Integrated Report

IR BOOK

Link and Motivation Grouphttps://www.lmi.ne.jp/english/

IR BOOK 2022

CONTENTS

02 Introduction

27 Organizational Strategy

02 Creating a More Meaningful Society
03	Providing Opportunities to Transform Organizations
and Individuals
04 Motivation Engineering, Our Core Technology
05 The Link and Motivation Group in Numbers

06 Management Strategy
07
09
10
14

Message from the Chairman and Representative Director
Value Creation Process
Key Points of Our Value Creation Process
Special Feature: A Conversation between Ito Kunio andPresident and Representative Director Sakashita Hideki
on the Nature of Human Capital

17 Business Strategy

47 Corporate Data

28 Strategy Overview
29 Organizational Capabilities: Engagement Rating
31 Human Resource Capabilities: Level-Specific Role
Survey Score
33 Measures to Improve the Capabilities of Organizationsand Human Resources: Recruiting, Training, Systems
and Corporate Culture
37 Special Feature: Human Capital Management Case Study

38 Sustainability

54 Appendix

39 Message from Director Ohno Shunichi
41 A Management Structure That Supports Sustainable Growth
45 Business and Other Risks

Overview of Corporate Communications

18 Group Business Strategy Chronology
19 Business Overview
20 Competitive Advantages of Each Division
21 Social Changes and Significant Opportunities
22 Strategy Overview
23	Achieve Substantial Growth of the Organizational
Development Division
24 Enhance Synergies between the Organizational
Development Division and Other Divisions
25 Message from the President and Representative Director

Financial Statements
Financial Results Briefings● Securities Report/Quarterly
Reports (Japanese only)● Shareholders Report(Japanese only)
●
●

Link

●

IR Book (Integrated Report)

Presents the Link and Motivation Group’sbusiness and organizational strategies as astory linked to the LM Mission and issued as
an integrated reporthttps://www.lmi.ne.jp/english/●

Human Capital Report

Presents the Link and Motivation Group’s
approach to human capital management
and results

Sources
Japan Productivity Center (2022)

The World Happiness Report (2022)

Gallup State of the Global Workplace: 2022 Reporthttps://www.jpc-net.jp/research/assets/pdf/report_2022.pdf(Japanese only)

https://worldhappiness.report/ed/2022/happinessbenevolence-and-trust-during-covid-19-and-beyond/https://www.gallup.com/workplace/349484/state-of-the-globalworkplace-2022-report.aspx

Benesse Educational Research & Development
Institute, Parent and Child Survey on Children’s
Lifestyles and Learning, 2021 Digest (2022)
https://blog.benesse.ne.jp/bh/ja/news/20220420release.pdf(Japanese only)Creating a More Meaningful Society
Japan is at the forefront in confronting a number of new social issues that are having an impact on countries around the world.
We want to give greater meaning to work in order to make life more meaningful in Japan, and ultimately worldwide.

Issues Confronting Japanese Society
Labor Productivity

Happiness

Employee Satisfaction

Children’s Motivation
for Learning

29

54

128

54.3

th

out of 38 OECD member countriesthwith a particularly low score for“life satisfaction”

thout of 129 countries in“employee enthusiasm”%

don’t feel like studying

IR BOOK 20223

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Providing Opportunities to Transform Organizations
and Individuals
We have made it our mission to provide organizations and individuals with support and opportunities for transformation to realize their aspirations and solve their problems.

Outcomes
A society filled with organizations that link employee
job fulfillment to business growth

A society filled with individuals who are independently
designing their own lives and careers

IR BOOK 2022

4

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

Motivation Engineering, Our Core Technology
Motivation Engineering is Link and Motivation’s core technology and the source of its uniqueness and competitive advantages. Based on academic findings in fields
including business administration, social system theory, behavioral economics and psychology, this technology is characterized by practicality that sets it apart frommere theorizing, and reproducibility that does not rely on individual intuition, guts or experience.
Business Strategy

Diagnostic
technologies
Use our unique frameworks to
identify customer problems

Source of Our Uniqueness andCompetitive Advantages

Motivation
Engineering
Practicality

Reproducibility

Transformation
technologies
Techniques and methodologies
that utilize our accumulated
insights to resolve
customer problems

IR BOOK 2022

5

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

LMG at a Glance

The Link and Motivation Group in Numbers
Consolidated Financial Results
Revenues

Operating income (IFRS)Net income attributableto owners of the parent

¥

32.7
¥3.6
¥1.9

Gross Profit Breakdown by Divisionbillion (+0.4% year on year)
billion (+75.6% year on year)
billion (+111.3% year on year)

Matching Division

34.4%

Extensive Databases

Organizational
Development Division

Individual
diagnostic data

3.12 million employees at
10,060 companies
Approx. 750,000 people

Number of
online reviews

Approx.

Organizational
diagnostic data

49.2%

Individual
Development Division

16.4%

Approx.

14.1 million

Strengths Driving Group Growth
The World’s First Consulting That Usesa Motivation-Based Approach

Track record of more than20

A Predominant Presence in the Market
for Improving Employee Engagement

Unique One-Stop Services

Share of sales in Japan for
four consecutive years

years

Providing solutions ranging fromdiagnosis to transformation

Diagnosis

Motivation
Engineering

Transformation

No. 1

Click here for details (Japanese only).

Note: Figures as of December 31, 2022

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

IR BOOK 2022 - Management Strategy

Management
Strategy

6

MissionValue Creation Process
Management Strategy
Business Strategy

Link

Organizational Strategy

Sustainability

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

7

Message from the Chairman and Representative Director

Continuing to Advance by
Maximizing Customer Valueand Human Capital
Ozasa Yoshihisa
Chairman and Representative Director
Link and Motivation Inc.

IR BOOK 2022 - Management Strategy

We believe human resources are the greatest, mostpowerful type of capital for corporate management.

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

A Spirit Driving Further Growth

As Japan’s working population shrinks and the source of companies’ competitive
advantages shifts from tangible goods to intangibles, human resources andorganizations will become crucial assets for corporate management. That was myconviction when I founded Link and Motivation in 2000, a time when the English
word “motivation” was still largely unknown in Japan. No matter how marvelous astrategy, product or service may be, it is impossible to execute strategies, or tocontinue creating new products and services, without employee motivation.
I founded the Company with that thought in mind, and my conviction has only grownstronger as we have helped resolve organizational and personnel issues atcompanies of all kinds as a pioneer in organizational and personnel consulting.
In recent years, attention has increasingly turned to fulfillment in work,
employee engagement, and human capital. The Japanese government’s strategy is
to radically strengthen investment in human capital, stating that “In an era ofprogress from the tangible to the intangible, the source of added value is people,
who generate creative ingenuity and new ideas.” We see this national strategy as amajor opportunity for the Link and Motivation Group. Furthermore, I feel once againthat the conviction I had at the time of the Company’s founding was correct.

Now, 23 years have passed since I founded the Company. Both society and conditions
for organizations and individuals continue to change at a dizzying pace. Business inJapan has transitioned to intangibles, with the service industry now accounting forabout 70% of GDP. Moreover, the declining working-age population is making
productivity improvement essential, and attitudes are diversifying regarding themeaning of life and of work. As a result, social issues related to individuals andorganizations—including promoting human capital management, improving laborproductivity, and providing high-quality education—have come to the fore and are
growing increasingly complex. We are committed to helping resolve these social
issues and fulfilling our mission.
Accomplishing our mission of creating a more meaningful society will require
us to accelerate our growth. We still have a distance to go. But our hope is that
someday, we will have helped to build a Japanese society so replete with fulfillment,
both in work and in life, that people laugh in disbelief to find out that there was once atime when Japan was ranked 128th out of 129 countries in employee enthusiasm. We
also intend to take on the challenge of helping to resolve the major issues Japan isconfronting ahead of other countries. We want to continue delivering our value tosociety decades into the future.
In this era when some eight out of ten companies go out of business within
three years of their founding, I would like to express my sincere gratitude to everyone
involved in the ongoing growth of Link and Motivation. Together with stakeholders
who share our vision, we will continue to make further substantive progress with our
mission of creating a more meaningful society. You can look forward to the continuing
growth of the Link and Motivation Group in the years to come.

Progress toward Accomplishing Our Mission
The Link and Motivation Group has set forth a mission to create a moremeaningful society, and our business has continued to grow. The expression“a meaningful society” may sound somewhat philosophical, but we mean acondition in which organizations and individuals derive meaning from society by
pursuing their ambitions and finding fulfillment in life. Three unique aspects ofLink and Motivation provide us with advantages for accomplishing our mission.

1. Management That Prioritizes Human Capital
2. A Business Model That Fully Utilizes Motivation Engineering
3. Linkage between Business and Organizational Strategies
See “Key Points of Our Value Creation Process” on pages 10-13 for details.

March 2023

IR BOOK 2022 - Management Strategy

Founding Spirit8Value Creation Process
for Creating a More Meaningful Society
By investing capital, primarily human capital, in a business model that fully utilizes Motivation
Engineering, we will continue to generate value to create a more meaningful society through acycle that provides organizations and individuals with opportunities for transformation.

Outcomes

A society filled with organizations that link employee
job fulfillment to business growth

Input: Capital

A society filled with individuals who are independently
designing their own lives and careers

Throughput: Business model

Output: Results

Financial
capitalSocialcapitalSupport for
promotion ofhuman capitalmanagement

Support for
matching
organizations
and individuals

Support for
improving skills

Individuals

Intellectual
capitalOrganizations

Intellectual
capitalFinancial
capitalSocialcapitalMotivation Engineering
Human Capital

Human Capital

Sustainability

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

10

Key Points of Our Value Creation Process
There are three key points in the Link and Motivation Group’s value creation process.
Input: CapitalThroughput: Business model

Output: Results

SocialcapitalSupport for
matching
organizations
and individuals

Support for
improving skills

Financial
capitalSocialcapitalMotivation Engineering
Human Capital

Human Capital

Sustainability

Point 1

Point 2

Point 3

Management That Prioritizes
Human Capital

A Business Model That Fully Utilizes
Motivation Engineering

Linkage between Business andOrganizational Strategies

We maximize human and other types ofcapital, placing the highest emphasis on
human capital.

In our business model, employees (humancapital) fully utilize Motivation Engineering, ourcore technology, to maximize customer value.

We consistently link business andorganizational strategies to simultaneously
maximize customer value and human capital.

SocialcapitalSupport for
promotion ofhuman capitalmanagement

Support for
matching
organizations
and individuals

Support for
improving skills

Motivation Engineering

Human Capital

Individuals

Financial
capitalOrganizations

Intellectual capitalBusiness
Strategy

Link

Productivity

Organizational
Strategy

IR BOOK 2022 - Management Strategy

Financial
capitalSupport for
promotion ofhuman capitalmanagement

Individuals

Intellectual
capitalOrganizations

Intellectual
capitalIR BOOK 2022

Point 1

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

Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

11

Management That Prioritizes Human Capital
Based on our belief that human resources are the greatest, most powerful type of capital for corporate management—a principle that has remained
unchanged since our founding—we conduct management that prioritizes human capital. Not only is human capital capable of increasing value on its
own, human resources maximize other types of capital through product development, customer development and brand development.

