Chapter

Human Capital Data
54

Correspondence with ISO 30414 Metrics

55

Compliance and ethics / Costs

56

Diversity

57

Leadership

58

Organizational cultures

59

Organizational health, safety and well being /Productivity

60

Recruitment, mobility, turnover

62

Skills and capabilities

63

Succession planning / Workforce availability

64

Other

65

Our Understanding of Human Capital Disclosure
Guidelines

54

Human Capital Data
Correspondence with ISO 30414 Metrics
No.

1

Metri cPage

No.

Compliance and ethics

1-1

Number and type of grievance filed

1-2
1-3

Page

No.

Organizational culture

55

5-1

Engagement/satisfaction/commitment

55

5-2

Retention rate

55

6

9

Metri cPage

Skills and capabilities

17, 58

9-1

Total developing and training costs

62

61

9-2

Training participation rate

62

9-3

Average formalized training hours per
employee

62

Organizational health, safety and well being

1-4

Disputes referred to external partiesー

6-1

Lost time for injury

59

9-4

Percentage of employees who participate
in training compared with total number of
employees per year

62

1-5

Number, type and source of external audit
findings and actions arising from these

55

6-2

Number of occupational accidents

59

9-5

Workforce competency rateー

6-3

Number of people killed during work

59

10

Percentage of employees who participated intraining

59

10-1

Succession effectiveness rate

10-2

Succession coverage rate

34, 6310-3

Succession depth rate: ready now

34, 6310-4

Succession depth rate: ready in 1-3
years/4-5 years

34, 63

2

Costs

2-1

Total workforce costs

55

6-4

2-2

External workforce costs

55

7

2-3

Ratio of the average salary and remuneration

55

7-1

2-4

Total costs of employment

55

7-2

2-5

Cost per hire

55

8

2-6

Recruitment costs

55

8-1

2-7
3

3-1
3-2
3-3
3-4
3-5
4
4-1

Turnover costsーDiversity

Workforce diversity ratio with respect to age
Workforce diversity ratio with respect togenderWorkforce diversity ratio with respect todisability
Workforce diversity ratio with respect toother indicators of diversity
Diversity of leadership team

EBIT/revenue/turnover/profit per employee
Human capital ROI

15, 5915, 59Recruitment, mobility, turnover
Number of qualified candidates per position

11
ー

63

Workforce availability

11-1

Number of employees

63
63

8-2

Quality per hire

60

11-2

Number of employees: full-time and parttime

8-3

Average length of time to fill vacant position

60

11-3

Full time equivalents

63

Contingent workforce: independent
contractor
Contingent workforce: temporary
workforceー

Absenteeism: unplanned leave

63

56

8-4

56

8-5

56

8-6

56
52

Leadership

Productivity

Succession planning

Average length of time to fill vacant critical
positionTransition and future workforce capabilities
assessment

60

11-4

ー

11-5

Percentage of positions filled internally

60

11-6

8-7

Percentage of critical business positions filledinternally

60

8-8

Percentage of critical positions

60

8-9

Percentage of vacant critical businesspositions in relation to all vacant positions

60
60

Leadership trust

57

8-10

Internal mobility rate

4-2

Span of control

57

8-11

Employee bench strength

4-3

Leadership development

57

8-12

Turnover rate

61

8-13

Voluntary turnover rate

61

8-14

Voluntary critical turnover rate

61

8-15

Exit/turnover reasons/leaving employment byreason61

34, 61ー

Human Capital Repor t 2023 - Chapter 5

Number and type of concluded disciplinary
actionPercentage of employees who havecompleted training on compliance andethics5

Metri c55
Compliance and Ethics

Costs

The Link and Motivation Group strives to practice Management with
Integrity (i.e., management with no illegality or dishonesty with regard to
any of its stakeholders, including customers, business partners, employees
and shareholders). As a corporate entity, we abide by laws, regulations,
corporate ethics and social norms, and understand that individual employees
must also make efforts to avoid transgressions. At the Link and Motivation
Group, we believe that our emphasis on engagement helps tostrengthen compliance, and see our high performance in complianceand ethics-related metrics to be a result of our high level of employee
engagement.

