Individual Passion Inspires the World
Integrated Report

IR BOOK

2021

Link and Motivation Inc.
https://www.lmi.ne.jp/english/

Creating a More Meaningful Society
The Link and Motivation Group (LMG) grapples head-on with the meaning of fulfillment in life and inwork, an issue that can get lost amid busy daily life. As we navigate the vast ocean of society, we
aim to help increase the number of people with ambition, thus creating a more meaningful society.

MissionThrough Motivation Engineering,
we provide opportunities to transformorganizations and individuals andcreate a more meaningful society.

Corporate Slogan

Individual Passion
Inspires the World
Operating Structure

Creating Motivation
Companies

Creating
i-Companies
Individual
Development
Division

Organizational
Development
Division

Businesses That Communicate
a Unique Message
On our grand voyage, each of us at LMG continually faces society with passion. Our journey is
empowered by an operating structure that consistently communicates our unique message toorganizations and individuals.

Motivation
Engineering

Maximizing the Value ofMotivation Companies andi-Companies
Matching Division

Human Resources Are Our Greatest,
Most Powerful Asset
Each of the human resources in our Group is responsible for creating various types offulfillment in life and in work. We integrate the ambitions of each individual into anorganization that takes on the ongoing challenge of creating a more meaningful society.

Employees
Organizational
Development
Division
Individual
Development
Division
Matching
Division

1,493
556
581
355

Male
Female807686Japanesenationality

1,408
85

Other
nationalities(As of December 31, 2021)

Contents

01 Introduction

05 Management Strategy

10 Business Strategy

29 Organizational Strategy

38 Corporate Governance

44 Corporate Data

LMG at a Glance

The Link and Motivation Group in Numbers
Consolidated Financial Results (2021)

32.6
¥ 3.1

Matching Division¥billionAdjusted operating income*billionRevenues

Gross Profit Breakdown by Division (2021)

34.6%

Individual
Development Division

Organizational
Development Division

47.2%

18.2%

Extensive Databases

2.37 million employees at
8,740 companies
Individual
diagnostic data Approx. 580 thousand people
Organizational
diagnostic data

Number of online
reviews Approx.

12.2 million* 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.

Organizational Development Division: Growth Driver for the Group
The World’s First Consulting That Usesa Motivation-Based Approach

Track record of more than

20

years

Unique One-Stop Services
Providing solutions ranging
from diagnosis toTransMotivation
Diagnosis
formationtransformation throughEngineeringorganizational consulting

A Predominant Presence in the Market for
Improving Employee Engagement
Share of sales in Japan for
four consecutive years

No. 1

Note: See page 12 for details.

IR BOOK 2021 - Management Strategy

IR BOOK 2021
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Management Strategy

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Message from Management

Now Is the Time to Demonstrate Our True Value

We will achieve dramatic growththrough our ongoing commitment
to being a one-of-a-kind businessand organization.
As Japan’s working population shrinks and the source of companies’
competitive advantages shifts from tangible goods to intangibles,
human resources and organizations will become crucial assets forcorporate management. That was my belief when I founded Link andMotivation in 2000. At that time, the English word “motivation” had not
yet gained currency in Japan. Now, more than 20 years later, my belief
has only become stronger.
Due to the COVID-19 pandemic and other factors, the market
environment has changed drastically, far beyond anyone’s imagination.
Particularly in Japan, where the working population is shrinking at thefastest rate in the world, people’s motivation for working is becoming
more diverse and they are changing jobs more often. Securing andretaining human resources who are capable of succeeding has becomea key issue for many companies. We are entering an era whencompanies must do more than just promote their business strategies.
Companies will not grow unless they transform their organizational
strategies, including for developing human resources and improving
employee engagement. At the same time, individuals who do notcontinually increase their market value will not be chosen for
employment by companies.

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IR BOOK 2021 - Management Strategy

A Steadfast Conviction since Our FoundingOzasa Yoshihisa
Chairman and
Representative Director
Link and Motivation Inc.

Management Strategy

Business Strategy

Organizational Strategy

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6

Message from Management

Linking Business and Organizational Strategies to
Maximize Value

Based on Motivation Engineering, our core technology, we currently
conduct business in three divisions: the Organizational Development
Division, which creates growth for organizations and fulfillment forworkers; the Individual Development Division, which createsfulfillment for individuals; and the Matching Division, which connects
organizations and individuals. I am proud to say that our businesses
have become indispensable entities even in a changing market
environment. Nevertheless, I strongly feel that we must ramp up our
growth to remain the leader in this market. As a long-term measure toestablish our one-of-a-kind position more firmly, we intend to link theunique databases of each of our divisions to build an “engagement
chain” that will dramatically improve engagement between
organizations and individuals. Over the medium term, we will increase
investment in the Organizational Development Division to further
stimulate the rapidly growing employee engagement market.

Speedily maximizing the value that only we can provide will require
high-level linkage between our business and organizational strategies.
We have provided Japanese society with new values, including raisingawareness of the importance of employee engagement andindependent career development. We have also grown by making fulluse of our own services to act as a role model for these values, and byconsistently planning strategies from both a business and anorganizational perspective. Going forward, we intend to prove that ourmanagement model that links business and organizational strategies
can help achieve sustainable growth, and then popularize this new
management model.

An Engagement Chain That
Expedites One-of-a-Kind Value

Organizational
Development Division

Individual
Development Division

DB

DB

Motivation
Engineering

IR BOOK 2021 - Management Strategy

A Medium-to-Long-Term Strategy for Further
Expansion of Our One-of-a-Kind Value

Passion That Will Change SocietyOver the past 20 years, conditions for both organizations and individuals
have changed at a dizzying pace. Those changes will only become fasterand more pronounced. That is why now is the time for LMG todemonstrate its value. Even though it is apparent to all that humanresources are a company’s greatest and most powerful asset, and thatorganizations are the key to continuously generating value, few
companies have been able to achieve a true transformation. We conduct
our businesses because we are serious about changing society using
Motivation Engineering, our unique technology for diagnosis andtransformation. Moreover, I am certain we can accomplish this goal.
Together with stakeholders who share our vision, we will continue tomake strong progress in creating a more meaningful society. You canlook forward to the continuing growth of the Link and Motivation Groupin the years to come.

DB

March 2022
Matching Division

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Management Strategy

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Organizational Strategy

Corporate GovernanceCorporate Data

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Management Strategy

Long-Term Strategy

Link Business and Organizational Strategies at a High Level for
Sustainable Growth to Carry Out the LM Mission
The Group believes that high-level linkage between its business and organizational strategies will be key to carrying out the LM Mission.
Management will consistently formulate strategies that take both aspects into account to achieve sustainable and speedy growth.

MissionIR BOOK 2021 - Management Strategy

Through Motivation Engineering,
we provide opportunities to transform organizations andindividuals and create a more meaningful society.

Business Strategy

Organizational Strategy

Build an Engagement Chain

One for All, All for One

Key Point

Key Point

Optimize Technology with Personalized Support

Improve Employee Engagement

Enhance technology to increase productivity with high-value-added
services that involve people

Raise the Engagement Score (ES) with our diverse
employees

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Management Strategy

Medium-Term Strategy

Ramp Up Growth Investment in the Organizational Development
Division over the Medium Term to Realize Our Long-Term Strategy
To realize our long-term strategy, we will ramp up investment in the growth of the Organizational Development Division over the medium term. With the current rapid
growth of the employee engagement market, we will focus on the Organizational Development Division, our founding and most profitable business, and strengthensynergies with our other divisions to rapidly build an engagement chain.

IR BOOK 2021 - Management Strategy

An engagement chain that links theunique databases of each division

Individual
Development Division

Organizational
Development Division
DB

DB

Motivation
EngineeringDB

Matching Division

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Business Strategy

Organizational Strategy

Invest in the Consulting& Cloud Business

Invest in Recruiting
and Training

KPIs

KPIs

 ales and gross profit from theS
Consulting & Cloud BusinessMotivation Cloud series monthly
fee revenue

 umber of employees hired inN
the Consulting & CloudBusiness and ES
Ratio of in-house engineers

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

9

IR BOOK 2021 - Business Strategy

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IR BOOK 2021 - Business Strategy

Organizational Development Division
Support for the Creation of Motivation Companies

We raise employee motivation to create fulfillment in work. We support the creation of organizations (Motivation Companies) that stakeholders continue to choose.

IR BOOK 2021
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Organizational Development
Division

Business Content

The Consulting & Cloud Business and the IR Support Business Work to Create
Motivation Companies That Individuals Choose
Consulting & Cloud Business

IR Support BusinessSupport for Helping Companies Improve
Employee Engagement

Support for Helping Companies
Improve Investor Engagement

Consulting

Cloud

Offering one-stop
solutions

Offering cloud-based
services to improve
employee engagement

Recruiting

Systems

Support for disclosure of financial information as well asof human capital and other non-financial information

Communicate Engagement
Ratings as part of human capital
initiatives

Training

Corporate
ClimateSupport for Disclosure

Share of Sales in Japan

No. 1*

Integrated
reports

for four consecutive years

Streaming video

IR websites

Overseas
communication* ITR, “ITR Market View: Human Resources Management Market 2021” Employee engagement market: Consecutive number one in sales by vendor and market share (FY2017-FY2020 forecast)
Note: Some business names have changed from the fiscal year ending December 31, 2022.

