Consolidated Financial Statements for the Year Ended December 31, 2022 (IFRS)
These financial statements have been prepared for reference only.
February 13, 2023
Link and Motivation Inc.
Stock exchange listing: Tokyo, Prime Market
http://www.lmi.ne.jp/english
Code number: 2170
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer andManager of Group Design Office
Phone: +81-3-6853-8111
Ordinary General Meeting of Shareholders (scheduled):
March 30, 2023
Start of distribution of dividends (scheduled):
March 24, 2023
Filing of Securities Report (Yuka Shoken Hokokusho) (scheduled): March 30, 2023
Supplementary documents for quarterly results:
No
Quarterly results briefing:No(Amounts are rounded down to the nearest million.)

1. Consolidated Results for the Year Ended December 31, 2022
(January 1, 2022 – December 31, 2022)(Percentages represent change compared with the previous year.)(1) Revenues and Income
Revenues
Year ended
Dec. 31, 2022
Year ended
Dec. 31, 2021

Income before
income taxes

Operating income

Net income
attributable to ownersof the parent(¥ million)(%)

Net
income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)

32,776

0.4

3,627

75.6

3,501

83.9

2,106

106.4

1,941

111.3

32,644

6.0

2,066

140.2

1,903

184.0

1,020

—

918

—

Comprehensive
incomeDilutedearnings per
share
(¥)

Basic earnings
per share

Return on
equityReturn on
assetsOperatingmargin(¥ million)
(%)
(¥)
(%)
(%)
(%)
Year ended
Dec. 31, 2022
2,043
95.2
17.40
17.38
23.3
11.9
11.1
Year ended
Dec. 31, 2021
1,047
—
8.73
8.73
16.3
5.4
6.3
Reference: Equity in earnings of affiliates: Year ended Dec. 31, 2022: (¥—million)
Year ended Dec. 31, 2021: (¥—million)
Note: As of the fiscal year ended December 31, 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, operating income and income before
taxes present the amounts for continuing operations.

(2) Financial Position

As of Dec. 31, 2022
As of Dec. 31, 2021

(3) Cash Flow

Year ended
Dec. 31, 2022
Year ended
Dec. 31, 2021

Total equity(¥ million)

28,95230,062

11,345
8,648

Cash flow fromoperating activities(¥ million)

2. Dividends

2021
2022

Total assets(¥ million)

Equity attributableto owners of theparent(¥ million)
9,159
7,493

Cash flow frominvesting activities(¥ million)

Ratio of equity
attributable toowners of the parent
to total assets (%)
31.6
24.9

Equity per share
attributable toowners of the parent
(¥)
82.11
67.17

Cash flow fromfinancing activities(¥ million)

Cash and cash equivalents
at end of period(¥ million)

3,561

(280)

(2,085)

6,112

4,316

(728)

(5,124)

4,917

Dividends per share
1st Qtr.

2nd Qtr.

3rd Qtr.

Year-end

Full year

1.80
1.90

1.80
1.90

1.90
1.90

1.90
2.00

7.40
7.70

Total dividends
paid (full year)(¥ million)

Payout
ratio
(%)

789
859

84.7
44.2

Dividends/
Net assets(Consolidated)
(%)
14.3
10.3

2023 (est.)

2.80

2.80

2.80

2.80

11.20

47.5

3. Forecast of Consolidated Results for 2023 (January 1, 2023 – December 31, 2023)
Revenues
Full-year(¥ million)
35,300(%)
7.7(Percentages represent change compared with the previous fiscal year.)Net
Net income attributable
Basic earnings
Operating income
incometo owners of the parent
per share(¥ million)(%)(¥ million) (%)(¥ million)
(%)
(¥)
4,670
28.7
2,900
37.7
2,630
35.4
23.57

Notes
(1) Changes in Significant Subsidiaries during the Period (Change in Specified Subsidiaries Due to Change in Scopeof Consolidation): No(2) Changes in Accounting Policies and Changes in Accounting Estimates(a) Changes in accounting policies required by IFRS: No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No(3) Number of Shares Issued and Outstanding (Common Stock)(a) Number of shares at the end of the period (including treasury stock)
Year ended December 31, 2022: 113,068,000; Year ended December 31, 2021: 113,068,000(b) Number of treasury shares at the end of the period:
Year ended December 31, 2022: 1,506,468; Year ended December 31, 2021: 1,506,443(c) Average number of shares outstanding:Year ended December 31, 2022: 111,561,553; Year ended December 31, 2021: 105,249,619(Reference) Summary of Non-consolidated Results
1. Non-consolidated Results for 2022 (January 1, 2022 – December 31, 2022)(Percentages represent change compared with the previous year.)(1) Revenues and Income
Net salesYear ended
December 31, 2022
Year ended
December 31, 2021