The Link and Motivation Group believes that investing in its organization,
starting with investment in communication, is essential for fostering the
motivation, knowledge and brand image that will lead to business results,
even though they may not be immediately apparent. We base ourdetermination of the necessity of each of our costs on this premise.
In addition, we consider expenditures for recruiting to be an investment rather
than a cost. This is because we emphasize investing money and time inattracting the talent we want to hire, based on the idea that recruitment
creates a company’s future five to ten years ahead.

2022

2023

Unit

2021

2022

2023

3

11

13

Total workforce costs*1

Million yen

21,34921,445

21,424(Type) Harassment

0

6

7

External workforce costs*2

Million yen

12,125

11,793

11,790122Compensation

2

3

4

5

6

3

(Type) Reprimands/pay cuts

5

6

1

Suspensions/demotions
Requests forresignation/disciplinary
dismissal
Percentage of employees who havecompleted training on compliance andethics*3 (%)
Percentage of employees who havecompleted training on compliance
Information management training
participation rate
Harassment training participation rate

0

0

2

0

0

0

Workplace environment
Other
Number of concluded disciplinary actions

Number of unresolved external audit
findings*4*2

Average monthly wage *3
Average annual wage *4
Ratio of executive compensation tototal salaries paid*5
Total costs of employment*6

Thousand yen

371

379

381

Thousand yen

5,302

5,301

5,218

4.9

5.2

5.0

9,724

10,373

10,337％
Million yen

Cost per hire*7
New university graduates

Thousand yen

—

—

—

Mid-career employees

Thousand yen

4,287

2,535

2,401

New university graduates

Thousand yen

355,000

336,989

341,092

Mid-career employees

Thousand yen

180,085

159,704

163,287

Recruiting costs*8
100.0

100.0

100.0

100.0

100.0

100.0

—

98.5

100.0

0

0

0

*1 The number of consultations with the hotline that is open to all employees.
Calculated based on total workforce (Group company employees, part-time staff and ALTs).
*2 Calculated based on total workforce (Group company employees, part-time staff and ALTs).
*3 All training content completed by employees.
*4 The number of findings in external audits by the Labor Standards Inspection Office, etc.,that are still unresolved.

*1 Total costs the Group paid directly to employees. Defined to include total costs for the external workforce inaddition to people the Group employs directly.
*2 Total costs paid to outsourcers, temporary staff and other workers the Group does not employ directly.
*3 The sum of all taxable payments for salaries and allowances.
*4 Calculated as salary plus bonuses paid four times a year.
*5 Calculated as total of executive compensation as a percentage of total compensation of all employees.
*6 Total costs incurred in employment. Defined to include costs that indirectly benefit employees (training costs,
benefit expenses, etc.).
*7 Calculated by dividing recruiting costs for the relevant year by the number of hires. Recruiting costs for new
university graduates are not calculated because the amount invested in the relevant year is not directly
linked to the number of hires.
*8 Total recruiting related costs recorded in the relevant year.

Human Capital Repor t 2023 - Chapter 5

2021

Number and type of grievance filed*1

56

Diversity
The Link and Motivation Group conducts hiring, evaluation, promotion and other corporate functions based on each individual’s
performance and growth, irrespective of attributes such as gender, nationality or age.

71-99
61-70

0.1％
Employees withdisabilities*2

2.5％
9.6％

51-60

31-40

2022

2023

1.5%

1.4%

1.5%

with disabilities in 2023 compared with the previous
year, the Link and Motivation Group overall still fell

37.2％

21-30

2021

Although we increased the number of employees

25.2％
25.4％

41-50

0-20

Workforce Diversity Ratio with Respect to Disability

short of the legally mandated employment rate forpeople with disabilities. We will continue to step up

0.0％

recruiting to address this management issue.

Workforce Diversity Ratio with Respect toGender*1

Female
44.0％

Male

56.0％

*1 Excludes non-responses*2 Tabulated based on the content of the Report on the Status of Employment of People with Disabilities
submitted to the Ministry of Health, Labour and Welfare each year. The results shown are as of June 1, in
accordance with the aforementioned report.