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IR BOOK 2021 - Business Strategy

A “Motivation Company” is an organizationthat maximizes both organizational
performance and individual motivation. It
can be expressed in the phrase “One forAll, All for One.”To support the creation of Motivation
Companies, we currently operate a
Consulting & Cloud Business to help
companies improve employee engagement
and an Investor Relations (IR) Support
Business to help companies improve
investor engagement. Based on the resultsof our cloud-based organizational
diagnostics, we provide one-stop consulting
services for organizations and humanresources. We also provide support forcorporate disclosure in IR with a focus onhuman capital disclosure. Through thesebusinesses, we offer one-of-a-kind value.

Organizational Development
Division

Market Environment

Amid Rapidly Changing Conditions for Organizations and Individuals, Improving
Employee Engagement Has Become an Urgent Issue for Companies
Working Population Decrease

Diversifying Motivation for Work

Changing Management Issues

Japan’s Working AgePopulation Ratio1

Change in the “Purpose of Work” for New
Employees: Percentage of Respondents
Who “Want to Enjoy Life”2Management’s Perception of Issues:
Growing Importance of Human
Capital3

68.2% 50.7%

26.1% 39.6%

2000

2050

2000

2019

8th

2nd

Personnel system/
employee treatment

Strengthening
human resources

2003

2021

1. Created by the Company from Databook of International Labour Statistics 2019 by the Japan Institute for Labour Policy and Training
2. Created by the Company based on the results of the “Work Attitudes" survey for new employees conducted by the Japan Productivity Center in 2000 and 2019.
3. Created by the Company based on “Survey on Current Management Issues for Japanese Companies 2003: Identification of Issues and Direction of Response for Future Management
Innovation” and “Management Issues for Japanese Companies 2021,” both from the Japan Management Association.
For more detailed data, see pages 51-52 of the IR Book.

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IR BOOK 2021 - Business Strategy

Conditions for organizations and individuals
have been changing rapidly in recent years.
Japan’s working population is shrinking at
the fastest rate in the world due to its
declining birthrate and aging population.
As the sources of people's motivation forworking become more diverse and their
purpose for working shifts to a sense offulfillment and worthwhile work, they arealso changing jobs more often. In addition,with the accelerating shift in products andservices toward intangibles with shorter
lifecycles, we have entered an era in which
companies will not be able to grow unlessthey transform their organizational strategies,
including for developing human resources
and improving employee engagement, as
well as their business strategies.

Organizational Development
Division

Competitive Advantage

Assets Cultivated as a Pioneer in the Field of Organizations and Human Resources,
Based on Motivation Engineering

Where

Ability to compare quantitative
data by division and level

Training

Engagement factors
Company: 8 areas

What

Boss: 4 areas

Diagnosis

Motivation
Engineeringhttps://www.lmi.ne.jp/english/

Systems

Recruiting

Corporate
ClimateEventsInternet

Transformation

Workplace: 4 areas

How

Print

Video

Extensive Accumulated Data

Accumulated Customer Base and Expertise

Database on organizations

Customers

2.37 million employees at
8,740 companies
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IR BOOK 2021 - Business Strategy

Based on Motivation Engineering, which is ourcore technology and the source of ourcompetitive advantage, we conduct a diagnosis
to identify what issues exist in an organization
and where, then use the results to provide themost appropriate solutions for transformation.
In the over 20 years since its founding, Link andMotivation has diagnosed organizations in avariety of growth stages and industries, building
up a dominant database covering 2.37 million
employees at 8,740 companies. Moreover, by
providing one-stop solutions for all areas fromrecruiting to training, systems and corporate
climate, we have accumulated a solid customer
base centered on major companies as well as
acquired unique expertise.

Approx.

Management Strategy

Business Strategy

Organizational Strategy

1,800 companies

Corporate GovernanceCorporate Data

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Organizational Development
Division

Research Results

Improving Employee Engagement Positively Impacts Operating Margin andLabor Productivity
Correlation between Engagement Score (ES)and Operating Margin

Correlation between Engagement Score (ES) andLabor Productivity

Operating Margin

Labor Productivity (Index)

40%

4

20%

2

0%

0
Score
Line of best ﬁt

-20%
30

40

50

60

70

80 ES

For every one-point increase in ES, the operating margin
for the period increased by 0.35%

IR BOOK 2021 - Business Strategy

The value we provide is not simply raising the
motivation of individuals, but simultaneously
maximizing both employee motivation andorganizational results. Since its founding, theLink and Motivation Group has helped some
10,000 companies resolve their organizational
problems, and its joint research with Keio
University has shown that improving employee
engagement has a positive impact on acompany’s operating margin and laborproductivity. Now that the focus on employee
engagement is increasing, especially amongmajor companies, we will further hone ourcompetitive advantage to take the lead as thedriver of the employee engagement market.

Score
Line of best ﬁt

-2
30

40

50

60

70

80 ES

For every one-point increase in ES, the labor productivity
index increased by 0.035 points

Notes:
1. Research results on “Engagement and Corporate Performance” announced in September 2018
2. The analysis covers 66 listed companies with publicly available securities reports from among respondents to Link and Motivation’s Employee Engagement Survey.
The study period was from May to July 2018.
3. Labor productivity is defined as “EBITDA per yen of salary paid to employees.”

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Organizational Development
Division

Medium-Term Strategy

Creating Reliable Growth, Driven by Cloud-Base Product Subscription Sales,
While Simultaneously Strengthening Linkage with Our Consulting Business
Cloud

Consulting

Further Increase Monthly Fee Revenue from
the Motivation Cloud Series

Strengthen Linkage to
Motivation Cloud

New Customer Acquisition

One-Stop Solutions According to Diagnostic Results romote adoption by more majorP
companies

Diagnostic Solutions

Localization for global rollout
New Cloud Service Rollout
Reliable growth from migrating our provenservices to the cloud, as with Motivation Cloud
2000 onward
Training and related humanresource development services
Accumulated answer database

Transformation Solutions

Second half of2022 onward

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

Recruiting

Training

Systems

Corporate
ClimateMigration to the cloud638,100 people

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IR BOOK 2021 - Business Strategy

Over the medium term, we will focus oncontinuing to grow the cloud business’s
stable subscription revenues. This willentail localization of our diagnostic surveys
for a global rollout, in addition to continuing
to promote adoption of the service by major
companies. In 2022 we will fully migrate
our proven human resource development
services to the cloud. We expect this willcontribute significant additional new
growth to our subscriber base as we enter
2023 and beyond. In addition, bystrengthening linkage with our cloudservices to expand our one-stop consulting
solutions based on diagnostic results, wewill ramp up our ability to provide valuethat is only available from the Link andMotivation Group.

Management Strategy

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Organizational Development
Division

Medium-Term Strategy
Organizational Development Division Gross Profit* Motivation Cloud Series* Monthly Fee Revenue
Operating Margin(¥ thousand)(¥ million)

400,000

9,000

8,700

8,250

320,000
300,000+15.5%
year-on-year

7,500

IR BOOK 2021 - Business Strategy

In 2022, we plan to achieve a 15.5%
year-on-year increase in gross profit andunprecedented 33.0% growth in monthly
fee revenue from Motivation Cloud. Further
enhancing the cycle of diagnosis andtransformation that we have beencultivating since our founding will drive thegrowth of the entire Group.

+33.0%

240,545

7,534

year-on-year

197,101 200,927

200,000

136,483
100,000

6,750

66,866

0

6,000

2021

* Includes sales within the GroupIR BOOK 2021
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2017

2022

Dec. 31, 2017

(Forecast)2018

Dec. 31, 20182019

Dec. 31, 20192020

Dec. 31, 2020

2021

Dec. 31, 2021

2022

Dec. 31, 2022
(Forecast)* Motivation Company Club membership service for managers

Management Strategy

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IR BOOK 2021 - Business Strategy

Individual Development Division
Creating i-Companies

We develop individuals who find fulfillment in life by independently and autonomously developing their own careers. We support the creation of individuals (i-Companies) thatorganizations choose.

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Individual Development Division

Business Content

A Career School Business and a Cram School Business That Both Create
i-Companies That Organizations Choose

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Career School Business

Cram School BusinessSupport for Working People in
Developing Their Careers

Support for Students in Passing
Examinations

AVV ブランドマーク

基本パターン（CMYK）

For elementary
school students

DKI ブランドマーク 基本パターン（CMYK）

B to C icrosoft OfficeM rogrammingPA ccounting
National
qualifications
Civil service
examinations

B to BA Total Career School

SS-1 individualized instruction
cram schoolE nglishlanguage

Exclusive one-on-one instruction to
improve the grades of students who
attend large prep schoolsC oaching, etc.

Number of schools: 8(Kanto and Kansai areas)

Support for Improving Employee
DX Skills

IT knowledge

Support for acquiring the national “IT Passport”
qualification, etc.

IT operation

Tools for more effective use of Microsoft Office,
Google, etc.

