Engineering
Diagnosis

Transformation

ns

e

s

T

ra

for

m a t i on t e c h n

IR BOOK 2020

https://www.lmi.ne.jp/english/

o lo

gi

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

9

Business Strategy

LINK AND MOTIVATION GROUP - IR BOOK 2020

Business
Strategy

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

10

Evolution of
Our Business
Strategy

Growth from Rolling Out Motivation Engineering,
Our Core Technology, in Multiple Fields
Since our founding, we have made advances in Motivation Engineering, our core technology, while helping to transform a wide range of customers andexpanding our business portfolio. In addition to the growth of our organizational and personnel consulting business in the B-to-B field, which we havebeen conducting since our founding in 2000, we have diversified our operations through aggressive M&A to expand into the B-to-C field in 2011 and thematching field in 2012.

Net sales
Adjusted operating income(¥ million)

Business Strategy

40,000¥35,278 million¥2,057 million

30,000Moved to First Sectionof Tokyo Stock
Exchange in 2008

20,00010,000(Listed on the Second Sectionof the Tokyo Stock Exchange
in 2007)

Organizational Development
Individual Development
Matching

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

1. F
 rom 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles in Japan (J-GAAP).
Figures for 2016 have been restated to reflect the change.
2. The figures for 2011 to 2014 have been retroactively revised to reflect current internal business classifications.

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

11

LINK AND MOTIVATION GROUP - IR BOOK 2020

2020

Business Portfolio Expansion

LMG’sCompetitive
Advantage

Motivation Engineering and a Unique Database
From our foundation in Motivation Engineering, which is our core technology, we have amassed a variety of data in the process of providing acycle of diagnosis and transformation to organizations and individuals. In the Organizational Development Division, we have been accumulating
diagnostic data on organizations of various sizes in a wide range of industries and business fields for more than 20 years. In the Individual
Development Division, we have been accumulating data on the motivation types and skills of individuals for about a decade. In the Matching
Division, we acquired organizational and personal data that is outstanding in terms of both quality and quantity through the acquisition of
OpenWork Inc. in 2019. These measures have laid the foundation for accelerating the creation of Motivation Companies and i-Companies.

Business Strategy

Useful for Verifying theEffectiveness ofBusiness Strategies• Quantitative data that
correlate with businessperformance• 20 years of diagnostic data onorganizations of various sizes
in a wide range of industries
and business fields

Organizational
Development
Division

Individual
Development
Division

Organizational
diagnostics data

Individual
diagnostics data

7,350

Approx.

Enable Comparison ofWork Performance andCareer Achievement

1.83 million

people• Diverse, wide-ranging data on
human resources and skills

400,000

companies

employees

Motivation
Engineering• Individual learning data

Matching Division

Job Search Database That Leads to
Improved Employee Engagement

Number of online reviews/
Number of registered users
Approx.

IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

10.5 million reviews Approx. 3.95 million users

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

LINK AND MOTIVATION GROUP - IR BOOK 2020

Our Unique Database

Organizational
組織戦略
Strategy• Creation of data from frank opinions on
working conditions/working environment• First engagement database of its kindin JapanCorporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

12

Medium-to-LongTerm Growth
Strategy

Creating an Engagement Chain between Organizations
and Individuals
Until now, each division has been using people to maximize value. However, to achieve further growth, in addition to stepping up cooperation
between divisions, we must evolve our business into a subscription model that can continue to provide services. Going forward, we will link theunique databases of each division to multiply the strengths of both people and technology, and to optimize those advantages. By doing so, wewill create an “engagement chain” that provides a customer experience that dramatically improves engagement between organizations andindividuals, making us an unrivaled value provider.

Going forward (2021 onward)

Provide services to customers through people using data
based on Motivation Engineering (mainly one-shot)

Link all databases to continuously provide services to customers
through people and technology (subscription-centered)Business Strategy

Organizational
Development
Division

LINK AND MOTIVATION GROUP - IR BOOK 2020

To date (2000-2020)

Individual
Development
DivisionDB

Organizational
Development
Division

DB

DB

Motivation
Engineering

DB
Motivation
Engineering

Individual
Development
DivisionDB
DB

Matching Division

Matching Division

Constant value provided
Motivation Company
i-Company

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Improved employee engagement
Improved self-engagement

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

13

Organizational
Development
Division
Revenues

LINK AND MOTIVATION GROUP - IR BOOK 2020

Organizational Development Division

Creating Motivation Companies

Revenues by Business (2020)(¥ million)

15,00013,277
11,72910,000

Event &Media Business

9,923

25.0%
Consulting &Cloud Business

5,000

75.0%

2018

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

2019

Organizational
Strategy

2020

Corporate
GovernanceCorporate Data

14

Organizational
Development Division

Individual Development
Division

Matching Division

Using Diagnosis and Transformation to Create
Motivation Companies
A Motivation Company is defined as an organization that realizes a philosophy of “One for All, All for One.” Realizing that philosophy requires creating asituation in which the company improves the various elements that motivate its employees to work and in which the employees make the maximum
contribution to business results. We aim to create numerous Motivation Companies by identifying issues related to “where,” “what” and “how” in an
organization to provide the appropriate solution according to the results of our diagnosis.

Organizational Development Division

LINK AND MOTIVATION GROUP - IR BOOK 2020

Diagnosis and Transformation Cycle
Transformation

Diagnosis

Consulting

Where

Numerical comparison
by department
and rank

Training

Engagement Factors

Company: 8 areas

What

Boss: 4 areas

Systems

Recruiting

Corporate
climateEventsInternet

Motivation
Engineering

Workplace: 4 areas

How

Publications

Video

Events/MediaIR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

15

Organizational
Development Division

Individual Development
Division

Matching Division

Providing a New Value Chain for Corporate
Management over the Medium to Long Term
Over the last 20 years, interest in employee engagement has increased rapidly around the world, and expectations are growing for its use as a yardstickfor measuring corporate management from a non-financial perspective. We will work to expand the engagement market by further increasing thenumber of Motivation Companies. Specifically, in addition to increasing the rate of use of the Motivation Cloud series and revenue per customer throughone-stop consulting, we will increase the value we provide by broadening the scope of our solutions to include support for disclosure of human capitalindicators in the capital market.

Organizational Development Division

LINK AND MOTIVATION GROUP - IR BOOK 2020

A Cycle of Diagnosis, Transformation and Disclosure That Changes the Conventional Definition of a Good Company
Diagnosis

Improve Motivation Cloud
series rate of use

Disclosure

Create true Motivation
Companies

Promote disclosure ofEngagement Rating

Recruiting

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Transformation

Provide one-stop
solutions

Training

Organizational
Strategy

Systems

Corporate
climateCorporate
GovernanceCorporate Data

16

Individual
Development
Division
Revenues

LINK AND MOTIVATION GROUP - IR BOOK 2020

Individual Development Division

Creating i-Companies

Revenues by Business (2020)(¥ million)

Cram School Business

9,000
7,879

7,838

9.9%
6,732

6,000

3,000

Career School Business

90.1%

2018

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

2019

Organizational
Strategy

2020

Corporate
GovernanceCorporate Data

17

Organizational
Development Division

Individual Development
Division

Matching Division

Using Diagnosis and Transformation to Create
i-Companies
An “i-Company” is defined as an individual who continues to be selected in the market, or in other words, an individual who independently andautonomously develops his or her own career and life. To become an i-Company, an individual must not only learn efficiently, but must also have thehigh level of motivation required to continue learning without becoming discouraged. For all types of individuals, from elementary school students
looking to independently take a school entrance exam to working adults trying to obtain qualifications or just improve their skills, we will continue tooffer one-stop support that ranges from setting goals (i-Company vision) to understanding one’s own issues, providing opportunities for learning online
and in classrooms, and formulating and modifying plans.
LINK AND MOTIVATION GROUP - IR BOOK 2020

Individual Development Division

Diagnosis and Transformation Cycle
Diagnosis

Transformation

Appropriate Diagnostics

Total Support through a Wide
Range of Courses

Portable skills

Motivation type

CareerSchoolCram
SchoolAbility to
Selftackle issues directed

Otherdirected

Organization type

Behavior
type

Work type

Skill diagnosis

Motivation
Engineering

IT

Qualifications

SkillsMotivation

Languages

Reliably Generating Successes by Supporting
the Establishment of Good Learning Habits
Coaching support from acareer navigator

Technical
skillsIR BOOK 2020

https://www.lmi.ne.jp/english/

LiteracyskillsIntroduction

PortableskillsLM Mission

Management of daily habits
using a dedicated app

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

18

Organizational
Development Division

Individual Development
Division

Matching Division

Accelerating the Creation of a Model for Providing
Value in Virtual Space over the Medium to Long Term
The key to self-fulfillment is reliably achieving results in passing exams, acquiring qualifications and improving skills. We will use the strengths we havecultivated in offering real-world services in classrooms to provide value even faster in virtual space. Specifically, we will use i-Company Club as aplatform to provide online courses for improving good learning habits and learning efficiency, and help individuals improve their market value throughsupport for career advancement in collaboration with OpenWork.