Workforce Diversity Ratio with Respect toOther Indicators of Diversity
Europe 0.9％
Asia 0.9％
North America 1.9％

Central and South America 0.6％
Other 0.8％

Japan
94.7％

Human Capital Report 2023 - Chapter 5

Workforce Diversity Ratio with Respect to Age

57

Leadership
The Link and Motivation Group believes that managers play an important role as a junction point in theirorganizations between employees above and below them in rank, between departments, and in otherrelationships.
We therefore proactively conduct initiatives to develop the leadership of managers, including manager training andsurveys of individuals.

4.4

Likeability

Reciprocity

4.4

4.4

Consistency

Number of General Employees
per Management Position*2

Group Hierarchy Chart

Five Sources of Influence Expected of a Manager
Expertise

Span of Control

Strictness

4.3

4.1

2023
Executives

Directors andcorporate officers

24

In 2023, results for all five metrics remained at 4.0 or higher (of a maximum of 5),

Company
managers

so we feel that the managers of the Link and Motivation Group are functioning well
as junction points between those above and below them in their organizations.

Managers

51
Unit managers and group managers

88

Leadership Development
Type

Objective
Understand the
New manager
role expected of a
training
managerLevel specificUnderstand current
training forsituation to set
managers
tasks and targets
BroadenManagers Generalperspective as a
Meetingmanager

Unit

2021

2022

2023

%

100.0

100.0

100.0

%

91.0

87.9

97.6

%

100.0

94.1

95.5

Other
Employees

Directors and corporate
officers

61.2

Company managers

27.8

Unit managers and groupmanagers

15.1

Generalemployees

1,329

Productivity is improving, and the numerical results of engagement and manager
role surveys have been high, so we consider the ratio between the number of*1 Numerical results for overall satisfaction as measured in a role survey on managers (Lincoln Survey).
Satisfaction for each item is evaluated on a scale from a low of 1 to a high of 5 by subordinates and superiorsof the subject managers. The figures above are the averages for all managers.

personnel at each level to be appropriate.

*2 As hierarchy names differ depending on Group company, figures are calculated by classifying positions
within the hierarchy based on certain criteria. Outside directors, part-time staff and ALTs are not includedin the number of people for each level.

Human Capital Repor t 2023 - Chapter 5

Confidence in Leadership (Results of Role Surveys on Managers*1)

58

Organizational Culture
The Link and Motivation Group emphasizes diversity not just in terms of each individual but also in terms of relationships
among diverse individuals. We believe that this is the same thing as engagement, and that a high level of engagement enables
each individual employee to play an active role and generate innovation. We pay close attention to engagement across a variety
of attributes and take pride in the high level that each employee has achieved.

Breakdown of Engagement Survey Results*1

Positioning of Priority Factor “Philosophy”
by Company
Expectation

By Division

558

AAA

Division
Individual
Development
Division
Matching Division
By
GenderMale

Female

479

AAA

274

AA

Subjects
ER
729

AAA

579

AAA

By nationality(Region)Japan
Asia (Excluding
Japan)
Oceania
North America
Central and SouthAmerica
Europe*1 Results from the engagement survey conducted in February 2024.
*2 See page 17 for engagement survey results by Group company.

SubjectsER

ICE BLOCK（Weakness）

INTER LINK（Strength）

1

4

AAA

INK BLOT

IDLE LINE

31

AA

1

2

9

AAA

10

AAA

1,148

AAA

16

AAA

4

company

company

company

company

Satisfaction

Organizational
Development

Subjects
ER

Human Capital Repor t 2023 - Chapter 5

Engagement/satisfaction/commitment

59

Organizational Health, Safety and Well Being

Productivity

To increase human resource capabilities and engagement, the Link andMotivation Group promotes the creation of workplaces where it is easy
for individuals to work by upgrading facilities, establishing systems andother methods.

The Link and Motivation Group emphasizes productivity (human capital
ROI) and gross profit per employee as KGIs for its organizational
strategy. Productivity is a core metric for promoting human capitalmanagement and for realizing the Group’s mission.