Management Strategy

IR BOOK 2021 - Business Strategy

We define an “i-Company” as an individual
who continues to be chosen in the market asa result of independently and autonomously
taking control of the path of his or her own
career and life.
To support the creation of i-Companies,
we operate a Career School Business, which
supports working people in developing theirown careers, and a Cram School Business,
which helps elementary, junior high andhigh school students pass entrance
examinations for their next stage ofeducation. These businesses provide
ongoing one-stop support to customers
from elementary school students to adults
who are proactively seeking to take exams
or to acquire qualifications and improvetheir skills, so that they can continuelearning without becoming discouraged.
This support ranges from helping
customers to set goals (i-Company vision)and understand their own issues to learning
online and in real-world settings andformulating and revising plans.

For junior andMotivation Academia
senior high school cram school
students
Cultivates academic abilities not justfor passing exams but for acquiring theskills to play an active role in society
Number of schools: 7(Kanto and Kansai areas)

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Individual Development Division

Competitive Advantage

Reliably Generating Results from Motivation Engineering

B to CB to C
Identify Individual Issues
Attributediagnosis

Provide Wide-Ranging Learning Opportunities
Career School

Skill
diagnosis

Qualifications

IT

Portable skills

SkillsMotivation

Technical skills

Diagnosis

B to B

Motivation
Engineering

Transformation

B to B
Provide DX Training by Level

Identify Current Skill Level

Professional

Excel
PowerPointMaterial preparation
knowledge
IT skills

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

Languages

Motivation typeDX Survey Basic

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Cram School

Knowledge

Advanced
BasicManagement Strategy

Business Strategy

Organizational Strategy

Operation

Corporate Governance upport forS
acquiring skills
qualifications
 ore efficientM
organizational
operations
More efficientindividual work

Corporate Data

20

IR BOOK 2021 - Business Strategy

We can ensure results through the ongoing
implementation of a cycle of diagnosis andtransformation based on Motivation
Engineering, our core technology and thesource of our competitive advantage. In the
diagnosis phase, we can design the optimal planby assessing motivation types and skills as wellas progress in studies. In the transformation
phase, we can provide total support for growth,
ranging from examinations to acquisition of
language and IT skills and qualifications, as wellas support for classes and the formation of daily
study habits through an approach that combines
technology with personalized support.

Individual Development Division

Medium-Term Strategy

Generate Synergies with the Organizational Development Division andEnhance DX Support Services for Individuals at Corporations
AVV ブランドマーク

Revenue from DX Support for
Individuals at Companies

IT Skill Support Built Up by the Aviva Brand ominant track record in instruction
Dsince its establishment in 1995

IR BOOK 2021 - Business Strategy

To adapt to the rapidly changing businessenvironment, many companies arepromoting Digital Transformation (DX), anddeveloping employee IT skills is a common
issue. Over the medium to long term, we
will enhance our DX support services forindividuals at corporations by fully utilizing
the know-how we have cultivated under the
Aviva brand and the customer base of theOrganization Development Division. This
will establish our presence in the IT skills
training market, which is expected to grow.
In addition to improving employee
engagement, our support for improving
operational efficiency through thedevelopment of DX skills will accelerate thecreation of organizations that achieve atrue state of “One for All, All for One.”基本パターン（CMYK）(¥ million)

500

Complete lineup of classes

404
Utilization of Customer Assets from the Organizational
Development Division and the Matching Division+ 69.3%250

Organizational
Development
Division238

year-on-year

Number of corporate customers
Approx.

1,800

companies

Number of school district customers
Matching
Division

Approx.

450

0school districts

2020

2021
(¥million)

9,000

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Individual Development Division

Medium-Term Strategy

Enhancing Technology Services to Optimize Individual Learning

Integrating Technology into Our ProductsTechnology

Enhanced Online Teaching

Personalized
Support

Efficient learning
5 minutes per
sectionUse of an app
to improve
retention rate

IR BOOK 2021 - Business Strategy

To optimize our services that combine
technology with personalized support, we
will enhance both our technology and ourservice over the medium to long term byexpanding SkiP online learning content thatlets students access their learning input
and output whenever and wherever theywant. We will use this service to gradually
increase the number of courses available,
as well as to improve the efficiency ofcontent delivery and consolidate physicallocations. In addition to the learning support
know-how that we have cultivated inbrick-and-mortar locations, we will increasevalue for our customers by promoting
product technologies and online teaching.

Improved
motivation

Improveddeliveryefficiency

Consolidationof physicallocations

Increase thenumber of
students perteacher

Migration online to
optimize bases

Further increase customer base by improving learning efficiency

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IR BOOK 2021 - Business Strategy

Matching Division

Maximizing the Value of Motivation Companies and i-Companies
We generate synergy by connecting organizations offering fulfilling work with individuals leading fulfilling lives to create engagement.

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Matching Division

Business Content

A Personnel Placement Business and an ALT Placement Business forEngagement Matching* Assistant language teacher

Personnel Placement Business

ALT Placement BusinessSupport for Job Seekers with a High Level ofEngagement

Employment Support for Individuals from
Overseas Seeking to Work in Japan

Operation of OpenWork,an employee online review platform
Individuals

Companies

Membership
fee
Client referralmodel
Subscription
model

Number of ALTs dispatched
Approx. 3,300 per year

Directrecruiting
model

Recruiting companies

Overseas recruiting bases

3 locations

Number of school
districts served

Approx.

 nited StatesUUnited Kingdom
Australia

Personalized employee placement services (newuniversity graduates and mid-career hires)

450

Note: Some business names have changed from the fiscal year ending December 31, 2022.

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IR BOOK 2021 - Business Strategy

Engagement matching, or fitting, helps
companies achieve a high retention rate
based on mutual understanding, empathy
and commitment between an organization
and an individual. We conduct matching by
motivation type as well as by skills tomaximize the value of both organizations
and individuals through engagement
matching. To this end, we currently conduct
a Personnel Placement Business to help
job seekers achieve a high level ofengagement and an ALT* Placement
Business to support individuals fromoverseas seeking to work in Japan.

Matching Division

Competitive Advantage: Personnel Placement Business

Motivation Engineering-Based Engagement Matching Using Both a Platform andan Agency Function

High-Retention Matching Basedon Multifaceted Understanding ofa Company

Company Job Satisfaction Scores
Based on Employee Reviews

Open, direct recruiting using
online reviews
Employee online
review platform
Diagnosis

Motivation
Engineering

Transformation

Diagnosis of Applicant Skills andMotivation Type

Matching Based on Degree ofCompatibility with the Corporate
Climate Rather than Just Skills

Portable skills
Task-directedcapabilities

Self-directedcapabilities

Interpersonal
skillsAppropriate
guidance throughdata-based careerinterviews

Motivation type
Organization
type

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Behavior type

Work typeManagement Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

25

IR BOOK 2021 - Business Strategy

We conduct engagement matching
between companies and individuals using
both a platform and an agency function
based on Motivation Engineering, which is
our core technology and the source of ourcompetitive advantage. The OpenWork
website has accumulated more than 10
million employee reviews, which are used
to create job satisfaction scores forcompanies. Direct recruiting through thisplatform results in fewer mismatches.
Then, based on the results of ourdiagnosis of an applicant’s skills andmotivation type, our agency function
enables matching based on compatibility
with the corporate climate as well as
relevant skills for the perfect fit.

Matching Division

Medium-Term Strategy: Personnel Placement Business

Enhancing OpenWork’s Direct Recruiting Model to Realize Synergy with theOrganizational Development Division
Expand the Direct Recruiting Model
Companies seeking
capable talent

OpenWork Recruiting Revenues

Job seekers

Direct matching throughDirect communication
with users who arehighly motivated tochange jobs

High-quality
reviews enable job
seekers to find asuitable job

https://www.lmi.ne.jp/english/+80.0%
year-on-year

Increase in job
openings

110%

Increase in resumes fromjob seekers

Improved matching rate

+

70 %

+

year-on-yearyear-on-year

Stronger coordination with theOrganizational Development Division

Stronger attraction throughimproved user interface* According to an April 2018 survey by
OpenWork Inc., 74.3% of job changers
have used an employee review website.

IR BOOK 2021

IR BOOK 2021 - Business Strategy

The growth of Openwork has createdgreater visibility into the actual working
conditions at organizations and job seekers
now come to check employee review sites
as a matter of course.* Under theseevolving circumstances, we are enhancing
our popular direct recruiting modelaccordingly. This will entail a two-pronged
strategy of increasing the number ofresumes from job seekers as we step up
coordination with the Organizational
Development Division to increase thenumber of job openings. In addition, we aim
to continually improve the matching rates.
We will further stimulate the employee
engagement market by achieving a highlevel of satisfaction among job seekers
through OpenWork and supporting
companies in their efforts to improve
employee engagement through our
Consulting & Cloud Business.

2019

2020

2021

Note: Detailed numbers are not disclosed.

