Integrated Report 2021
Fiscal year ended June 2021

Business Outline

Supporting individuals to open up
their potential in four domains

In April 2021, Yumeshin Holdings Co., Ltd., a staffing service specializing in the construction management,machinery, electronics, and IT software fields, and BeNEXT Group Inc., a staffing service specializing in themachinery, electronics, manufacturing, and IT software fields, integrated to create BeNext-Yumeshin Group Co.
Each Group company is now demonstrating its strengths in the four domains of “machinery, electronics,
and IT software,” “construction,” “manufacturing,” and “overseas.” We are exercising our employment
capabilities, such as the ability to cultivate and dispatch engineers, in order to raise the corporate value ofclient companies by helping them generate innovation and to contribute to advancing industry and realizing asociety where everyone can participate actively in the workplace.

Machinery, electronics,
and IT software domain¥49,060 million (51.6% of net sales)

Former BeNEXT
Group Inc.

Formed April 2021

Staffing services forthe manufacturing, machinery,electronics, and IT software fields(Japan and overseas)

Holding company

Absorption-type merger(swap ratio 1:0.63)

Former Yumeshin
Holdings Co., Ltd.
Staffing services forthe machinery, electronics,
and IT software fields,
Largest provider of staffing
services for the constructionengineering field

BeNEXT Technologies Inc.
YUME TECHNOLOGY Co., Ltd.
YUME PROENG Co., Ltd.
BeNEXT Solutions Inc.

BeNext-YumeshinGroup Co.
Formulates Group strategy andoversees the management ofGroup companies

AXIS CREATE Inc.
Arrow Information Co.Ltd.
Arrow Trust Systems Co., Ltd.
InformationPort Co., Ltd.

Construction management
domain¥8,720 million (9.2% of net sales)
YUMESHIN Co., Ltd.

Manufacturing domain
BeNEXT Partners Inc.

¥95.1

billionNEPLUS K.K.
sbo Co., Ltd.
Garenet Co., Ltd.

Dispatch of construction
managers and CAD operators
for the construction industry

YUMESHIN EXPERT Co., Ltd¥8,660 million (9.1% of net sales)

Net sales

Dispatch, subcontracting, andoutsourcing covering
the development, design, andoperations and maintenance fields

Dispatch, subcontracting,and outsourcing catering
for areas such manufacturing
processes atcustomer companies

Overseas domain

Fiscal year ended June 2021

¥28,290*Net sales shows sales to external customers,
figure has been rounded off

Dispatch, subcontracting, andhuman resources services
covering engineering andmillion (29.8% of net sales) manufacturing fields overseas

Gap Personnel Holdings Limited
PT. TRUST TECH ENGINEERINGSERVICE INDONESIA
Shandong Trust-Bridge Human Resource Inc.
(affiliate company accounted for by the equity method)

Shanghai Trust tech, Ltd.
Guangzhou Trust Dianmi Human
Resources Inc.
HKTT Ltd.
L&A INVESTMENT CORPORATION(affiliate company accounted for by theequity method)

Other

BeNext-Yumeshin Group¥360 million (0.4% of net sales)

01 Integrated Report 2021

Samurai, Inc.

BeNEXT With Inc.

Purpose

Make society more diverse and prosperous

The spirit expressed by our purpose
Just as each individual has a different way of thinking about happiness,
We believe that rewarding work for workers is also diverse.

Our role is to create many doors to open up possibilities and a milestone
toward a rewarding work for each employee.

We support the workers to open the doors.
-For some people, the challenge to a new job.
-For some people, to improve their skills in training.
-For some people, the time to consult future careers.

We believe that people will always grow and drive the society forward
when they open the next door.

First Doorto society

We will increase the number of people who open the door to the next

Various Doorsfor individual

Doors are Opportunities

to make society more diverse and prosperous.

We the BeNext-Yumeshin Group exists to create such a future.

New Job

BeNext-Yumeshin Group

02 Integrated Report 2021

Training

CounselingMessages from Top Executives

To realize a sustainable society
by attaining our purpose
To offer staffing services for bring about
new possibilities for many enterprises,organizations, and individuals
On April 1, 2021, BeNEXT Group Inc. and Yumeshin Holdings Co., Ltd.
integrated their businesses to take a new step as BeNext-YumeshinGroup Co. Both companies have been actively conducting M&A

Yutaka Nishida
Chairman and
Representative Director, CEO

Daio Sato

activities in Japan and overseas since before the integration. However,President andRepresentative Director, COO

with this business merger, we have become one of the largest
temporary staffing companies in Japan with the most significant
number of engineers. In addition, we are confident that we will beable to further promote growth through a business portfolio thatallows us to mutually utilize the technological domains that have been
the strengths of respective companies.
Even before the merger, both groups had very similar philosophiesthat they focused on when operating the temporary staffing business.
In particular, they share the same idea that the business should bedesigned through providing services centering on “workers.” Further
growth of the group after the merger is determined by not only theincrease in sales and profits, but also how we define the group’s
meaning of existence as a temporary staffing company and how weproceed toward realizing an ideal society. Therefore, our humanresources-centered vectors must be the same. These commonalities
allowed us to set our “purpose” shortly after the integration.
Our purpose is “Open up individual potential through rewarding
work.” We also would like you to look at the accompanying plots(thoughts put into our purpose). We believe that the society guided byour purpose has a promising future for many stakeholders, not just ourgroup’s employees.
We symbolically use “rewarding work” in our purpose. A certain
job is not always rewarding. Mr./Miss A can find a fun job and be able
to utilize his/her abilities through it, while Mr./Miss B might hate that

BeNext-Yumeshin Group

03 Integrated Report 2021

Messages from Top Executives

job and find it boring. I think that there are people who perform betterat a job when they are motivated, which makes them feel joy throughgrasp the skills of employees, the evaluations on them at each

which is our strength.
One of these doors is the provision of “employment

workplace, and employees’ motivation. Also, by utilizing systems suchtheir work. Some people are happy to have a job they have noopportunities.” The expansion of our business scale through theas the talent management system, we are working to identify career

experience in and see as an opportunity to take on challenges. Somemerger will enhance employment projects and contract work withturning points and desired work styles and provide timely potential

other people need to prioritize their personal life, so they feel happyclient companies. Through cooperation within our corporate group, ouropportunities for the next career, such as a transfer to a new job

when they have a job where they can achieve a balance between workbusiness companies are seeking and seizing project opportunities.

and training.

and their personal life.