Operating income

Net
income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)

(%)

8,883

7.0

637

295.1

489

—

71

—

8,304

11.3

161

(80.3)

(356)

—

(413)

—

Basic earnings
per share
Year ended
December 31, 2022
Year ended
December 31, 2021

Ordinary income(¥)

Dilutedearnings per
share
(¥)

0.64

—

(3.93)—(2) Financial Position

Total assets
Net assets
Net assets/
Net assets(¥ million)(¥ million)
Total assets (%)
per share (¥)
As of December 31, 2022
22,613
6,431
28.4
57.65
As of December 31, 2021
24,002
7,205
30.0
64.59
(Reference) Net worth: As of December 31, 2022: ¥6,431 million; As of December 31, 2021: ¥7,205 million
Note: Figures for non-consolidated results are based on Japanese standards.

* These Financial Statement Are Not Subject to Review by a Certified Public Accountant or Auditing Firm
* Explanation of the Proper Use of Performance Forecasts and Other Special Instructions
Consolidated forecasts and other statements regarding the future contained in this document are based on
information currently available to the Company and certain reasonable assumptions. Actual performance may differ
substantially due to numerous factors.

Contents of Attachments
1. Overview of Results of Operations and Other Information............................................................................ 4(1) Overview of Results of Operations for 2022 ....................................................................................................... 4(2) Overview of Financial Position for 2022 ............................................................................................................ 9(3) Overview of Cash Flow for 2022 .......................................................................................................................... 9(4) Forecast ............................................................................................................................................................ ....9

2. Basic Policy Regarding Selection of Accounting Standards ......................................................................... 10
3. Consolidated Financial Statements and Main Notes ..................................................................................... 11(1) Consolidated Statements of Financial Position ................................................................................................ 11(2) Consolidated Statements of Operations and Comprehensive Income ............................................................ 13(3) Consolidated Statements of Changes in Equity ................................................................................................ 15(4) Consolidated Statements of Cash Flow ............................................................................................................. 16(5) Notes to Consolidated Financial Statements .................................................................................................... 17
Notes Regarding Assumption of Going Concern ........................................................................................ 17
Notes Regarding Significant Accounting Estimates and Judgements ...................................................... 17
Segment Information, Etc. ............................................................................................................................ 18
Per Share Information .................................................................................................................................. 20
Significant Subsequent Events ..................................................................................................................... 20-3-

1. Overview of Results of Operations and Other Information

Forward-looking statements in the following text are based on judgments as of December 31, 2022, the last day of theconsolidated accounting period under review. Because the Link and Motivation Group (the “Group”) transferred the domestic
temp staff business operated by its subsidiary Link Agent Inc. (formerly Link Staffing Inc.) to iDA K.K. as of January 1, 2022,
these operations are classified as discontinued. Therefore, the amount from continuing operations is shown for revenues, grossprofit and operating income, and the total from continuing and discontinued operations is shown for net income attributable toowners of the parent.
(1) Overview of Results of Operations for 2022
The Group supports the transformation of numerous organizations and individuals using “Motivation Engineering,”
which is the Group’s core technology, incorporating academic results in business administration, social systems theory,
behavioral economics, psychology and other disciplines, under its corporate philosophy: “Through Motivation Engineering,
we provide opportunities to transform organizations and individuals and create a more meaningful society.” During the
fiscal year ended December 31, 2022, the Japanese economy showed a gradual recovery trend amid easing of movement
restrictions and progress in shifting to coexistence with COVID-19. However, the economic outlook remains unclear due
to price increases stemming from the worsening situation in Ukraine and the impact of the rapid depreciation of the yen.
Under these economic conditions, the Group perceives the need for companies to promote human capital management inorder to deal with change—specifically, the rising needs for improving employee engagement (mutual understanding,empathy and commitment between companies and employees) and for securing and developing human resources.
In this economic environment, the Group’s revenues for 2022 were ¥32,776 million (a 0.4% increase compared withthe previous year), gross profit was ¥16,068 million (a 4.7% increase), operating income was ¥3,627 million (a 75.6%
increase) and net income attributable to owners of the parent was ¥1,941 million (a 111.3% increase).
The segment and business classifications of the Group are as shown below, and an overview of fiscal 2022 bysegment and business follows.
As of 2022, business classifications and business names have changed. Figures for the previous year have been
restated for purposes of comparison.
Link and
Motivation Group

Organizational
Development Division

Consulting &Cloud Business
Link and Motivation Inc.

Individual
Development Division

Matching Division

Career School Business

ALT Placement Business

Link Academy Inc.

Link Interac Inc.

Link Global Solution Inc.

Link Japan Careers Inc.

Link Event Produce Inc.

