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 Organizationsand Individuals
04 Motivation Engineering, Our Core Technology
05 The Link and Motivation Group in Numbers

06 Management Strategy
07
09
1014

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 Data28 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

2954

128

54.3

th

out of 38 OECD member countries

thwith a particularly low score for“life satisfaction”

thout of 129 countries in“employee enthusiasm”%

don’t feel like studying

IR BOOK 20223

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

Providing Opportunities to Transform Organizationsand 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

Diagnostictechnologies
Use our unique frameworks toidentify customer problems

Source of Our Uniqueness andCompetitive Advantages

Motivation
Engineering
Practicality

Reproducibility

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

IR BOOK 20225

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 at10,060 companies
Approx. 750,000 people

Number ofonline 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 Marketfor Improving Employee Engagement

Unique One-Stop Services

Share of sales in Japan for
four consecutive yearsyears

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