Intellectual capital

Revenues
OperatingincomeOperatingmargin¥32.7 billion¥3.6 billion

ROE¥11.3 billion

23.3%

11.1%

Number of online
reviews
Research reports
Proprietary surveys

Patents

Social capital

1,600 companies
15,2982,966
Approx. 5.25 million

Organizational Development Division
Number of corporate customers Approx.
Individual Development Division
Number of enrollees for the past 12 months
Matching Division
Average number of ALTs dispatched overthe past 12 months
OpenWork
Number of registered users

Human capital

Employees
Number of Group companies withAAA Employee Engagement Ratings

10  out of11  companies

1,505
Level-specific role survey score
Note: See “Organizational Strategies”
on page 27 for details.

All employees Rank of “A” or higher
Managers Rank of “A” or higher
and above

56.8%
75.3%

Note: Figures as of December 31, 2022

IR BOOK 2022 - Management Strategy

Financial capital
Totalequity3.12 million employees
at 10,060 companies
Approx. 14.1 million
42
13
13

Organizational Approx.
diagnostic data

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

12

A Business Model That Fully Utilizes Motivation Engineering
Our business model maximizes value for customers by incorporating Motivation Engineering, our one-of-a-kind core technology, into practical,
reproducible diagnosis and transformation for organizations and individuals.

Support for Improving Skills

Support for finding the best match based on
conditions, skills and motivation

Support for working people in gaining IT skills, acquiringcertifications and learning languages
Support for improving the academic skills of elementary,junior high and high school students

Cloud-based services for improving
organizational and employee capabilities

Recruiting platform

Learning platform

DKI ブランドマーク 基本パターン（CMYK）
AVV ブランドマーク

Consulting

IR Support

Recruiting

Integrated reports

Training

Personnel
PlacementNew
university
graduates

Systems

Corporate
Culture

ALT Placement

Mid-career
employees

Financial results
announcement videos

Engineering
基幹技術Motivation
モチベーションエンジニアリング

基本パターン（CMYK）

Schools (Online/Brick-and-mortar)

Individuals

Organizational diagnosis,
transformation and disclosure

Organizations

Support for Matching Organizations
and Individuals

IR BOOK 2022 - Management Strategy

Support for Promotion of Human
Capital Management

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

13

Linkage between Business and Organizational Strategies
A company’s organizations are determined by its business strategy. On the other hand, we also believe that a company‘s business strategy isdetermined by its organizations. We therefore give equal status to business strategies and organizational strategies. By constantly monitoringproductivity (human capital ROI) as a management KPI, we conduct management that balances human capital investment and business results.

Support for
matching
Support fororganizations improving skills
and individuals

Individuals

Support for
promotion ofhuman capitalmanagement

Financial
capitalSocialcapitalMotivation Engineering
Human CapitalBusiness Strategy
Maximize customer value

Link

Organizational strategy
Maximize human capital

Productivity(Human capital ROI)
We monitor human capital ROI, an indicator of the return on investment in humancapital, as a management KPI. In 2022, the Link and Motivation Group’s humancapital ROI was 41.1% (an 8.1% increase from the previous year).

Note: Human capital ROI = Adjusted operating income ÷ Human capital costs
Human capital costs are calculated as total expenditures including employee salaries and bonuses, statutory internal and external welfare expenses,
commuting expenses and other executive compensation.

IR BOOK 2022 - Management Strategy

Organizations

Intellectual
capitalIR BOOK 2022

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Organizational Strategy

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Corporate Data

Appendix

14

Special Feature:

A Conversation between Professor Ito Kunio andPresident and Representative Director Sakashita Hideki
on the Nature of Human Capital
Ito Kunio

Sakashita Hideki

Mr. Ito has a Doctorate in Commercial Science and has served asa professor and dean of the Graduate School of Commerce andManagement, and senior vice president at Hitotsubashi University.
He chaired the study group that published Competitiveness andIncentives for Sustainable Growth: Building Favorable Relationships
between Companies and Investors (known as the “Ito Report”) in2014 as well as other government committees and projects on
corporate governance, intangible assets and ESG. In September
2020, the Report of the Study Group on Improvement of Sustainable
Corporate Value and Human Capital (known as the “Ito Report for
Human Capital Management”) published its findings for the Ministryof Economy, Trade and Industry.

In 1991, Mr. Sakashita joined Recruit Co., Ltd., where he wasinvolved in organizational and personnel consulting as part of
the Comprehensive Human Resources Services Division. In 2000,
he participated in the establishment of Link and Motivation Inc.
as a founding member, and has been serving as president andrepresentative director since 2013.

Professor and Director
Hitotsubashi CFO Education and Research Center

Current State of Human Capital Management
Ito: When I talk to managers, they all say the same thing: Our people are important.
But some data has emerged that presents a shocking state of affairs. For example,
when asked if they want to continue working at their current company for a long time,
employees in Japan answered “yes” at the lowest rate of all countries surveyed. At thesame time, they were also least likely to agree when asked if they want to change jobs
(move to another company). Efforts to restore the competitiveness of Japanesecompanies will not produce results as long as employee enthusiasm and engagement

remain low. That finding led to our publication of the Report of the Study Group on
Improvement of Sustainable Corporate Value and Human Capital in 2020.
Sakashita: When Link and Motivation was established in 2000, efficiency was beingheavily emphasized and expectations were high for IT. However, IT is used by people,
and results will vary depending on the purpose of use. The Company therefore
started with the intention to prove the effectiveness of management that focuses on
people’s motivation and engagement, and to support such management.
One way of approaching this issue is to look at the many companies where
communication consists solely of exchanging figures without any deeper
reflection—without any discussion of why the company exists or why it is engaged ina particular business or type of work. Even when those companies do such things,
employees feel they are forced to do it, and consequently even if those companies do
conduct an employee engagement survey, they find it difficult to improve. I think that
improving motivation from within, rather than just external motivation such as
raising salaries, will serve as the engine of growth for Japan.

IR BOOK 2022 - Management Strategy

Human capital management has been attracting attention. This management approachviews human resources as a type of capital and emphasizes maximizing their value toimprove corporate value over the medium to long term. We take a look at the nature ofhuman capital management in this conversation between Ito Kunio, who chaired thestudy group that published the “Ito Report for Human Capital Management” and is
promoting human capital management from an academic perspective, and Link andMotivation President and Representative Director Sakashita Hideki, who is promoting itfrom a business perspective.

President and Representative Director
Link and Motivation Inc.

IR BOOK 2022

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Enhancing Management through Human Capital Disclosure
Ito: Looking at many Japanese companies these days, they are all enthusiasticallyclaiming that they will be making a major effort to disclose human capital information,
but I sense that all they are really thinking about is the disclosure itself. Take the ratioof women in management positions, for instance. Their interest in the topic ends withsomehow just making it look like they are meeting their targets, which has a different
meaning from the original objective.
Rather than making it all about the disclosure, it would be better to create apositive cycle—to use the feedback on the information that is disclosed to improve

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix15

conditions at the company through human capital management, which will show up in
the next disclosure.
Sakashita: The Link and Motivation Group conducts regular diagnoses of employee
engagement, which is thought to have a high correlation with corporate growth in areas
such as business results and retention of human resources. We then disclose the levelof employee engagement as an Engagement Rating.
At the same time, as a business, we conduct a cycle of diagnosis, transformationand disclosure for our client companies that leads to improvement in their corporate
value. We also try to make corporate conditions clear even without formal disclosure
through the online employee reviews collected by OpenWork, one of our Group
companies. By doing so, any discrepancies between the details in a company’s
integrated report or other disclosure materials and actual conditions are made clear.
As we work in this way for a more open labor market, we intend to promote andhelp spur human capital management by expanding the organizational and personnel
consulting support for diagnosis, transformation and disclosure that we have offeredsince the Company was established.

People Turn Strategies into Reality
Ito: Companies communicate their management strategy externally through, for example,
their medium-term management plan. Then, when investors see an appealing strategy,
they want to know how feasible it is.
In considering feasibility, the responsibility for turning a management strategy into
reality falls to the people in the company. But actually, until now virtually no information
was disclosed about the human resources who carry out the management strategy.
When investors want to see whether a company is capable of executing its
management strategy, if the disclosed information does not clearly address this issue,
they will have doubts about the company’s ability to perform sustainably. I therefore
believe that disclosure of human capital information is crucial in the sense that it helps
people understand a company’s ability to execute its management strategy. Link andMotivation is a listed company. How is it for you?
Sakashita: To take an example from sports, I think that human capital disclosure is likeshowing not just the scores of games, but also details on the players’ training.

IR BOOK 2022 - Management Strategy

Ito: I completely agree. Perhaps one reason for the low employee engagement at
Japanese companies, which claim to value people, is their corporate philosophies.
I often hear it said that once those admirable sentiments are written down,
Japanese corporate philosophies are treated as set in stone, and never again become
the subject of a general debate.
However, as you mention, each employee should have a clear idea of why they are
working at their company and doing the job they do, then reconcile that with the corporate
philosophy. Those who are in basic agreement about their reasons will work at thecompany for many years and do good work, while those who are not in agreement will
move on to another company. This kind of healthy turnover is important.

Management Strategy

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Management Strategy

Business Strategy

Organizational Strategy

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Corporate Data

Appendix16

Ito: That’s an interesting analogy. Admittedly, there is usually no way of knowing how
seriously players are working on the various aspects of their game. However,disclosing information is a way for a company to show that it has a specific training
schedule and its employees are highly motivated to train, and thus that its businessresults will improve.
For example, companies in the manufacturing industry offer factory tours. People
see the company in action, it leaves an impression, and they invest in it. The same istrue for human capital management. For a company to talk about its recruiting without
showing potential investors what they are talking about is a wasted opportunity.

Ito: Until now, Japanese companies have managed their people as resources. Goingforward, they will need to fundamentally change the way they view people. In otherwords, people are not a “resource” that decreases with use, but rather a type of“capital” whose value increases without limits when placed in the right environment.
The value of all human capital is not identical across the board; that is something
management and employees have to get together and discuss at each company.
I think Link and Motivation already does this. Is that the case?
Sakashita: Since our founding, we have held that people are the greatest, mostpowerful type of management capital. Rather than simply adjusting people to fit abusiness, this management philosophy also adjusts the business to fit its people.
I also think that corporate climate and corporate culture are important forunderstanding human capital.
Ito: Creating a corporate culture and climate for developing human capital to its fullpotential is essential. To give one example, Japan does not have a culture of giving
praise. I think that makes it difficult to give employees the motivation to work hard andincrease their own value.
Sakashita: At the Link and Motivation Group, it is important to management thatmembers feel they are growing. When setting goals, for example, they set a goal for
growth we call a “stretch goal” instead of just performance targets. It does not always
lead to immediate results, but we use this stretch goal as a basis for ongoing

communication that gives the member a sense of accomplishment. By encouraging our
employees to try various things in this way, we increase the value of our human capital.
Ito: That consistency between your words and your actions is admirable. Please keep me
updated on your progress, including a look at conditions at your “training camp.”

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Human Capital Rather Than Human Resource

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Appendix

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Business
Strategy

17

MissionValue Creation Process
Management Strategy
Business Strategy

Link

Organizational Strategy

Sustainability

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Appendix

18

Group Business Strategy Chronology
We have been innovating our business model based on Motivation Engineering, our core technology, with the aim of carrying out our mission and maximizing value for customers.