Individual Development Division

Ramp up value provision in
virtual space

Reliably acquire skills andqualifications based on
combining good learning
habits with learning
efficiency

Evolution ofi-Company Club as a platform

LINK AND MOTIVATION GROUP - IR BOOK 2020

Model for Providing Value in Virtual Space Using i-Company Club as a Platform

Reinforce linkage with
Matching Division

Support individual careeradvancement throughlinkage with OpenWork

Offer online courses
Provide matching information

Help individuals improve their market value

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

19

Matching
Division

Revenues(¥ million)

20,000LINK AND MOTIVATION GROUP - IR BOOK 2020

Matching Division

Maximizing the Value of Motivation Companies and i-Companies

Revenues by Business (2020)

20,106

19,487

19,427
Domestic
Personnel
Placement &Temp Staff
Business

15,00010,00033.6%
Global Personnel
Placement &Temp Staff Business

5,000

66.4%
2018

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

2019

Organizational
Strategy

2020

Corporate
GovernanceCorporate Data

20

Organizational
Development Division

Individual Development
Division

Matching Division

Maximize the Value of Motivation Companies andi-Companies through Engagement Matching
We match Motivation Companies, which have a high level of employee engagement, with i-Companies, which are capable individuals who independently
and autonomously develop their own careers. To maximize the value of both the organization and the individual, we conduct matching based not only on
the conventional criterion of skills but also motivation type.
Based on the data we have obtained from our diagnostic technology of Motivation Engineering, we will continue to provide true “engagement
matching” by efficiently and effectively achieving real mutual understanding and affinity between organizations and individuals.

Matching Division

Organization

Individual

Creation of a
Motivation
Company

IR BOOK 20202021

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

LINK AND MOTIVATION GROUP - IR BOOK 2020Engagement Matching between Organizations and Individuals

Creation of an
i-Company

Engagement
Matching

Skill Matching

Motivation Matching

Matching individuals with thetechnical skill requirements ofeach company

Matching individual characteristics
with company characteristics

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

21

Organizational
Development Division

Individual Development
Division

Matching Division

Using OpenWork and LMG’s Assets to Create New
Value over the Medium to Long Term
We will further enhance synergies with OpenWork Inc., which joined the Link and Motivation Group as a consolidated subsidiary in 2020. By combining
OpenWork’s assets, consisting of its numerous online company reviews and registered users, with Link and Motivation’s data on organizations andindividuals, we will achieve even better engagement matching. Specifically, by strengthening our unique matching engine utilizing these assets toincrease the number of job offers through OpenWork, we will achieve matching with a high level of engagement between companies and individuals.

Matching Division

Organizational
Development Division
Organizational
diagnostic data

1.83 million
employees at

7,350 companies

Number of
online reviews

Number ofregistered users

Approx.

Approx.

10.5 million 3.95 million

LINK AND MOTIVATION GROUP - IR BOOK 2020Engagement Matching Model Using OpenWork as a Platform

Individual Development
Division
Individual
diagnostic data

Approx.

400,000 people

Priority Themes

Add to Organizational andIndividual Data

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
StrategyStrengthen Matching Engine

Organizational
Strategy

Corporate
GovernanceCorporate Data

22

Organizational Strategy

LINK AND MOTIVATION GROUP - IR BOOK 2020

Organizational
Strategy

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

23

Improving Employee Engagement Is Key to Achieving
Sustainable Growth

Correlation between ES and Operating Profit Margin

Correlation between ES and Labor Productivity

Operating profit margin

Labor productivity (index)

40%

4

20%

2

0%

0
Score
Line of best fit

-20%
30

40

50

60

70

Score
Line of best fit

-2
80 ES

30

LINK AND MOTIVATION GROUP - IR BOOK 2020

Organizational Strategy

Since our founding, we have helped to resolve the organizational issues of about 10,000 companies, but organizational issues in corporate management areendless. We see the creation of organizations the same way an artist sees creating art, and, above all, we will continue to deal with organizational issues tomake us the best example of creating that art. We have come to the conclusion that, above all, the most important factor in creating a strong organization is
employee engagement (the degree of mutual understanding and affinity between a company and its employees). Proof is in the correlation between our
unique indicator, Engagement Score (ES), which quantifies employee engagement, and the growth rate of a company’s operating profit margin.

40

50

60

70

80 ES

The Link and Motivation Group conducted joint research with the Iwamoto Laboratory at Keio University’s Graduate School ofBusiness Administration on the relationship between ES on the one hand and operating profit margin and labor productivity on
the other. Based on the finding of a 0.35% increase in the current-year operating profit margin and a 0.035-point increase in thelabor productivity index for each one-point increase in ES, the study concluded that improvement in ES contributes to improvements
in operating profit margin and labor productivity.
Note: In this analysis, labor productivity is defined as EBITDA per yen of salary paid to employees.

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

LM Mission

Business
Strategy

Organizational
Strategy

Corporate
GovernanceCorporate Data

24

Diagnosis of Employee Engagement from
Multiple Perspectives
Numerous factors influence employee engagement, so it must be viewed from multiple perspectives. We have identified engagement factors in 16
areas – eight areas related to the company overall, four areas related to the employee’s boss, and four areas related to the workplace. We further
subdivide these areas into 64 items for detailed analysis. We then calculate our unique indicator, Engagement Score, by totaling the levels of expectationand satisfaction for each item for comparison with the data on 1.83 million employees at 7,350 companies that we have accumulated since our founding.

Organizational Strategy

4eyes® Windows

Company
foundation

Facilities andenvironment
Systems andbenefits

IR BOOK 2020

https://www.lmi.ne.jp/english/

Introduction

Collection of
information
Decisionmaking

ICE BLOCKINTER LINK

(Weaknesses,
weak points)(Centripetal force ofthe organization,uniquenessof the company)

Support

Toward the workplace

Human
resources

Toward the boss

Organizational
climateMicro perspective

Toward the company

Macro perspective

Business
content
Work content

Expectation

Provision of
information

Philosophy
and strategies

LINK AND MOTIVATION GROUP - IR BOOK 2020Engagement Factors in 16 Areas

Satisfaction

External
adaptation
Internal
cohesiveness

INK BLOT

IDLE LINE(Indifferent)(Unnecessary
expenditures)Transformation
activities

LM Mission

Succession

Business
Strategy

Ideally, expectation and satisfaction levels are highand engagement factors align in an ascending curve.

Organizational
Strategy

Corporate
GovernanceCorporate Data

25

Maintaining High Employee Engagement since
Our Founding
Engagement Scores are rated and ranked using the Engagement Rating (ER). The 11 ER levels from DD to AAA allow comparisons among organizations.
Since 2018, we have disclosed the ER of each of our Group companies to the capital market to demonstrate the importance of employee engagement tobusiness growth. A high level of employee engagement is one of the strengths of our organization, with nearly every Group company receiving thehighest rating of AAA.

Organizational Strategy

No. of
Employees

Rank

Link and Motivation Inc.

371

AAA

Link Global Solution Inc.

18

AAA

Link Event Produce Inc.

22

AAA

Link Corporate Communications Inc.

47

AAA

Company

a2media Corporation

20

AA

Link Academy Inc.

