Integrated Report

IR BOOK2023

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

Creating a More
Meaningful SocietyIntroduction?

What Do We Mean bya “More Meaningful Society”?

IR BOOK 2023

Intro duc ti o n

In Japan, a country with few natural
resources, we will realize a society wherepeople can truly thrive as the greatest,most powerful type of capital.
Through the OpenWork service, we want tomake all kinds of information about working
available to help achieve a society based on
mutual selection.
We bring out each organization’s unique

We help make everyone in thequalities to raise the presence of Japaneseclassroom setting more confident in“The kind of society we want”

companies in the capital market.

their abilities in order to foster more
dynamic lives in the future.

IR BOOK 2023

Helping each individual discover theabundance of meaning that lies beyond

By improving our customers’

Introduction

material wealth
We aim to create a future where organizations and individuals use their dreams andskills, we expand their choices andsense of purpose to draw forth deeper meaning from society.

create a more meaningful society.
We develop unrivalled
By developing essential intangibles into

products for transforming

technologies, we help create a society in

our customers’ organizations.

which as many people as possible canlive a happy life.

We are committed to using Motivation
Engineering to create a society where children
can feel free to share their dreams with others.

Organizational
Development

Support for creating organizations thatindividuals choose (Motivation Companies)

Matching
Providing opportunities to link

“This is what we must do to createa more meaningful society.”organizations and individuals

opportunities for transformation to resolve

Based on Motivation Engineering, our core technology, we operate three divisions in thefields of organizational development, individual development and matching. Our goal isto provide opportunities for transforming organizations and individuals.

Support for creating individuals thatorganizations choose (i-Companies)

IndividualDevelopment

Introduction

their problems and realize their wishes

IR BOOK 2023

Providing organizations and individuals with4
Message from the Chairman

Chairman and Representative Director
Link and Motivation Inc.

Introduction

Ozasa Yoshihisa

IR BOOK 2023

Expanding the Concept of a“More Meaningful Society”through Motivation Engineering,
Our Core Technology

5Message from the Chairman
Watch the video version of this message here. (Available in Japanese only)

What Is the “More Meaningful Society” We Aim For?

organizational and individual transformations we produce. In addition,
Motivation Engineering is driven by diagnostic and transformation

What kind of society is a “more meaningful society”? It may be difficult totechnologies. We go beyond simple diagnostics to support a wide range ofenvision. Suppose, for instance, the Earth were five minutes away fromorganizations and individuals in achieving transformation, improvementbeing destroyed. In that case, the question would have no meaning forand growth based on the results of our diagnosis. Link and Motivation is

this current message, or for you reading this. Paradoxically, one could say

the only company that can provide this one-stop service, which wethat a meaningful society is one where the future remains open, andconsider our unique advantage.

future because of their dreams and sense of purpose. This is theGoing Forward“more meaningful society” we aim to create.
I feel that the times have finally caught up

ground between a company’s management philosophy and mission andwith the confident prediction I made when

the ambitions and goals of its employees. This leads to a strong sense offounding Link and Motivation about theempathy toward work—in other words, a high level of engagement. For

coming importance of corporate investment inindividuals, it means working to improve their skills to achieve their

human capital.

ambitions and goals and feeling a sense of purpose in life and work. Thisis the society we aim for.

I am also confident that our core Motivation
Engineering technology is applicable notjust in Japan but worldwide. I see a path

Our Advantage

opening up before us to further broaden
our influence as we continue to refine andMotivation Engineering, which is our core technology, is our greatest

upgrade Motivation Engineering. The Link

strength. It brings together academic findings in areas including businessand Motivation Group will follow this path

administration, behavioral economics, social systems theory and psychology.

without hesitation to expand the concept

Motivation Engineering ensures the practicality and reproducibility of theof a “more meaningful society.”

Introduction

In more specific terms, for an organization, it means having common

IR BOOK 2023

where organizations and individuals are excited about this open

6Contents
Key Points of IR Book 2023
Based on valuable feedback from shareholders and institutional investors, we have focused on our strategies for medium- to long-term growth and on Motivation Engineering, which is ourcore technology and the Link and Motivation Group’s competitive advantage. We have also expanded the overview of all six businesses and included more information on sustainability.

Chapter 3Introduction
What Do We Mean by a “More Meaningful Society”?