Through collaboration within our corporate group, we would like to

Furthermore, we offer opportunities for career counseling, and our

expand employment opportunities by proposing projects acrossgroup also provides doors such as opportunities to transfer to a new

person as work occupies most of their lives, and wants to be theirbusiness companies, enhancing our recruiting website, offering online

place of employment. If companies prioritize only businesscompanion when needed. In addition, being a reliable platform that

consultations and interviews, referral recruitment, and active

achievement, they will want to retain employees, but if employees arecan achieve such work styles in society unlocks new possibilities forrecruitment to new graduates and mid-career personnel.

recognized for their abilities and can exert their full potential at the

Our corporate group suggests various job possibilities to eachmany companies and organizations. We can operate our business by

We also offer doors centered on “workers.” For example, we ask

transfer destination, then supporting them is part of our purpose.
Additionally, we have decided to set a “Purpose Index” to shareincorporating staffing services such as dispatch of workers into

on-site officers of various client companies to directly examine

managerial resources in a more meaningful manner and make society

resumes based on engineers’ skills and experience to discover thethe degree of realization of our purpose with stakeholders. It is an

more diverse and prosperous.

needs for potential human resources and propose a framework thatindicator that is different from sales and profits. It represents the

Our purpose is also a compass for our corporate group’s

matches the skills of engineers with the companies that need them. In

expansion and number of doors for our purpose and the state of thecontinuous and sustainable growth. As the scale of our business

addition, we will accumulate and analyze recruitment data, accurately

employees’ satisfaction at work.

expands, our impact on society and responsibility naturally increase.

identify skills and career orientation using statistics and AI, and aim for

When aiming for growth, it is essential to face social issues and have aeffective matching.

business strategy in harmony with society. In the temporary staffing

The medium-term management plan “BY25” up to June 2025 wasestablished in August 2021, and this medium-term management plan

Various training programs are included in our doors. The mostwill improve both the “Purpose Index” in conjunction with thebusiness, compliance related to human rights and labor is essential.

crucial element for sustainable business expansion is that eachfinancial performance.

We also grasp social demands and changes and focus on theemployee demonstrates and improves technological skills, knowledge,

corresponding internal governance and risk management processes.

and abilities such as cooperative skills that client companies trust. One*Details of the Purpose Index are shown on page 15. In addition, from 2022, thelatest progress will be disclosed on the website quarterly.

of our group’s strengths is our model that trains inexperienced

We will prepare and expand various doors
such as employment opportunities, various
training programs, and career counseling.

employees to produce employable engineers. We have created an

We drew doors to portray the world view of our purpose. We believe

personnel to hit the ground running in the IT field and establishing athat we can provide doors to increase the number of people who open

system for supporting acquisition of qualifications related to quality

up their potential through “rewarding work.” Of course, respective

assurance and construction. Moreover, we have established a systempeople require different doors, but we can provide a variety of doors,for personal follow-ups with a dedicated department to accurately

environment where even inexperienced people can grow in a way thatallows them to become work-ready in a few years by, for example,
providing training to acquire qualifications that are highly needed for

BeNext-Yumeshin Group

04 Integrated Report 2021

Yutaka Nishida
Chairman and
Representative Director, CEO

Daio Sato

President andRepresentative Director, COO

Messages from Top Executives

Regarding the market environment of our business

Machinery, electronics, andIT software domain
The machinery, electronics, and IT software domain is included inour core business like the construction domain, and have growthbusiness companies and structures in each field and each area
flexibly, while expecting that engineers will be able to flourish on
various scenes by utilizing their support system and skill data, andexpand our business.

technical fields for engineering are changing and IT software is
being developed for producing electric vehicles (EVs) and
improving safety performance.
We consider the expansion and growth of the IT domain as animportant strategy. At present, the needs for experienced
engineers who can immediately engage in the development of IT
software are strong, but they are scarce. Accordingly, ourcorporate group will train inexperienced workers who aim tobecome middle-level ones and improve our systems for
dispatching them to client companies and determining shifts
according to their levels. From now on, we will offer training for
obtaining qualifications recognized by many client companies,
such as AWS, Azure, and Salesforce, and dispatch trained IT
engineers to client companies to meet their needs for IT
engineers for in-house production and operation.
On the other hand, among machinery, electronic, and electricalengineers engaged in the development of automobiles, etc. for
manufacturers, engineers for new technologies and fields andengineers who support the conventional technological field are
insufficient. Therefore, external workers are increasingly hired. In
this field, there is room for increasing average spending andgrowing business through the improvement and visualization of
the skills of engineers. Our corporate group will select optimal

The demand for workers in the temporary staffing market in the
manufacturing field is more volatile than those in other fields, so it ispotential. For example, the needs for our services are expected toremain strong, as there is latent demand for workers since the

Manufacturing domain

already recovering in the post-pandemic period. On the other hand,

Construction management domain
The construction management domain is included in our corebusiness like the machinery, electronics, and IT software domain.
The scale of our business is the largest in the Japanese market of
dispatch of construction management engineers in the construction
field. Even after the demand for construction related to the Olympic
Games subsided, the demand for redevelopment and repair

the shortage of semiconductors affects manufacturing processes,
so demand has not recovered fully, and there are uncertainties.
Under these circumstances, our corporate group will makeefforts to increase customers and improve staffing efficiency intarget areas with our strategies focused on business efficiency,
rather than hastily expanding our business scale. For recruitment,
we will develop a base for growth by increasing visitors to our
website and enhancing our unique recruitment.

remains strong. In addition, the aging of workers in this field is an
issue, and workers are decreasing, so engineers will become
scarcer. Accordingly, the needs for workers are strong in this field.
Our corporate group can “improve transactions” bylengthening the period of each transaction with leading clientcompanies and implementing measures for streamlining business
operations with client companies, by taking advantage of our No.1
position in the worker dispatch market.
From now on, we aim to strengthen the functions ofspecialized organizations while training young engineers andputting importance on follow-up systems. In addition, companies
in the construction field need to increase the retention rate of
employees. We will lead the worker dispatch business in this field,
by supporting the growth of workers at their workplaces andhelping them flourish through assistance and career counseling.

BeNext-Yumeshin Group

05 Integrated Report 2021

Overseas domain
Our corporate group has business companies in the U.K. in
Europe and China, Indonesia, and Vietnam in Asia, and operates
the businesses of dispatching workers to manufacturing lines andintroducing engineers. The overseas markets have been affectedby the spread of COVID-19 like in Japan, and the number of
employees in service and transactions for introducing personnel
decreased, but we secured profit while receiving subsidies, andhave entered the recovery phase. From now on, we will put abrake on large-scale investment and the foray into new countries,
increase profitability, reshuffle the business portfolio in eachcountry where we operate business, and seek business
opportunities in the changing markets.