507

AAA

Dean Morgan K.K.

30

AAA

Motivation Academia Inc.

26

AAA

Link Interac Inc.

167

AAA

Link Japan Careers Inc.

27

AAA

Link Staffing Inc.

65

AAA

Link-i Inc.

28

AAA

OpenWork Inc.

69

BBB1

Score
Ratings

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33
DD

Introduction

39
DDD

42
C

LM Mission

45
CC

Business
Strategy

Number of AAA-Rated Companies2

10 companies
2019 11 companies
2020 10 companies
2021 11 companies
20183(out of 12)(out of 12)(out of 13)2

(out of 13)

1. November 2020 results for OpenWork Inc. only.
2. Results from February for each year. OpenWork Inc. wasadded as of 2020. Excluding Link Dining Inc., which is in the
Other segment.
3. Results from August for 2018 only.

48
CCC

LINK AND MOTIVATION GROUP - IR BOOK 2020Engagement Ratings of Group Companies (Conducted in February 2021)

52
B

55
BB

58
BBB

Organizational
Strategy

61
A

67
AA

Corporate
GovernanceAAA

Corporate Data

26

A Core Philosophy-Based Strategy That Unites the
Link and Motivation GroupTo create an organization that achieves sustainable growth, we emphasize our core philosophy. Sympathy with this philosophy is essential for our
Company, with its short 20-year history, to enable it to continue providing value many years into the future. Going beyond simply sharing and inculcating
the Company’s raison d’etre and vision, we have compiled a DNA Book to promote the understanding and practical utilization of our management
concepts and philosophies among employees. We use it in tandem with our History Book, which provides a narrative for how management decisions
have been made based on those management philosophies.

Organizational Strategy(Conducted in February 2021)
Level of
Expectation

Level ofSatisfaction

Link and Motivation Inc.

4.5

4.5

Link Global Solution Inc.

4.0

3.9

Link Event Produce Inc.

4.7

4.3

Link Corporate Communications Inc.

4.4

4.4

a2media Corporation

4.1

3.5

Link Academy Inc.

4.3

4.4

Dean Morgan K.K.

4.3

4.2

Motivation Academia Inc.

4.3

4.1

Link Interac Inc.

4.2

4.1

Link Japan Careers Inc.

4.4

4.3

Link Staffing Inc.

4.4

4.2

Link-i Inc.

4.6

4.6

OpenWork Inc.

4.0

3.8

Company

Note: 5-level evaluation

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Business
事業戦略
Strategy

LINK AND MOTIVATION GROUP - IR BOOK 2020

Sympathy with the Corporate Philosophy in Each Group Company

Media Used to Increase Unity under
Our Philosophy
We regularly update our DNA Book and History
Book to reflect changes in our perception of thebusiness environment so that management andemployees can share current views and ideas.

DNA Report
In 2020, employees reported on examples of theirown practical application of the DNA Book andtheir ideas for business creation, which were
published and shared within the Group.

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

27

Personnel Management to Increase
Employee Engagement
Employee engagement must be viewed from multiple perspectives, and to increase employee engagement, we consider it essential to manage
role planning, human resource development, the management system and communication. Through ongoing management of these variables, wecreate organizations with a high level of employee engagement that are in tune with our business strategies and based on our core philosophy. An
explanation of the intent and content of each of our initiatives begins on the next page.

Organizational Strategy

Message

Motivation

Business
Strategy

Creating
Motivation

LINK AND MOTIVATION GROUP - IR BOOK 2020

Framework for Improving Employee Engagement

Communication
See pages 38-41 for details.

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Membering

MissionMonitoring

Human Resource
Development

Role
Planning

Management
SystemSee pages 31-35
for details.

See pages 29-30
for details.

See pages 36-37
for details.

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事業戦略
Strategy

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組織戦略
Strategy

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Mission— Role Planning —Specialized by Business Strategy.
Integrated through Significance.
Maximizing business results requires both functional and hierarchical differentiation based on the characteristics of each business. Link andMotivation, which has been diversifying its business portfolio since 2010, introduced a headquarters system in 2017. Currently, the Group is divided
into five divisions, but at the same time it is integrated through the significance of conducting each business. To help resolve the issues facing
Japanese society, we look at Japan as a single corporation, positioning ourselves as the organizational development department and the humanresource development department of Japan Inc. Our own organization utilizes the same framework. As such, we have built a structure in which our
employees can conduct business with a sense of social mission.
LINK AND MOTIVATION GROUP - IR BOOK 2020

Organizational Strategy

Conducting Business under a Five-Division Structure

Japan Inc.

Organizational Development Department
Organizational
Development
Division L

Organizational
Development
Division V

Leading

VentureConsulting
for major
corporations

Consulting for
SMEs

Organizational
Development
Division C
Corporate
Branding
Corporate
branding
activities

Human Resource Development Department
Human Resource
Development
Division N

Human Resource
Development
Division G

National

GlobalCreation of i-Companies
among Japanese humanresources

Creation of i-Companies
among non-Japanesehuman resourc es

Group Design Office(Business support for the five divisions)

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事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

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29

Mission— Role Planning —Company Administrators: Professionals Responsible
for Improving Employee Engagement
Link and Motivation has a position called Company Administrator (CA), a person who is a professional responsible for improving employee engagement
within each company. Working in close cooperation with their company managers, CAs are responsible for sharing Group policies and communicatingwith their respective divisions. Based on employee engagement evaluations, they are also responsible for everything from identifying organizational
issues in their own companies to formulating and implementing solutions. Once a year, we choose outstanding Company Administrators (CAs) andpresent them with the Administrator of the Year (AOY) award, and share the winners’ initiatives throughout the Group.

Organizational Strategy• I dentify own company’s organizational issues,
formulate and implement solutions

CAs of othercompanies

Improvement ofengagement

CA

Sharing of knowledge•U nderstand implementation status ofmanagement policies•U nderstand the manager’s issues

LINK AND MOTIVATION GROUP - IR BOOK 2020

Role of the CA in Increasing Employee Engagement

Company
managerManagement

Sharing Group policies
Members

Administrative
Division•U nderstand work status and issues for eachdepartment and member•U nderstand employee motivation level

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事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

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30

Membering− Human Resource Development−

Recruiting

Attracting the Desired Talent Rather Than
Just Choosing the Most Acceptable Applicants
We consider recruiting activities to be so important that we started hiring new university graduates at the unusually early stage of just one year after theCompany’s founding. Even today, LMG Chairman Ozasa conducts every final interview. Through measures such as these, we achieve a high level ofengagement centered on our core philosophy. Moreover, in hiring future management personnel, we approach new graduate recruiting with a stance of
attracting the desired talent. This has already resulted in many new managers and officers. Hiring talented, high-potential human resources also helps
to reduce training costs after those people join the Company.
LINK AND MOTIVATION GROUP - IR BOOK 2020

Recruiting Activities to Attract Future Management Personnel

Organizational Strategy

FuturePresent
Management
personnel

Management
personnel

Mutual understanding and affinity
ApplicantsCore Philosophy

By having management and employees work together todevelop recruiting activities, both applicants and the entire
Group are united by a common philosophy.

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Management
personnel

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

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Membering− Human Resource Development−

Recruiting

Entry Management for People Entering the Company
Because we regard recruiting activities as managing the entrance to our organization or, as we call it, “entry management,” we call our recruiters“entry managers” (EMs). EMs are mainly responsible for providing information about the Company and supporting the selection process. Because EMs
support applicants in extensive self-analysis as well as discuss the Company’s future with applicants in their own words, the position is a valuable
opportunity that leads to a change in awareness of their own daily work. In addition, once a year, we choose outstanding entry managers and present
them with the Entry Manager of the Year (EOY) award.