Refining our strengths 2000-20092010

Expansion 2010-2019

Organizational
Development
Division

Individual
Development
Division

2020

Linkage 2020 onward

2030

Organizational
Development
Division

Individual
Development
Division

Organizational
Development
Division

Establish our core technology Motivation
Engineering and roll it out in the field oforganizational development

Matching
Division

Matching
Division

Use our core technology Motivation
Engineering to expand business into
other areas

Maximize customer value by using ourcore technology Motivation Engineering
to link all divisions

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2000

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19

Business Overview

Support for Matching Organizations
and Individuals

Organizational diagnosis,
transformation and disclosure

Support for finding the best match based on
conditions, skills and motivation

Support for Improving Skills
Support for working people in gaining IT skills, acquiringcertifications and learning languages
Support for improving the academic skills of elementary,junior high and high school students

Tech

Cloud-based services for improving
organizational and employee capabilities

Learning platform

Recruiting platform

Individuals

Support for Promotion of Human
Capital Management

DKI ブランドマーク 基本パターン（CMYK）
AVV ブランドマーク

基本パターン（CMYK）

Human
Consulting

Recruiting

IR Support

Training

Personnel
Placement

Corporate
CultureSchools (Online/Brick-and-mortar)

Integrated reports
New
university
graduates

Systems

ALT Placement

Mid-career
employees

Financial results
announcement videos

Motivation Engineering

Organizational Development Division

Matching Division

Individual Development Division

Consulting & Cloud Business

IR Support Business

ALT Placement Business

Personnel Placement Business

Career School Business

Cram School BusinessSupport for Helping Companies
Improve Employee
Engagement

Support for Helping Companies
Improve Investor Engagement

Support for Matching
Individuals from Overseas
Seeking to Work in Japan with
Local Governments

Support for Matching Job
Seekers with Companies

Support for Working People in
Developing Their Careers

Support for Improving theAcademic Skills of Elementary,
Junior High and High SchoolStudents

IR BOOK 2022 - Business Strategy

Organizations

We are currently engaged in the following businesses to provide organizations and individuals with opportunities for transformation. In addition to the power of our people, we also utilize
the power of technology to increase productivity and create high-value-added services.

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20

AppendixCompetitive Advantages of Each Division
We conduct a diagnosis of organizations and individuals and then provide opportunities for transformation according to the characteristics and issues we identify. In this way, we
maximize customer value by fully utilizing Motivation Engineering, our one-of-a-kind core technology, in our businesses, services and products.

Organizational Development Division
Visualization of organizational issues

Matching Division
Quantification of job
satisfaction at a company
based on employee reviews

Individual Development Division

Diagnosis in areas fromapplicant skills tomotivation type

Identification of individual issues

Technical skills
Organization

Behavior

Literacy

Portable skills

Work style

Individuals

Organizations

Diagnosis

Motivation
Engineering

Transformation

Organizations

Recruiting

Training

Systems

Individuals

Corporate
CultureProvide one-stop solutions for issues identified

Career schools

IT

Achieve the best match for a highretention rate, based on our multifacetedunderstanding of the company

Motivation Engineering

Qualifications Foreign
languages

Cram schools

SkillsMotivation

Provide wide-ranging learning opportunities

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Motivation type

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Organizational Strategy

Sustainability

Corporate Data

Appendix21

Social Changes and Significant Opportunities
Current changes in society are creating the best market for our products and services since our founding. We view these conditions as a major opportunity for substantial business growth.

Social Changes

Changes Involving
Organizations and Individuals

Industries

Occupations

Individuals

Shrinking and diversifying working
population

Business shift to intangibles
Increasing importance and difficulty forcorporate management to adapt to thelabor market
Shrinking and diversifying
working population

Push for reskilling

Product
marketLabor
marketCapitalmarketPublication of “Ito Report for Human
Capital Management”
Release of Human Capital
Visualization Guidelines
Mandatory disclosure of human capitalin securities reports

Intensifying competition toacquire human resources

IR BOOK 2022 - Business Strategy

Shift to individuals as the core ofcorporate value creation

Significant Opportunities

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Appendix

22

Strategy Overview
We will promote substantial growth of the highly profitable Organizational Development Division, which is enjoying favorable market conditions, as we enhance its synergies withother divisions.

Business Strategy

Organizational Strategy

Link
Productivity

Growing needs for reskilling

Growing momentum forhuman capital management

Intensifying competition to acquire
human resourcesCore Theme 1
1 Organizational
Development
Division2

2

Individual
Development
Division

Achieve Substantial Growth of the Organizational
Development Division

Core Theme 2
Enhance Synergies between the Organizational Development
Division and the Individual Development Division

Matching
Division

Enhance Synergies between the Organizational Development
Division and the Matching Division

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Significant Opportunities

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Core Theme 1

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Corporate Data

Appendix

23

Achieve Substantial Growth of the Organizational Development Division

We will promote human capital management at companies through the cycle of diagnosis, transformation and disclosure, as momentum grows for human capital managementand disclosure of related information.

Motivation Cloud Series* Monthly Fee Revenue(¥ thousand)Aiming to Maximize Customer Value and Increase Sales per Customer
by Promoting a Cycle of Diagnosis, Transformation and Disclosure

430,000

450,000

Diagnosis

300,000

Cloud-based
Services+33.0%
year-on-year

240,545
197,101

200,927

Diagnosis for improvementof disclosed items

Transformation of issues
identified through diagnosis

Disclosure

Transformation

IR Support

Consulting

150,000

0Dec. 31,2019

Dec. 31,2019

Dec. 31,2019

Dec. 31,2019

Dec. 31,2019(Forecast)

Disclosure of information
for the capital market

Disclosure of the resultsof the transformation

Consulting on recruiting,training, systems andcorporate culture* Includes Motivation Company Club membership service for managers

We will work to introduce the Motivation Cloud series at major companies, where there is still ample
room for growth, as well as at Japanese subsidiaries of global companies and local governments.
We also plan to expand sales of Stretch Cloud, which was launched in July 2022, in the ¥500 billion
human resource development market. We consider offering services on a subscription basis to be ahighly effective business model from the perspective of business stability, and we will continue toachieve substantial growth in the Consulting & Cloud Business by acquiring new customers for the
Motivation Cloud series.

We anticipate further growth in needs to disclose non-financial information, especially human capital
information, as such disclosure becomes mandatory in securities reports. Through integrated
reports and other materials for shareholders and investors, our IR Support Business will disclose theresults of our customers’ diagnosis and transformation conducted by the Consulting & CloudBusiness. In this way, we will support both corporate human capital management and its disclosure.
At the same time, ramping up disclosure will generate synergies between the two businesses in theform of increased needs for human capital management, thus improving revenues per customer for
the Organizational Development Division.

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Corporate Data

Appendix

24

Enhance Synergies between the Organizational Development Division
and Other Divisions

Core Theme 2

We will create more value by providing the employee reskilling support of the Career School Business in the Individual Development Division and OpenWork Recruitingin the Personnel Placement Business in the Matching Division to the customers of the Organizational Development Division.

Individual Development Division

Organizational Development Division

Matching Division

Employee Reskilling Support Sales

OpenWork Recruiting Sales(¥ million)

1,450

1,500

900
1,250

753

750

+ 19.5%year-on-year+ 57.8%

Number of corporate customers

567
500

Approx.
352

1,600

companies

year-on-year

1,000

918

750

500

453

250

251

250

78
0

0

2020

2021

2022

2023

(Forecast)

The Organizational Development Division’s corporate customers invest
in organizations and individuals. This includes areas such as employee
engagement to improve corporate value and achieve business growth.
These companies are generally proactive in strengthening their humanresources and increasingly willing to invest in employee reskilling topromote digital transformation (DX), especially nowadays when
improving productivity is imperative. We plan to meet their needs for
conducting human capital management, including reskilling of IT andother skills, with our one-stop services and thus promote substantial
growth of our reskilling services for employees.

2019

2020

2021

2022

2023

(Forecast)

At OpenWork Recruiting, which uses the OpenWork website, the higher acompany’s employee ratings and evaluation scores on the website—that is,
the higher its employee engagement—the greater its ability to attract
the attention of capable human resources. Furthermore, since the systemallows job seekers to read employee reviews for a better understanding ofcompanies before applying for a job, it reduces mismatches between
companies and job seekers, thus improving the employee retention rate.
We plan to promote substantial growth of OpenWork Recruiting by sharing
the customer base of the Organizational Development Division andproviding this high-quality recruiting service to companies that conduct
human capital management.

IR BOOK 2022 - Business Strategy(¥ million)

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Organizational Strategy

Sustainability

Corporate Data

Appendix

25

Message from the President and Representative Director

Sakashita Hideki
President and Representative Director
Link and Motivation Inc.

IR BOOK 2022 - Business Strategy

Playing a Role as a Driving Forcein Helping to Promote Japan’s
National Strategy

IR BOOK 2022

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Sustainability

Corporate Data

AppendixMedium-Term Strategy

In recent years, it has become commonplace for the sustainability of a company’s
management environment to be called into question. Of course, profiting fromdestroying the natural environment is a situation that cannot continue, and producing
results simply by overworking employees will certainly not last for long. The conceptof human capital entails treating people not as a tangible asset that is used up, but as
an intangible asset that generates more value as you invest in and refine it. That is
why a paradigm shift is occurring right now toward viewing human resources ascapital to be invested in to create new value, rather than an expense to be controlled.
When I talk with managers from leading Japanese companies, I have a strong senseof the growing importance of initiatives for human capital management.

Over the medium term, we plan to achieve substantial growth of the Organizational
Development Division by acquiring more customers for Motivation Cloud, which handles
diagnosis, and improving unit price per customer transaction through cross-selling in
the fields of transformation and disclosure. As the Organizational Development Division
promotes human capital management among its customer companies, the Individual
Development Division will offer those companies support for reskilling their employees
and the Matching Division will provide the services of OpenWork Recruiting. In this way,
we will help to maximize the human capital of customer companies from a broader
perspective and increase our revenues. In particular, we will generate greater synergies
with OpenWork, which reveals the actual conditions of human capital at a company
through online reviews by its current and former employees. We believe this will
accelerate revitalization into a new labor market.

Enhancing Management through a Cycle of Diagnosis,
Transformation and Disclosure
In promoting human capital management, the Link and Motivation Group considers it
important to go through a cycle of diagnosis, transformation and disclosure to lead to anincrease in corporate value. First, diagnosis quantifies the gap between a company’s
current situation and its goal. Next, transformation proposes and implements
improvement measures to bridge this gap. Then disclosure communicates the progressof initiatives and policies inside and outside the company. By continuing this cycle, thecompany can enhance its corporate management and increase its corporate value.
However, the Link and Motivation Group has received numerous requests for
consultation on human capital management and information disclosure fromcompanies unsure about how to develop their human resources, or how to disclose
the results in a way that links the data with the effects of that development. To address
such concerns, the Link and Motivation Group has been the leader in helping
companies visualize and improve employee engagement, which determines anorganization’s ability to perform and to get results in business. At the risk of singing
our own praises, we expect to become even better at meeting needs for resolving
these issues.