Approach to Achieving Our Purpose

Aiming to realize a prosperous society
by raising the value of each individual

BeNext-Yumeshin Group

Raise
PurposeIndex scores
BY25 employee
numberTraining
Social issues
Rigidity of
employment systems
Low birthrates andan aging population
Worker shortages
caused by changes
in industrial structure

Education

Staffing
Experienced
personnelFreshpersonnel

Appropriate
placement
Job-matchingsupportOpen up individual potential
through rewarding work

Employment
opportunities

Raise thevalue of eachindividual

Careersupport

Vitalize industry

Advancement

Engagement

Regional revitalization
For details,
see Non-financial
Data on p.15

Climate change

Social and environmental initiatives/
strengthening of corporate governance

06 Integrated Report 2021

Realize a prosperous society
Contribute to theachievement of the SDGs

Retention

Diversity and inclusion

BeNext-Yumeshin Group

Realize
our purpose

Achievemedium-term
management planHelping Employees Participate Actively in the Long Term

Establishing systems thatenable everyone toparticipate actively andwith peace of mind

Respect for human rights

Promoting diversity

Our employees are an important asset which is key to the

In order to establish work environments that enable everyone to

We believe that if a diverse range of individuals realize their potential

Group’s value creation. We believe that maintaining andparticipate actively and with peace of mind, we think it is important

through their work, it will create a prosperous society. Our Corporate

enhancing work environments that enable everyone tothat all Group employees fully understand the concept of

Ethics for Society, Human Rights, and the Environment states thatparticipate actively and with peace of mind is therespecting human rights and to create a framework for effectively

we will establish environments that provide decent work for all

foundation for drawing out the potential of each individual.

maintaining a respect for human rights on a Groupwide basis.

individuals, regardless of whether they have a disability or not, andAs a group of companies that provide staffing services, we

Therefore, in our Corporate Ethics for Society, Human Rights,

which are free from employment conditions based on gender orwill strive to fulfill our social responsibilities and improveand the Environment, we have made it clear that the human rights

nationality. Specific initiatives we implement for employees of

employee engagement through a variety of initiatives.

and personal dignity of an individual are to be respected and that

foreign nationality include Japanese language education, support for

we will not tolerate any actions that are discriminatory or that

establishing a life in Japan, checking of visa type and validity period

violate human rights, including language and behavior thatand of the details of work provided by employers, ensuring thediscriminates on grounds such as nationality, race, ethnicity,

thoroughness of management, follow-up activities by a specialist

religion, ideology, social status, family situation, age, ability or

division, and monitoring through compliance meetings. At our Groupdisability, gender, sexual orientation, or gender identity, violent

companies overseas, we comply with local laws and regulations andactions, sexual harassment, and power harassment.

carry out proper employment practices that prohibit involvement in

P. 15-16 Non-financial Data

We also use forums such as employee training andforced or child labor.

cross-company meetings to deepen all employees’ understanding

For employees with disabilities, we assess the nature andof respect for human rights in order to prevent any violations of an

severity of each individual’s disability and then place them inindividual’s human rights and personal dignity. We have establishedpositions that are well suited to their specific capabilities. We alsoa whistle-blower system through which employees can makeprovide additional support through training. Currently we haveconfidential and anonymous reports. This system enables us toaround 300 employees with disabilities working in Japan and we

prevent work-related legal violations and to quickly detect andare actively working to further promote the employment of people

respond swiftly to improper behavior.

with disabilities as the Group grows in scale.

On the same theme, we have also established systems forauditing operations and oversight by the Board of Directors.

Our special subsidiary company BeNEXT
With Inc. has been designated as a
Sagamihara SDGs Partner

BeNext-Yumeshin Group

07 Integrated Report 2021

BeNEXT With Inc. has also acquired Monisu
certification recognizing its excellence in
employing people with disabilities

Helping Employees Participate Actively in the Long Term

Establishing pleasant work environments
As we enter the era of 100-year lifespans, establishing work
environments that enable individuals to maintain physical andthey can make to customers. We want to build a society withworkplaces that accommodate all workers, from the young to theelderly, and enable them to continue to enjoy their work.
As shown in the figures for total hours spent on training andmental health while continuously advancing their skills and career istotal investment in education in the Non-financial Data section (p.

an important issue.

15-16), we place an emphasis on education and training. Our

As a Group, in addition to assessing the ratio of employees thatparticular strengths are in cultivating and reskilling employees at all

are receiving regular health checks and managing situations related

levels, from fresh recruits to mid-level engineers, and a system thatto this, we also promote health and productivity management withsupports employees in acquiring IT certifications, which are in highthe aim of detecting and treating diseases at an early stage anddemand from customers in the markets.

understanding health risks.

Training and education provide an employee, regardless of their

We practice thorough management and oversight regarding

age or work experience, with skills that can be used to make aworking hours and at our Group companies in Japan, we holdgreater contribution to customers and obtain higher-level work orcompliance meetings once a month in order to monitor efforts tocompensation. This results in a more rewarding experience in theprevent health problems caused by long working hours and unsafe

long-term. We hope to increase the number of satisfied workers bywork environments. We also deal strictly with companies that use

putting people into work in Japanese industries that are experiencing

our staffing services by encouraging them to make improvements

personnel shortages, and particularly in the IT industry, which isand terminating agreements in cases where said improvements areexperiencing the most severe shortages.

not made.
We provide our employees with health and safety training to
improve work environments and prevent workplace accidents. Also,in addition to sharing guidance from labor authorities and labor
standards inspection offices on a Groupwide basis, we also strive toaddress issues that need to be dealt with, shorten working hours,
handle initiatives concerning laws and regulations in an appropriatemanner, and maintain pleasant work environments that areconsiderate of occupational health and safety and mental health.

Supporting skill-building
through education and training
In order to live a rewarding work life, it is extremely important thatworkers are able to improve their skills and increase the contribution

BeNext-Yumeshin Group

08 Integrated Report 2021

Winning the AWS Japan Certification Award 2020 Rising Star of
the YearSince March 2020, YUME TECHNOLOGY Co., Ltd., a Group
company in the IT field, has been focused on cultivating
engineers who have Amazon Web Service (AWS)
certifications. In recognition of its efforts, it received the
Rising Star of the Year award which is presented to AWS
partner companies that acquire significant numbersof certifications.
*Amazon Web Service and AWS are trademarks of Amazon.com, Inc. and its affiliates in
the U.S. and/or other countries.

Achievement of 100 Salesforce-Certified Engineers
YUME TECHNOLOGY Co., Ltd. has been made a consulting partner ofSalesforce.com and since January 2020, it has been focusing on
cultivating Salesforce-certified engineers. Over approximately a year, it
has produced 100 certified engineers.