2021

2022

2023

Unit

2021

2022

2023

Revenues

Thousand yen

18,675

19,067

20,328Gross profit

Thousand yen

8,775

9,347

10,5950

Net income (loss)

Thousand yen

583

1,225

1,877

Human Capital ROI*2

%

33.0

41.1

48.4

Lost time for injury*1(total lost time in hours per million
work hours)

3.8

Number of occupational accidents *1(per million work hours)

4.1

3.2

4.1

Number of people killed during work*1

0

0

82.8

24.7

Percentage of employees who
participated in training*2

92.4

88.2

91.6

Illness/injury leave rate (%)

2.8

2.3

1.9

*1 Calculated based on total workforce (executives, Group company employees, part-time staff and ALTs).
*2 Calculated based on participation rate in annual stress checks.

Business results per
employee*1*1 Calculated based on the number of employees when their hours are converted to full time (40 hours a week).
*2 Human capital ROI = Adjusted operating income ÷ Investment in human capital adjusted operating income isa profit indicator that measures operating results. It excludes temporary factors such as goodwill, right-of-use
assets, and impairment of fixed assets from operating income. Investment in human capital reflects total
expenditures, including employee salaries and bonuses, statutory internal and external welfare expenses,
commuting expenses and other executive compensation.

Human Capital Repor t 2023 - Chapter 5

Productivity

60

Recruitment, Mobility, Turnover
The Link and Motivation Group works to create organizations thatemphasize a relationship of mutual selection, in which companies andindividuals choose each other as they deem appropriate, rather than amutually binding relationship based on lifetime employment.
Unit

2021

2022

Quality per hire*1
—

10.1

10.0

10.1

—

9.9

9.8

10.0

Days

56.1

55.2

2021

2022

2023

Days

0

0

0

%

73.1

78.3

76.2

%

100.0

100.0

100.0

Percentage of critical positions*6

%

1.6

1.7

1.6

Percentage of vacant critical
positions in relation to all vacant
positions

%

0.0

0.0

0.0

72.4

Years

4.1

3.6

4.0

%

69.7

68.8

58.6

Average length of time to fill vacantcritical position3*3
Percentage of positions filledinternally*4
Percentage of critical positions filledinternally*5

Internal mobility rate

Average period in the same field*7
Days

—

—

—

Internal mobility rate

*8

The Link and Motivation Group focuses on how long an individual is assigned to thesame field, and takes the individual’s wishes into consideration in conducting transfers
once every four years as a rough guideline. To foster a spirit of being proactive andindependent, the Group also emphasizes acquiring portable skills and capabilities
regardless of business field or job type through appropriate transfers.

*1 The six months after joining the company are a probation period. After the probation period ends,
employees are evaluated on a scale of 2-18, with 10 meaning “met expectations.
*2 Total number of days required to hire employees who joined the Group in the relevant year. Calculated
based on the number of days from the application date to the offer acceptance date. Recruiting of midcareer applicants is not calculated because some Group companies hire throughout the year.

*3 Critical positions are defined as directors (except outside directors), managing directors and corporate
officers, including those of Group companies. However, when a vacancy arises, we either appoint animmediate replacement or eliminate that position, so positions are never left vacant.
*4 Calculated as the number of vacant positions filled through internal recruiting divided by the total number ofvacant positions filled through internal plus external recruiting.
*5 Percentage of critical positions that opened up during the year that were filled through internal recruiting. All
critical positions have been filled by internal human resources.
*6 Calculated as the number of critical positions divided by the total number of positions.
*7 Group businesses are categorized into specified fields, and the period an individual spends in each field is
calculated.
*8 Transfers among occupations and the fields (as noted above), as well as changes in roles due to promotions
or emotions, are defined as internal transfers for the purpose of calculating the internal mobility rate for theyear.