IR Support Business

Cram School Business

Personnel Placement
Business

Link Corporate
Communications Inc.

Motivation Academia Inc.

Link Agent Inc.
Link-i Inc.
OpenWork Inc.

Note: Link Staffing Inc. changed its corporate name to Link Agent Inc. on April 1, 2022.

-4-

Organizational Development Division
The Organizational Development Division defines companies that use employee motivation as the engine ofcorporate growth as “Motivation Companies,” and provides support for the creation of many such “Motivation
Companies.” In concrete terms, it offers corporate customers services that provide support for increasing engagementwith a company’s stakeholders (employees, job applicants, customers, shareholders) using “Motivation Engineering,”
which is the core technology of the Group.
In this segment, segment revenues for 2022 were ¥12,092 million (an 11.8% increase), and segment income was¥8,248 million (a 9.5% increase). An overview of operating results by business for 2022 is as follows.
Consulting & Cloud BusinessTo turn corporations into “Motivation Companies,” the Consulting & Cloud business diagnoses employee
engagement based on its original diagnostic framework and offers one-stop solutions for innovations related toorganizations and personnel, including hiring, training, systems and culture. The business is also rolling out the
Motivation Cloud series of cloud-based services that allow customer companies to manage employee engagement
themselves.
In this business, revenues for 2022 were ¥10,236 million (an 11.8% increase) and gross profit was ¥7,320 million (a7.4% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Consulting & Cloud Business
Consulting
Cloud

2021

2022

9,156
[6,817]
6,259
2,897

10,236[7,320]
6,641
3,594

YoY change
(%)
11.8
7.4
6.1
24.1

In 2022, revenues increased substantially and gross profit increased compared with the previous fiscal year as both
the Consulting business and the Cloud business steadily captured the needs of major companies for improving employee
engagement. Attention is increasingly being given to the practice of human capital management and related information
disclosure due to factors including the November 2022 announcement by the Ministry of Finance of the proposed
revision of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, which sets forth items concerning humancapital to be disclosed in securities reports next fiscal year and thereafter. The Group will take advantage of this external
environment to develop new customers, primarily major companies, and promote one-stop support for the diagnosis,
transformation and information disclosure of organizations to achieve further growth.
Monthly fee revenue increased substantially compared with the previous year for the Motivation Cloud series of
products, which are part of the Cloud category and are priority services for the Group. The number of deliveries andmonthly fee revenue were as follows.
Table 2. Number of Deliveries and Monthly Fee Revenue for the Motivation Cloud Series at Quarter-End
2021
2022
March

Number of deliveries
Monthly fee revenue(¥ thousand)

June

September

December

March

June

September

December

747

743

772

738

745

768

820

831

206,485

218,928

235,859

240,545

256,155

284,692

306,934

328,505

Since its founding in 2000, the Group has not only diagnosed the engagement status of companies and employees but
has also supported their transformation. The Motivation Cloud series is a group of cloud-based services in the field of
HR Tech (human resources combined with technology) for improving employee engagement. The Company migrated
the organization diagnosis service it has offered since its founding to the cloud and started providing the Motivation
Cloud service in July 2016. Motivation Cloud is currently ranked number one in share of sales by vendor in theemployee engagement market (the fifth consecutive year: fiscal 2017 to fiscal 2021 forecast) in ITR Market View:
Human Resources Management Market 2022, a market research report published by ITR Corporation.