Social and Environmental Initiatives

Activities for realizing a sustainable society, including
environmental conservation and regional revitalization
Environmental conservation

Regular disclosure of theoutcomes of initiatives
We recognize that our business activities produce greenhousegas emissions, which contribute to climate change, and have an
impact on water resources. Therefore, we are working to reducethese effects by advancing environmental initiatives as prescribedby the Environmental Policy section of our Corporate Ethics forSociety, Human Rights, and the Environment. On our website, we
regularly disclose information on the amount of paper purchased
and recovered, paper recycling rates, and on the amount of CO2
emissions generated.
Each year we also carry out a climate change risk assessment
and if a severe risk is identified, it is reported to the Board of
Directors and at management meetings so that countermeasures
can be discussed.
Environmental initiatives
Appropriate management
Modal shiftof energy use
Usage of environmentally
Enhancement of officefriendly products
environmental performance
Reduction of paper use and recycling of paper waste

Recovery and recycling of paper used by the Group
Our special subsidiary company BeNEXT With Inc., which employs people withdisabilities, recovers and recycles used paper by processing it into promotional
materials. In fiscal 2020, it recovered a total of around five tons of paper and going
forward, it aims to recover 10 tons per year.
The recovered paper is soaked in water and then converted into handmade paperusing a traditional Japanese method. Water usage, including the water used in thisprocess, is controlled to keep monthly volumes toaround 6,500 liters (roughly equivalent to the monthly
water use of one member of a household*). Once thepaper-making process is finished, the paper is driedusing natural methods and without using electricity.
The water used in the process is also filtered using a
two layered filter to eliminate almost all pollutants
before it is discharged.
Traditional paper making at*Based on Tokyo Metropolitan Government Bureau of
BeNEXT With
Waterworks data for 2019

SDGs initiative examples

Regional
revitalization

Contributing to regions through the corporate
version of the Hometown Tax

Since fiscal 2019, we have made successive donations to Takizawa, Iwate Prefecture, through theRegional Revitalization Tax System (the corporate version of the Hometown Tax). This systemenables companies to make donations to regional revitalization projects that are recognized by theJapanese government in exchange for a corporate tax deduction.
We chose to donate to Takizawa because its philosophy on HR development is in line with ourGroup’s Purpose and it also aims to utilize and promote education of cutting-edge technologies
such as IT as a way to develop human resources.
We will continue to be involved in regional revitalization and we hope to expand ourparticipation in regional revitalization projects that will help us achieve our Purpose in the future.

Supporting regional humanresources development

Contributing to regional revitalization
through HR development in IT

Our involvement with Takizawa through the Regional Revitalization Tax System has also led to us
establishing and sending engineers to BeNEXT Lab Takizawa, a laboratory within the Takizawa IPU
Innovation Center. This center was set up to facilitate a public-private collaboration between
Takizawa City and Iwate Prefectural University. In 2020, we participated in the Project to Develop
Takizawa’s Human Resources through Cutting Edge Training and Linking Youth to Businesses,
which is one of the city’s regional revitalization projects. An IT engineer from our Groupparticipated as a lecturer in a website creation course organized to teach students IT skills and givethem insight that will help them find employment in the future. We will continue to expand our
involvement in the city’s HR development initiatives as well as the university’s human resources
development and technological open innovation activities.

Respect for diversity

A lecture held as part of the HR
development program’s website
creation course

Helping people with disabilities to become
self-sufficient

Bringing out the potential of employees is the Group’s reason for being, so we support the idealsof AVENIR, a company established with the aim of helping people with disabilities become
self-sufficient as professional entertainers. Since 2018, we have been sponsoring readings andperformances put on by the company.

BeNext-Yumeshin Group

Making a donation to a regional
revitalization project in Takizawa through theRegional Revitalization Tax System

09 Integrated Report 2021

A reading held in 2019

Corporate Governance

Ensuring the soundness and transparency of management whileaiming for swift decision making and efficient organizational operation
Corporate Governance framework

Governance framework
General shareholders’ meeting

The Company’s directors, who are elected through General
Shareholders’ Meetings, are responsible for making decisions onimportant matters concerning the management of the Group andfor overseeing management with a view to making the soundness

Election/dismissal

Oversight ofbusiness operations

Election/dismissal

Board of Directors

Election/dismissal
ReportBoard of Auditors

Audit

Appointment/
dismissal proposals

of management more transparent and ensuring that operations
are implemented in an appropriate manner. Additionally, weestablished a Board of Auditors based on the thinking that non-Consult

executive auditors who are not involved in business operations
are most suitable for auditing the execution of duties by directors
to ensure sound management.

Appointment/
dismissal
Oversight

Executive Flag issues
directors Report

Also, in addition to holding management meetings with theaim of realizing swifter and more efficient decision making andoperational execution, we have also appointed five outside

Business
operations

directors among our 10 directors in order to reinforce

Recommend

Nominating Committee/
Remuneration Committee

ReportManagement meetings
Oversight and direction

ensure audit effectiveness, all four auditors are independent
outside auditors, and these auditors strive to regularly collaborate
with the accounting auditor and the Internal Audit Department.
We also hold compliance meetings at our main GroupInternal Controls Committee,
Investment Committee,
compliance/sustainability control

Flag issues/report

Business divisions
Collaboration
betweencompanies

Board of Directors

Develop appropriate governance functions at each subsidiary
Strategy meetings, etc.

Accounting
auditsAudit
Executive director/
full-time auditor

Executive officers at subsidiaries (presidents)
Group
Presidents’meeting

Coordinate

Report(dual reporting lines)

Internal Audit Department

Full-time directors

COO

management oversight, which includes supervising theappropriateness of the execution of duties by directors. In order to

Audit

Comprised of a majority of outside directors
Chaired by an outside director

CEO

Representative
directors

ReportFulltime

Ratio of female directors: 10%

Full-time

Accounting
auditorCompliance meetings

Auditors
Independent outside director/
independent outside auditor

companies in order to strengthen the Group’s
compliance framework.
Directors/Board of Directors
As a general rule, ordinary Board meetings are held once a month andextraordinary Board meetings are held as needed. The Board decides
matters stipulated by law and other important management matters, andalso monitors director performance.
Auditors/Board of Auditors
The Board of Auditors consists of four members (four of whom are outside
auditors) and meetings are held once a month as a general rule. Eachmember audits the performance of the directors based on the audit policies,
audit plans, and division of duties decided at Board of Auditors meetings.