1

Message from the Chairman

4The Link and Motivation Group at a Glance

7

Overview of Businesses& Cloud BusinessCorporate Data

28

29

Individual Development Division: Career SchoolA History of Creating Value

9

Value Creation Process

10

Close-Up: What Is Motivation Engineering?

11Growth Strategy Centered on
the Consulting & Cloud BusinessMessage from the President

15

Medium-Term Growth Strategy

16

Perception of the Operating Environment

17Competitive Advantages

18

Growth Potential

19

Approach to Growth20

Increasing Recurring Revenue

21

Increasing One-Time Revenue per Customer

22

Message from the Director in Charge of

23

Close-Up: Motivation Engineering as Used in the2448

Revenues by Business/Other Business-Related Data

49

Consolidated Statements of Financial Position

50

Consolidated Statements of Operations and Comprehensive Income

51

Consolidated Statements of Cash Flow

52

Company Profile

53

30

Individual Development Division: Cram School

31

Overview of the Link and Motivation Group’s Information Disclosure

Matching Division: ALT Placement Business

32

Matching Division: Personnel Placement Business

33

The Link and Motivation Group (“LMG”) communicates with its stakeholders
using diverse tools to disseminate information from a variety of perspectives.

Group Organizational Strategy

34

Human Resource Capabilities: Role Survey Scores

35

BusinessEngagement: Engagement Ratings

36Productivity

37

Recruiting, Training, Systems and Corporate Culture 38

Chapter 4Foundation for Realizing Our Mission
Message from the CFO

40

A Management Structure That Supports Sustainable
Growth: Corporate Governance
Board Members and Executives

41
42

A Management Structure That Supports Sustainable
Growth: Risk Management
Approach to Human Rights

43
44

Approach to Diversity, Equity and Inclusion/
Approach to Environmental Management

45

ContentForm of Disclosure
IR Book(IntegratedReport)

Contains information on LMG’s management
strategies, business activities and ESG initiatives,with the aim of deepening overall understandingof the economic and social value created by LMG

Human Capital
ReportCovers LMG’s approach to human capital management
and results

Pursuant to Japan’s Financial Instruments andExchange Act, the report contains a company
Securities Report overview, business condition and financial(Japanese only) information such as financial statements, as well
as non-financial information on the corporate
governance system and other topics

Financial
Statements

Financial Non-financial
Information Information

●

●

●

●Contains quarterly financial information●

Shareholder
Report(Japanese only)

Provides an overview of LMG’s businesses, information
on its human resources and other topics in addition
to the Group’s business results to help deepen
shareholder understanding●CorporateGovernance
Report(Japanese only)

Contains information on LMG’s corporate governancepursuant to the listing regulations of the Tokyo
Stock Exchange●●●Introduction

Chapter 2Business

Key Financial Indicators

IR BOOK 2023

Business

47

Performance, Financial Position and Dividends

27

Organizational Development Division: IR Support

The Link and Motivation Group’s
Value Creation

Consulting & Cloud BusinessBusinesses and Organizations ofthe Link and Motivation Group
Organizational Development Division: Consulting

Chapter 1

the Organizational Development Division

Chapter 5

7The Link and Motivation Group at a Glance

Consolidated Financial Results
2023
Revenues:

Revenues:

Gross profit:

billionbillionMotivation Cloud Market Sharefor Six Consecutive Years

Operating income:¥4.6

Organizational
Development Division

Individual
Development Division

Support for creatingorganizations thatindividuals choose(Motivation Companies)

Support for creating
individuals thatorganizations choose(i-Companies)

Consulting & Cloud Business

Career School Business

IR Support Business

Cram School BusinessbillionRevenues:

Employee engagement market: Sales volumeforecast)billion

Employees:

Career School Business Customer
Satisfaction (Scale of 5)*

4.07
Matching Division

Resources Management Market 2023
and share by vendor (fiscal 2017 to fiscal 2022

billionGross profit:

No. 1** Source: ITR Corporation, ITR Market View: Human

¥6.4
¥2.9
524

Providing opportunities to linkorganizations and individuals
ALT Placement Business
Personnel Placement
BusinessRevenues:

¥15.3
¥6.3
322

Gross profit:

Employees:* Survey conducted in November 2023

billionbillionOne of Japan’s Largest
Databases of Employee Reviews
and Evaluation Scores16.2

million (cumulative)

Introduction

Employees:billion

IR BOOK 2023

¥12.8
¥9.0622¥33.9