Human Capital Repor t 2023 - Chapter 5

New University
Graduate
Recruiting
Mid-Career
Employee
Recruiting
Average length of time to fillvacant position*2
New University
Graduate
Recruiting
Mid-Career
Employee
Recruiting

Unit

2023

61
Recruitment, mobility, turnover
The Link and Motivation Group works to create organizations that emphasize a relationship of mutual selection, in which
companies and individuals choose each other as they deem appropriate, rather than a mutually binding relationship basedon lifetime employment.
2021

2022

2023

Persons—50Persons

10

14

10

Persons664Persons—22

27

Persons

—

27

24

%

—

81.5

112.5

%

10

13.3

13.2

%

9.8

13.0

12.4

%

0.3

0.7

0.6

%

0.3

0.4

0.5

Philosophy

%

8.8

2.9

8.4

Total * 1
Voluntary turnover rate

Turnover rate
Voluntary critical turnoverrate*2

Reasons for Leaving

Voluntary turnover rate
(management)
Voluntary turnover rate (ITengineers)

Work

%

43.2

43.7

31.2

Corporate culture

%

2.4

6.9

9.5

Treatment / Pay

%

16.0

11.5

16.8

Other (Health)

%

8.8

14.4

10.1

Other (Family)

%

18.4

14.9

15.6

Other (Retirement age)

%

2.4

3.4

1.1

Other (Involuntary)

%

—

2.3

7.3

There was a one-time increase in the turnover rate during 2022 and 2023 as structural reforms in the Career School Business (school relocation and closure)
led to retirement by employees with restrictions on their workplace location. Looking at other specific reasons employees gave for leaving, there were few
resignations due to our philosophy, which the Group emphasizes above all, or the corporate culture, indicating that we have been able to create an organization
unified by its philosophy, as has been our aim. However, resignations due to the work itself or treatment/pay have increased. In order to be an organization that
individuals choose (a Motivation Company), in addition to instilling the philosophy that is our strong point, our efforts will include optimizing according toindividual wishes and upgrading systems in line with the external environment.

*1 The annual (12-month period) sum total of the monthly turnover rate (monthly number of leavers ÷ monthly average number of employees)*2 The annual (12-month period) sum total of the monthly turnover rate of defined category of employees (monthly number of leavers ÷ monthly average number of employees)

Human Capital Repor t 2023 - Chapter 5

Unit
Corporate officers
Number of Participants (Raise the level of corporate officers)
in Top Gun Selection
Company presidents/Managers
Training for(Cultivate future officer candidates)
Management Personnel General employees(Cultivate the next group of manager candidates)
Executive candidates
Prospective
Current executives
Management Personnel
Executive candidate coverage rate

62

Skills and Capabilities
The Link and Motivation Group uses its unique human resource development apparatus to provide opportunities forindividuals to develop their careers independently and proactively. We work to instill the ideas and frameworks that should
be shared among Group employees, improve their basic capabilities and skills, and enhance their specialized knowledge.

Training Participation Rates

Unit

2021年

2022年

2023年

Actual costs

Thousandyen

94,793

190,536

190,587

Converted to amount charged
for services to customers

Thousandyen

385,674

325,239

467,657

Name of Training
Technical Skills

Training hours per employee were 27.1 hours* in 2023.
Portable Skills

DX Survey Results
Number of
respondents

2022

2023

Persons

1,499

1,381

Points

123.3

124.3

Digital knowledge

Points

57.9

56.3

Excel skills

Points65.4

67.9

Average DX Score(Breakdown)

Unit

StanceStance(Level specificrole survey
training)* Calculated by dividing the total hours spent for all training in 2023 by the number of employees at the end of
the year.

Unit

2023

Top Gun seminars

%

100.0

Negotiation training

%

97.6

Logical thinking training

%

99.7

Self motivation control
training%

98.7

Leadership training

%

96.6

Career design training

%

98.0

New company president
training%

100.0

New manager training

%

100.0

%

100.0

%

95.9

%

97.6

%

93.3

%

98.5

%

97.5

%

96.4

New employee stancetraining
Survey training for upper
management
Survey training for
management
Survey training for senior
employees
Survey training for leaders
Survey training for mid-level
employees
Survey training for junioremployees

Human Capital Repor t 2023 - Chapter 5

Total Human Resource Development
and Training Costs

63

Succession Planning

Workforce Availability

The Link and Motivation Group works to develop management personnel
who are able to adapt to the product, labor and capital markets, and to
think from a Group-wide perspective.