Management meetings
Management meetings are attended by representative directors andfull-time directors. They are held to discuss important matters related to ourbusiness operations and decisions are made based on the majority of votes
among those present. Management meetings are held as appropriate to
speed up decision-making.
Nominating Committee/Remuneration Committee
Although we are not a company with committees as stipulated in Japan’sCompanies Act, we have set up a Remuneration Committee andNominating Committee with the aim of ensuring managementtransparency and objectivity. Members of both committees are appointed
through resolutions of the Board of Directors and in order to ensure
objective decision-making, a majority of members must be directors who

BeNext-Yumeshin Group

10 Integrated Report 2021

are not directly involved in business operations. The Remuneration
Committee recommends a policy for determining director remuneration to
the Board of Directors and then decides the amount and content of
remuneration for each individual director through discussion based on thispolicy. The Nominating Committee selects candidates for Directors to beelected at General Shareholders' meetings and submits these asrecommendations to the Board of Directors.
Accounting Auditor
We have appointed Ernst & Young ShinNihon LLC. as our accounting
auditor. Our Board of Auditors and Internal Audit Department work with theaccounting auditor to enhance the quality and efficiency of audits.

Corporate Governance

Leadership

2

10

8
3

1

3

Yutaka Nishida

2

President andRepresentative Director, COO

Fiscal year ended June 2021
Board of Directors meetings 19/19

Fiscal year ended June 2021
Board of Directors meetings 5/5

Kenjiro Ogawa

4

Director, President and Representative
Director of Yumeshin Co., Ltd.
Fiscal year ended June 2021
Board of Directors meetings 5/5

5Daio Sato

Chairman and
Representative Director, CEO

Hiroshi Sato
Director, CFO
Fiscal year ended June 2021
Board of Directors meetings 15/15

Noriyuki Murai
Director in charge of ESG
Fiscal year ended June 2021
Board of Directors meetings 19/19

6

Tomohiro Sakamoto
Outside director

7

Rieko Zamma
Outside director

8

Arata Shimizu
Outside director

9

Hajime Mita
Outside director

10

Yoichi Wada
Outside director

Also works as a representative of Sakatomo Law Office andas an outside director at SBI FinTech Solutions Co., Ltd.
Fiscal year ended June 2021
Board of Directors meetings 5/5

Also works as an outside director at SHIMA SEIKI MFG., Ltd.,
Fujita Kanko Inc., and IBJ, Inc., and as the representative
director and president of Candid Produce Co., Ltd.
Fiscal year ended June 2021
Board of Directors meetings 18/19
Also works as an outside director at Interworks, Inc. andMISUMI Group Inc. and as a director at P&E Directions, Inc.
Fiscal year ended June 2021
Board of Directors meetings 18/19
Also works as a corporate auditor at Medic Planning OfficeCo., Ltd. and as an outside director at Point Three Co., Ltd.
and LENDEX Co., Ltd.
Fiscal year ended June 2021
Board of Directors meetings 5/5
Also works as a director at Metaps Inc., and an outside
director at WonderPlanet Inc., Mynet Inc., and GENDA Inc.
Fiscal year ended June 2021
Board of Directors meetings – (newly elected)

The profile of each director can be found on the Leadership page of our website.

BeNext-Yumeshin Group

11 Integrated Report 2021

4

5
7

6

1
9

Corporate GovernanceDirector skills matrix*The matrix shows the top three skills each director is particularly expected todemonstrate for the Group.
For representative directors, the skill each director is particularly expected todemonstrate for the Company is represented by a ◎mark.
Type

Position at
the Company

Name

Age

GenderOutsideKnowledge and experience that are important for Group management (skill categories)

Independent

Industry
experience

Management
experience

Officerexperienceat other listedcompanies

Chairman and
Representative
Director, CEO

Yutaka Nishida

58

Male

◎

〇

President andRepresentative
Director, COO

Daio Sato

37

Male

〇

◎

Director

Kenjiro Ogawa

48

Male

〇

〇

Director

Hiroshi Sato

64

Male

Director

Noriyuki Murai

49

Male

Director

Tomohiro Sakamoto

58

Male

●

●

Director

Rieko Zamma

71

Female●●Director

Arata Shimizu

49

Male

●

●

Director

Hajime Mita

70

Male

●

●

〇

〇

Director

Yoichi Wada

62

Male

●

●

〇

〇

International
experience

M&As,
investment,
and PMI

From left: Toshio Nago, Hirofumi Takahashi, Fujio Shimokawa, and Hiroaki Rokugawa

Governance,socialresponsibility,
and sustainability

Digitaltechnology
andcyber security

1

〇

〇
〇

〇

〇
〇

〇

〇

〇

〇

〇
〇

2

〇
〇

〇

Fujio Shimokawa
Full-time auditor

Fiscal year ended June 2021
Board of Directors meetings 19/19
Board of Auditors meetings 17/17

Reason for appointment Fujio Shimokawa has served in key management posts at thefinancial institution Sumitomo Bank (now Sumitomo Mitsui Banking Corporation). He
possesses vast experience related to corporate governance and compliance and aconsiderable level of finance and accounting knowledge. He has been designated as anindependent officer of the Company.

〇

〇

〇

Finance andfinancialstrategy〇

Hirofumi Takahashi
Full-time auditor

Fiscal year ended June 2021
Board of Directors meetings 5/5
Board of Auditors meetings 5/5

Reason for appointment Hirofumi Takahashi has a wealth of experience from his timeat the financial institution Wako Securities Inc. (now Mizuho Securities Co., Ltd.). He
possesses wide-ranging knowledge, a high level of acumen backed by information, and isable to audit the execution of duties by directors from an objective, neutral standpoint. He
has been designated as an independent officer of the Company.

〇

Ages current as of November 1, 2021

3

A mix of skill categories tailored to the Group’s management environment and business characteristics andthe work history of our directors
Industry experience

The Group puts an emphasis on growth potential so we need directors who can make management judgements based on
actual experience of the changes, challenges, opportunities, and other aspects of the human resources industry (at least
10 years)

Management experienceAs a Group comprising multiple business companies, we need directors with experience of overall management (inpositions such as president), including business promotion and risk management

Officer experience at otherlisted companies

We need directors who have experience of business promotion and risk management in a variety of industries whichenables them to contribute to enhancing the objectivity and transparency of the Group’s management

International experience

The Group conducts business in the UK and many other countries around the world, so we need directors who haveinternational management experience and an understanding of overseas markets

M&As, investment, and PMI

We have positioned M&As as a key strategy in our medium-term management plan, so we need directors who havediverse experience in regard to M&As

Finance and financial strategy

The Group is looking to invest in growth (M&As) and to stably enhance shareholder return, so we need directors withwide-ranging knowledge and experience of finance and other related matters

Governance, social responsibility,
and sustainability

We aim to realize sustainable growth while staying in harmony with society, so we need directors with experience in fields
such as governance, risk management, and social contribution

Digital technology
and cyber security

The Group is advancing a digital transformation, so we need directors with vast knowledge and experience of making
appropriate judgements in this field and of the new risks associated with IT

BeNext-Yumeshin Group

12 Integrated Report 2021

Toshio Nago
AuditorFiscal year ended June 2021
Board of Directors meetings 19/19
Board of Auditors meetings 17/17

Also works as a standing Audit & Supervisory Board member at Retrieva, Inc. and as anauditor at Everyleaf Corporation
Reason for appointment Toshio Nago has vast experience in areas such as finance,accounting, legal affairs, and internal auditing gained by working at a financial institution
and several business companies. He also possesses wide-ranging knowledge and a highlevel of acumen backed by information. He has been designated as an independent officerof the Company.