-5-

The Group had forecast ¥320,000 thousand in fee revenues from the Motivation Cloud series for the month ofDecember 2022 (a year-on-year increase of 33.0%), but the business successfully promoted the introduction of thisproduct at major companies, and monthly fee revenue for December 2022 was ¥328,505 thousand (a 36.6% increase).
The business will continue to ramp up introductions at major companies, where there is still substantial room for
growth, and will promote introductions at Japanese subsidiaries of global corporations and local governments. In
addition, for Stretch Cloud (released in July 2022), we plan to expand in the human resource development market, which
exceeds ¥500 billion. Execution of these growth strategies will accelerate further growth and drive the employee
engagement market.
IR Support Business
The IR Support business provides one-stop support for corporate branding through various media and events centeredon the field of investor relations for the “creation of Motivation Companies” at corporations. In addition to printed media
such as integrated reports for shareholders and investors, web-based media such as investor relations (IR) sites, andvisual media such as videos that explain products and webcasts of shareholders’ meetings, the business creates physicaland virtual forums for shareholders’ meetings and other events.
In this business, revenues for 2022 were ¥2,066 million (a 7.6% increase) and gross profit was ¥1,026 million (a16.9% increase).
In 2022, revenues increased compared with the previous year as production of integrated reports expanded. Grossprofit increased substantially compared with the previous year due to the success of efforts to improve the gross profit
margin of video production.
It is likely that needs for disclosure of information on non-financial capital, particularly human capital information,
will increase further with the requirement to disclose human capital information in securities reports. The business will
respond to these needs as well as generate synergies with the Consulting & Cloud business by disclosing the results of its
diagnosis and transformation initiatives.
Individual Development Division
The Individual Development Division supports the creation of “i-Companies,” which it defines as individuals who
independently and autonomously develop their own careers and lives. Specifically, it applies “Motivation Engineering,”
which is the core technology of the Group, to businesses in areas including career schools and cram schools, to provide
one-stop services to customers from elementary school students to working adults. These services range from helping to
set goals to understanding individual issues and formulating and implementing study plans.
In this segment, segment revenues for 2022 were ¥6,960 million (a 6.8% decrease) and segment income was ¥2,755
million (a 5.2% decrease). An overview of operating results by business for 2022 is as follows.
Career School Business
The Career School business provides one-stop services for individual career advancement, targeting mainly
university students and working adults, under the five service brands of “Aviva” personal computer schools, “Daiei”
qualification schools, and “Rosetta Stone Learning Center,” “Rosetta Stone Premium Club” and “Hummingbird” foreign
language schools.
In this business, revenues for 2022 were ¥6,240 million (an 8.6% decrease) and gross profit was ¥2,427 million (a6.5% decrease). Results by product in the Career School business were as follows.
Table 3. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Career School BusinessIT
Qualifications
English conversation

2021

2022

YoY change
(%)

6,824
[2,596]
3,791
2,406
626

6,240
[2,427]
3,438
2,258
543

(8.6)
(6.5)
(9.3)
(6.2)
(13.3)-6-

In 2022, the number of enrollees failed to recover as the impact of COVID-19 on B2C services continued, andrevenues decreased compared with the previous year.
In B2C services, the business carried out structural reforms initiated in the third quarter. Specifically, in response to
the significant changes in lifestyles due to COVID-19, and the shift of learning needs from in-person to online, thebusiness intends to port all courses and support for its B2C services online. It also plans to reduce fixed costs andimprove business efficiency by rationalizing schools through relocation or closure. Meanwhile, the business achieved
substantial year-on-year growth of 32.7% in its DX support for individuals at companies (a B2B service) amid rapidly
expanding corporate needs for reskilling. The business will grow these services further by utilizing the customer assets of
the Organizational Development Division, in addition to the IT skill support know-how it has cultivated.
Cram School Business
Unlike typical cram schools, the Cram School business operates under the business concept of producing numerous“i-Companies” in addition to improving the academic ability of its students. Its services consist of operating “Motivation
Academia” cram schools for junior high and high school students to provide a place where students can not only prepare
for school entrance exams but also develop skills to play a role in society. The business also operates “SS-1,” anindividualized instruction school for students preparing for junior high school entrance exams. The Cram School
business utilizes its assets in programming education and English conversation education to provide a place for students
from elementary school straight through to high school to develop skills that will be of use in society. Like the Career
School business, it now offers both in-school and online services in response to lifestyle changes caused by the COVID19 pandemic.
In this business, revenues for 2022 were ¥720 million (a 10.5% increase) and gross profit was ¥327 million (a 5.6%
increase).
Revenues increased substantially and gross profit increased in 2022 due to recovery in the number of enrollees.
This business will continue to increase the number of new enrollees by providing learning opportunities to a wide
range of students through online classes.
Matching Division
The Matching Division provides opportunities to connect organizations and individuals under the concept of“engagement matching.” In concrete terms, it applies “Motivation Engineering,” the core technology of the Group, to theplacement of non-Japanese assistant language teachers (ALTs) to schools and human resources to other businesses. It
creates matches with a high retention rate by going beyond the skill requirements of companies and local governments
for matching with the characteristics of each individual based on the Group’s proprietary data.
In this segment, segment revenues for 2022 were ¥14,564 million (a 3.2% decrease) and segment income was ¥5,778
million (a 4.4% increase). An overview of operating results by business for 2022 is as follows.
ALT Placement Business
The ALT Placement business dispatches non-Japanese assistant language teachers (ALTs) to elementary, junior highand high schools throughout Japan and provides English-language instruction services on contract. In this business,where barriers to entry are extremely high due to the importance placed on relationships of trust with customers and acompany’s track record, the Group has established the predominant number-one share among private companies.
In this business, revenues for 2022 were ¥12,006 million (an 8.5% decrease) and gross profit was ¥3,291 million (a9.8% decrease).
In 2022, due to price adjustments by the business as a result of the expansion of social insurance coverage that willtake effect in October 2022, some local governments withdrew their bids because the price exceeded their expectations.
As a result, both revenues and gross profit decreased compared with the previous year.
On the other hand, there was a steady increase in the number of schools using “Teachers Cloud,” a cloud-based
service launched in June 2021 to improve the efficiency of teachers’ preparation for English classes, their English ability
and their teaching skills. As of December 31, 2022, 5,676 schools were using the product, achieving the year-end targetof 5,600 schools. The business plans to provide it to 14,000 schools, or about 45% of all public elementary, junior highor high schools in Japan, by 2024. The Group will continue to roll out Teachers Cloud as a part of classroom
infrastructure and expand the market share of the ALT Placement business.