Management Strategy

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Corporate GovernanceCorporate Data

26

Matching Division

Competitive Advantage: ALT Placement Business

Achieving a High Level of Engagement between ALTs and Schools Using
Motivation Engineering

IR BOOK 2021
https://www.lmi.ne.jp/english/

Utilize Our Consulting KnowHow for Human Resource
Training and Lifestyle Support

Identify the Career
Orientations and Skills of
Foreign Nationals
Aptitudediagnostics

Portable skills

Skilldiagnostics

Human resource
training
Improvement ofengagement

Technical skills

Motivation type
Diagnosis

Motivation
Engineering

A support system thatleverages ournationwide network

Transformation

Rollout of a Cloud-Based Service
for Schoolteachers

Check ALT Engagement
after Placement

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

27

IR BOOK 2021 - Business Strategy

We have achieved a high level of engagement
matching between individuals from overseas
and the schools where they are placed byrepeating the cycle of diagnosis andtransformation based on Motivation
Engineering, which is our core technology andthe source of our competitive advantage. In
addition to identifying the career goals andskills of individuals from overseas, we survey
their engagement after placement toimplement initiatives for developing humanresources and improving engagement using
our consulting know-how. We are also further
improving engagement with schools throughsupport that leverages the nationwide networkthat Interac Co., Ltd., which was established in1972 and is the predecessor of the ALT
Placement Business, built and the rollout of a
new cloud service for school teachers.

Matching Division

Medium-Term Strategy: ALT Placement Business

Aiming to Further Enhance Our Brand Power and Increase Our Share of the ALT
Market through the Introduction of Teachers Cloud, Our New Cloud-Based Service
Expansion of Teachers Cloud

Number of Schools Where Teachers Cloud Has
Been Introduced

About 45% of public
elementary, junior high andhigh schools in Japan

A cloud-based service for teachers
to improve lesson preparation
efficiency and English teaching skills

14,000Contents Include over 15,000 Items
9,300

About 15% of public
Teaching
plans

elementary, junior highand high schools
in Japan
5,600

Educational
Performancematerials andtests
lectures by experts

4,300

Ongoing Introductions to School Districts with ALT
Contracts Are Contributing Significantly to an
Increase in Repeat Business

IR BOOK 2021
https://www.lmi.ne.jp/english/

IR BOOK 2021 - Business Strategy

Teachers Cloud is a cloud-based service
launched in June 2021 that leverages theGroup’s track record and consulting
know-how to improve the efficiency ofEnglish class preparation and enhanceteachers’ English language and teachingskills. The rapid promotion of digitalizationin the field of education is raising
expectations for improvements in teacher
productivity and instruction. In the six
months since the launch of Teachers
Cloud, 4,300 elementary, junior high andsenior high schools, or about 15% of all
public schools in Japan, have started using
the service. We will continue introducing
Teachers Cloud in school districts where
we have contracts to place ALTs to increase
the repeat rate and enhance our branding
to further expand our market share.

Management Strategy

Dec. 2021

Business Strategy

2022(Plan)

Organizational Strategy

2023(Plan)

2024(Plan)

Corporate GovernanceCorporate Data

28

IR BOOK 2021 - Organizational Strategy

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

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Corporate GovernanceCorporate Data

29

Long-Term Organizational
Strategy

Engagement Ratings at Group Companies

Maintaining a High Level of Employee Engagement at Group Companies since
Our Founding
Engagement Ratings of Group Companies
Number of
AAA-Rated
Companies1

20182

10

2019

companies(out of 12)

20213

2020

11

10

companies(out of 12)

companies(out of 13)

IR BOOK 2021 - Organizational Strategy

To raise awareness of the importance of
employee engagement for business growthand provide pertinent information to thecapital market, since 2018 the Group has been
disclosing its Engagement Rating (ER), which
ranks the ES of each Group company. Almost
every Group company has consistently
maintained the highest ranking of “AAA,” andthe Group’s high level of employee
engagement is a competitive advantage.

2022

11

companies(out of 13)

9companies(out of 11)

Breakdown of February 2022 Results
Company

Link and Motivation Inc.
Organizational Development Division

AAA

Link Global Solution Inc.
Link Event Produce Inc.
Link Corporate Communications Inc.

Individual Development Division

AAA

Link Academy Inc.
Motivation Academia Inc.
Link Interac Inc.

Matching DivisionAA

Link Japan Careers Inc.
Link Staffing Inc.
Link-i Inc.
OpenWork Inc.

Number of Employees

Rank

388
22
20
79

AAA
AAA
AAA
AAA

511
31

AAA
AAA

172
17
15
20
74

AA
AAA
AAA
AAA
BBB

1. Results from February for each year (excluding Link Dining Inc.).
2. Results from August for 2018 only.
3. November 2020 results for OpenWork Inc. only.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Note: The Group discloses information on human capital based on ISO 30414.
Management Strategy

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Organizational Strategy

Corporate GovernanceCorporate Data

30

Long-Term Organizational
Strategy

Engagement Rating by Category

Providing an Environment Where Diverse Human Resources Can Feela High Level of Engagement and ThriveGroup Employees (As of December 2021)
Employees

MaleFemaleJapanese nationality

Other nationalities

1,493 807 686 1,408 85
February 2022 Results
By Gender

By Nationality (Area)
Number of
Employees

Number of
Employees

Rank

1,164

AAA

Asia (excluding Japan)

11

AAA

Oceania6

AA

North America

34

AAA

Central and South America

2AAAEurope

11

AA

Rank

Japan
Male

FemaleIR BOOK 2021
https://www.lmi.ne.jp/english/

IR BOOK 2021 - Organizational Strategy

Because the Group operates all kinds ofbusiness models in its three divisions, its
workforce is quite diverse in terms ofnationality and other attributes. Diagnostic
surveys conducted by the Group enable
analysis across all attributes, allowing theGroup to provide an environment where
diverse human resources can feel a highlevel of engagement and thrive.

734

614

AAA

AAA

Management Strategy

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31

Long-Term Organizational
Strategy

Our Foundation

A Core Philosophy-Based Strategy That Unites the Link and Motivation Group4eyes® Windows

Engagement Factors in 16 Areas(Weaknesses,
weak points)

INTER LINK

Philosophy and strategies(Centripetal force of theorganization, uniquenessof the company)
Satisfaction(Indifferent)

IDLE LINE(Unnecessary
expenditures)

Business content

Collection of information
Decision-making

Work content

SupportOrganizational climate

External adaptation

Human resources
Facilities and environment
Systems and benefits

Toward the workplace

INK BLOT

Provision of information
Toward the boss

ICE BLOCK

Company foundation

IR BOOK 2021 - Organizational Strategy

Expectation

Toward the company

To maintain a high level of employee
engagement, the Link and Motivation Group
places its greatest emphasis on being
united by its core philosophy. Sympathy withthis philosophy is essential for the Group.
During our short 22-year history this has
enabled us to provide value that should
continue many years into the future.
In addition to sharing and instilling theGroup’s raison d’etre and vision among our
employees, we also emphasize sympathy
with our philosophy in hiring, making it asubstantial strength of our organization.

Internal cohesivenessTransformation activities
Succession

Group Companies Whose Philosophy and Strategies Fall
within the INTER LINK Sector (February 2022 Results)
Group
Companies(Employees)

6companies(out of 11)

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Group Companies That
Hire New Graduates(Prospective Employees)

9companies(out of 9)

Organizational Strategy

Corporate GovernanceCorporate Data

32

Medium-Term Organizational
StrategyOver the Medium Term, Ramp Up Recruiting in the Organizational Development
Division and Implement Initiatives to Further Increase Employee Engagement
Organizational Development Division

Group-wide

Enhancing Recruiting and Training Based on
Motivation Engineering

Improving Productivity

Consultants

Promoting DX

IR BOOK 2021 - Organizational Strategy

We will step up investment in ourbusinesses, mainly in the Organizational
Development Division over the medium
term. For our organization, we will raiseboth the competency and the number ofour consultants and engineers by ramping
up recruiting and training in the Consulting& Cloud Business based on Motivation
Engineering, our core technology.
Throughout the Group, we will periodicallydiagnose employee engagement to conduct
appropriate organizational management as
we focus on improving productivity andtraining the next generation of managers.

Compatible WorkEngineers
See page 35 for details.

See page 36 for details.

Training the Next Generation of Managers
Top Gun Selection

Raise Both Competency and Number
See page 34 for details.

See page 37 for details.
Note: See the Company’s website and IR Book 2020 from page 23 onward for general
Group-wide initiatives.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

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Corporate GovernanceCorporate Data

33

Organizational Development
Division

Enhancing Consultant and Engineer Recruiting and Training in the Organizational
Development Division

IR BOOK 2021
https://www.lmi.ne.jp/english/

Recruiting

Training

IR BOOK 2021 - Organizational Strategy

The Organizational Development Division
has the highest ES among the threedivisions, and its engineering organization
also maintains a high score. For further
growth going forward in the Consulting &Cloud Business, we will enhance recruiting
and training, mainly for consultants, while
maintaining this high level of employee
engagement. To increase our ranks ofengineers, we will act with agility as aGroup united by a core philosophy byconducting selective training of new
university graduates as well as stepping
up hiring of mid-career employees.