Based on its belief that human resources are our greatest, mostpowerful type of capital, the Link and Motivation Group secures humanresources with the high level of skill it seeks and strong motivation toachieve the Group’s mission. We believe that the high level of engagementin the Group has also led to a reduction in absenteeism.

2021

2022

2023

%

100.0

100.0

100.0

Succession coverage rate

Unit

2021

2022

2023

Executives*1

Persons

30

32

30

Group
company
employees

Persons

1,493

1,505

1,470

Persons

403

381

385

Company president candidates

Persons

—

106

104

Current company presidents

Persons

—

41

51

ALT*2

Persons

3,304

2,857

2,875

%

—

259.0

203.9

Total

Persons

5,230

4,775

4,760

Full-time

Persons

1,518

1,567

1,530

Part-time

Persons

408

351

355

FTE

1,748

1,719

1,671

%

0.9

0.9

0.5

Company president coverage ratio
Succession depth rate: ready now
Ready in less than 1 year

Persons—

5

5

Succession depth rate:
ready in 1-3 years/4-5 years
Ready in 1 to 3 years

Persons—

29

27

Ready in 4 to 5 years

Persons—

72

72*Percentage of critical positions filled through internal recruiting as of the end of the year.

Total workforce Part-time staff

Full-time/Parttime*3
Full-timeequivalent(FTE)*4
Absenteeism(unplanned
leave) rate

*1 Total of directors, managing directors and corporate officers, including outside directors.
*2 ALT: Assistant Language Teacher*3 Contractual working time of at least 40 hours a week is considered “full-time” and less than 40 hours a weekisconsidered “part-time,” regardless of the form of employment. (Excludes ALTs.)*4 Number of employees when converted to full-time (40 hours a week). Calculated by dividing total working
hours perweek of all employees by 40 hours. (Excludes ALTs.)

Human Capital Repor t 2023 - Chapter 5

Succession effectiveness rate*

Unit

64

Other

Management Position
Male-Female Ratio*1

Unit

2021

2022

2023

Male

％

—

74.5

76.2

Female

％

—

25.5

23.8

Male/Female Employee Wage Differential

Fewer women than men are employed in positions on a management track, andPart-time staff
and fixed-term
employees

All workers

Link and Motivation Inc.

85.7

172.4

77.2

Link Global Solution Inc.

102.8

49.2

74.6
85.4

We believe these are the reasons women take a comparatively longer time to

Link Event Produce Inc.

85.5

—*3

promotion to a managerial position.

Link Corporate Communications Inc.

79.9

67.3

76.8

Link Academy Inc.

83.5

71.1

82.0

Motivation Academia Inc.

82.7

117.8

77.3

Link Interac Inc.

91.0

53.4

79.7

Interac North Co., Ltd.

71.2

99.3

98.6

*1 The percentage of women in all management positions (excluding executives) based on the definition set
by the Ministry of Health, Labour and Welfare.

Unit
Group General
Meeting average
participation

Priority
Communication
Measures

Number of GroupAwards

Persons

2021

2022

2023

Interac Kanto North Co., Ltd.

67.0

92.4

90.2

908

1,156

1,371

Interac Kanto South Co., Ltd.

86.5

91.7

91.8

Interac Kansai & South Central Co., Ltd.

73.6

95.1

93.5

Interac West Co., Ltd.

60.9

90.4

88.7

Link Japan Careers Inc.

62.6

—*3

61.9

Link Agent Inc.

67.5

—*3

39.2

Web-based in-housebulletin Top
Comment accessrate%

DNA test averagescore*2

Points—91.2—

Link-i Inc.

76.1

92.7

74.9

DNA reportsubmission rate*2

%

100

—

100

Consolidated*4

82.4

91.8

84.8

Total number ofawards

Persons

37

37

37

For individuals only

Persons

24

26

27

The main factor in the differentials is the high 80% proportion of women whose salaries havebeen reduced due to leave and/or shortened working hours for childcare or other purposes.