LINK AND MOTIVATION GROUP - IR BOOK 2020

Increasing Applicant Engagement during the Selection Process

Organizational Strategy

Feelings based on formative experiences
Targeted goal at LMG

ApplicantExtensive
self-analysis

Entry
Manager

LMG

Providinginformation

Promoting sympathy with the
LMG philosophy

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事業戦略
Strategy

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組織戦略
Strategy

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Governance

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Membering− Human Resource Development−

Cultivation

Developing Not Only Surface Level Skills, but Also a“Deep Level Stance”
Creating opportunities for employees to grow is indispensable for becoming an organization with a high level of employee engagement. We systematize
the skills necessary for individuals to generate results as our personnel requirement framework and emphasize developing not only surface level skills
but also a deep level stance. To achieve this, we conduct Group-wide training, which is one of Link and Motivation’s services. We also offer abundant
opportunities to cultivate an “i-Company,” in other words, individuals who independently and autonomously develop their own careers.

LINK AND MOTIVATION GROUP - IR BOOK 2020

Personnel Requirement Framework for the Skills Necessary for Individuals to Generate Results

Organizational Strategy

All Employees• Training to learn core Motivation
Engineering technology• Providing opportunities to acquirenecessary skills at each Group company
All Employees• Skill acquisition training by rank

Technical skills
Portable skills
Self-directedcapabilities
Interpersonal
skillsYoung Employees• For new graduate employees
in the 1st to 3rd years

Task-directedcapabilities

Motivation type

All Employees• Bridge Survey*

Business stance
Potential

i-Company support* A n aptitude test developed by LMG based on the “basic skills of working adults” surveyed by the Ministry of Economy,
Trade and Industry. It is an index (yardstick) that can be used at all stages from recruiting to training.

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Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

All Employees• Submission of a career planning sheet
twice a year
• Interview with Personnel Department
and career change for applicants

Corporate
Governance

コーポレート・ガバナンス

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33

Membering− Human Resource Development−

Cultivation

Mastering Motivation Engineering, the Foundation of
All Our Businesses
Motivation Engineering is our core technology and the foundation of all our businesses. As businesses and human resource needs rapidly diversify,
our management team conducts joint research with the Motivation Engineering Institute, our in-house research organization, to promote employee
understanding and utilization of Motivation Engineering as a shared template for the Group that transcends business areas. The chairman and othermanagement team members serve as lecturers at training covering topics from concepts premised on Motivation Engineering to methods for its
practical application in each business.

Organizational Strategy

LINK AND MOTIVATION GROUP - IR BOOK 2020

Training to Promote Employee Understanding and Practice

The chairman and management team act as lecturers during training sessions (conducted in February 2019).

Previous Training Themes

For Division Managers• The ideas and premise behindcore Motivation Engineering
technology• Organizational management
methods based on Motivation
Engineering

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Consulting Business• LMG’s unique framework forcompany diagnostics• Engagement management system

Business
事業戦略
Strategy

Event & Media Business• Discovery and communicationof a company’s uniqueness forcorporate branding

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

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34

Membering− Human Resource Development−

Cultivation

Developing Required Skills Based on Surveys by Rank,
Including Officers
We carry out a 360-degree evaluation survey (an LMG service) by employee rank twice a year. Survey items are different for each rank so employees canaccurately identify their own issues and make improvements. Based on the survey results, we hold multilateral discussions to provide advice on issues
and conduct training to establish future action plans, and rapidly go through the plan-do-check-act (PDCA) cycle for growth. All employees, including
officers, take the survey to encourage the creation of an environment in which they can continue to grow, regardless of years of service or position.

Organizational Strategy

Number ofTrainees

Rank

SurveyTraining

Company Presidents
Company General
Managers

Plato Survey• Survey feedback training• New president training

53

Managers

Lincoln Survey• Survey feedback training• New manager training

104

Employees(including senior
employees)

KOSI Survey
Einstein Survey
Columbus Survey• Survey feedback training

868

New Employees

Darwin Survey• Survey feedback training• “Start-Up Program”
training

245(Second half of 2020)

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LINK AND MOTIVATION GROUP - IR BOOK 2020

Rank-Based 360-Degree Evaluation Surveys

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Survey feedback and training that transcends
the boundaries between Group companies anddepartments (October 2019)
Note: All training in 2020 was conducted online.

Corporate
Governance

コーポレート・ガバナンス

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Monitoring− Management System −Evaluations

Evaluations That Are Not Just Accurate but Convincing
Improving employee engagement requires an evaluation system that enhances employee satisfaction. Our system combines the three aspects ofclass, evaluation and salary. Classes are revised every three months, with 12 stages based on clear expectations. The two axes of “performance” and“stretch” are used as indicators in evaluations, and the degree of individual growth is evaluated along with business results. In addition, to ensurethat evaluations and their results are quickly reflected in actual pay, salaries are adjusted every three months according to company performanceand individual evaluations.

LINK AND MOTIVATION GROUP - IR BOOK 2020

A System for Highly Convincing Evaluations

Organizational Strategy

Clear Role Expectations for 12 Classes

Class

Evaluation

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Managers

Junction points

Middle managers

Leaders

New employees

Daily evolution   Others

Immediate Rewards Based on Results• Class-based compensation• Premier rewards• Performance• Stretchhttps://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

Pursuit of profound ideals

SalaryEvaluation of Level of Personal Growth inAddition to Business Results

IR BOOK 2020
2021

Company managers

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

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Monitoring− Management System −Time

A Unique Calendar That Runs at a Speed Four Times
That of the Rest of the WorldTo improve employee engagement, we are committed to sharing our view of time and our view of the world. We operate under a unique LM calendar,in which three months everywhere else is one year at LMG. Rather than the general concept of quarters of a fiscal year, our divisions for managing
our organization are all set in units of three months. This system includes management of business results, setting goals, personnel evaluations,adjustments to compensation, bonus payments, Group-wide general meetings and Pit In vacations. We aim for rapid business development by
having everyone experience time in a more concentrated fashion.

Evaluation/
Compensation

Class and
Compensation
Adjustment

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Evaluation
fromPrevious
QuarterClass and
Compensation
Adjustment

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

Pit In vacation

Evaluation
fromPrevious
Quarter

Pit In vacation

Organizational Strategy

Evaluation/
Compensation

Group General Meeting

Three Months Everywhere Else is One Year at LMG

Employees set targets

Three Months Everywhere Else is One Year at LMG

Group General Meeting

April-June

Employees set targets

January-March

コーポレート・ガバナンス

LINK AND MOTIVATION GROUP - IR BOOK 2020

LM Calendar Facilitates Rapid Business Development...

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37

Communication− In-house Communication −In-House Media That Stimulate Communication,
the Bloodstream of an Organization
We consider internal communication to be the “bloodstream” of an organization. Just as humans develop illnesses when blood flow is poor, active
communication is essential for ongoing improvement in employee engagement. Therefore, we do not scrimp on costs for communication. We provide
opportunities at various times for communication that connects top management, workplaces, departments and all employees. Moreover, weenhance its effectiveness by using different media such as the Internet, video and events.

Communications from managers/
management board

Organizational Strategy

VerticalHorizontal

Sharing information about
departments and people

feedback fromInternal/External Sharing
stakeholders

EventsTop Comment

Message from Chairman Ozasa sharing management’s view via
the LMG intranet

LM Times
LM Job Story

Presentation on the LMG intranet of information useful for
creating Motivation Companies and i-Companies, andinformation that conveys the appeal of various jobs

Group General Meeting

A forum for sharing current status and future aims to instill a
common Group viewpoint

YearlyHistory Book

An annually updated book summarizing the Group’s history
since its founding.

Irregularlyscheduled

DNA Book

A book for sharing LMG’s valued heritage

Quarterly

https://www.lmi.ne.jp/
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Video

Presents LMG business results data, etc., with an emphasis on
timeliness

Monthly

IR BOOK 2020
2021

InternetLMG News

Daily

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Initiatives to Stimulate Communication

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

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Communication− In-house Communication −Top Comment: Sharing Sophisticated Viewpoints
Rather Than Copious Information
We emphasize sharing viewpoints as a prerequisite for communication. There is individuality in each employee’s viewpoint, which can lead toparticularly large gaps between their viewpoint and that of top management. With this in mind, LMG’s Top Comment is focused on sharing
sophisticated viewpoints covering areas such as the context for management decision-making, rather than merely disseminating copious
information. Employees can also reply to the Top Comment, and top management uses the column as a way to share viewpoints, and to see how
well the viewpoints are aligned in the comments.
LINK AND MOTIVATION GROUP - IR BOOK 2020

Sharing Viewpoints through the Top Comment Column

Organizational Strategy

Track Record in 2020

Number ofColumns

25

times

AccessRate

99.9%(January 2020)

Total Number ofResponses during the Year

4,744

Increase in Top Comment Columns during the
COVID-19 Pandemic
In emergency situations, we consider it crucial to consciously strengthencohesion. Even before a state of emergency was declared in Japan,
Chairman Ozasa had been regularly reminding members of the Group’s
policies. He has continued to send messages to all employees in a timely
manner, in concert with the announcement of government policies. In
addition, by verbalizing the idea that the pandemic could be used as anopportunity and sharing that idea throughout the Group, he not only
dispelled employee anxieties but also contributed to improving employee
engagement, thus helping to maximize results.