Redefining a “Good Company”
Until now, a company has been judged good or bad based on its profits and assets—in otherwords, based on its income statement and balance sheet. However, profits and assets alone by
no means make a company intrinsically good. We think that employee engagement, whichshows the actual state of a company’s human resources and organizations, will be the yardstickthat determines which companies will be considered good going froward.
“Investment in people” is clearly set forth as a tenet of Japan’s plan for a new form ofcapitalism, and I believe the government is trying to lead companies to a new stage. As a company
instrumental in implementing this national strategy, Link and Motivation intends to use its
influence to change the definition of a good company, and as a result achieve dramatic growth.
At the same time, the Link and Motivation Group itself will be sure to act in accordance with
its own words by continuing to conduct its own human capital management.

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Ramping Up Human Capital Management

26

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Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

IR BOOK 2022 - Organizational Strategy

Organizational
Strategy
組織戦略MissionValue Creation Process
Management Strategy
Business Strategy

27

Link

Organizational Strategy

Sustainability

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Appendix

28

Strategy Overview
We will invest appropriately in the ongoing creation of a working environment with a high level of engagement from highly skilled employees. Our goal is to maximize our humancapital, which will lead to business growth. In particular, we are improving our organizational and human resource capabilities through management of recruiting, training, systems
and corporate culture that fully utilizes our own solutions.

Business Strategy

Organizational Strategy

Link

Organizational capabilities(Priority indicator: Engagement Rating)

Human resource capabilities(Priority indicator: Level-specific role survey scores)

Management Areas of Organizational Strategy

Recruiting

Training

Systems

Corporate
CultureIR BOOK 2022 - Organizational Strategy

Productivity

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29

Organizational Capabilities –Priority Indicator: Engagement Rating–
We use engagement scores (calculated from organizational diagnosis data on some 3.12 million employees at a total of 10,600 companies) as a yardstick to carry out an ongoingcycle of improvement in employee engagement.

Engagement Factors in 16 Areas

Facilities andenvironment
Systems andbenefits

Toward the boss

Decision-making

ICE BLOCK(Weaknesses,
weak points)

Support
Toward the workplace

Human resources

Micro Perspective

Toward the company

Macro Perspective

Business content

Collection of
information

INTERLINK(Centripetal force of theorganization, uniquenessof the company)

Satisfaction

External adaptation
Internal cohesivenessTransformation
activities
Succession

INK BLOT(Indifferent)

IDLE LINE(Unnecessary
expenditures)

Ideally, both expectations and satisfaction levels should be high, with theengagement factors forming a line on an upward trajectory.

Note: Click here for research results on the correlation of engagement scores with operating margin and labor productivity.

Based on social system theory, psychology, behavioral economics and other academic fields, we define 16 areas as engagement
factors—eight related to the company as a whole, four related to the employee’s boss, and four related to the workplace—to diagnose
employee engagement. By further subdividing them into 64 items and plotting them in a graph along the axes of expectation and satisfaction,
we conduct diagnosis and analysis to identify priority issues to be resolved. In addition, we use the organizational diagnosis data (on some 3.12
million employees at 10,600 companies) that we have been compiling since Link and Motivation was established to calculate an Engagement
Score, our unique indicator. We then use it as a yardstick to carry out a cycle of improving employee engagement in the organization.

IR BOOK 2022 - Organizational Strategy

Philosophy andstrategies

Organizational
climateExpectation

Provision of
information

Company foundation

Work content

4eyes® Windows

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Appendix

30

Organizational Capabilities –Priority Indicator: Engagement Rating–
The Link and Motivation Group has disclosed its Engagement Rating results since 2018. Since our founding, each Group company has maintained a high level of employee
engagement, which is an advantage for the Group.

Engagement Rating Results

10

companies(out of 11)

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 Division

AAA

Link Japan Careers Inc.
OpenWork Inc.
Link Agent Inc. 3
Link-i Inc.

1. Results from February for each year (excluding Link Dining Inc.)
2. As of the time the survey was conducted in February 2023
3. Formerly Link Staffing Inc.
Note: The Group discloses information on human capital based on ISO 30414.

Number of
Employees2

Engagement Rating

2019

2020

2021

2022

2023

437
22
27
78

AAA
AAA
AAA
AAA

AAA
AAA
AA
AAA

AAA
AAA
AAA
AAA

AAA
AAA
AAA
AAA

AAA
AAA
AAA
AAA

456
50

AAA
AAA

AAA
AAA

AAA
AAA

AAA
AAA

AAA
AAA

159
12
71
19
20

AAA
AAA
—
AAA
AAA

AAA
AAA
AA
AAA
AAA

AAA
AAA
BBB
AAA
AAA

AA
AAA
BBB
AAA
AAA

AAA
AAA
AA
AAA
AAA

IR BOOK 2022 - Organizational Strategy

Number of AAA-Rated
Group Companies1

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Appendix31

Human Resource Capabilities –Priority Indicator: Level-Specific Role Survey Scores–
The Link and Motivation Group has organized the elements necessary for individuals to generate results into its Framework of Requirements for Human Resources.* We believe therequirement that should be given the highest priority in development is “stance,” which serves as the foundation for other skills. We therefore focus on level-specific role survey
scores, which measure the degree to which an individual’s “stance” is developed.

Framework of Requirements
for Human Resources

Literacy

Motivation

Portable skills

StancePotential

Specialized knowledge and skills
required for the individual’s industry,
occupation and region (culture)

Skills and competencies in areas such as
foreign languages and IT that are required
across industries, businesses and regions(cultures)

Basic skills required for working adults
regardless of industry, occupation or region(culture)

Attitude and orientation, as well as
ability to fulfill role expected by theorganization

Basic competence as a person* Framework organized by Link and Motivation from the content of a survey it conducted and requirements it defined under a commission from the Ministry of Economy, Trade and Industry for its 2005 Survey on Basic Skills of Working People .

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Technical skills

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Appendix32

Human Resource Capabilities –Priority Indicator: Level-Specific Role Survey Scores–
The percentage of people with a rank of “A” or higher increased compared with the previous year both for all employees and for those in managerial positions. We therefore believethat the human resource capabilities of the Link and Motivation Group are improving. By further increasing the percentage of people with a rank of “A” or higher, we will raise thecapabilities of each of our human resources, enabling them to implement our business strategies and improve productivity.

Upper management

Plato Survey

Management

Lincoln Survey

Leaders

Einstein Survey

Mid-level employees

Columbus Survey

Junior employees

Darwin Survey

Senior employees

KOSI Survey

We define the stance required for each job level, and measure the degree ofagreement between the expectations and satisfaction of those who work withthe survey subject. Results are divided into 11 levels, the same as in theengagement survey, and we calculate the percentage of survey subjects witha rank of “A” or higher.

Level-Specific Role Survey Scores
2021

All employees

Managers and above

2022

Number of eligible respondents

1,386

1,137

Rank A to AAA

713

646

Percentage of total

51.4%

56.8%

Number of eligible respondents

159

146

Rank A to AAA

111

110

Percentage of total

69.8%

75.3%

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Overview of Level-Specific Role Surveys

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Measures to Improve the Capabilities of Organizationsand Human Resources –Recruiting–

Sustainability

Recruiting

Corporate Data

Training

33

Appendix

Systems

Corporate
CultureIt is said that the competency level of the new employees a company hires determines its future in five to ten years. In addition to hiring capable human resources, out of the four areasof recruiting, training, systems and corporate culture we invest most heavily in recruiting to ensure that our employees have a high degree of sympathy with our philosophy.

Recruiting United by a Common Philosophy

New University Graduate Recruiting: Entry Management Survey Results

Expectation

ICE BLOCK (Weakness)0companies

companies

Satisfaction

INK BLOT (Indifferent)0

companies

Formation of Candidate GroupTop Forum

IDLE LINE (Unnecessary)0companies

Selection
Selection support by Entry Manager(Understanding the company, motivation,
self-reflection support)

Internship“RiSE”

INTERLINK (Strength)

7

New University Graduate Recruiting Process

Internship“SPiRAL”

Event forIT engineers

Managerinterview

Director
interview

Finalinterview(President)

Note: Covers the seven Group companies that recruit new university graduates.

To achieve a high level of employee engagement, at the recruiting stage we insist on a high level of

We approach recruiting with the stance of attracting the talent we want, rather than choosing fromengagement. In the Link and Motivation Group, we believe that sympathy with our philosophy willamong people who want to work for us. We believe it is important for our recruiting activities to lead

lead to a high level of engagement, so we give sympathy with our philosophy the greatest emphasis

people with potential and compatible values to feel that we want them to join our company.

in our recruiting.
We measure the degree of mutual affinity between our Group companies and applicants inThat is why the entire company, from upper management to the youngest employees, works
together in recruiting. The idea is not to put people into the company, but to put the company into

recruiting activities based on the Entry Management Survey, a diagnostic tool that can quantify theapplicants. Therefore, a variety of employees interact with applicants during various aspects of thedegree of mutual commitment between companies and applicants. The results of the 2022 survey

recruiting process to give applicants a deeper understanding of the Group. We believe this enables

indicate that in each Group company, new employees are sympathetic with the Group’s philosophy

our hiring to emphasize the connection between the applicant’s vision for the future and thewhen they join.

philosophy of the Link and Motivation Group.

Human Capital Report pages 10-13

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Position of Priority Factor “Philosophy” by Company

Attracting the Talent We Want to Hire

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Measures to Improve the Capabilities of Organizationsand Human Resources –Training–

Sustainability

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34

Appendix

Systems

Corporate
CultureWe emphasize that each employee should adopt the viewpoint of being the manager of their own “i-Company” to independently develop their careers. LM College, an institution fordeveloping our human resources, provides abundant opportunities for each employee to nurture their own i-Company. It also offers them chances to hone their abilities in relation to
the expectations of others in terms of the stance required by the Group and portable and technical skills.

Cultivating Management Personnel to Support the Company’s Future

Updating Literacy for Contemporary Needs“Top Gun Selection” Training for Management Personnel

Measures to Improve IT Literacy

Proposal Presentation
Meeting
Presentations to directors on various
themes and feedback

Class

Survey Feedback
Training
Setting tasks and targets withGroup Representative
Director Ozasa Yoshihisa

Objective

Diagnosis

Program 3Group Dinner
Sharing views from various angles
and socializing withGroup Representative
Director Ozasa Yoshihisa

No. of Participants
2021

Professional

Raise the level of corporate officers-

5Company presidents andmanagement

Cultivate the next group of officer
candidates

10

14

General employees

Cultivate manager candidates forthe coming year

66

Cultivating management personnel to lead the organization is indispensable for business expansion
and growth. The Link and Motivation Group’s management personnel are expected to be able toadapt to product, labor and capital markets, and to think from a Group-wide perspective. However, incarrying out day-to-day duties, there is a tendency to adapt only to the product market and to takethe perspective of one’s own particular field. Therefore, since 2021 we have been implementing theselective training program Top Gun Selection as an opportunity for growth separate from actual
work. The year-long program selects participants from each level, from general employees to senior
managers, to learn the perspective and approach a manager should have.
In 2022, we provided training at all levels for a total of 25 people. We felt the training helped
participants develop as future management personnel, with comments including, “Now I understandthe different standards required to be ready to take on a management role,” and “I came to strongly

Operation

Training attendance

Knowledge

Acquisition ofqualifications(IT Passport)

Advanced

Identify current skill level
using DX Survey Basic

2022

Corporate officers

feel that I want to play a role in creating our future.”