-7-Personnel Placement Business
The Personnel Placement business provides the human resources an organization needs to grow in the form of areferral service for human resources. Mainly, it provides mid-career referrals that match working adults looking tochange jobs with companies, and conducts new graduate recruiting and referrals that connect university students looking
for employment with company orientation meetings and interviews.
In this business, revenues for 2022 were ¥2,570 million (a 32.2% increase) and gross profit was ¥2,500 million (a31.0% increase).
In 2022, OpenWork Inc., which has a particularly high growth rate, continued to steadily accumulate registered users
and data on employee online reviews and evaluation scores despite the COVID-19 pandemic. Amid the increasing
activity in the market for people changing jobs, revenues from the direct recruiting service (OpenWork Recruiting) havegrown substantially, increasing 102.5% compared with the previous year.
This business will continue to expand synergy with the Organizational Development Division, and will ramp up“engagement matching” that achieves true mutual understanding and affinity between organizations and individuals.
Venture Incubation
In addition to its divisions, the Group conducts venture incubation. In venture incubation, the Group provides its
know-how in organizational and personnel consulting in addition to funding, as well as support on an organizational
level for growing venture companies that aim to list their stock. The two main criteria for selection of investees are (1)sympathy with the idea of “creation of Motivation Companies” and (2) aim to list stock. Gains on sales and other results
generated from venture incubation are recorded in other components of equity on the condensed consolidated statementsof financial position, or under other income or other expenses on the consolidated statements of operations.

-8-(2) Overview of Financial Position for 2022
Total assets as of December 31, 2022 were ¥28,952 million, a decrease of ¥1,110 million from the end of theprevious year. This was mainly due to factors including decreases of ¥840 million in right-of-use assets and ¥797 million
in other non-current financial assets associated with the transfer of the domestic temp staff business and the relocation of
the Tokyo integrated office, as well as a decrease of ¥552 million in trade and other receivables. Cash and cash
equivalents increased ¥1,194 million.
Total liabilities as of December 31, 2022 were ¥17,606 million, a decrease of ¥3,807 million from the end of theprevious year. This was mainly due to factors including decreases of ¥1,481 million in interest-bearing and otherfinancial liabilities and ¥1,278 million in lease liabilities.
Total equity as of December 31, 2022 was ¥11,345 million, an increase of ¥2,697 million from the end of theprevious year. This was mainly due to factors including a ¥1,080 million increase in retained earnings associated withposting net income attributable to owners of the parent and a ¥1,030 million increase in non-controlling interests,
partially offset by the payment of dividends from surplus.
(3) Overview of Cash Flow for 2022
Cash and cash equivalents (“cash”) as of December 31, 2022 were ¥6,112 million, an increase of ¥1,194 million
during the period.
Cash flow during 2022 was as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities was ¥3,561 million, a decrease of ¥755 million compared with the previous
year. The principal factors increasing cash were a ¥1,597 million increase in income before income taxes and a ¥725
million decrease in trade and other receivables compared with the previous year, while the principal factors decreasing
cash included a ¥1,146 million decrease in depreciation and amortization, a ¥405 million decrease in loss on impairment,a ¥658 million decrease in other, a ¥434 million decrease in income tax refund and a ¥343 million increase in income
taxes paid compared with the previous year.
Cash Flow from Investing Activities
Net cash used in investing activities was ¥280 million, a decrease of ¥447 million from the previous year. Principal
factors decreasing cash included a ¥512 million decrease in proceeds from sale of investment securities and a ¥309
million increase in payments for asset retirement obligations compared with the previous year, while the principal factors
increasing cash included ¥441 million in proceeds from business transfer and an increase of ¥690 million in proceedsfrom refund of security deposits and guarantees compared with the previous year.
Cash Flow from Financing Activities
Net cash used in financing activities was ¥2,085 million, a decrease of ¥3,039 million compared with the previous
year. The principal factors were a ¥4,185 million net increase in financial liabilities compared with the previous year,¥1,449 million in payments from non-controlling interests, a decrease of ¥776 million in repayment of lease liabilities
and the absence of payments for acquisition of interests in subsidiaries from non-controlling interests, which wereincurred in the previous year. These factors were partially offset by a decrease in cash due to the absence of proceedsfrom sales of treasury shares recorded in the previous year.
(4) Forecast
The Consulting & Cloud business of the Organizational Development Division and the Personnel Placement businessof the Matching Division grew substantially in 2022. In addition, progress was made in relocation or closure of schools
and structural reforms were carried out in B2C services of the Career School business, which continues to be impacted
by the COVID-19 pandemic.
For the fiscal year ending December 31, 2023, the Company has forecast revenues of ¥35,300 million (a 7.7%
increase), operating income of ¥4,670 million (a 28.7% increase), and net income attributable to owners of parent of¥2,630 million (a 35.4% increase). The operating income forecast represents a record high. Out of all the Group’sbusinesses, the greatest growth in expected from the Consulting & Cloud business in the Organizational Development
Division. In this business, the Company perceives that needs for improving employee engagement and securing and-9-developing human resources will expand further, especially among major companies, in response to the recent changes
in working styles caused by the COVID-19 pandemic and the global trend toward human capital disclosure. For theGroup, which has provided organizational and human resource consulting since it was established in 2000, these changes
in the external environment are producing the best market environment since the Company’s inception. The Company
plans to accelerate growth through further customer development for Motivation Cloud and cross-selling to Stretch
Cloud. For the Organizational Development Division, the Company forecasts ¥14,200 million in revenues (a 17.4%
increase) and ¥9,700 million in gross profit (a 17.6% increase) in 2023, and ¥430 million in subscription revenues from
the Motivation Cloud series for the month of December 2023 (a 30.9% increase). Moreover, the Company will achieve
further growth in the Individual Development Division and the Matching Division by focusing on businesses that can be
expected to generate synergies with the Organizational Development Division.