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Strategy

Organizational
組織戦略
Strategy

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Governance

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Communication− In-house Communication −Encouraging New Value Creation with Inspirational
Messages at Group-Wide General Meetings
All our employees gather at a Group-wide general meeting that is held once every three months. Meetings have continued online during the
COVID-19 pandemic as a forum for sharing our viewpoints. At the general meeting, there are reports on business performance, awards are given
to projects and individuals, and top management shares policies. At LMG, where three months everywhere else is one year, the general meetingis an important milestone to conclude the year. By broadening employees’ viewpoints in terms of both time and space, and by showing highstandards through the awards, the general meetings are an opportunity to encourage the creation of new value.

Organizational Strategy

Presentation from Top Management

Awards Ceremony

Sharing the viewpoint of top management
to create a multifaceted understandingof the Group’s future

Providing meaningful rewards beyond
just financial ones

LINK AND MOTIVATION GROUP - IR BOOK 2020

The Group-Wide General Meeting Shows the Group’s High Standards

Speeches at the awards ceremony at the Group-wide
general meeting (held in 2019)

Comments from Meeting Attendees (Excerpt)
I think it was very good to be able to share a message related tofuture directions at the general meeting again this year. We carry out
meaningful work with an eye to the future. For that purpose, wemust have the courage to change and the ability to talk to each otherwhile remaining compassionate. I think this intention and our
corporate culture came through at the online general meeting.
Eleventh-year employee

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Business
事業戦略
Strategy

Each LMG general meeting is a turning point, so I can really feel how
it makes time seem more concentrated. This meeting was also agood place to find role models. They have given me a healthy senseof urgency about further raising my standards.

Second-year employee

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

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Communication− Work Style −A Work Style That Simultaneously Improves Labor
Productivity and Employee Engagement
We have used the COVID-19 pandemic as an opportunity to build a new work style model called Compatible Work. Compatible Work utilizes thefeatures of real-world and virtual approaches to simultaneously improve both labor productivity and employee engagement. Specifically, we willschedule office work days and telework days for each team, and design and carry out work suitable for each format. Because we value employee
engagement, we are flexibly changing the way we communicate depending on the situation.

Organizational Strategy

Benefits of Office Work (Real World)

Cooperation

ChanceOccurrences

Emotionand Logic

Foster asense of unity

Learn fromothersPromoteunderstandingof others

Benefits of Telework (Virtual)

Sympathy

Concentration

Planning

Rationality

Synchronization

Share the same
feelings

Improve work
efficiency

Carry out taskssystematically

Conduct
standardized
operations

Simultaneouscommunicationof information

COMPATIBLE WORKSet up a schedule of days for working in the office
Increase productivity by optimally planning each day’s work and raise motivation by providing
opportunities for real-world communication as appropriate

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事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

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LINK AND MOTIVATION GROUP - IR BOOK 2020

A Work Style That Makes the Most of the Features of Real-World and Virtual Approaches

Corporate Governance

LINK AND MOTIVATION GROUP - IR BOOK 2020

Corporate
Governance2021
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事業戦略
Strategy

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組織戦略
Strategy

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Governance

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Governance
FormatA Management Structure for Realizing Our Mission
To achieve the LM Mission, we realize we must continue to be an organization that realizes Management with Integrity and “One for All, All for One.”As a guideline, employees share the three goals of LMG’s management policy. This results in management without any wrongdoing or dishonesty withregard to any of our stakeholders; diverse human resources who embrace the spirit of “One for All, All for One;” and the ability to make our own changes
based on an awareness of changes in markets and laws. Through these measures, we have selected the governance format of a company with an audit
and supervisory board in order to continue our sustainable growth.

LINK AND MOTIVATION GROUP - IR BOOK 2020

A Governance Format Chosen for Sustainable Growth
LM Mission
Corporate GovernanceThrough Motivation Engineering, we provide
opportunities to transform organizations andindividuals and create a more meaningful society

Our Target Motivation Company

An organization that realizes
Management with Integrity and “Onefor All, All for One”

Three Management Policy Goals

Management with
Integrity
Current form of governance:

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Management inWhich Every
Employee Plays a
Leading RoleManagement with
Good Reflexes

Company with an Audit & Supervisory Board

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

43

Governance
FormatGovernance System to Ensure Management
Soundness, Transparency and Efficiency
Board of Directors

Audit & Supervisory Board

Corporate Governance

The Audit & Supervisory Board is composed of threemembers (including two outside members). In principle,
it meets once a month to monitor the business executionof directors, including confirming the proper operationof the Board of Directors, and to exchange opinions on
issues related to compliance and other matters.

The Group Management Committee meets twice eachmonth, attended by presidents of subsidiaries andother related parties other than directors and Audit &Supervisory Board members, as necessary, to reporton matters related to the execution of their duties. In
doing so, they communicate instructions and exchange
opinions on business execution.

Governance Organization
General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Board of Directors

Cooperate

Internal Audit & Supervisory
Board Members
Business Divisions

イン
トロダクション
Introduction

Independent Auditor

Audit & Supervisory
Board audit
Cooperate

Representative Directors

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

Cooperate

Audit & Supervisory Board

Appoint/Dismiss

2021
IR BOOK 2020

Appoint/Dismiss

Accounting audit

Internal audit

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data44

LINK AND MOTIVATION GROUP - IR BOOK 2020

The Board of Directors is composed of eight directors(including two outside directors) and has ultimate
authority for determining fundamental management
policies and high-priority tasks as well as decisions
regarding key legally mandated issues. In principle, it
meets once a month, with other meetings held asappropriate when important agenda items arise. The
three Audit & Supervisory Board Members also attend
meetings of the Board of Directors to monitor its
decision-making.

Business Divisions

Management
Team
As of December 31, 2020

Appointing Human Resources Capable of Making Management
Decisions That Link Businesses and Organizations
Currently, the Board of Directors of Link and Motivation Inc. is composed of eight directors (including two outside directors). All six directors of the Board, which
includes founding members of the Company and members who entered the Company as new university graduates, are human resources capable of making
decisions that link business strategy and organizational strategy as professionals in organizational transformation, with extensive experience as organizational
and personnel consultants. The two outside directors leverage a high level of insight gained from management at multiple companies and expert knowledge ofindustrial and organizational psychology, which has a high degree of affinity with the business fields of the Link and Motivation Group, among their other attributes.
LINK
LINK
AND
AND
MOTIVATIONMOTIVATIONGROUP- IR REPORT- IR BOOK
2021
2020

Corporate GovernanceDirectors

Chairman and Representative Director

President and Representative Director

Director

Ozasa Yoshihisa

Sakashita Hideki

Ohno Shunichi

Kitsu Hiroyuki

1986	Joined Recruit Co., Ltd.
2000	Established the Company, andassumed the position of
President and Representative
Director
2013	Chairman and Representative
Director (to present)

1991 Joined Recruit Co., Ltd.
2000	Established the Company, andassumed the position of Director
2013	President and Representative
Director (to present)2017	Director, Link Global Solution
Inc. (to present), Director, Link
Corporate Communications
Inc. (to present), Director, Link
Event Produce Inc. (to present)

1992	Joined Aoyama Audit Company(PriceWaterhouse)
1998	Joined PwC Consulting Co., Ltd.
(currently IBM Japan, Ltd.)
2002 Joined the Company
2008	Director (in charge of Group
Design Office, to present)