Transformation

Basic
2021

Number of trainees
DX Score*

2022

1,367
98.9

1,499
123.3

* The sum of the scores for digitalknowledge and Excel skills. Since
each has a maximum of 100 points,
the maximum DX score is 200 points.

Skills and competencies in areas such as foreign languages and IT that are required acrossindustries and businesses are referred to as literacy. We believe literacy must be updated in linewith contemporary needs. This is similar to the concept of reskilling, which has been attracting
attention recently. Employees must continue acquiring essential skills, even as what constitutes“essential” changes.
Lately, improving the IT literacy of each employee has become crucial for increasing
productivity as an organization. Therefore, since 2021, we have been working to improve individual
IT literacy by rolling out DX support measures for individuals at companies, which is provided by the
Individual Development Division.
The average score on the DX Survey, which measures individual IT knowledge and IT
operation proficiency (DX score), was 123.3 out of 200 for the Link and Motivation Group in 2022,
surpassing our target for the year of 110 points.

Human Capital Report pages 14-17

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Program 2

Program 1

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Measures to Improve the Capabilities of Organizationsand Human Resources –Systems–

Sustainability

Recruiting

Corporate Data

Systems

Training

35

Appendix

Corporate
CultureA company’s systems play an important role in showing employees the company’s expectations and the direction of its growth. To improve organizational and human resource
capabilities, we believe it is crucial for each employee to feel that, in meeting the company’s expectations, they are also getting closer to achieving their own vision.

Linking the Visions of a Company and Its Employees

Growth at Four Times the Speed of the Rest of the World

Systems That Connect Corporate and Individual Visions

System Design in Three-Month Intervals
Jan.

i-Company Branding System
2020
Management plan submission rate

1 year

2021

98.7％

2022

98.2％

97.4％

Survey feedback

3 months Monthly target setting and evaluation

evaluation score*

Performance
Stretch goal
Total

▲

Sense oftime at
LMG

▲

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

▲

●
★
◆

▲

Dec.
●
★
◆

（●）（▲）
●
★
◆

Nov.

●
★
◆

▲

●
★
◆

▲ Target setting ● Evaluation and compensation ★ Group General Meeting ◆ Paid vacation

2020
Average individual

Generalsense of
time

Feb.

2021

4.7
5.0
9.7

2022

4.8
5.0
9.8

4.7
5.0
9.7

* Both performance and stretch goals are evaluated on a scale of 1 to 9, with 5 being“met expectations.”

To improve employee engagement, we emphasize the connections between the company’s visionand the vision of each employee. We believe that clarifying the career path an individual will follow
and how they will grow while working at a company—and as a result how this will get them closer
to achieving their own vision—helps to improve employee engagement.
Therefore, we provide opportunities on various timeframes for individuals to align theirvisions with the company’s, as shown above. We have employees set targets and evaluate them forevery three-month period, provide survey feedback to clarify targets for the next year, and conduct
the i-Company Branding System for targets three years in the future. Each of these measurescommunicates the company’s intended direction and expectations of each individual, then offers an

A unique perspective toward time has supported discontinuous growth at the Link and Motivation
Group since its founding. Based on our belief that running on a cycle with a short span is importantfor growth, we share a unique view of time, in which three months everywhere else is one year at
the Link and Motivation Group. Accordingly, we set a milestone every three months. By doing so, we
aim to create an environment where employees maintain a high level of motivation as they continue
to grow and to achieve speedy business development.
All organizational operations, including management of business results, target setting,personnel evaluations, promotions or demotions, payment of bonuses, the Group General Meeting,and vacations (year-end and New Year holidays), are divided into units of three months andconducted four times a year. This intentional division of time acts as a mechanism that makes us
conscious of using time to the fullest every day.
As a result, Link and Motivation has a very high score of 4.9 out of 5 for the items “growthenvironment for employees in their twenties” and “employee morale” in OpenWork’s survey. We
believe this is proof that our employees are making full use of their time.

opportunity for individuals to make clear their intentions and growth objectives.

Human Capital Report pages 18-21

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Timeframe
3 years

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Measures to Improve the Capabilities of Organizationsand Human Resources –Corporate Culture–

Sustainability

Recruiting

Corporate Data

Training

Appendix

Systems

36
Corporate
CultureIn the process of growing as a company, we are promoting specialization within our organization to maximize results, while investing in communication to achieve the seemingly
contradictory goals of integration and mutual understanding.

Creating Opportunities for Making Connections as a Group

Creating a Corporate Culture That Spurs Individual Desire for Growth

Communication Measures

Awards System

Average number of attendees in 2022:

1,156

Web-based in-house newsletter

Average access rate in 2022:

93.1％

New university graduates(First to third year)

Rookie of the Year (1st/2nd/3rd)
Young employees who achieved outstanding results

General employees

Best Motivation Creator
General employee who achieved outstanding results

Managers

Best Motivation Manager
Manager who achieved outstanding results

Entry managers(Recruiters)

Entry Manager of the Year
Entry manager (recruiter) who achieved outstanding results

Administrators

Administrator of the Year
Administrator who achieved outstanding results

Projects

Best Motivation Project
Project that achieved outstanding results

Companies

Company of the Year
Company that achieved outstanding results

To maintain employee engagement, the Link and Motivation Group considers it crucial to enhance

For our business to grow, we believe that it is important for each employee to broaden their own

vertical and lateral communication within the organization. We have therefore developed various

roles based on a desire for personal growth. We have therefore established an awards system toopportunities for communication that connects senior management to the field, department torecognize employees who have done so.

department, and all employees to each other.
Representative examples include the Group General Meeting, a web-based in-houseAwards are presented at the Group General Meeting held once every three months. Criteria
for selecting employees as award winners cover a comprehensive range of factors, including levelnewsletter, and measures to instill the Group’s heritage. Through well-timed sharing of aof performance, degree of growth and change, and extent of influence on others. A certificate withGroup-wide perspective and the creation of a common language, we aim to create a situation

the reasons for the evaluation and relevant anecdotes is read in front of all employees, and thewhere everyone works toward common goals.

winner has the opportunity to make a speech. This not only helps to encourage the further growth of
the award recipient, but also spurs a desire for growth among other employees.

Human Capital Report pages 22-25

IR BOOK 2022 - Organizational Strategy

Group General Meeting

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37

Special Feature: Human Capital Management Case Study
Our ongoing efforts as a company that supports our customers’ human capital management encompass both theory and praxis. This look at the 2022 Gold Award winner for Companyof the Year, which is given to the Group company with the best results, is a case study of our initiatives in practice.

Motivation Cloud Enterprise Company
MissionNumber of Employees

53

Engagement Rating

AAA

The company recorded the highest Engagement Score of any company in the Group. In addition to developing new customers among major companies, it significantly improved themonthly retention rate. The company’s influence extends beyond its own organization, as the fastest among all Group companies to reach its target for customer referrals to the
Career School Business.

Striving for Results That Exceed Expectations

Applying Motivation Engineering to Its Organization

The year 2020, when COVID-19 spread worldwide, was a turning point for Motivation CloudEnterprise (“MCE”) Company. At a time when every company involved in human resources
was negatively affected, every member of MCE Company was committed to business growth,aiming to achieve noteworthy results without using external conditions as an excuse andworking to increase engagement in every organization. To ensure speedy decision-making,the management team held daily meetings without fail, then ensured that members clearly
understood the decisions made in order to deal with customers and present a united front infacing issues. As a result, MCE Company continued to grow each year from 2020 to 2022. To
achieve its vision for 2025 and 2030, the company will continue to play a role that goes beyond
diagnosis of its customers’ organizations to include transformation and disclosure, in a cyclethat increases the engagement of all organizations.

Twice a year, MCE Company also internally conducts the organizational diagnosis surveys it
provides to its customers through Motivation Cloud. Rather than seeking to assign blame fororganizational problems, including any issues that become clear through the survey, thepresident, managers and general employees all work together to resolve issues as concerned
parties. In order to do so, it is essential that managers act as a liaison between the president
and general employees on a daily basis, that each individual acts independently, and that
relationships of trust exist between all members of the organization. For example, when a
new member joins the team, opportunities for dialogue with the manager, and for sharing ofgoals, strengths and weaknesses among staff, lay the foundation for building a good team. In
doing so, the company straightforwardly and sincerely carries out the ongoing process oforganization building.

Applying Motivation Engineering to Its Business
MCE Company is committed to fully utilizing Motivation Engineering in its own business. As
one manager once put it, “The most important thing in MCE Company is not its president, but
its philosophy.” Even the president can be wrong at times. That is why, when questions arise
on how to price services for customers, or how to deal with competitors, the company does
not make facile decisions. Rather, it refers back to the DNA Book, which serves as thefoundation of all decisions and actions taken in the day-to-day operations of the Link andMotivation Group. The company president also takes the lead in building up a library of casestudies of improvements in engagement at customer companies as a knowledge base for use
in sales, content delivery and products to improve reproducibility.

Comments from Employees of Other Group Companies

I feel that the key to winning the Company of
the Year is not just a particular company’s
achievements and engagement within its
own organization, but also the extent towhich it can redirect those factors backoutside the company to spread its influence.
I can take pride in our service when dealing
with customers.

It was very frustrating for us not to win
Company of the Year, but you can’t help but
be convinced by the overwhelmingly highlevel set by MCE Company in winning theGold Award. As we continue to monitor
conditions at our customers and throughout
the Group, I hope we can improve ourorganizational strength and win next year.

IR BOOK 2022 - Organizational Strategy

Reasons for
the Award

Support for organizational transformation at major companies
through cloud-based services

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Sustainability
IR BOOK 2022 - Sustainability

MissionValue Creation Process
Management Strategy
Business Strategy

Link

Organizational Strategy

Sustainability

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Message from Director Ohno Shunichi

Ohno Shunichi
Director
Link and Motivation Inc.

IR BOOK 2022 - Sustainability

Addressing Social Issues throughOur Business to Link Our Own
Sustainable Growth to the Sustainable
Development of Society

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Approach to Sustainability

Initiatives in Our Businesses
For example, the Consulting & Cloud Business in the Organizational Development
Division provides one-stop solutions for diagnosis of employee engagement (thedegree of mutual understanding and affinity between a company and its employees)
and transformation to improve recruiting, training, systems and corporate culture,among other areas. Our joint research with Keio University has shown that improved
employee engagement has a positive impact on a company’s operating margin andlabor productivity. We therefore believe this business contributes to “Decent Workand Economic Growth,” which is goal 8 of the United Nations Sustainable
Development Goals (SDGs).
In addition, the Career School Business in the Individual Development Divisionoffers individuals the chance to develop work-related skills and competencies in orderto obtain qualifications or improve IT or English conversation skills. The ALT Placement
Business of the Matching Division dispatches assistant language teachers (ALTs) tomunicipalities nationwide to help in equitably providing high-quality education in foreign
languages and internationalization in elementary, junior high and high schools.
We believe these efforts contribute to the achievement to SDG 4, “Quality Education.”

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Corporate Data

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40

These are just a few examples of how we continue helping to create asustainable society through our business.