4

Hiroaki Rokugawa
AuditorFiscal year ended June 2021
Board of Directors meetings 5/5
Board of Auditors meetings 5/5

Also works as a lecturer at the Advanced Institute of Industrial Technology, as arepresentative partner of OGASAWARA, KONNO, & ROKUGAWA Law Office, as an
outside auditor at Aoyama Zaisan Networks Co., Ltd. and OKWAVE, Inc., and as an outside
director at Abalance Corporation
Reason for appointment Hiroaki Rokugawa has vast experience as an attorney at law.
He possesses wide-ranging knowledge, a high level of acumen backed by information,and is able to audit the execution of duties by directors from an objective, neutral
standpoint. He has been designated as an independent officer of the Company.
The profile of each auditor can be found on the Leadership page of our website.

Corporate GovernanceTotal amounts of officer remuneration, etc., for the fiscal year under review (Fiscal year ended June 2021)

Officer remuneration
Our policy for determining the remuneration of directors andTotal remuneration, etc.
(millions of yen)Fixed remuneration

Performance-linked remuneration

Restricted stock remuneration

Number of
eligible officers

Directors(outside directors)

184
(27)

133
(27)

—
(—)

51
(—)

12
(5)

Auditors(outside auditors)

15
(13)

15
(13)

—
(—)

—
(—)

5
(4)

auditors is as follows.
a. Policy for Determining Officer Remuneration, etc.
The amount of remuneration, etc., awarded to officers of theCompany is determined according to the following policy, within
the scope of the total amount of remuneration, etc., stipulated bya resolution of the General Shareholders’ Meeting.
(Executive Directors)

Remuneration comprises fixed remuneration, performance-linked
remuneration, and restricted stock remuneration.
Fixed remuneration is a monetary amount paid on a monthly basis.
Performance-linked remuneration is a monetary amount paid
determined based on the Group’s business performance over eachfiscal year. It is paid as a short-term incentive with the aim ofstrengthening the executive directors’ commitment to enhancing
business performance. A base value is set for each officer position andthe amount remuneration is determined by multiplying this value by
0-150% depending on the achievement of ordinary profit targets(meaning non-payment is also a possibility). Restricted stock
remuneration is an allotment of shares in the Company awarded eachyear with the aim of encouraging commitment to enhancing corporate
value in the medium to long term and strengthening managementfrom a shareholder perspective. These shares come with conditions
such as a restriction period and an option for the Company toreacquire the shares without compensation.

(Outside Directors)

Remuneration comprises fixed remuneration only in order to preservea standpoint independent of business operations. The amount paid to

Breakdown of executive officer remuneration(Fiscal Year Ended June 2021)
Approx. 50%
Fixed remuneration

Approx. 50%
Performance-linked
remuneration+ Restricted stock remuneration

Total of each type of remuneration (millions of yen)Type of Officer

Notes:
1. The table above includes one director who retired as of the conclusion of the 16th Ordinary General Shareholders’ Meeting held on September 30, 2020, and one director and one
auditor who resigned as of April 1, 2021.
2. Restricted stock remuneration as shown above refers to the restricted stock remuneration awarded based on the restricted stock remuneration system introduced by resolution of the
14th Ordinary General Shareholders’ Meeting held on September 21, 2018, and comprises the expenses allocated under the system in the fiscal year under review. Officers eligible forremuneration under this system are directors, excluding outside directors, and allotted shares are awarded with a set restriction period and an option for the Company to reacquire theshares without compensation.
3. At an extraordinary general shareholders’ meeting held on March 26, 2021, it was resolved that 1) total monetary remuneration for directors shall be no more than 600 million yen peryear, of which no more than 100 million yen should be allocated to outside directors (however, this does not include the employee salary of directors who double as employees), and 2)
the total amount of remuneration paid to directors, excluding outside directors, under the restricted stock remuneration system, which is separate to the amount outlined in 1), shall be
no more than 400 million yen per year, and the total number of shares allotted shall be no more than 300,000 shares per year. At the time that the extraordinary general shareholders’meeting was held, there were 10 directors (comprising four outside directors and six inside directors).
4. At an extraordinary general shareholders’ meeting held on March 26, 2021, it was resolved that total monetary remuneration for auditors shall be no more than 100 million yen per year.
At the time that the extraordinary general shareholders’ meeting was held, there were four auditors (comprising four outside auditors).

each director is determined based on professional expertise andother factors.

is made through discussion between these directors) following(Auditors)

recommendations of the Remuneration Committee. This authority

Remuneration comprises fixed remuneration only in order to preservea standpoint independent of business operations. The amount paid toeach auditor is determined based on discussions with said auditor.

discussion by the Board of Directors based on the advice andentrusted to the representative director is limited to the amountof fixed remuneration for each director and the base value for
performance-linked remuneration. Restricted stock remunerationb. Processes for determining officer remuneration, etc.

is determined by the Board of Directors based on the advice andRegarding remuneration for directors, we ensure the transparency

recommendations of the Remuneration Committee. We do notand objectivity of the entire remuneration system, including

have a policy for determining the ratio of each type of

remuneration levels and processes for determining remuneration,

remuneration within the overall total, but following discussion byby having it considered by the Remuneration Committee, which is

the Remuneration Committee to ensure these ratios do notcomprised of a majority of outside directors by resolution of thefluctuate too wildly from year to year, remuneration for the fiscal

Board of Directors.

year under review shall comprise roughly 50% fixed

The determination of fixed and performance-linked

compensation, with the sum of the performance-linked

remuneration is entrusted to the representative director (in cases

remuneration base value and restricted stock remuneration

where there is more than one representative director, a decision

making up the rest.