1988 Joined Recruit Co., Ltd.
2006	Operating Officer, Recruit
Agent Co., Ltd. (currently
Recruit Career Co., Ltd.)2013	Joined Square Enix Co., Ltd.
and assumed the position of
Corporate Executive
2015	Joined the Company andassumed the position of
Operating Officer, Director,
Interac Co., Ltd. (currently,
Link Interac Inc.) (to present)2016 Director (to present)
2020	Director, Link Japan Careers Inc.
(to present)2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Director

Note: Also serves as director at eachconsolidated subsidiaryBusiness
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

45

Management
Team

Directors

Director

Director

Outside Director

Oguri Takashi

Kawauchi Masanao

Yuasa Tomoyuki

Outside Director

Kakuyama Takashi

2002 Joined the Company
2010 Operating Officer
2014	President and Representative
Director, Link Academy Inc. (topresent)
2017	Director, Link Marketing Inc.
(currently, Link Staffing Inc.) (topresent), Director, the Company(to present), Director, Dean
Morgan K.K. (to present)2018	Director, Motivation Academia
Inc. (to present)

2003 Joined the Company
2010	Operating Officer
2014	Executive Officer, Company
President, Motivation
Management Company
2018	Operating Officer, General
Manager, Organizational
Development Division L (topresent), Director (to present)
2019	President and Representative
Director, Link Global Solution
Inc. (to present)
2020	Operating Officer, General
Manager, Organizational
Development Division V (topresent)

2000	Joined Andersen Consulting,Ltd. (currently, Accenture
Japan Ltd.)2005	Joined Revamp Corporation2010 Director, Revamp Corporation2011	Director and Vice President,
Revamp Corporation
2016	Outside Director, the Company(to present), President,
Representative Director andCEO, Revamp Corporation(to present), Outside Director,
K’s Holdings Corporation(to present)

1991	Professor, Tokyo International
University
1992	Visiting Researcher, Michael G.
Foster School of Business,
University of Washington
2003	Dean of Faculty of Human andSocial Studies, Tokyo
International University
2009	Dean of Graduate School ofSociology, Tokyo International
University
2011	Professor and Director of
Motivation Laboratory, Tokyo
Future University
2012	Dean of School of Motivation
and Behavioral Sciences, Tokyo
Future University
2018	President, Tokyo Future
University (to present)
2020	Outside Director, the Company(to present)

Audit & Supervisory Board Member(Full-Time)

Audit & Supervisory Board Member(Part-Time)

Audit & Supervisory Board Member(Part-Time)

Honda Yutaka

Kimura Hidekazu

Tominaga Kenji

1986 Joined Recruit Co., Ltd.
2000 Director, the Company
2002	Audit & Supervisory Board
Member (to present)

1983	Joined Japan Recruit Center Co.,
Ltd. (currently Recruit Co., Ltd.)
2003	Established HRT, Inc., President
and Representative Director(to present)
2006	Audit & Supervisory Board
Member, the Company (to present)

1979	Joined Japan Recruit Center Co.,
Ltd. (currently Recruit Co., Ltd.)
1999	Established Career Plan Co., Ltd.,
President and Representative
Director (to present)
2000	Audit & Supervisory Board Member,the Company (to present)
2001	Established Career Design Co., Ltd.,
President and Director (to present)

LINK AND MOTIVATION GROUP - IR BOOK 2020

Corporate Governance

As of December 31, 2020

Audit & Supervisory Board

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス

コーポレートデータ
Corporate Data

46

Strengthening
ComplianceManagement Utilizing Motivation Engineering
In recent years, compliance violations have become a social problem, occurring one after another. We believe that low employee engagement createsa breeding ground for organizational fraud. We are proactively working to strengthen compliance so that we can become a role model for society bycontinuing to be an organization that realizes Management with Integrity and “One for All, All for One.” We conduct compliance training in which
members of top management explain how to apply Motivation Engineering and publish the Six Codes of LM, which summarize the Group’s various
rules. We also focus on raising employee awareness, including regularly disseminating information on topics from legal affairs to compliance.

Corporate GovernanceMembering

Monitoring

Communication

Human Resource Strategy

Management System

Communication

Training conducted with top
management as lecturers

Six Codes of LM (a collectionof rules)Six Codes video atGroup-wide meeting
Six Codes promotional poster• Improve awareness of compliance• Link with the consulting businessAccounting Management CodeCommunication Management Code
Entry Management CodeHuman Resource Management CodeRisk Management CodeWorkstyle Management CodeLINK AND MOTIVATION GROUP - IR BOOK 2020

Strengthening Compliance based on the Idea of Improving Engagement

大切なこと、
忘れていた

私 た ち が 目 指 す モ チ ベ ー シ ョ ン カ ン パ ニ ー と は 、お 客 様 、お 取 引 先 、社 員 、株 主 様 な ど
私たちを取り巻くすべてのステークホルダーに対して、法令違反や不誠実が一切存在しない「一点の曇りもない」状態を前提に、“組織成果の極大化”と“個々人のモチベーションの極大化”を同時実現した「One for All , All for One」の姿です。

L B S にて放映中！

契約はステークホルダーとの大事な「約束」の一つです。
「約束」と「実行」は信頼創りの第一歩。意志を持って進めましょう。

一 点 の 曇 りもないOne for All, All for One

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
Governance

コーポレート・ガバナンス「契約締結不備」篇

コーポレートデータ
Corporate Data

47

Corporate Data

LINK AND MOTIVATION GROUP - IR BOOK 2020

Corporate
Data

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ48

Performance, Financial Position and Dividends(¥ million)
2016

2017

2018

2019

2020

(¥ million)
50,000

Performance
33,321

Revenues

36,89439,941

38,19135,27840,00030,00012,177

13,362

15,651

14,602

14,653

9,577

10,041

11,592

11,773

12,852

10,000

Other income

113

131

24

171

853

0

Other expenses

244

87

258

992

2,413

Operating income

Gross profit
 elling, general and administrativeS
expenses

39,941

38,191

20182019

35,278

3,365

3,825

2,007

241

13

38

29

24

18

Financial expenses

136

141

132

170

242

1,804

2,096

1,918

1,090

(929)

Financial Position

2016

2017

Operating Income/Net Income (Loss)(¥ million)
4,000
3,000
2,000

3,825

3,365
2,468
1,804

2,096

1,000

Total assets

18,532

25,77027,66444,78741,083

Total equity

4,780

6,697

7,681

7,033

4,917

Interest-bearing debt

6,775

10,425

11,20830,03628,379

5.30

6.20

6.80

7.20

7.20

Dividends (Yen)

1. From 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles inJapan (J-GAAP). Figures for 2016 have been restated to reflect the change.
2. Dividends per share of ¥5.30 for 2016 consisted of ¥1.25 in each of the first and second quarters and ¥1.40 in each of the third and fourth quarters.
3. Dividends per share of ¥6.20 for 2017 consisted of ¥1.50 in each of the first and second quarters and ¥1.60 in each of the third and fourth quarters.
4. Dividends per share of ¥6.80 for 2018 consisted of ¥1.70 in each of the four quarters.
5. Dividends per share of ¥7.20 for 2019 and 2020 consisted of ¥1.80 in each of the four quarters.

2020

1,918 2,007
1,090
241

0
(1,000)(929)(2,000)

2016

2017

■Operating Income

2018

2020

2019

■Net Income (Loss)

Total Assets/Total Equity(¥ million)
50,00044,78740,00030,00020,00041,08325,770 27,664
18,532

10,000

4,780

6,697

7,681

7,033

0

2016

2017

2018

2019

4,917

2020

■Total Assets ■Total Equity

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ

49

LINK AND MOTIVATION GROUP - IR BOOK 2020

2,468

Dividends per share

36,89433,321

20,000Financial revenues

Net income (loss)
Corporate Data

RevenuesKey Financial Indicators
Operating Margin

2016

2017

2018

2019

2020

Operating margin (%)

7.4

9.1

9.6

5.3

0.7

(%)
12

Return on equity (ROE) (%)

39.5

36.7

27.1

14.7

(17.2)

9

16.58

19.95

18.42

10.30

(9.50)

6
3
0

Basic earnings per share (EPS) (Yen)
Diluted earnings per share (Yen)

—

—

18.36

10.28

(9.50)

Book value per share (BPS) (Yen)

45.26

63.37

72.87

67.13

35.84

Ratio of equity attributable to owners of theparent to total assets (%)

9.1

5.3

0.7

2016

25.8

26.0

27.8

15.7

9.6

7.4

2017

2018

2019

2020

9.2
Return on Equity (ROE)
(%)
40

39.5

36.7

30

27.1

Corporate Data

20

14.7

10
0
(10)

(17.2)

(20)

2016

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernance

2017

2018

2019

Corporate Data
コーポレートデータ

2020

50

LINK AND MOTIVATION GROUP - IR BOOK 2020

Note: From 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting
principles in Japan (J-GAAP). Figures for 2016 have been restated to reflect the change.