Three Goals of Our Management Policy
To achieve sustainability, we share the three goals of the Link and Motivation Group’s
management policy with all employees.
1. Management with Integrity
2. Management in Which Every Employee Plays a Leading Role
3. Management with Good Reflexes“Management with Integrity” means management with no illegality or
dishonesty toward any of the Group’s stakeholders, including customers, business
partners, employees and shareholders. Moreover, as the economy’s shift tointangibles gains momentum, we have entered an age in which a company’s fate iscontrolled by its human capital. Therefore, with “Management in Which Every
Employee Plays a Leading Role,” we aim to have each of our employees create value
independently. Last, as the changes in our operating environment gain speed,“Management with Good Reflexes” will allow us to make swift management decisions
to address changes in markets and laws, and to take a stance of generating change
ourselves. We believe that getting every employee to fully understand these threegoals and work to realize our mission will lead to sustainability both for the Link andMotivation Group and for society.

Conclusion
Going forward, the Link and Motivation Group will continue to engage in responsible
dialogue with all its stakeholders, to work for sustainable improvement in corporate
value, and to resolve social issues through its business.

IR BOOK 2022 - Sustainability

As various social issues come to the fore and the values of our stakeholders change,
demand is rising for management that emphasizes the environment, society andgovernance (ESG) as well as sustainability management that creates both economic
and social value. We believe the Link and Motivation Group should take responsibility
for the way we create a sustainable society.
For the Link and Motivation Group, sustainability means helping to resolve
social issues through our business. We aim for a world where our own sustainablegrowth contributes to the sustainable development of society. We believe thatengagement—not just with our customers, business partners, employees andshareholders, but also with the environment and society—is extremely important forachieving this goal. Since our founding in 2000, we have emphasized engagementwith all stakeholders and conducted management with a focus on sustainability.

Management Strategy

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A Management Structure That Supports Sustainable Growth
Link and Motivation Inc. (the “Company”) has adopted the format of a company with an Audit & Supervisory Board. The Board of Directors makes important management decisions
and supervises the execution of business, while the Audit & Supervisory Board and its members, who are independent from the Board of Directors, audit the status of execution ofbusiness, among other matters. We work to upgrade and strengthen our corporate governance system to continue to conduct fair and transparent management activities.

Governance Organization

Governance Format

General Meeting of Shareholders

MissionAppoint/Dismiss

Board of Directors

Audit & Supervisory Board

Appoint/Dismiss

Cooperate

Audit & Supervisory
Board audit

Appoint/Dismiss

Cooperate

Independent Auditor

Cooperate

Representative Directors
Internal Audit & Supervisory
Board Members

Three Goals of the Link and Motivation Group’s
Management Policy
Management with
Integrity

Management in Which Management with
Every Employee Plays aGood Reflexes
Leading Role
Current Governance Format

Company with an Audit & Supervisory Board

Business Divisions

Board of Directors
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

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 businessexecution of directors, and issues related tocompliance and other matters.

Business Divisions

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 2022 - Sustainability

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

Appoint/Dismiss

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42

A Management Structure That Supports Sustainable Growth: Executives
Currently, the Board of Directors of Link and Motivation Inc. is composed of five directors (including two outside directors). The three internal directors make decisions that linkbusiness and organizational strategies as professionals in organizational transformation, with extensive experience as organizational and personnel consultants.

Directors

Sakashita Hideki

Ohno Shunichi

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

1991	Joined Recruit Co., Ltd.
2000	Established the Company, and assumed
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)2015	Outside Director, Youji Corporation(to present)

Chairman and
Representative Director

President andRepresentative Director

Director

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

IR BOOK 2022 - Sustainability

Ozasa Yoshihisa

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A Management Structure That Supports Sustainable Growth: Executives
The two outside directors leverage a high level of insight gained from management at multiple companies and expert knowledge of industrial and organizational psychology, which
has a high degree of affinity with the business fields of the Link and Motivation Group, among their other attributes. In addition, the Company has introduced a corporate officer
system to execute management based on prompt decision-making that accurately grasps both the business environment and changes in it.
Audit & Supervisory Board

Directors

Tominaga Kenji

Matsuoka Yasumasa

Audit & Supervisory Board Member (Full-Time)

Outside Audit & Supervisory Board Member(Part-Time)

Outside Audit & Supervisory Board Member(Part-Time)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

1986 Joined Recruit Co., Ltd.
2005	President and Representative Director, Fukuoka
SoftBank HAWKS Marketing Corp. (currently, Fukuoka
SoftBank HAWKS Corp.), Director, Fukuoka SoftBank
HAWKS Corp.
2007	Representative Director, Career Firm Co., Ltd.
2011 Outside Director, Onionnews Inc. (to present)2014	President and Representative Director, Motivation
Japan (to present)

1986	Joined Nippon Telegraph and Telephone Corporation (NTT)2005	Joined a2media Corporation as Director, General Manager incharge 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)

Yuasa Tomoyuki
Outside Director

Kakuyama Takashi
Outside Director

2000 Joined Andersen Consulting, Ltd.
1991	Professor, Tokyo International(currently, Accenture Japan Ltd.)
University
2005 Joined Revamp Corporation
1992	Visiting Researcher, Michael G. Foster2010 Director, Revamp Corporation
School of Business, University of2013	Representative Director, Revamp
Washington
Outsourcing Corporation (currently,
2003	Dean of Faculty of Human and Social
Revamp Academy Corporation)
Studies, Tokyo International University(to present)
2009	Dean of Graduate School of Sociology,
2016	Outside Director, the Company (toTokyo International University
present), President, Representative
2011	Professor and Director of Motivation
Director and CEO, Revamp
Laboratory, Tokyo Future University
Corporation, Representative Director,
2012	Dean of School of Motivation andEggcellent Corporation (to present)
Behavioral Sciences, Tokyo Future
Outside Director, K’s Holdings Corporation
University
2018	President and Representative Director,
2018	President, Tokyo Future University (toChief Executive Officer, Revamp
present), Director, Sanko Gakuen
Corporation (to present)(to present)
2020	Outside Director, the Company(to present)

Managing Directors

Corporate Officers

Kawauchi Masanao

Kitsu Hiroyuki

Kawamura Nobuyuki

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 of Organizational
Development Division, to present), President and Representative
Director, Link Event Produce Inc. (to present), Director, Link
Corporate Communications Inc. (to present)
2023	Director, Link Academy 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),
Director, Link Agent Inc., Director, Link-i Inc.
2023	Managing Director, the Company (in charge of Individual
Development Division, to present), Director, Link Academy Inc.
(to present), Director, Motivation Academia Inc. (to present)

2002	Joined the Company
2010	Established Motivation Academia Inc.
2014	Unit Manager of PR and Secretary Unit of Group
Design Department
2022	Corporate Officer (executive for Public Relations
Department)
2023	Corporate Officer (in charge of Matching Division,
to present), Director, Link Agent Inc. (to present),
Director, Link-i Inc. (to present)

Corporate Officers

Oshima Takashi

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)

1988	Joined Recruit Co., Ltd.
2000	Established the Company, and assumed theposition 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)
2023	Corporate Officer (executive for Group Design Office,to present)

IR BOOK 2022 - Sustainability

Kuriyama Hiromi

IR BOOK 2022

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44

A Management Structure That Supports Sustainable Growth: Risk Management

Risk Management Structure
Board of Directors

Risk Management Process
Audit

Audit & Supervisory Board

Determine scope of impact and identify risks

Instruct/Supervise

ReportDemarcate the scope of impact of 1) changes in customer behavior and preferences, 2)
measures to strengthen of policies, laws and regulations, 3) requests from investors, 4) newmarket entrants and 5) other factors in the Group’s operating environment.
Identify presumed risks and opportunities for the Group,for each division, and for each businessGroup Management Committee
ReportInstruct/Supervise

ReportManagement committees of Group
companies

Organize risks and opportunities based on degree of impact andlikelihood of occurrence

Internal Audit Office(Risk analysis/evaluation)
ReportStep 2(Analyze)● Degree of impact of risks and opportunities (Large/Medium/Small)(1) Depth of impact
Rate of decrease/increase in sales or costs and impact on assets(2) Breadth of impact
Affected department’s sales/costs as a percentage of the Group total● Likelihood of occurrence of risks and opportunities(High/Medium/Low))

High: Already manifested/predicted in the future
Medium: Partially manifested/possible
Low: Latent/low possibility

Step 3(Assess)

Based on the degree of impact and likelihood of occurrence, comparewith established risk criteria to decide whether or not to respond

Step 4(Respond)

Respond to risks

IR BOOK 2022 - Sustainability

Step 1(Identify)

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45

Business and Other Risks
The following presents particularly significant risks that could affect the Link and Motivation Group’s performance and financial position. The information contained herein may notcover all scenarios, and risks not currently apparent or considered significant may affect the Group in the future.
Risks

Risks Related toIntellectual Property(Governance)

Risks Related to Data
Security and Data
Privacy (Governance)

Rising prices stemming from the escalating conflict in Ukraine and the sharp depreciationof the yen, in addition to the continued impact of the COVID-19 pandemic on global economic
activity, are clouding the economic outlook. A decline in demand for services due to thestagnation or deterioration of economic conditions could impact the Group’s business results.
Specific impacts that might be expected include those due to suspension of projects due toa worsening business environment for consulting services provided by the Organizational
Development Division, particularly to small- and medium-sized enterprises and startups,
and changes in the corporate recruiting environment for the Personnel Placement Businessof the Matching Division.

The Group has established a brand by developing businesses based on Motivation Engineering.
However, if companies imitating this technology emerge, the Group may become unable tosufficiently demonstrate an advantage over competitors, which could have an adverse impact
on Group results, including a decrease in sales.
Furthermore, the Group’s expansion of business scale and adoption of remote work havecreated an environment that is more susceptible to outflow and leakage of intellectual property,
such as consulting know-how and client case studies. This has increased the risk of branddamage and reputational damage.

In the course of its businesses, the Link and Motivation Group handles large volumesof personal and confidential information, including information about the organizational
structure and human resources of client companies (Organizational Development Division),
customer information such as names and dates of birth (Individual Development Division),and company information such as job applicants and open positions (Matching Division).
In the event that an information leak occurs due to external fraud, such as unauthorizedaccess via cyberattacks, or due to internal accidents, and the leak causes damage to theowner of the information, client companies or others, the resulting damage claims and/or
loss of public trust could affect the Group’s business results and financial condition.

Countermeasures
In the 2010s, the Group entered the ALT Placement Business and the Career School Business,
which are comparatively insulated from the impact of economic conditions, and built a businessportfolio that is resilient to economic downturns.
Amid the increasing speed of change in the business environment, the Group set “managementwith good reflexes” as one of the three goals of LMG’s management policy in order to respondto change flexibly and quickly, and to minimize negative impacts. Based on this policy, the Groupis able to make immediate decisions based on discussion of economic conditions and othermatters in management meetings as required. One example of this is the Group’s monitoring of
human capital return on investment (ROI), which links business and organizational strategies,
and considers investments according to economic conditions to maximize results in the short,medium and long term.
To reduce the possibility that Motivation Engineering is imitated, the Group will constantly evolve
this technology, led by the R&D department, while the legal department will protect the Group’s
intellectual property through a multifaceted strategy that combines multiple intellectual
property rights, including trademarks, patents and copyrights.
In addition, to prevent the outflow and leakage of intellectual property, the Group will not only
establish reasonable information management measures and data governance as required bylaw, but will also step up efforts to raise employee awareness to improve the effectiveness of
information asset protection, including trade secrets.