BeNext-Yumeshin Group

13 Integrated Report 2021

Corporate Governance

Whistleblower systems

Assessing the effectiveness ofthe board of directors

Compliance

Once each fiscal year, we carry out an assessment of theemployees of the Group also uphold social morals and we impose

effectiveness of the Board of Directors in order to verify that thestrict professional ethics on ourselves. We formulated ourBoard is properly fulfilling the functions expected of it and to

Corporate Ethics for Society, Human Rights, and the Environment

identify any issues that require improvements. An overview of the

as a guideline for acting with proper insight and self-discipline.

analysis and assessment of the effectiveness of the Board of
Directors in the fiscal year ended June 2021 is as follows.
Questionnaires• Targets
All directors and auditors (14 people in total)• Assessment method
An anonymous questionnaire survey was carried out
and an assessment of the Board of Directors was made based on theaggregation and analysis of the survey answers.

Results

In the fiscal year under review, the merger of Yumeshin Holdings Co., Ltd. and
BeNEXT Group Inc. on April 1, 2021, resulted in a change of half of theCompany’s directors and auditors. However, the careful preparation and smooth
implementation of the post-merger integration meant that during said fiscal year,
the Board of Directors was assessed to have not only properly fulfilled thefunctions expected of it, including providing management oversight and making
decisions on important matters, but also to have done so in an effective manner.
• The composition of the Board of Directors is both diverse and of an appropriate
size• All members are provided with the information needed to deliberate andexchange opinions• Board meeting agendas include appropriate discussion items and reports based on
an annual plan and members are able to speak freely and exchange frank opinions• An operational structure that enables the above is being maintained• The Board is fulfilling its functions in areas such as processes for deciding
remuneration and nominations

Issues• Include a schedule for sustainability-related matters in the annual plan andstrengthen frameworks for providing the Board with required information andenabling decision making• Include a schedule for exchanges of opinion with independent outside officers
in the annual plan and strengthen frameworks such as directions for reporting
matters to executives when necessary• Clarify appointment standards and processes connected to succession planningand education• Enhance the provision of advance materials and administration of Board
meetings in order to further improve deliberation on agenda items anddiscussion of management matters by the Board of Directors

In addition to complying with laws and regulations, officers andIn particular, our main business in human resources isregulated under the Labor Standards Act, the Worker Dispatching
Act, and the Employment Security Act. Compliance efforts
contribute to the proper maintenance and declaration of licenses,
the safety, health, and human rights of employees, and risk

We have established whistleblower systems which are accessible toemployees with the aim of preventing work-related legal violations andquickly detecting and responding to improper behavior.
In addition to providing an internal whistleblower system that canbe used to make reports regarding any kind of matter, including
reports concerning improper behavior, human rights, harassment,
leaks, and complaints, we also provide an external channel to anindependent legal firm. These facilitate the prevention or early
detection of legal and regulatory violations. We also have rules andsystems in place to ensure the protection of whistleblowers.
Information on the recent status of our whistleblowing systems isdisclosed as non-financial information through our website.

management, and we believe these enable us to carry out
sustainable business operations.

Risk management

Compliance meetingsOnce a year, we concurrently verify our internal controls risk

Each month, we hold a compliance meeting (or carry out a report andassessment) at each Group company to monitor compliance mattersand enable agile risk management.
Compliance meetings cover a comprehensive list of topics
including laws and regulations that concern the staffing andfee-charging employment industry, employment conditions such as
work hours, matters pertaining to other laws and regulations, humanrights, environmental issues, information management, and reports ofimproper behavior or harassment. Also, if a law or regulation isrevised, we receive guidance from an authority, or if a problem or
accident occurs, the meeting is used to determine the cause or form a
response and relevant measures are shared and implemented on aGroup-wide basis. Additionally, a report on the overall compliancestatus is made to the Board of Directors each month so that any
important matters that occur can be decided on and responded toswiftly. Information on recent compliance matters is disclosed as
non-financial information through our website.

catalog and identify any risks in our business. Any risks that
require significant measures to be taken are discussed andresolved at the holding company’s management meetings andmeetings of the Board of Directors. In fiscal 2020, the COVID-19
pandemic required a Group-wide response. We advanced
initiatives such as providing vaccines through workplaces andcarrying out operations through methods including remote workand as a result, the impact of the pandemic on our employees andbusiness operations was limited.
Also, in order to strengthen our ability to respond to risks andopportunities in the medium- to long-term, from the fiscal year
ending June 2022 we are practicing climate change risk
management based on the Task Force on Climate-related Financial
Disclosures model. Also, information regarding the status of ourinitiatives to assess the amount of CO2 emissions generated
through our business and to reduce this amount throughcontrolled purchasing and streamlining measures is disclosed as
non-financial information through our website.

BeNext-Yumeshin Group

14 Integrated Report 2021

Non-financial Data

To share the degree of attainment of our purpose: “Open up individual
potential through rewarding work” with stakeholders by a “Purpose Index”

Better performance throughthe improvement of skills
and experience

In addition to improvement,
we help employees findtheir jobs worthwhile

BY25
No. ofemployees

We recognize the number of employees as one of “Purpose Index” when evaluating our purpose,
because it has the greatest growth potential. In the medium-term management plan “BY25,” we aim
to increase the number of employees in Japan to 30,000 by the end of the period (the end of June2025). As of the end of June 2021, the number of employees was 17,985. We plan to disclose thenumber of employees in our website from 2022, and update the information on a quarterly basis.

Encounterswith jobs

We think that the number of opportunities to get a new job (the door in the illustrated purpose) is
important for attaining our purpose. We define the cumulative number of doors, which increase
through employment in our corporate group until the end of the period of BY25 (the end of June2025), as one of “Purpose Index.” Since July 2021, we have been counting it in the period of BY25.
We plan to disclose it in our website from 2022, and update the information on a quarterly basis.

Step-up

In order to attain our purpose, it is necessary to utilize opportunities for employees to grow from
inexperienced ones and become able to flourish (the door in the illustrated purpose). Accordingly, wedefine the cumulative number of engineers in Japan reaching the middle level recognized by ourcompany as one of “Purpose Index.” We have been counting employees who have completed the
mid-level training, qualified ones, and mid-level ones since July 2021 in the period of BY25.
We plan to disclose them in our website from 2022, and update the information on a quarterly basis.

Retentionrate

We think that the resignation for seizing the next opportunity for growth is a necessary option for
individuals (the door in the illustrated purpose), from the viewpoint of attaining the purpose. We strive
to increase the retention rate of employees, but considering the purpose, a high retention rate is notnecessarily favorable. We defined the improvement in retention rate for each fiscal year, including thenumber of employees who have resigned for joining a client company because of their splendid
performance (number of employees transferred), as one of “Purpose Index.”
We plan to disclose it in our website from 2022, and update the information on a quarterly basis.