92

93.1

90.1

*2 To align the perspectives of all Group employees, we have employees take a test or submit a report eachyear to promote understanding of our DNA Book, which sets forth the Group’s unique concepts andphilosophy.

*3 There are no female part-time or fixed-term employees.
*4 Excluding OpenWork Inc., Link Japan Careers America and Link Japan Careers Europe

Human Capital Repor t 2023 - Chapter 5

women take maternity and childrearing leave at a higher rate and for longer periods.

Full-time

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Our Understanding of Human Capital Disclosure Guidelines
The Link and Motivation Group believes that a high level of human resource capabilities combined with ahigh level of engagement leads to business results and increased corporate value.

ISO 30414
Items detailed include the type and number of grievances anddisciplinary actions, and external audit findings. Included in“management area from the perspective of risk avoidance.”

Costs

Items detailed include costs associated with the total
workforce, recruiting and turnover. Included in“Productivity” as intended by the Group.

Diversity

Items detailed are diversity with respect to age and gender, anddiversity of the leadership team. Included in “Human Resource
Capabilities” because an organization requires employees with diverse
abilities (in other words, diversity) in order to improve its humanresource capabilities (degree of alignment between the abilities
required by the organization and the abilities possessed by theindividuals in it).

Leadership

Items detailed are leadership trust and investment in its
development. Included in “Human Resource Capabilities” andas an investment in “Training” as leaders.

Organizational culture

Items detailed are engagement and retention rate. These
overlap with “Engagement” as intended by the Group.

Organizational health,safety and well being

Items detailed are matters related to occupational accidents and thepercentage of employees who participated in health and safety
training. Included in “management area from the perspective of risk
avoidance.”

Productivity

Items detailed are business results per employee andhuman capital ROI. These overlap with “Productivity” asintended by the Group.

Recruitment, mobility,
turnover

Skills and capabilities

Succession planning

Workforce availability

Items detailed include quality per hire, percentage of positions filledinternally, turnover rate and reasons for leaving. Included in“Recruiting” as an investment to increase human resource capabilities
and engagement.
Items detailed include total human resource development costs
and training participation rate. Included in “Training” as aninvestment to increase human resource capabilities andengagement.
Items detailed are matters related to the succession
effectiveness rate and succession coverage rate. Included in
improvement of “Human Resource Capabilities” that canadvance the business and organization and as aninvestment in “Recruiting” and “Training.”
Items detailed include total workforce andabsenteeism rate. Included in “Productivity” asintended by the Group.

* Guidelines for Human Capital Visualization, issued by the Cabinet Secretariat of Japan in August 2022

Training
Leadership
Training
Skills and experience

Included in “Training” as an investment to increase human resource
capabilities and engagement.

Engagement

Overlaps with “Engagement” as intended by the Group.

Mobility

Included as an investment in “Recruiting” to increase human resource
capabilities and engagement, in improvement of “Engagement” toreduce the turnover rate, in improvement of “Human Resource
Capabilities” that can advance the business and organization, and as
an investment in “Recruiting” and “Training.”

Recruiting
Retention
Succession

Diversity
Diversity
Non-discrimination
Childcare leave

Included in “Human Resource Capabilities” because an organization
requires employees with diverse abilities (in other words, diversity) inorder to improve its human resource capabilities.

Health and Safety
Mental health
Physical health
SafetyConsidered a “management area from the perspective of risk
avoidance.”

Labor Practices
Labor practices
Child labor/forced labor
Considered a “management area from the perspective of risk
Fair wages
avoidance.”
WelfareRelationship with aunion

Compliance/Ethics

Considered a “management area from the perspective of risk
avoidance.”

Human Capital Repor t 2023 - Chapter 5

Compliance and ethics

Guidelines for Human Capital Visualization*

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Human Capital Repor t 2023 - Chapter 5

Scope of Reporting
Reporting Period
Publication Date

Link and Motivation Inc. and consolidated subsidiaries
January 1, 2023 to December 31, 2023 Note: Includes some information from outside the reporting period.

June 2024

Note: Forward-looking statements in this report are forecasts determined by the Link and Motivation Group based on information available at the time of production, and include potential risks, uncertainties and otherfactors.