2. Basic Policy Regarding Selection of Accounting Standards
The Group has applied International Financial Reporting Standards (IFRS) since the first quarter of the fiscal year
ended December 31, 2017 to improve the international comparability of its financial information in capital markets. The
Group formerly applied generally accepted accounting principles in Japan (Japanese GAAP).

- 10 -

3. Consolidated Financial Statements and Main Notes(1) Consolidated Statements of Financial Position(Millions of yen, rounded down to the nearest million)
As of
As of
December 31, 2021
December 31, 2022

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Other non-current financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets- 11 -

4,917
3,851
200
9
753
9,732

6,112
3,299
183
12
1,025
10,633

637
4,149
9,410
2,234
2,744
984
168
20,32930,062

599
3,308
9,347
2,417
1,947
617
81
18,31928,952

(Millions of yen, rounded down to the nearest million)
As of
As of
December 31, 2021
December 31, 2022
LIABILITIES AND EQUITY
LIABILITIESCurrent liabilities
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- 12 -

2,094
1,615
7,161
1,079
716
274
2,075
15,018

1,858
1,461
5,064
905
712
8
1,725
11,737

1,716
3,929
359
256
134
6,395
21,413

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

1,380
3,879
(320)
4,406
(1,853)
7,493
1,154
8,648
30,062

1,380
4,464
(320)
5,487
(1,851)
9,159
2,185
11,34528,952

(2) Consolidated Statements of Operations and Comprehensive Income
Consolidated Statements of Operations(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2021 December 31, 2022
Continuing Operations
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating income
Financial revenues
Financial expenses
Income before income taxes
Income taxes
Net income from continuing operations
Discontinued Operations
Profit (loss) from discontinued operations
Net income

32,64417,304
15,34012,625
112
760
2,066
12
174
1,903
801
1,102

32,776
16,70816,06812,780
779
439
3,627
20
146
3,501
1,310
2,191

(82)

(84)
2,106

1,020

(Attributable to)
Owners of the parent
Non-controlling interests
Total
Earnings per share attributable to owners of the parent
Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic earnings (loss) per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted earnings (loss) per share- 13 -

918
101
1,020

1,941
164
2,106
(Yen)

9.51
(0.78)
8.73

18.17(0.76)
17.40

9.51(0.78)
8.73

18.14(0.76)
17.38

Consolidated Statements of Comprehensive Income(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2021 December 31, 2022

Net income
Other comprehensive income
Items that will not be reclassified to profit or loss:
Net gain (loss) on revaluation of financial assets
measured at fair value through othercomprehensive income
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign
operations
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Total comprehensive income(Attributable to)
Owners of the parent
Non-controlling interests
Comprehensive income- 14 -

1,020

2,106

22
22

(57)
(57)

4
4
26
1,047

(5)
(5)
(62)
2,043

945
101
1,047

1,878
164
2,043

(3) Consolidated Statements of Changes in Equity
Year ended December 31, 2021

(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent
SharecapitalJanuary 1, 2021
Net income
Other comprehensive
incomeTotal comprehensive
incomeAcquisition of treasury
shares
Disposition of treasury
sharesChange in ownershipinterest in subsidiaries
Dividends from surplus
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theowners
December 31, 2021

CapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Noncontrollinginterests

Total
equity

3,760
918

1,157
101

4,917
1,020

1,380
—

1,855
—

(1,733)
—

3,989
918

(1,731)
—

—

—

—

—

26

26

—

26

—

—

—

918

26

945

101

1,047

—

—

(0)

—

—

(0)

—

(0)

—

2,673

1,413

—

—

4,087

—

4,087

—
—

(649)
—

—
—

—
(764)

—
—

(649)
(764)

(103)
—

(753)
(764)

—

—

—

—

115

115

—

115

—

—

—

263

(263)

—

—

—

—
1,380

2,024
3,879

1,413
(320)

(501)
4,406

(148)
(1,853)

2,787
7,493

(103)
1,154

2,683
8,648

Year ended December 31, 2022

(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent
SharecapitalJanuary 1, 2022
Net income
Other comprehensive
incomeTotal comprehensive
incomeAcquisition of treasury
sharesChange in ownershipinterest in subsidiaries
Dividends from surplus
Exercise of stock
options
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earnings
Total transactions with theowners
December 31, 2022

Total equity
attributableto owners of
the parent

CapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

7,493
1,941

1,154
164

8,648
2,106

1,380
—

3,879
—

(320)
—

4,406
1,941

(1,853)
—

—

—

—

—

(62)

(62)

—

(62)

—

—

—

1,941

(62)

1,878

164

2,043

—

—

(0)

—

—

(0)

—

(0)

—
—
—

581
—

—
—

—
(847)

—
—

581
(847)

866
—

1,447
(847)

2

—

—

(2)

—

—

—

—

—

—

—

53

53

—

53

—

—

—

(12)

12

—

—

—

—
1,380

584
4,464

(0)
(320)

(860)
5,487

64
(1,851)

(212)
9,159

866
2,185

653
11,345- 15 -

(4) Consolidated Statements of Cash Flow

(Millions of yen, rounded down to the nearest million)
Year ended
Year ended
December 31, 2021 December 31, 2022

Cash flow from operating activities
Income before income taxes
Profit (loss) before income taxes from discontinued operations
Depreciation and amortization
Loss on impairment
Loss (profit) from business transfer
Loss (gain) on sales of fixed assets
Loss (gain) on valuation of investment securities
Stock listing expenses
Gain on cancellation of insurance
Financial revenues and financial expenses
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income tax refund
Income taxes paid
Net cash provided by operating activities
Cash flow from investing activities
Payments for acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for acquisition of intangible assets
Proceeds from business transfer
Payments for acquisition of investment securities
Proceeds from sale of investment securities
Payments for security deposits and guarantees
Proceeds from recovery of security deposits and guarantees
Payments for fulfillment of asset retirement obligations
Proceeds from cancellation of insurance
Other
Net cash provided by (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
Payments from non-controlling interests
Payments for acquisition of interest in subsidiary from noncontrolling interests
Payments for acquisition of treasury shares
Proceeds from sales of treasury shares
Net cash 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

- 16 -

1,903
(13)
2,870
756
—
(3)
—
—
(8)
163
(173)
(12)
(78)
(547)
4,856
0
(162)
439
(816)
4,316

3,501
19
1,724
351
(50)
—
20
22
—
125
552
16
(237)
(1,206)
4,841
6
(131)
5
(1,159)
3,561

(330)
3
(889)
—
—
513
(272)
291
(142)
85
13
(728)

(135)
—
(898)
441
(169)
1
(49)
982
(452)
—
(0)
(280)

—
506
(6,173)——(765)(1,968)—(1,800)2,400(2,081)
5
(18)
(847)
(1,191)
1,449

(753)
—
4,029
(5,124)
4(1,532)
6,449
4,917

—
(0)
—
(2,085)
(1)
1,194
4,917
6,112

(5) Notes to Consolidated Financial Statements(Notes Regarding Assumption of Going Concern)
None applicable(Notes Regarding Significant Accounting Estimates and Judgements)
In preparing the consolidated financial statements, management makes judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The
results of accounting estimates may differ from actual results.
The estimates and their underlying assumptions are reviewed on an ongoing basis. The effects of a review ofaccounting estimates are recognized in the accounting period in which the estimates are reviewed as well as in future
periods.
Estimates and estimate-related judgments that have a significant impact on the consolidated financial statements are
the same as those in the consolidated financial statements for the previous fiscal year.
(Accounting Estimates Related to the COVID-19 Pandemic)
Despite the extreme difficulty of predicting factors such as the timing of the end of the spread of COVID-19 andthe scope of infection, and assuming that the impact will not be long-term, the Group has made accounting estimates
regarding impairment of fixed assets, including goodwill, the recoverability of deferred tax assets and other mattersbased on the information available as of the date of preparation of these consolidated financial statements.
The financial position and operating results of the Group may be affected by the state of the spread of infection in
the future.