Consultants

Significantly increase the number of new hires,mainly focused on new university graduates

Established a consulting promotion office formajor companies to train top consultants

Achieve a high level of engagement in recruiting,mainly focused on mid-career hires

 elective training of new university
S
graduates with aptitude
Motivation Engineering training for
mid-career hires

Engineers

Management Strategy

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Group-wide:
Improving Productivity

Improving Each Employee’s Productivity Based on a DX Skills Diagnosis

Efficiently Improving DX Skills with Solutions for Diagnosis-Based Transformation

Diagnosis (Nov. 2021)

Transformation (Dec. 2021 to May 2022)

Diagnosis (May 2022)

Levels assigned
according to results

In-house DX promoted by a Technology
Administrator (TA) assigned to each organization

Check retention level

Conducted by
Level

AdvancedITknowledge

IT
operation

Basic

IR BOOK 2021
https://www.lmi.ne.jp/english/

Knowledge Acquisition
through E-Learning

IT Passport
courseNational
certification ofbasic ITknowledge

Management Strategy

Online Training in Operation

Microsoft
Officeintermediatelevel training

Google Apps
Scripttraining

Microsoft
Officetraining forwork
efficiency

GoogleWorkspacetraining

Business Strategy

Organizational StrategyITknowledge

Corporate GovernanceIT
operation

Corporate Data

35

IR BOOK 2021 - Organizational Strategy

Since 2021, the Individual Development
Division has been offering its DX support
in-house to further improve Group
employees IT literacy with the goal ofstrengthening and enabling more rapidbusiness growth. We have also started
assigning Technology Administrators (TA’s)
responsible for promoting digitalization toeach Group company to help increase theoperational efficiency of each organization.
We will continue to conduct a regular cycleof diagnosis and transformation to improve
DX skills throughout the Group.

Group-wide:
Improving Productivity

Compatible Work to Increase Both Productivity and Employee Engagement

New Ways of Working
2021
Approx. 60% reduction in floor space fromoffice downsizing and relocation nationwide

2022
Shift to Compatible Work while monitoring the status of COVID-19

Osaka
January 2021
downsizing

Cooperation

SendaiJanuary 2021
downsizing

IR BOOK 2021 - Organizational Strategy

The Link and Motivation Group has
responded to the COVID-19 pandemic byrelocating and downsizing its offices
throughout Japan, and by establishing a
new work style model called Compatible
Work. The idea of Compatible Work isbased on transforming the way we work by
combining real-world and virtual spaces toincrease productivity and employee
engagement. Because of our powerful
belief in the value of employee
engagement, we flexibly adapt ourapproach to work according to the realenvironment in which we work.

Benefits of Office Work (Real World)Tokyo Head Office
October 2021
relocation

ChanceOccurrences

Emotion and
Logic

Sympathy

Benefits of Telework (Virtual)

NagoyaFebruary 2021
relocation
Hiroshima
November 2020
relocation
Fukuoka
April 2021
relocation

IR BOOK 2021
https://www.lmi.ne.jp/english/

Concentration

Planning

Rationality

Synchronization

Optimally design each daily task to increase productivity and appropriately
facilitate real-world communication to raise motivation.

Management Strategy

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36

Group-wide:
Cultivating Managers“Top Gun Selection” to Select and Cultivate Our Next Generation of Managers

2022 Planned Content
Objective

IR BOOK 2021 - Organizational Strategy

Expanding and growing our business to create
an engagement chain requires the developmentof management personnel to lead theorganization. That is why in 2021 we launched
Top Gun Selection, a program for selecting andcultivating our next generation of managers, tooffer participants opportunities to think from aGroup perspective. Chairman Ozasa plays acentral role in the year-long training ofmembers selected from various levels. In
addition to broadening the viewpoints ofparticipants, the program helps them advancein their careers.

Annual Schedule

Corporate Officer
Class

Raise the level of corporate officers

President and Company
President Class

Cultivate the next group of officer candidates

Management Class

Cultivate future officer candidates

General Employee
Class

Provide breakthrough opportunities to promote
success

1Q February: Kick-off meeting
2Q May: Survey feedback and dinner
3Q July: Meeting for presenting proposals
4Q October: Meeting for presenting proposals
November: Survey feedback and dinner

2021 Participant Comments (Selected)

Management Class

President and Company President Class• The biggest benefit for me was that it made me ready to ask myself whether I
am putting my true intentions into what I am doing as an executive.
•	It broadened my perspective by deepening my understanding of areas I don’t
normally manage, giving me an opportunity to consider overall Group assets
and strengths.

IR BOOK 2021
https://www.lmi.ne.jp/english/•	Aside from making me feel an urgent need to develop the perspective of amanager, it was a good opportunity for me to think about the future fromthe standpoint of LMG’s management.
•	If not for this opportunity I don’t think I would have come across these newideas. As a candidate for management, I take this as a chance to learn and grow.

Management Strategy

Business Strategy

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IR BOOK 2021 - Corporate Governance

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

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38

Governance Format

A Management Structure for Realizing the LM Mission

A Governance Format Chosen for Sustainable Growth
IR BOOK 2021 - Corporate GovernanceTo achieve the LM Mission, we realize that
we must continue to be an organizationthat realizes Management with Integrity
and has a “One for All, All for One”
mindset. As a guideline, our employees
exemplify the three goals of LM’smanagement policy. First is management
without any wrongdoing or dishonesty to
any of our stakeholders. Next is having
diverse human resources who embrace thespirit of “One for All, All for One.” Third is toalways value the ability to make changes
based on an awareness of the constantongoing changes in markets and laws.

LM Mission

Through Motivation Engineering, we provide
opportunities to transform organizations and individuals
and create a more meaningful society

Our Target Motivation Company

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

Three Management Policy Goals

Management with
Integrity

Management in Which
Every Employee Playsa Leading RoleManagement with
Good Reflexes

Current form of governance:

Company with an Audit & Supervisory Board
IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

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39

Governance Format

A Governance System That Ensures Management Soundness, Transparency
and Efficiency
Board of Directors

Audit & Supervisory Board

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

Governance Organization
General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Board of Directors

Audit & Supervisory Board

Appoint/Dismiss

Cooperate

Appoint/Dismiss

Cooperate

Audit & Supervisory
Board audit

Independent Auditor

Cooperate

Representative Directors
Internal Audit & Supervisory
Board Members
Business Divisions

Business Divisions

IR BOOK 2021 - Corporate Governance

The Board of Directors is composed of five
directors (including two outside directors) and has
ultimate authority for determining fundamental
management policies and high-priority issues. In
principle, it meets once a month, with othermeetings held as appropriate when important
items arise.

Accounting audit

Internal audit

The Group Management Committee meets
twice each month. It is attended by presidents ofsubsidiaries and other related parties otherthan directors and Audit & Supervisory Board
members, as necessary, to report on mattersrelated to the execution of duties.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

40

Management TeamAs of March 30, 2022

Appointing Directors Capable of Making Management Decisions That Link
Business and Organizational Strategies

IR BOOK 2021
https://www.lmi.ne.jp/english/

Directors

Ozasa Yoshihisa

Sakashita Hideki
President andRepresentative Director

Director

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(Price Waterhouse)
1998	Joined PwC Consulting Co., Ltd.
(currently IBM Japan, Ltd.)
2002	Joined the Company
2008	Director (to present)

Chairman and
Representative Director

Management Strategy

IR BOOK 2021 - Corporate Governance

Currently, the Board of Directors of Link andMotivation Inc. is composed of five directors(including two outside directors). The threeinternal directors make decisions that linkbusiness and organizational strategies as
professionals in organizational transformation,with extensive experience as organizational
and personnel consultants. The two outside
directors leverage a high level of insightgained from management at multiple
companies and expert knowledge of industrial
and organizational psychology, which has ahigh degree of affinity with the business fieldsof the Link and Motivation Group, among theirother attributes.
In January 2022, the Company introduced a
corporate officer system to execute
management based on prompt decisionmaking that accurately grasps both thebusiness environment and changes in it.

Ohno Shunichi

Note: Also serves as a director at 10
consolidated subsidiaries and as
an Audit & Supervisory Board
Member at OpenWork.

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

41

Management TeamAs of March 30, 2022

Directors

Audit & Supervisory Board

Kuriyama Hiromi

Kimura Hidekazu

Tominaga Kenji

Audit & Supervisory Board Member (Full-Time)

Outside Audit & Supervisory Board Member(Part-Time)

Outside Audit & Supervisory Board Member(Part-Time)1983 Joined Japan Recruit Center Co., Ltd.
(currently Recruit Co., Ltd.)
2003 Established HRT, Inc., President andRepresentative Director (to present)
2006 Outside 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 andRepresentative Director (to present)
2000 Outside Audit & Supervisory Board Member, theCompany (to present)
2001 Established Career Design Co., Ltd., President andDirector (to present)

1986 Joined Nippon Telegraph and Telephone Corporation (NTT)2005 Joined a2media Corporation as Director, General Manager
in charge of Strategy Promotion
2006 Director, Business Support Department (Accounting,
Legal, Personnel, General Affairs), a2media Corporation2013 Audit & Supervisory Board Member, Japan REIT Inc.
(currently, Prop Tech plus Inc.)
2015 Director, Brainpress Inc. (currently, Inbound Tech Inc.)
2019 Director, Company Administrator, a2media Corporation
2022 Audit & Supervisory Board Member, the Company (to present)