Revenues by Business/Other Business-Related Data(¥ million)

Revenues by Business
Organizational Development Division
Consulting & Cloud Business
Event & Media BusinessIndividual Development Division
Career School Business
Cram School Business

Matching DivisionCorporate Data

Total

2017

2018

2019

2020

9,825
8,034
3,264
6,647
6,545
101
17,973

11,695
8,959
4,243
7,220
6,730
490
19,37913,277
10,071
4,163
7,879
7,122
758
20,106

11,729
8,883
3,430
7,838
7,139
704
19,487

9,923
7,808
2,604
6,732
6,071
666
19,427———

12,563

12,931

—

—

—

6,948

6,535

33,32136,89439,941

38,19135,278

1. Revenues by Business include intersegment transactions.
2. From 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles
in Japan (J-GAAP). Figures for 2016 have been restated to reflect the change.
3. The name of the Consulting & Outsourcing Business was changed to the Consulting & Cloud Business in 2020.
4. Because the Matching Division changed to its current internal classifications in 2020, only figures for 2019 have been retroactively revised.

Revenues by Business (2020)
Individual Development
Division

19.1%

Matching
Division

54.1%

Organizational
Development
Division

26.8%

LINK AND MOTIVATION GROUP - IR BOOK 2020

 lobal Personnel Placement & Temp
G
Staff BusinessDomestic Personnel Placement & Temp
Staff Business

2016

Number of Client Companies
4,000
3,000

2,823

3,005

2016

2017

3,713

3,545

3,362

2018

2019

2020

2,000
1,000

Number of Client Companies by
Business (Consolidated)

2016

2017

2018

2019

2020

Consulting & Cloud Business
Event & Media Business
Global Personnel Placement & Temp Staff
Business
Domestic Personnel Placement & Temp
Staff Business

1,385
440

1,474
434

1,636
964

1,725
748

1,488
824

557

630

657

655

606

640

666

632

626

693

Total

2,823

3,005

3,713

3,545

3,362

0

Number of Employees
1,600
1,200

Number and Average Ageof Employees
Number of employees(Consolidated)
Number of employees(Non-consolidated)
Average age of employees(Consolidated)
Average age of employees(Non-consolidated)

2021
IR BOOK 2020

2013

2014

2015

2016

2017

2018

2019

2020

1,225

1,369

1,209

1,239

1,397

1,375

1,391

1,498

193

186

190

203

225

249

312

403

34.6

35.5

35.9

36.0

36.2

36.0

35.9

35.6

31.1

31.6

31.0

32.3

33.3

31.4

30.8

31.1

1,397

1,239

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

1,391

1,498

800
400

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

1,375

203

225

249

312

2016

2017

2018

2019

403

0

2020

■Consolidated ■Non-consolidated

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ

51

Consolidated Statements of Financial Position(¥ million)
2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

3,566
—

4,023
—

2,394
1,573

2,397
1,760

2,174
1,786

3,337
373
35
2,354
9,668

5,007
883
2
2,212
12,129

4,749
1,077
18
2,287
12,101

5,943
865
21
1,843
12,831

9,218
484
129
2,149
15,944

3,438
278
199
167
4,084
13,752

5,418
440
813
270
6,942
19,072

6,458
435
724
261
7,881
19,98224,092462
218
148
24,92237,754

19,161560
362
138
20,222
36,166

 quity attributable to owners ofE
the parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity

1,380
2,137
(1,373)
1,952
683

1,380
2,137
(1,373)
3,426
1,121

1,380
1,989
(1,373)
4,763
936

1,380
1,987
(1,733)
5,440
(31)

1,380
1,855
(1,733)
3,989(1,731) Total equity attributable toowners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

4,780
—
4,780
18,532

6,692
4
6,697
25,770

7,696
(15)
7,681
27,664

7,043
(10)
7,033
44,787

3,760
1,157
4,917
41,083

LIABILITIESASSETS
Current assets
1,082

1,654

1,979

2,160

6,449

Trade and other receivables

4,001

4,929

4,533

4,114

3,680

Inventories

144

186

278

256

187

Other current financial assets

11

11

9

17

14

Other current assets

1,506

808

1,015

4,905

1,057

Total current assets

6,747

7,589

7,817

11,454

11,389Property, plant and equipment

1,084

1,905

1,851

17,40013,953

Goodwill

5,202

6,701

6,551

5,927

9,376

484

1,534

1,841

2,095

2,266

—

1,164

3,080

2,788

—

4,279

6,017

5,821

4,033

3,203

Deferred tax assets

349

506

440

839

646

Other non-current assets

384

350

260

248

245

Total non-current assets

11,78518,18019,84733,33329,694

18,532

25,77027,66444,78741,083

Intangible assets Investments in associates
 ther non-current financial
O
assetsTotal assets

Current liabilities
Trade and other payables
Contract liabilities Interest-bearing and otherfinancial liabilities
Income tax payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities Interest-bearing and otherfinancial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

EQUITY

Note: The former item “Income taxes receivable” is included in “Other current assets” for presentation from 2016.

2021
IR BOOK 2020

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https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ

52

LINK AND MOTIVATION GROUP - IR BOOK 2020

Cash and cash equivalents

Non-current assets
Corporate Data(¥ million)

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income(¥ million)

2016

2017

2018

2019

2020

Revenues

33,32136,89439,941

38,19135,278

Cost of sales

21,14423,531

24,29023,58920,624Gross profit

12,177

13,362

15,651

14,602

14,653

 elling, general andSadministrative expenses

9,577

10,041

11,592

11,773

12,852

113

131

24

171

853

Other income

244

87

258

992

2,413

2,468

3,365

3,825

2,007

241

Financial revenues

13

38

29

24

18

Financial expenses

136

141

132

170

242

Equity in earnings of associates

—

2

(335)

43

41

2,345

3,265

3,387

1,904

58

584

1,169

1,468

814

988

1,804 1

2,096

1,918

1,090

(929)

Income before income taxes
Corporate Data

Income taxesI ncome from continuing
operations(Attributable to)
Owners of the parent
Non-controlling interests
Total

1,804

2,107

1,945

1,086

(996)

—

(11)

(27)

4

66

1,804

2,096

1,918

1,090

(929)

18.42

10.30

(9.50)

16.582

19.95

Diluted earnings per share Diluted earnings per
share（Yen）

2017

2018

2019

2020

1,804

2,096

1,918

1,090

(929)

  Net gain (loss) on revaluationof financial assets measured
at fair value through othercomprehensive income

553

438

(85)

13

(1,397)  Total of items that will not bereclassified to profit or loss

553

438

(85)

13

(1,397)  Exchange differences ontranslation of foreign
operations

(1)

(0)

(0)

(0)

(2)

  Total of items that may bereclassified to profit or loss

(1)

(0)

(0)

(0)

(2)

 otal other comprehensiveTincome

551

438

(86)

13

(1,399)Total comprehensive income

2,355

2,534

1,832

1,103

(2,329)

2,355

2,545

1,859

1,099

(2,396)

—

(11)

(27)

4

66

2,355

2,534

1,832

1,103

(2,329)Other comprehensive income Items that will not bereclassified to profit or loss

 Items that may be reclassified
to profit or loss

(Attributable to)Earnings per share attributable to owners of the parent Basic earnings per share（Yen）

2016

Net income

Owners of the parent
Non-controlling interests

—

—

18.36

10.28

(9.50)

Comprehensive income

1. Includes ¥43 million in income from discontinued operations.
2. Includes basic earnings per share of ¥0.40 yen from discontinued operations.