The Group has formulated information management rules and management methods that
conform to Privacy Mark requirements, and takes both organizational and technical measures
to comply with them. Specifically, the Group has established work rules in accordance with said
management rules, and regularly provides comprehensive training on personal information
protection and management to all executives and employees. The Group has formulated
security requirements that take into account the confidentiality, integrity and availability of
information, and ensures thorough compliance with them when structuring and operating
various environments. The Group also takes technical measures to defend against external
threats such as ransomware and unauthorized access, and to prevent internal accidents.
In addition, to prepare against increasingly sophisticated external threats, the Group
continuously works to gather information from outside organizations and take necessary
measures to enhance information security from a medium- and long-term perspective.

IR BOOK 2022 - Sustainability

Risks Related to the
Macro Environment,
Including Changes in
Economic Conditions

SummaryIR BOOK 2022

Risks
Risks Related to Natural
Disasters, Transmissionof Infectious Diseases
and Emergencies(Environment)

Management Strategy

Business Strategy

Summary
A disaster on a greater scale than anticipated or an infectious disease pandemic could
cause system failures or suspension of business, both of which could significantly affect
the Group’s business operations, results and financial condition.
In particular, as an example of the acute physical risks associated with climate change,
flooding or landslides due to extreme weather (torrential rains) could cause damage toschool buildings or suspension of sales operations in the Career School Business of the
Individual Development Division.
The Group is required to comply with laws and regulations in every country/region
where it does business. Violation of any applicable laws or regulations that apply to theGroup, including those governing personal information protection, data protection,
telecommunications, consumer protection, labor, human rights, anti-corruption andanti-bribery, taxation, and anti-monopoly laws, could have a significant impact on theGroup’s business operations, results and public trust.
Furthermore, there has been active public discussion on the topic of corporations andhuman rights issues in recent years. Failure by the Group to appropriately comply withhuman rights-related laws could impact the Group’s brand. In addition, in the Group’s
ALT Placement Business, if the schools that the Group dispatches ALTs to do not provide
a safe and hygienic workplace environment, the human rights of the dispatchedemployees could be violated, which could have an impact on the Group’s businessresults, brand and public trust.

Organizational Strategy

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Appendix46

Countermeasures
In the event of an emergency, the Group has built a system to report on its own safety as wellas that of its surroundings, such as the status of school buildings in the Career School
Business, to enable swift information sharing and understanding of conditions to makeappropriate management decisions.
The Group continues to limit its exposure to acute physical risks by reducing the number ofschool buildings and encouraging enrollees to take courses online.

The Group has set “management with integrity” as one of the three goals of LMG’s
management policy, and strives for management that ensures no legal/regulatory violations
or acts of dishonesty toward the Group’s stakeholders, who include customers, business
partners, employees, shareholders and others. The Group will continue working to properly
understand and respond to changes in laws and regulations in all countries/regions where it
does business.
Regarding human rights, the Group has already studied and implemented measures tostrengthen compliance and prevent harassment, and will continue to practice human rights
due diligence. In the ALT Placement Business, the Group will periodically conductengagement surveys of ALTs dispatched nationwide to predict and prevent human rights
risks and maintain a thorough understanding of actual conditions.

Risks Related toSecuring Human
Resources (Society)

The Group places the highest priority on human capital, and will continue to maximize
human and other forms of capital, and create value for customers based on that capital.
Therefore, securing excellent human resources is vital for achieving sustainable growth.
In the Organizational Development Division, where significant growth is expected, it isimportant to hire and develop project managers and engineers; however, the Group’sbusiness results could be impacted if it is unable to secure the required human resources,
or if the compensation and wage levels needed to attract and retain excellent talent rise.

Since its establishment, the Group has shared the idea of being willing to invest in
recruitment of highly engaged, capable talent, and has used its own recruitment consulting
knowledge in securing human resources. To attract capable talent, the Group also continues
to work on improving employee engagement and branding in order to be an employer thatjob seekers choose. To enhance business stability and consulting productivity, the Group is
adopting cloud technologies for some of its organizational and personnel consulting
services, while seeking an optimal balance between technology and the human touch.

Risks Related to
Impairment of Assets

The Link and Motivation Group has been accelerating its growth through businessexpansion, including through M&A, and is actively entering new fields and adding to its
lineup of products/services. As a result, its consolidated financial statements include aconsiderable amount of goodwill resulting from the acquisition of shares in the process of
M&A and other transactions. Going forward, the Group will apply impairment accounting torecognize non-recurring loss on acquisition of equity if factors including changes in theoperating environment or business conditions significantly reduce the profitability ofacquired businesses, which could affect the Group’s financial position.

The Group minimizes impairment losses by enhancing follow-up measures to generatesynergies post-acquisition and the regular monitoring of business performance.

Note: Forward-looking statements contained herein are judged by the Group’s management to be consistent with information available as of December 31, 2022.

IR BOOK 2022 - Sustainability

Risks Related to Laws
and Regulations(Society/Governance)

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Corporate Data
IR BOOKIR
IR BOOK
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20222022
2022- Management
Organization-- Corporate
Sustainability
Strategy
DataIR BOOK 2022

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Appendix48

Performance, Financial Position and Dividends(As of December 31, 2022)(¥ million)
2018

2019

2020

2021

2022

Revenues

32,793

31,95630,78532,644

32,776Gross profit

14,601

13,631

14,00815,34016,068Performance Selling, general andadministrative expenses

50,00040,00012,084

12,625

12,780

Other income

26

173

757

112

779

Other expenses

243

888

1,820

760

439

Operating income

3,726

2,011

860

2,066

3,627

Financial revenues

25

17

8

12

20

Financial expenses

131

167

240

174

146

 Net income (loss) fromcontinuing operations

1,860

1,074

(307)

1,102

2,191

 Net income (loss)

1,918

1,090

(929)

1,020

2,106

1,086

(996)

918

1,941

Financial Position

31,95630,78532,644

32,776

2018

2019

2020

2021

2022

20,00010,0000Operating Income/Net Income (Loss)(¥ million)

4,000

1,945

32,793

3,726

3,627

3,000
2,000

1,090

1,000

27,66444,78741,08330,062

28,952

Total equity

7,681

7,033

4,917

8,648

11,345Interest-bearing debt

11,20830,03628,37913,887

11,127

6.80

7.20

7.20

7.40

7.70

Dividends (Yen)

1,020

860

0
(929)

(1,000)2018

Total assets

2,106

2,066

1,918 2,011

2019

2020

2021

2022

30,062

28,952■Operating Income ■Net Income (Loss)

Total Assets/Total Equity(¥ million)

1. 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).
2. Dividends per share of ¥6.80 for 2018 consisted of ¥1.70 in each of the four quarters.
3. Dividends per share of ¥7.20 for 2019 and 2020 consisted of ¥1.80 in each of the four quarters.
4. 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.
5. As of 2021, the domestic temp staff business of Link Agent Inc. (formerly 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
the amounts for continuing operations. Amounts prior to 2020 have also been restated in the same manner.

50,00044,78740,00030,00041,083

27,66420,00010,000

7,681

7,033

0

2018

2019

■Total Assets ■Total Equity

4,917

2020

8,648

2021

11,3452022

IR BOOK 2022 - Corporate Data

10,904

Dividends per share(¥ million)

30,00010,658Net income (loss) attributableto owners of the parent

Revenues

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

49

Key Financial Indicators(As of December 31, 2022)

2018

2019

2020

2021

2022

Operating margin (%)

11.4

6.3

2.8

6.3

11.1

Return on equity (ROE) (%)

27.1

14.7

(18.4)

16.3

23.3

Basic earnings per share (EPS) (Yen)

18.42

10.30

(9.50)

8.73

17.40

9

Diluted earnings per share (Yen)

18.36

10.28

(9.50)

8.73

17.38

6

Book value per share (BPS) (Yen)

72.87

67.13

35.84

67.17

82.11

3

Ratio of equity attributable to ownersof the parent to total assets

27.8

15.7

9.2

24.9

31.6

（%）
12

11.4

11.1

6.3

6.3
2.8

0

2018

2019

2020

2021

2022

Return on Equity (ROE)
（%）
40
30

27.1

20

16.3

14.7

23.3

10
0
(10)
(18.4)

(20)

2018

2019

2020

2021

2022

IR BOOK 2022 - Corporate Data

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).

Operating Margin

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

50

Revenues by Business/Other Business-Related Data
(As of December 31, 2022)(¥ million)

Revenues by Business
Organizational Development Division
Consulting & Cloud Business
IR Support BusinessIndividual Development Division
Career School Business
Cram School Business

Matching Division

Total

2019

2020

2021

2022

11,72910,037
2,017
7,838
7,139
704
13,131
12,563591
31,956

9,923
8,274
1,907
6,732
6,071
666
14,846
12,931
1,946
30,785

10,819
9,156
1,919
7,471
6,824
651
15,043
13,123
1,943
32,644

12,092
10,236
2,066
6,960
6,240
720
14,56412,0062,570
32,776

1. Intersegment transactions are included in Revenues by Business.
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).
3. The name of the Consulting & Outsourcing Business was changed to the Consulting & Cloud Business in 2020.
4. The Group classified the domestic temp staff business of Link Agent Inc. (formerly Link Staffing Inc.) as discontinued operations in the fiscal year ended December 31, 2021. As aresult, all relevant figures for the Matching Division have been restated.
5. From 2022, business categories and business names in the Organizational Development Division have been changed. All figures for the Organizational Development Division havebeen restated and presented according to the classifications after the change.

Number and Average Age of Employees

2018

2019

2020

2021

2022

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

1,375
249
36.0
31.4

1,391
312
35.9
30.8

1,498
403
35.6
31.1

1,493
376
36.3
31.7

1,505
470
36.3
31.5

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

Revenues by Business (2022)

Organizational
Development Division

36.0%

Matching Division

43.3%

Individual
Development Division

20.7%

Number of Employees
1,600

1,375

1,391

1,498

1,493

1,505

1,200
800
400

249

312

2018

2019

403

376

470

2020

2021

2022

0

■Consolidated ■Non-consolidated

IR BOOK 2022 - Corporate Data

ALT Placement Business
Personnel Placement Business2018

13,277
11,387
2,353
7,879
7,122
758
12,713
12,187545
32,793

IR BOOK 2022

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Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

51

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

2018

2019

2020

2021

2022

(¥ million)
As of December 31

ASSETSLIABILITIESCurrent assets

Current liabilities
1,979

2,160

6,449

4,917

6,112

 Trade and other receivables

4,533

4,114

3,680

3,851

3,299

278

256

187

200

183

9

17

14

9

12

Other current assets

1,015

4,905

1,057

753

1,025

Total current assets

7,817

11,454

11,389

9,732

10,633

1,851

1,459

1,162

637

599

̶

15,941

12,790

4,149

3,308

Goodwill

6,551

5,927

9,376

9,410

9,347

Intangible assets

1,841

2,095

2,266

2,234

2,417

 Investments in associates

3,080

2,788

̶

̶

̶

 Other non-current financial assets

5,821

4,033

3,203

2,744

1,947

Deferred tax assets

440

839

646

984

617

Other non-current assets

260

248

245

168

81

19,84733,33329,694

20,32918,31927,66444,78741,08330,062

28,952Inventories
Other current financial assets

Non-current assets
Property, plant and equipment
Right-of-use assets

Total non-current assets
Total assets

Note: Due to the application of IFRS 16, “Right-of-use assets” has been presented separately since 2019.