Kakuyama Takashi

Managing Directors

Outside Director

2000 Joined Andersen Consulting, Ltd.
(currently, Accenture Japan Ltd.)2005 Joined Revamp Corporation2010 Director, Revamp Corporation2013 Representative Director, Revamp
Outsourcing Corporation (currently,
Revamp Academy Corporation)(to present)2016 Outside Director, the Company (topresent), President, Representative
Director and CEO, Revamp
Corporation, Representative Director,
Eggcellent Corporation (to present)Outside Director, K’s Holdings
Corporation2018 President and Representative
Director, Chief Executive Officer,
Revamp Corporation (to present)

1991 Professor, Tokyo International University
1992 Visiting Researcher, Michael G. Foster
School of Business, University ofWashington
2003 Dean of Faculty of Human and Social
Studies, Tokyo International University
2009 Dean of Graduate School of Sociology,
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),
Director, Sanko Gakuen (to present)
2020 Outside Director, the Company (to present)

Oguri Takashi

Kawauchi Masanao

Kitsu Hiroyuki

2002 Joined the Company
2010 Operating Officer
2014 President and Representative Director, Link Academy Inc.
2017 Director, Link Marketing Inc. (currently, Link Staffing Inc.),
Director, the Company, Director, Dean Morgan K.K.
2018 Director, Motivation Academia Inc. (to present)
2022 Managing Director, the Company (in charge of Individual
Development Division, to present), Director, Link Academy
Inc. (to present)

2003 Joined the Company
2010 Operating Officer
2018 Director
2019 President and Representative Director, Link Global
Solution Inc. (to present)
2022 Managing Director, the Company (in charge ofOrganizational Development Division, to present),
President and Representative Director, Link Event
Produce Inc. (to present), Director, Link Corporate
Communications Inc. (to present)

1988 Joined Recruit Co., Ltd.
2006 Operating Officer, Recruit Agent Co., Ltd. (currently
Recruit Co., Ltd.)2013 Joined Square Enix Co., Ltd. and assumed the position of
Corporate Executive
2015 Joined the Company and assumed the position of
Operating Officer, Director Interac Co., Ltd. (currently,
Link Interac Inc.) (to present)2016 Director
2020 Director, Link Japan Careers Inc. (to present)
2021 Director, OpenWork Inc. (to present)
2022 Managing Director, the Company (in charge of Matching
Division, to present), Director, Link Staffing Inc. (topresent), Director, Link-i Inc. (to present)

Corporate Officers

Oshima Takashi

Kawamura Nobuyuki

Sakakibara Kiyotaka

Shibato Junya

Yokoyama Hiroaki

2000 Joined Sumisho Computer Systems Corporation(currently, SCSK Corporation)2005 Joined the Company
2015 Head of Motivation Engineering Institute (to present)
2022 Corporate Officer (executive for Motivation
Engineering Institute, to present)

2000 Joined the Company
2010 Established Motivation Academia Inc.
2014 Unit Manager of PR and Secretary Unit ofGroup Design Department
2022 Corporate Officer (executive for Public
Relations Department, to present)

1988 Joined Recruit Co., Ltd.
2000 Established the Company, and assumed
the position of Director
2013 President and Representative Director,
Motivation Academia Inc., President andRepresentative Director, Link Dining Inc.
2015 President and Representative Director,
Link Relation Engineering Inc.
2018 President and Representative Director,
Link Event Produce Inc.
2019 President and Representative Director,
a2media Corporation
2022 Corporate Officer (executive for Brand
Design Department, to present)

2000 Joined YASKAWA Electric Corporation(currently, YE DIGITAL CORPORATION)
2001 Joined Japan System Create Corporation(currently, SCSK Minori Solutions Corporation)2005 Joined Ardito Co., Ltd.
2012 Corporate Officer, Ardito Co., Ltd.
2016 Joined Geniee, Inc.
2017 Corporate Officer, Geniee, Inc.
2018 Joined the Company
2022 Corporate Officer (executive for Product Design
Department, to present)

2004 Joined the Company
2008 Director, i JUST Co. Ltd.
2011 Director, DIGIT Inc.
2013 Unit Manager, Accounting & General Affairs Unit,
Group Design Department
2022 Corporate Officer (executive for System Design
Department, to present)

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

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42

IR BOOK 2021 - Corporate GovernanceYuasa Tomoyuki
Outside Director

Strengthening ComplianceManagement Utilizing Motivation Engineering

IR BOOK 2021
https://www.lmi.ne.jp/english/

Initiatives to Strengthen Compliance

Motivation Engineering

A UniqueManagement System

Communication That Raises
Employee AwarenessTraining conducted with top
management as lecturers

Six Codes of LM(a collection of rules)

Dissemination of
information• Accounting Management Code• Communication Management Code• Entry Management Code• Human Resource Management Code• Risk Management Code• Workstyle Management Code• Harassment training• Compliance tests

Management Strategy

Corporate Governance• Improve awareness of compliance• Link with the consulting businessBusiness Strategy

Organizational Strategy

Corporate Data

IR BOOK 2021 - Corporate GovernanceIn recent years, compliance violations havebecome a social problem. We believe that low
employee engagement creates a breeding
ground for organizational wrongdoing. We areproactively working to strengthen complianceso that we can become a role model forsociety by continuing to be an organizationthat 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.
In ways such as this we are working to raise
employee awareness.

43

IR BOOK 2021 - Corporate Data

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

44

Performance, Financial Position and Dividends(As of December 31, 2021)(¥ million)
2017

2018

2019

2020

2021

Revenues

Performance
Revenues

29,37832,793

31,95630,78532,644(¥ million)
50,000Gross profit

12,236

14,601

13,631

14,00815,34040,000 Selling, general andadministrative expenses

30,00010,658

10,90412,084

12,62520,000

Other income

132

26

173

757

112

10,000

Other expenses

86

243

888

1,820

760

0

Operating income

3,101

3,726

2,011

860

2,066

Financial revenues

35

25

17

8

12

Financial expenses

141

131

167

240

174

1,877

1,860

1,074

(307)

1,102

 Net income (loss) fromdiscontinued operations

218

58

15

(622)

(82)

2,096

1,918

1,090

(929)

1,020

Net income (loss)

25,77027,66444,78741,08330,062

Total equity

6,697

7,681

7,033

4,917

8,648

Interest-bearing debt

10,425

11,20830,03628,37913,887

6.20

6.80

7.20

7.20

7.40

1. F
 rom 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles inJapan (J-GAAP).
2. 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.
3. Dividends per share of ¥6.80 for 2018 consisted of ¥1.70 in each of the four quarters.
4. Dividends per share of ¥7.20 for 2019 and 2020 consisted of ¥1.80 in each of the four quarters.
5. Dividends per share of ¥7.40 for 2021 consisted of ¥1.80 in each of the first and second quarters and ¥1.90 in each of the third and fourth quarters.
6. A
 s of 2021, the domestic temp staff business of Link Staffing Inc. has been classified as discontinued operations. As a result, profits from discontinued operations arepresented separately from continuing operations in the consolidated statements of operations. Accordingly, revenues, gross profit and operating income present theamounts for continuing operations. Amounts prior to 2020 have also been restated in the same manner.

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

2018

2019

2020

2021

3,000

3,726
3,101
2,096

2,066

1,918 2,011
1,090 860

1,000

1,020

0

(929)

2017

2018

2019

2021

2020

■Operating Income ■Net Income (Loss)

Total Assets/Total Equity

Dividends (Yen)

IR BOOK 2021

32,644(1,000)Total assets

Dividends per share

30,785

Operating Income/Net Income (Loss)

2,000

Financial Position

31,9562017(¥ million)
4,000 Net income (loss) fromcontinuing operations

32,793

Management Strategy

Business Strategy(¥ million)
50,00044,78740,00030,00041,08330,062

25,770 27,664

20,00010,000

6,697

7,681

7,033

0

2017

2018

2019

8,648

4,917

2020

2021

■Total Assets ■Total Equity

Organizational Strategy

Corporate GovernanceCorporate Data

45

IR BOOK 2021 - Corporate Data

9,181

29,378

Key Financial Indicators(As of December 31, 2021)

2017

2018

2019

2020

2021

Operating margin (%)

10.6

11.4

6.3

2.8

6.3

Return on equity (ROE) (%)

36.7

27.1

14.7

(18.4)

16.3

(%)
12

Basic earnings per share (EPS) (Yen)

19.95

18.42

10.30

(9.50)

8.73

9

Diluted earnings per share (Yen)

—

18.36

10.28

(9.50)

8.73

6

Book value per share (BPS) (Yen)

63.37

72.87

67.13

35.84

67.17

3

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

26.0

27.8

15.7

9.2

24.9

Operating Margin
10.6

11.4

6.3

6.3
2.8

0

2017

Note: From 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles inJapan (J-GAAP).