2021
IR BOOK 2020

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イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ

53

LINK AND MOTIVATION GROUP - IR BOOK 2020

Other expenses
Operating income(¥ million)

Consolidated Statements of Cash Flow(¥ million)

Cash Flow from Operating Activities
Income before income taxes
Income before income taxes from discontinued
operations
Depreciation and amortization
Loss on impairment
Gain on valuation of investment securities
Loss (gain) on sales of fixed assets
Financial revenues and financial expenses
Interest and dividend income
Interest paidEquity in (earnings) losses of associates
Loss (gain) on sales of investments accounted forusing the equity method
Loss (gain) on sales of shares of subsidiaries
Loss on disposal of fixed assets
Decrease (increase) in trade and other receivables
Loss (gain) on step acquisitionDecrease (increase) in inventories
Increase (decrease) in trade and other payables
OtherSubtotalInterest and dividends received
Interest paidIncome tax refundIncome taxes paid
Net cash provided by operating activities

2017

2018

2019

2,345

3,265

3,387

1,904

58

67
558
24
—
—
—
(13)
78
—

—
626
34
—
—
102
—
—
(2)

—
751
207
—
—
102
—
—
335

—
2,480
959
—
—
146
—
—
(43)

—
2,798
2,386
(563)
(7)
224
—
—
(41)

—
(51)
37
(518)
—
(9)
187
392

—
—
—
(949)
—
(26)
91
237

—
—
—
395
—
(91)
6
(102)

(160)
—
—
418
—
22
8
(43)

—
—
—
503
16
68
(263)
657

3,098

3,379

4,992

5,693

5,837

2
(53)
56
(1,260)

3
(105)
393
(726)

14
(108)
17
(1,304)9(155)
62(1,783)5(226)
28(1,675)

1,843

2,944

3,611

3,827

3,970

1. The former items “Interest and dividends income” and “Interest expense” are included in “Financial revenues
and financial expenses” for presentation from 2016.
2. T he former items “Gain on sale of shares of subsidiaries” and “Loss on retirement of fixed assets” are includedin “Loss (gain) on sales of investments accounted for using the equity method” for presentation from 2016.

2021
IR BOOK 2020

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Introduction(¥ million)

2020

LMミ
ッション
LM Mission

Cash Flow from Investing Activities
Payments for acquisition of property, plant andequipment Proceeds from sale of property, plant andequipment
Payments for acquisition of intangible assets Proceeds from acquisition of subsidiary stock
associated with a change in the scope of consolidation Payments for acquisition of investment securities Proceeds from sale of investment securities Payments for business transfer Payments for acquisition of subsidiary stock Payments for sale of subsidiary stock Payments for investments in associates Proceeds from sales of investments accounted forusing the equity method Payments for security deposits and guarantees Proceeds from recovery of security deposits andguarantees Advance payments Payments for fulfillment of asset retirement
obligations Other
Net cash 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 Payments for acquisition of interest in subsidiaryfrom non-controlling interest Payments of cash dividends Repayments of lease liabilities Capital contribution from non-controlling interests Payments to minority shareholders Payments for acquisition of treasury shares Other
Net cash provided by (used in) financing activities
Cash and cash equivalents translation adjustment
N et increase (decrease) in cash and cash
equivalentsC ash and cash equivalents at beginning of yearCash and cash equivalents at end of year

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

2016

2017

2018

2019

2020

(214)

(930)

(275)

(337)

(222)

—
(196)

—
(545)

—
(731)

—
(772)

16
(699)

—
(443)
780
—
—
(22)
—

—
(861)
—
(1,000)(1,626)
—
—

—
(135)
293
—
—
—
(2,252)

—
(204)
1,966
—
—
—
—

2,290
—
636
—
—
—
—

—
(461)

—
(493)

—
(163)

498
(122)

—
(56)

43
—

334
—

155
—

120
(4,075)

56
—

(6)
(60)
(581)

(106)
(2)
(5,232)—(12)(3,121)—(63)(2,990)

—
(53)
1,969

(1,216)
2,983
(894)

578
5,213
(2,188)506
2,821(2,531)(1,000)5,255(1,972)3,640—(2,376)(1,373)
(550)
—
—
—
—
(122)
(1,174)
(1)

—
(632)
—
—
—
—
(112)
2,859
(0)

(140)
(710)
—
—
—
—
(110)
(164)
(0)

—
(747)
(1,827)
—
—
(362)
—
(655)
(0)

—
(754)
(2,075)8(90)——(1,647)
(2)

85
997
1,082

571
1,082
1,654

325
1,654
1,979

180
1,979
2,160

4,289
2,160
6,449

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ

54

LINK AND MOTIVATION GROUP - IR BOOK 2020

Corporate Data

2016

Company Profile

Company Information (As of December 31, 2020)
Name
Head Office*Corporate Data

Banks

* Relocation to Kabukiza Tower scheduled for October 2021

Financial institutions
Financial instruments firms
505,000 shares (0.45%)

Individuals and other

Other corporations

56,784,300 shares(50.22%)

46,409,600 shares (41.05%)

Foreign corporations, etc.
4,093,100 shares (3.62%)
Note: 8,145,796 treasury shares include 81,457 trading units listed under “Individuals and other”
and 96 listed under "Status of Odd Stocks.”

Share Information (As of December 31, 2020)
Stock Code2170
Stock ListingFirst Section, Tokyo Stock Exchange
Trading Unit
100 shares
Shares Authorized
400,000,000 shares
Shares Issued andOutstanding
113,068,000 shares
Number of Shareholders 12,322

5,266,400 shares (4.66%)（人）

LINK AND MOTIVATION GROUP - IR BOOK 2020

Established
Inaugurated
Paid-in Capital
Fiscal Year-end
Group Companies

Link and Motivation Inc.
Ginza Six 12F, 6-10-1 Ginza, Chuo-ku,
Tokyo 104-0061, Japan
March 27, 2000
April 7, 2000
1,380,610,000 yen
December 31
Click here for a list of Group companies
https://www.lmi.ne.jp/english/companydata/group/
Ginzadori Branch, Mizuho Bank, Ltd.
Ginza Branch, Sumitomo Mitsui Banking Corporation
Ginzadori Branch, MUFG Bank, Ltd.

Share Distribution (As of December 31, 2020)

Major Shareholders (10 Largest) (As of December 31, 2020)
Shareholder

Number ofshares held

Shareholding
ratio (%)

Phoenix Co., Ltd.

44,805,800

42.70

Link and Motivation Employee Shareholding Company

7,104,000

6.77

Suguro Akira

6,874,600

6.55

Sakashita Hideki

3,680,000

3.50

Sakakibara Kiyotaka

3,680,000

3.50

Ozasa Yoshihisa

3,203,200

3.05

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,040,100

1.94

Link and Motivation Officer Shareholding Company

950,400

0.90

Honda Yutaka

790,000

0.75

Youji Corporation

606,400

0.57

1. The above list of major shareholders excludes 8,145,796 treasury shares.
2. Shareholding ratio is calculated excluding treasury shares.

2021
IR BOOK 2020

https://www.lmi.ne.jp/
https://www.lmi.ne.jp/english/

イン
トロダクション
Introduction

LMミ
ッション
LM Mission

Business
事業戦略
Strategy

Organizational
組織戦略
Strategy

Corporate
コーポレート・ガバナンスGovernanceCorporate Data
コーポレートデータ55

https://www.lmi.ne.jp/english/

Scope

Link and Motivation Inc. and its consolidated subsidiaries

Reporting Period	January 1, 2020 to December 31, 2020
Note: Includes some information that is outside the above reporting period.

Date of Issue

March 2021

Note: Forecasts and other forward-looking statements contained in this report are based on information currently available to the Company, and are subject to potential risks, uncertainties and other factors.

LINK AND MOTIVATION GROUP - IR BOOK 2020

IR BOOK 2020