Trade and other payables
Contract liabilities Interest-bearing and other financial
liabilities
Lease liabilities
Income tax payable
Provisions
Other current liabilities

Total current liabilities
Non-current liabilities Interest-bearing and other financial
liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

Total non-current liabilities
Total liabilities
EQUITY
Equity attributable to owners of
the parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity Total equity attributable to owners of
the parent
Non-controlling interests

Total equity
Total liabilities and equity

2019

2020

2021

2022

2,394
1,573

2,397
1,760

2,174
1,786

2,094
1,615

1,858
1,461

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

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

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
21,413

2,332
2,824
318
269
124
5,869
17,606

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)

1,380
4,464
(320)
5,487
(1,851)

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
30,0629,159
2,185
11,345

Note: Due to the application of IFRS 16, “Lease liabilities” has been presented separately since 2019.

28,952IR BOOK 2022 - Corporate Data

Cash and cash equivalents

2018

IR BOOK 2022

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Sustainability

Corporate Data

Appendix

52

Consolidated Statements of Operations and Comprehensive Income(¥ million)
Years ended December 31(Net income (loss) attributable to)
Owners of the parent
Non-controlling interests
Net income (loss)

2018

2019

2020

2021

2022

32,79318,192
14,601

31,95618,325
13,63130,785
16,777
14,00832,64417,304
15,34032,776
16,70816,06810,658
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
1,903
801

12,780
779
439
3,627
20
146
−
3,501
1,310

1,860

1,074

(307)

1,102

2,191

58
1,918

15
1,090

(622)
(929)

(82)
1,020

(84)
2,106

1,945
(27)
1,918

1,086
4
1,090

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

(996)
66
(929)

̶

918
101
1,020

1,941
164
2,106

2018

2019

2020

2021

2022

1,918

1,090

(929)

1,020

2,106

(85)

13

(1,397)

22

(57)

(85)

13

(1,397)

22

(57)

(0)

(0)

(2)

4

(5)

reclassified to profit or loss

(0)

(0)

(2)

4

(5)

 Total other comprehensive income

(86)

13

(1,399)

26

(62)

1,832

1,103

(2,329)

1,047

2,043

1,859

1,099

(2,396)

945

1,878

(27)

4

66

101

164

1,832

1,103

(2,329)

1,047

2,043

Net income (loss)
Other comprehensive income Items that will not bereclassified to profit or loss  Net gain (loss) on revaluationof financial assets measured
at fair value through othercomprehensive income  Total of items that will not bereclassified to profit or loss
 Items that may be reclassified
to profit or loss  Exchange differences ontranslation of foreign operations  
Total of items that may be

Total comprehensive income(Attributable to)(9.50)

8.73

17.40

Owners of the parent
Non-controlling interests
Comprehensive income

18.36

10.28

(9.50)

8.73

17.38

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

IR BOOK 2022 - Corporate Data

Revenues
Cost of sales
Gross profit Selling, general and administrative
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) from continuing
operations Net income (loss) from discontinued
operations
Net income (loss)(¥ million)
Years ended December 31

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

53

Consolidated Statements of Cash Flow(¥ million)
Years ended December 31

2018

2019

2020

2021

2022

Cash Flow from Operating Activities Income before income taxes Profit (loss) before income taxes fromdiscontinued operations Depreciation and amortization Loss on impairment Loss (profit) from business transfer Gain on valuation of investment securities Stock listing expenses Gain on cancellation of insurance Financial revenues and financial expenses Equity in (earnings) losses of associates Loss (gain) on sales of investments accounted
for using the equity method  Decrease (increase) in trade and otherreceivables

3,284

1,904

670

1,903

3,501

103

(0)

(611)

(13)

19

751
207
̶
̶
̶
̶
̶
102
335

2,480
959
̶
̶
̶
̶
̶
146
(43)

2,798
2,386
̶
(563)
(7)
̶
̶
224
(41)

2,870
756
̶
̶
(3)
̶
(8)
163
̶

1,724
351
(50)
20
−
22
−
125
−

̶

(160)

̶

̶

−

418

503

(173)

552

̶
(91)

̶
22

16
68

̶
(12)

−
16

6

8

(263)

(78)

(237)

 Income taxes paid

(102)
4,992
14
(108)
17
(1,304)

(43)
5,693
9
(155)
62
(1,783)

657
5,837
5
(226)
28
(1,675)

(547)
4,856
0
(162)
439
(816)

(1,216)
4,830
6
(131)
5
(1,159)Net cash provided by operating activities

3,611

3,827

3,970

4,316

3,550

Decrease (increase) in inventories
Increase (decrease) in trade and otherpayablesOther

Subtotal Interest and dividends received Interest paid
 Income tax refund

2019

2020

2021

2022

(275)

(337)

(222)

(330)

(135)

̶

̶

16
(699)
̶

3
(889)
̶

(898)

̶

−

̶

(169)

(272)

(46)

291
̶
̶

990
−
−

Cash Flow from Investing Activities

395

Loss (gain) on step acquisition

2018

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

 Payments for acquisition of property, plant andequipment
Proceeds from sale of property, plant and equipment
Payments for acquisition of intangible assets
Proceeds from business transfer Proceeds from acquisition of subsidiary stock associatedwith 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 investments in associates Proceeds from sales of investments accounted forusing the equity method Advance payments Payments for fulfillment of asset retirement obligations Proceeds from cancellation of insurance 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
Proceeds from exercise of stock options
Payments of stock listing expenses
Payments of cash dividends Repayments of lease liabilities
Proceeds from payments from non-controllinginterests Payments for acquisition of interest in subsidiary from
non-controlling interests
Payments for acquisition of treasury shares
Proceeds from sales of treasury shares
Other Net cash provided by (used in) financing
activities Cash and cash equivalents translation
adjustment Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

(731)
̶

(772)
̶

̶

̶

(135)

(204)

293

1,966
(122)

2,290
̶
636
(56)

155

120
̶
498

56
̶
̶

(163)
(2,252)̶̶̶̶

(4,075)̶̶

(44)(3,121)(2,990)

1,969

(12)

(63)

̶

̶

(9)

513

̶

(142)
85
13
(728)

−

441

1

−

(452)
−

(0)
(269)

506

(1,000)

3,640

̶

2,821
(2,531)
̶
̶
(710)
̶

5,255
(1,972)
̶̶
(747)(1,827)

̶

̶
̶

(754)
(2,075)506(6,173)
̶̶
(765)(1,968)

̶

̶

8

̶

1,449

̶

(90)

(2,376)(1,800)2,400(2,081)
5

(18)

(847)
(1,191)

̶
̶

−

(110)

̶
̶

̶
̶
̶

(753)

(362)

4,029
̶

−
−

(164)

(655)

(1,647)(5,124)(2,085)

(0)

(0)

(2)

4

(1)

325
1,654
1,979

180
1,979
2,160

4,289
2,160
6,449

(1,532)

1,194
4,917
6,112

(140)

̶

6,449
4,917

(0)

IR BOOK 2022 - Corporate Data

 Loss (gain) on sales of fixed assets(¥ million)
Years ended December 31

IR BOOK 2022

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Organizational Strategy

Sustainability

Corporate Data

Appendix

54

Appendix
IR BOOK 2022 - Appendix

IR BOOK 2022

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Management Strategy

Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

55

Organizational Development Division Research Results
Our joint research with Keio University has shown that improving employee engagement positively impacts operating margin and labor productivity.

Correlation between Engagement Score (ES)and Operating Margin

Correlation between Engagement Score (ES)and Labor Productivity
Labor
Labor
Productivity
Productivity(Index)(Index)

40%
40%

44

20%
20%

22

0%0%

00
Score
Score
Line
Line
of of
best
best
fit fit

-20%
-20%
3030

4040

5050

6060

7070

8080ESES

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

Score
Score
Line
Line
of of
best
best
fit fit

-2-2
3030

4040

5050

6060

7070

8080ESES

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. T he 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.”
Note: Click here for details (Japanese Only).

The value we provide is not simply an increase in employee motivation, but also an improvement in employee engagement (the degree of mutual
understanding and affinity between a company and its employees), which results in maximizing business results along with employee motivation. Our
joint research with Keio University has shown that improving employee engagement has a positive impact on a company’s operating margin and laborproductivity. Now that the topic of employee engagement is attracting more attention, especially among major companies, we are taking the lead as
the driver of Japan’s employee engagement market to help companies prepare for the coming labor shortage and improve labor productivity.

IR BOOK 2022 - Appendix

OperatingOperatingMarginMarginIR BOOK 2022

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Management Strategy

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Sustainability

Corporate Data

Appendix

56

Employee Engagement
By achieving a high level of engagement among employees with a variety of attributes, we provide an environment where diverse human resources can thrive.

February 2023 Results
By Gender

By Nationality (Area)
Number of
Employees

Number of
Employees

Rank

AAA

Female

759

586

AAA

Asia (excluding Japan)

16

AAA

Oceania

3

BBB

North America

29

AAA

AAA

Central and South America

5

AAAEurope16

AA

Because the Link and Motivation Group utilizes a variety of business models in its three divisions, its workforce is quite diverse in termsof nationality and other attributes. Diagnostic surveys conducted by the Group enable analysis across all attributes. The Group provides anenvironment where diverse human resources can feel a high level of engagement and thrive.

IR BOOK 2022 - Appendix

1,196

Japan
Male

Rank

IR BOOK 2022

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Business Strategy

Organizational Strategy

Sustainability

Corporate Data

Appendix

57

Company Profile(As of December 31, 2022)

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

Financial institutions

7,902,500 shares (6.99%)

Financial instruments firms
1,768,300 shares (1.56%)

Individuals andother

Other corporations

43,861,400 shares (38.79%)

52,494,700 shares(46.43%)Foreign corporations, etc.
5,534,500 shares (4.89%)

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

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

2170
Prime Market,* Tokyo Stock Exchange
100 shares
400,000,000 shares
113,068,000 shares
16,428* The Company’s listing was changed to the Prime Market upon the reorganization of the Tokyo
Stock Exchange’s market divisions in April 2022.

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

6,534,700

5.86%

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

6,455,600

5.79%

Sakashita Hideki

3,680,000

3.30%

Sakakibara Kiyotaka

3,680,000

3.30%

Ozasa Yoshihisa

3,000,000

2.69%

Custody Bank of Japan, Ltd. (Trust Account)

1,033,500

0.93%

SMBC Nikko Securities Inc.

992,500

0.89%

Link and Motivation Officer Stock Ownership Association

899,200

0.81%

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

IR BOOK 2022 - Appendix

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

ScopeLink and Motivation Inc. and its consolidated subsidiaries
January 1, 2022 to December 31, 2022
Reporting Period			 Note: Includes some information that is outside the above reporting period.
Date of Issue
May 2023
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.