2018

2019

2020

2021

(%)
40

IR BOOK 2021 - Corporate Data

Return on Equity (ROE)
36.7

30

27.1

20

16.3

14.7

10
0
(10)

(18.4)(20)

2017

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

2018

2019

Corporate Governance

2020

2021

Corporate Data

46

Revenues by Business/Other Business-Related Data
(As of December 31, 2021)(¥ million)

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

2017

2018

2019

2020

2021

11,695
8,959

13,277
10,071

11,729
8,883

9,923
7,808

10,819
8,716

4,243

4,163

3,430

2,604

2,479

7,220

7,879

7,838

6,732

7,471

6,730

7,122

7,139

6,071

6,824

490

758

704

666

651

Matching Division

11,534

12,713

13,131

14,846

15,043 Global Personnel Placement & Temp Staff Business Domestic Personnel Placement & Temp Staff Business

11,073478

12,187545

12,563591

12,931
1,946

13,123
1,943

Total

29,37832,793

31,95630,78532,644

Revenues by Business (2021)
Individual
Development
Division

22.4%

32.5%

Number of Client Companies

2018

2019

2020

2021

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

1,474
434
630
666

1,636
964
657
632

1,725
748
655
626

1,488
824
606
693

1,354
401
570
253

Total

3,005

3,713

3,545

3,362

2,191

4,000
3,000

3,713

2,191

1,000
0

2017

2018

2019

2020

2021

1,498

1,493

Number of Employees
1,600

1,397

1,375

1,391

1,200

Number and Average Age of Employees

2017

2018

2019

2020

2021

Number of employees (Consolidated)
Number of employees (Non-consolidated)

1,397
225

1,375
249

1,391
312

1,498
403

1,493
376

Average age of employees (Consolidated)
Average age of employees (Non-consolidated)

36.2
33.3

36.0
31.4

35.9
30.8

35.6
31.1

36.3
31.7

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

3,362

2,000

Note: The Group classified the domestic temp staff business of Link Staffing Inc. as discontinued operations in the fiscal year ended December 31, 2021. As a result, only
the relevant figures for 2021 have been restated.

IR BOOK 2021

3,545

3,005

IR BOOK 2021 - Corporate Data

2017

45.1%

Organizational
Development
Division

1. Revenues by Business include intersegment transactions.
2. F rom 2017, the Company has adopted International Financial Reporting Standards (IFRS) in place of the previously used generally accepted accounting principles inJapan (J-GAAP).
3. The name of the Consulting & Outsourcing Business was changed to the Consulting & Cloud Business in 2020.
4. T he Group classified the domestic temp staff business of Link Staffing Inc. as discontinued operations in the fiscal year ended December 31, 2021. As a result, allrelevant figures for the Matching Division have been restated.

Number of Client Companies by Business (Consolidated)

Matching
DivisionManagement Strategy

Business Strategy

800
400

225

249

312

2017

2018

2019

403

376

2020

2021

0

■Consolidated ■Non-consolidated

Organizational Strategy

Corporate GovernanceCorporate Data

47

Consolidated Statements of Financial Position(As of December 31, 2021)(¥ million)
2017

2018

2019

2020

(¥ million)

2021

LIABILITIESCurrent assets

Current liabilities
Trade and other payables
Contract liabilities Interest-bearing and otherfinancial liabilities
Lease liabilities
Income tax payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities Interest-bearing and otherfinancial liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EQUITY
Equity attributable to ownersof the parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity Total equity attributable toowners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

Cash and cash equivalents

1,654

1,979

2,160

6,449

4,917

Trade and other receivables

4,929

4,533

4,114

3,680

3,851

Inventories

186

278

256

187

200

Other current financial assets

11

9

17

14

9

Other current assets

808

1,015

4,905

1,057

753

Total current assets

7,589

7,817

11,454

11,3899,732

Non-current assets
Property, plant and equipment

1,905

1,851

1,459

1,162

637

—

—

15,941

12,7904,149

Goodwill

6,701

6,551

5,927

9,376

9,410

Intangible assets

1,534

1,841

2,095

2,266

2,234

 Investments in associates

1,164

3,080

2,788

—

—

 Other non-current financial
assets

6,017

5,821

4,033

3,203

2,744

Deferred tax assets

506

440

839

646

984

Other non-current assets

350

260

248

245

168

Total non-current assets

18,18019,84733,33329,694

20,32925,77027,66444,78741,08330,062Right-of-use assets

Total assets

Note: Due to the application of IFRS 16, “right-of-use assets” has been presented independently from 2019.

2018

2019

2020

2021

4,023
—

2,394
1,573

2,397
1,760

2,174
1,786

2,094
1,615

5,007
—
883
2
2,212
12,129

4,749
—
1,077
18
2,287
12,101

4,104
1,839
865
21
1,843
12,831

7,440
1,778
484
129
2,149
15,944

7,161
1,079
716
274
2,075
15,018

5,418
—
440
813
270
6,942
19,072

6,458
—
435
724
261
7,881
19,982

9,177
14,915462
218
148
24,92237,754

7,104
12,056560
362
138
20,222
36,166

1,716
3,929
359
256
134
6,395
21,4131,380
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)

1,380
3,879
(320)
4,406
(1,853)

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

7,493
1,154
8,648
30,062

Note: Due to the application of IFRS 16, “lease liabilities” has been presented independently from 2019.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

48

IR BOOK 2021 - Corporate DataASSETS2017

Consolidated Statements of Operations and Comprehensive Income(As of December 31, 2021)(¥ million)
2018

2019

2020

2021

29,37817,142
12,23632,79318,192
14,601

31,95618,325
13,63130,785
16,777
14,00832,64417,304
15,340

9,181
132
86
3,101
35
141
2
2,998
1,120

10,658
26
243
3,726
25
131
(335)
3,284
1,424

10,904
173
888
2,011
17
167
43
1,904
829

12,084
757
1,820
860
8
240
41
670
977

12,625
112
760
2,066
12
174

1,877

1,860

1,074

(307)

1,102

—

1,903
801

 Net income (loss) fromdiscontinued operations
Net income (loss)

218
2,096

58
1,918

15
1,090

(622)
(929)

(82)
1,020

(Net income (loss) attributable to)
Owners of the parent
Non-controlling interests
Net income (loss)

2,107
(11)
2,096

1,945
(27)
1,918

1,086
4
1,090

(996)
66
(929)

918
101
1,020

Net income (loss) per share attributable to owners of the parent Basic earnings (loss) per share
（Yen）
19.95
18.42
10.30
Diluted earnings (loss) per share Diluted earnings (loss) per share
（Yen）
18.36
10.28
—

(¥ million)
2017

2018

2019

2020

2021

2,096

1,918

1,090

(929)

1,020

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

438

(85)

13

(1,397)22  Total of items that will not bereclassified to profit or loss

438

(85)

13

(1,397)22  Exchange differences ontranslation of foreign operations

(0)

(0)

(0)

(2)

4

  Total of items that may bereclassified to profit or loss

(0)

(0)

(0)

(2)

4

 Total other comprehensive
income

438

(86)

13

(1,399)26

Total comprehensive income

2,534

1,832

1,103

(2,329)

1,047

2,545

1,859

1,099

(2,396)

945

(11)

(27)

4

66

101

2,534

1,832

1,103

(2,329)1,047

Net income (loss)
Other comprehensive income Items that will not bereclassified to profit or loss

 Items that may be reclassified
to profit or loss

(Attributable to)
Owners of the parent(9.50)

8.73(9.50)

8.73

Non-controlling interests
Comprehensive income

Note: As of 2021, the domestic temp staff business of Link Staffing Inc. has been classified as discontinued operations.
As a result, profits from discontinued operations are presented separately from continuing operations in the
consolidated statements of operations. Accordingly, revenues, gross profit and operating income present theamounts for continuing operations. Amounts prior to 2020 have also been restated in the same manner.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

49

IR BOOK 2021 - Corporate Data

Revenues
Cost of sales
Gross profit Selling, general andadministrative expenses
Other income
Other expenses
Operating income
Financial revenues
Financial expenses Equity in earnings of associates
Income before income taxes
Income taxes Net income (loss) fromcontinuing operations

2017

Consolidated Statements of Cash Flow
(As of December 31, 2021)(¥ million)
2017

2018

2019

2020

Cash Flow from Operating Activities
Income before income taxes Loss before income taxes from discontinued
operations

2,998

3,284

1,904

670

1,903

103

(0)

(611)

(13)

Depreciation and amortization

626

751

2,480

2,798

2,870

Loss on impairment

34

207

959

2,386

756

Gain on valuation of investment securities

—

—

—

(563)

—

Loss (gain) on sales of fixed assets

—

—

—

(7)

(3)

—

—

—

—

(8)

102

102

146

224

163

Equity in (earnings) losses of associates

(2)

335

(43)

(41)

—

 Loss (gain) on sales of investments accounted forusing the equity method

—

—

(160)

—

—

 Decrease (increase) in trade and other receivables

(949)

395

418

503

(173)

Loss (gain) on step acquisition

—

—

—

16

—

Decrease (increase) in inventories

(26)

(91)

22

68

(12)

91

6

8

(263)

(78)

 Payments for acquisition of property, plant andequipment
Proceeds from sale of property, plant and equipment
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 security deposits and guarantees Proceeds from recovery of security deposits andguarantees
Payments for business transfer
Payments for acquisition of subsidiary stock
Payments for investments in associates

2020

2021

(930)

(275)

(337)

(222)

(330)

—
(545)

—
(731)

—
(772)

16
(699)

3
(889)

—
(861)
—
(493)

—
(135)
293
(163)

—
(204)
1,966
(122)

2,290
—
636
(56)

—
—
513
(272)

334

155

120

56

291

(1,000)(1,626)———(2,252)

—
—
—

—
—
—

—
—
—

—

—

498

—

—

Advance payments
Payments for fulfillment of asset retirement obligations
Proceeds from cancellation of insurance
Other
Net cash used in investing activities

—
(106)
—
(2)
(5,232)———(12)(3,121)(4,075)——(63)(2,990)

—
(44)
—
(9)
1,969

—
(142)
85
13
(728)

Other

237

(102)

(43)

657

(547)

Cash Flow from Financing Activities

3,379

4,992

5,693

5,837

4,856

3

14

9

5

0
(162)

 Net increase (decrease) in short-term financial
liabilities
Proceeds from long-term financial liabilities
Repayment of long-term financial liabilities
Payments of cash dividends
Repayments of lease liabilities
Capital contribution from non-controlling interests Payments for acquisition of interest in subsidiaryfrom non-controlling interests
Payments for acquisition of treasury shares
Proceeds from sales of treasury shares
Other
Net cash provided by (used in) financing activities Interest paid

(105)

(108)

(155)

(226)

 Income tax refund

393

17

62

28

439

 Income taxes paid

(726)

(1,304)(1,783)(1,675)(816)

Net cash provided by operating activities

2,944

3,611

3,827

3,970

4,316

Note: T he former items “Interest and dividend income” and “Interest expense” are included in “Financial
revenues and financial expenses” for presentation from 2018.