- 17 -

(Segment Information, Etc.)(Segment Information)
1. Overview of Reportable Segments
The reportable segments of the Group are based on available financial information divided among the constituent
units of the Group and are subject to periodic analysis by the Board of Directors to determine allocation of management
resources and to evaluate operating results.
The Group draws up comprehensive strategies and conducts business activities for the services it handles.
The Group is composed of divisional segments based on the form in which services are provided, with threereportable segments: the “Organizational Development Division,” the “Individual Development Division,” and the“Matching Division.”
2. Revenues, Income or Loss, and Other Items in Reportable Segments
The accounting policies for reportable segments are the same as the Group’s accounting policies.
Income of reportable segments is based on gross profit on the Consolidated Statement of Operations.
Values of intersegment transactions are decided using the same method as for sales to outside customers.
Revenues, income or loss, and other items for each reportable segment of the Group are as follows.
Year ended December 31, 2021

(Millions of yen)
Reportable Segment

Organizational
Development
Division

Segment revenues
Revenue to outside
customers
Intersegment revenues
and transfers
Total
Segment income

Individual
Development
Division

Matching
Division

Total

Other
(Note 1)

Adjustment(Note 2)

Consolidated

10,461

7,449

14,72832,6404—

32,644357
10,819

21
7,471

314
15,043694
33,334

14
18

(708)
(708)

—
32,644

7,534
2,904
5,534
Selling, general andadministrative expenses
Other revenue/expenses(net)
Financial
revenue/expenses (net)
Income before income
taxes
Other items
Depreciation andamortization
1,997
647
64
Impairment loss
2
563
166
Notes: 1. The Other segment consists of the restaurant business.
2. Adjustment is the elimination of intersegment transactions.

15,973

(46)

(587)

15,340- 18 -

12,625
(648)
(162)
1,903

2,709
732

0
—

—
—

2,709
732

Year ended December 31, 2022

(Millions of yen)
Reportable Segment

Organizational
Development
Division

Segment revenues
Revenue to outside
customers
Intersegment revenues
and transfers
Total
Segment income

Individual
Development
Division

Matching
Division

Total

Other
(Note 1)

Adjustment(Note 2)

Consolidated

11,728

6,817

14,227

32,773

3—

32,776364
12,092

143
6,960

336
14,564844
33,617

24
28

(868)
(868)

—
32,776

8,248
2,755
5,778
Selling, general andadministrative expenses
Other revenue/expenses(net)
Financial
revenue/expenses (net)
Income before income
taxes
Other items
Depreciation andamortization
1,014
587
57
Impairment loss—
284
18
Notes: 1. The Other segment consists of the restaurant business.
2. Adjustment is the elimination of intersegment transactions.

16,782

(32)

(681)

16,068- 19 -

12,780
339
(125)
3,501

1,659
302

0
48

—
—

1,659
351

(Per Share Information)
1. Basic earnings per share and diluted earnings per share
Continuing operations
Discontinued operations
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Diluted earnings per share (Yen)Year ended
December 31, 2021
9.51
(0.78)
8.73
9.51(0.78)
8.73

2. Basis for calculating basic earnings per share and diluted earnings per share
Year ended
December 31, 2021
Profit used to calculate basic and diluted earnings per share
Net income attributable to owners of the parent(Millions of yen)
918
Amount not attributable to ordinary shareholders of theparent (Millions of yen)—
Profit (loss) used to calculate basic earnings per share(Millions of yen)
918
Continuing operations
1,001
Discontinued operations(82)
Profit adjustment amount
Adjustment for share options to be issued byassociates (Millions of yen)—
Profit (loss) used to calculate diluted earnings per share(Millions of yen)
918
Continuing operations
1,001
Discontinued operations(82)
Weighted average number of ordinary shares used to
calculate basic and diluted earnings per share (Shares)
Weighted average number of ordinary shares used to
calculate basic earnings per share (Shares)
105,249,619
Effect of dilutive shares: stock options—
Weighted average number of ordinary shares used to
calculate diluted earnings per share (Shares)
105,249,619(Significant Subsequent Events)
None applicable- 20 -

Year ended
December 31, 2022
18.17
(0.76)
17.40
18.14(0.76)
17.38
Year ended
December 31, 2022
1,941
—
1,941
2,026
(84)
(2)
1,939
2,023
(84)

111,561,553—
111,561,553