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

2019 Proceeds from sales of investments accounted forusing the equity method

Subtotal

IR BOOK 2021

2018

578

506

(1,000)

3,640

—

5,213
(2,188)
(632)
—
—

2,821
(2,531)
(710)
—
—

5,255
(1,972)(747)(1,827)——(2,376)(754)(2,075)8506(6,173)(765)(1,968)
—

—

(140)

—

(90)

(753)

—
—
(112)
2,859

—
—
(110)
(164)

(362)
—
—
(655)

—
—
—
(1,647)—
4,029—(5,124)

Cash and cash equivalents translation adjustment

(0)

(0)

(0)

(2)

4

Net increase (decrease) in cash and cash equivalents

571

325

180

4,289

(1,532)

Cash and cash equivalents at beginning of year

1,082

1,654

1,979

2,160

6,449

Cash and cash equivalents at end of year

1,654

1,979

2,160

6,449

4,917

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

50

IR BOOK 2021 - Corporate Data

Gain on cancellation of insurance
Financial revenues and financial expenses Interest and dividends received

2017
Cash Flow from Investing Activities267 Increase (decrease) in trade and other payables(¥ million)

2021

Market Data
Changing Conditions for Organizations and Individuals

A Shrinking Labor ForceDiversifying Motivation for Work

Japan’s working population is shrinking at
the fastest rate in the world.

The purpose of work is shifting to a sense of fulfillment and worthwhile work,and people are changing jobs more often.

Japan’s Working Age Population Ratio1

68.2

50.7

%

Change in the “Purpose of Work” for New Employees
Percentage of Respondents Who “Want to Enjoy Life”2

26.1

%

2000

%

2050

2000

Country

2000

2050

Japan

68.2%

50.7%

USA

66.0%

61.1%

UK

65.1%

59.0%

Germany

67.8%

56.4%

France

65.0%

56.4%

China

68.4%

59.8%

%

2019

IR BOOK 2021 - Corporate Data

Working Age Population Ratio in Major
Countries1

39.6

Purpose of Work (Changes in Main Responses over Time）
45

40

39.6%

35

30

25

26.1%

20

15

10

5

0
´71 ´72 ´73 ´74 ´75 ´76 ´77 ´78 ´79 ´80 ´81 ´82 ´83 ´84 ´85 ´86 ´87 ´88 ´89 ´90 ´91 ´92 ´93 ´94 ´95 ´96 ´97 ´98 ´99 ´00 ´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14 ´15 ´16 ´17 ´18 ´19

To be financially prosperous

Want to enjoy life

To test my abilities

To be useful to society

1. C reated by the Company from “Databook of International Labour Statistics 2019” by the Japan Institute for Labour Policy and Training
2. C reated by the Company based on the results of the “Work Attitudes" survey for new employees conducted by the Japan Productivity Center in 2000 and 2019.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

51

Market Data
Changing Conditions for Organizations and Individuals

Changes in Management Issues

Financial soundness (or improving profitability)
Low-cost management

3rd

Net sales (or increasing market share)

4th

Customer satisfaction management

5th

Formulating commercialization and differentiation strategies

6th

New businesses/new products

7th

Speedy management

8th

Personnel/employee treatment (systems)

9thInnovating and enhancing corporate culture

10thAddressing globalization (global management)

11thGroup company reorganization (or consolidated management)

12th

Current businesses

12th

Research and development activities

14th

Corporate philosophy/management philosophy/vision
Establishing and utilizing IT/information network

17th

Corporate image (corporate brand)

18th

Developing skills

19th

Addressing changes in distribution structure

20th

Corporate governance

21st

Employment issues

22nd

Environmental/resource problems

23rdIntercompany cooperation

24th

Coexistence with society

25th

Other

37.0%
31.3%
29.6%
27.9%
24.3%
23.0%
13.6%
12.7%
12.5%
12.1%
9.9%
8.9%
8.9%
7.9%
7.4%
5.1%
4.7%
4.0%
3.9%
3.2%
3.1%
2.6%
1.4%
0.8%
0.8%

1st

Improving profitability

40.8%

2nd

Strengthening human resources (hiring/training/dealing with diversity)

37.7%

3rd

Increasing sales/market share

35.2%

4th

Strengthening/ the business base, restructuring the business portfolio

25.9%

5th

Developing new products/services/businesses

22.8%

6th

Utilizing and strategically investing in digital technology

19.3%

7th

Penetration and revision of corporate mission/vision/values

11.4%

8th

Improving employee fulfillment/job satisfaction/engagement

11.0%

9th

Strengthening technical/R&D capabilities

10.6%

10th

Strengthening corporate governance

10.3%

11th

Enhancing financial soundness

9.5%

11th

Strengthening on-site capabilities

9.5%

13th

Improving customer experience value/satisfaction

9.1%

14th

Improving quality (products/services/technologies)

8.9%

15th

Improving high-cost structure

8.5%

16th

Corporate social responsibility, creating shared value, resolving social
issues through business

7.5%

17th

Increasing shareholder value

7.0%

18th

Increasing brand power

5.8%

19th

Globalization (global management)

5.2%

20th

Risk management/formulating a business continuity plan (BCP)

2.1%

21st

Other

1.4%

n=771 (Multiple answers)

IR BOOK 2021 - Corporate Data

1stRisk managementnd2021 Strengthening humanresources

Perception of Management Issues in 2021

2nd

16th

2

th

2003 Personnel/employee
treatment (systems)

Perception of Management Issues in 2003

15th

8

Increased importance of human capital frommanagementʼs perspective*

There are growing needs for human resource development
and improved employee engagement.

N=517 (top three responses)

Note: Created by the Company based on “Survey on Current Management Issues for Japanese Companies 2003: Identification of Issues and Direction of Response for Future Management Innovation” and“Management Issues for Japanese Companies 2021,” both from the Japan Management Association.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

52

Company Profile(As of March 30, 2022)

Company Information
Name
Head Office
Established
Inaugurated
Paid-in Capital
Fiscal Year-end
Group Companies

Link and Motivation Inc.
Kabukiza Tower 15F, 4-12-15 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/

Share Distribution
Financial institutions

5,192,700 shares (4.59%)（人）

Financial instruments firms
5,299,700 shares (4.69%)

Individuals andother

Other corporations

44,140,700 shares (39.04%)

51,990,200 shares(45.99%)IR BOOK 2021 - Corporate Data

Foreign corporations, etc.
6,432,900 shares (5.69%)

Note: 1,506,443 treasury shares include 15,064 trading units
listed under “Individuals and other” and 43 listed under "Status of odd stocks.”

Share Information
Stock Code
Stock Listing
Trading Unit
Shares Authorized
Shares Issued andOutstanding
Number of
Shareholders

2170
First Section, Tokyo Stock Exchange
100 shares
400,000,000 shares
113,068,000 shares
14,141

Major Shareholders (Top 10)
Shareholder

Number ofshares held

Shareholding
ratio (%)

Phoenix Co., Ltd.

42,000,000

37.65

Suguro Akira

6,874,600

6.16

Link and Motivation Employee Shareholding
Company

6,758,500

6.05

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

3,919,000

3.51

Sakashita Hideki

3,680,000

3.29

Sakakibara Kiyotaka

3,680,000

3.29

Ozasa Yoshihisa

3,000,000

2.68

Nomura Securities Co., Ltd.

2,098,959

1.88

Link and Motivation Officer Shareholding

992,000

0.88

BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)

981,918

0.88

1. The above list of major shareholders excludes 1,506,443 treasury shares.
2. Shareholding ratio is calculated excluding treasury shares.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data

53

IR BOOK 2021
https://www.lmi.ne.jp/english/

Scope
Reporting Period
Date of Issue

Link and Motivation Inc. and its consolidated subsidiaries
January 1, 2021 to December 31, 2021
Note: Includes some information that is outside the above reporting period.
March 2022

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.