Engagement

We think that it is important to realize an environment in which employees can work while feeling that
their jobs are worthwhile, in order to attain our purpose. As our core business is the dispatch ofworkers, we measure employee’s engagement levels in their company, workplaces, and backup
systems, and defined their improvement level as one of “Purpose Index.” The improvement level isgauged mainly by checking whether employees recommend our company to others, whether they aresatisfied with our career counseling, and whether they continuously give a valid response (reliableanswers) to the engagement survey. We plan to update them every fiscal year.

Engagement

Diversification of “doors”
Encounters with jobs,
step-up, and retention rate

Expand opportunities
to pursue career paths

First door
to society

Increase of people who
open “doors”

Various doors for individual

BY25/No. of employees

The “Purpose Index” represents how muchour purpose has been attained in various
aspects. The increase of the happinessindicator and the expansion of businesswould lead to the improvement insustainable corporate value, and contributeto the achievement of related SDGs.

BeNext-Yumeshin Group

15 Integrated Report 2021

Non-financial Data

As a general rule, the figures below are for the first quarter of the fiscal year ending June 2022
We actively disclose non-financial data, including Purpose
Index. The merger carried out in April 2021 means that it isdifficult to appropriately reflect data for past fiscal years,
including the fiscal year ended June 2021, but we aredisclosing information for data items that will be usedgoing forward as necessary through our website (data isdisclosed on either a quarterly or annual basis).

Human resources performanceindicators

Governance

Item
Item

Breakdown of human resources

Most recent data

Total hours spent on training

163,525

Ratio of female directors

10%

50% *4

Ratio of non-Japanese
directors

0% *4(Around three per year planned)

Human
resources
composition

Field personnel:
Office managers:
Regular office personnel:
29 and under 42.5%

Agecomposition

Total investment in education

Most recent data

91.3%
1.3%
7.4%
50-59 9.0%

40-49 16.0%

94.8%(ratio of employees who resigned
for personal reasons/Japan only)

Number of transfers

25.5%

*2

Ratio of female
managers

10.3%

*2

Ratio ofnon-Japaneseemployees

4.6% *1

Ratio ofemployeeswith disabilities

Voluntary turnover rate

30-39 31.3% 60 and over 1.2%

Ratio of female
employees

Ratio ofemployees whoare 60 and over

364 million yen

1.2%

2.5%

*1

*1

*1 Ratio as of June 30, 2021/Japan only
*2 Ratio as of September 30, 2021/Japan only/Office staff only

65

(Employees who transferred
to customer companies)

Paid leave utilization rate

Updated on a yearly basis
Data to be disclosed at
the end of the fiscal year

Employees taking childcare/nursing care leave

246 *3

Male employees
among these23 *3*3 Ratio as of September 30, 2021/Japan only

BeNext-Yumeshin Group

Item

Most recent data

Ratio of outside directors

Independent officers’ meetings

Item

Environmental conservation

Most recent data

*4

Amount of paper purchased
0

4.2 t

(by weight)

Serious workplace accidents(accidents resulting in residual
disabilities or at least four days of
missed work)4

Serious advisories
concerning licenses

0

Criminal or corruption claims or
high-value legal actions

0

Reports made throughwhistleblowing channels

20

Reports concerning highly
serious matters made throughthe whistleblowing system

0Information leaks

0

Ratio of employees who
received compliancetraining

Updated on a yearly basis
Data to be disclosed at
the end of the fiscal year

Ratio of employees who
received training on personal
information management, etc.

Updated on a yearly basis
Data to be disclosed at
the end of the fiscal year

Amount spent on regional andsocial contribution activities

26 million yen *5

Amount spent on political
donations and lobbying

Amount of paper recovered(by weight, materials that can beused to make recycled paper)

CO2 emissions(amount generated by officeelectricity use and gasoline
consumption during commutes)

0 yen *5

*4 As of the end of the General Shareholders’ Meeting held in September 2021
*5 Data for the fiscal year ended June 2021

16 Integrated Report 2021

5t
(fiscal year ended June 2021)

197 t

Financial Data

Major financial indicators
Unit: Millions of yen
FY endedJune 2021

Reference:
Former BeNEXT Group Inc. Unit: Millions of yen
FY endedJune 2016

FY endedJune 2017

Japanese GAAPFY endedJune 2018

FY endedJune 2019

Reference: Former Yumeshin Holdings Co., Ltd.
FY ended
September
2016

FY endedJune 2020

FY ended
September
2017

Japanese GAAPFY ended
September
2018

Unit: Millions of yen
FY ended
September
2019

FY ended
September
2020

Japanese GAAPQ2 of
FY ended
September 2021
(six months)

IFRS

Net sales

95,11030,14343,03565,36381,59681,755Net sales/revenue

23,27030,51040,41952,50558,66926,106

SG&A expenses

15,917

4,643

6,124

9,005

11,171

11,142

SG&A expenses

4,129

6,418

7,152

10,552

10,248

5,509

Operating income

3,356

2,549

3,220

4,297

5,719

4,666

Operating income

2,433

2,361

5,186

4,719

5,306

1,905

Ordinary income

4,935

2,528

3,185

4,228

5,606

4,771

Ordinary income

2,463

2,423

4,940

4,557

—

—

Profit attributable to owners of parent

2,611

1,523

1,923

2,569

3,706

1,335

Net income/profit for the period

1,622

1,426

3,635

2,504

3,557

706

129,374

11,914

16,80528,127

31,20731,730Total assets

19,117

20,461

23,571

28,86336,39931,72896,169

5,322

6,697

13,71515,802

14,765

Net assets

13,511

13,08013,972

11,92011,561

10,854

74

44.6

39.2

48.3

49.5

46.2

Total assets
Net assets
Shareholders’ equity ratio (%)*

1

176.6

137.6

157.0

168.8

159.9

147.9

3

Number of employees*

30,067

5,861

10,041

17,552

20,32918,125Gross profit margin (%)

20.3

23.9

21.7

20.4

20.7

19.3

G&A expenses ratio (%)

16.7

15.4

14.2

13.8

13.7

13.6

Operating income ratio (%)

3.5

8.5

7.5

6.6

7.0

5.7

Return on equity*4

4.7

31.3

32.3

25.5

25.5

8.9

Return on assets*5

3.8

25.7

22.2

18.8

18.9

15.2

1,057.43

137.4

169.68320.65364.26341.89Profit per share (yen)

47.65

39.45

49.58

64.31

87.47

31.34

Cash dividends per share (yen)

44.0

20.0

22.5

27.5

35.0

40.0

Dividend payout ratio (%)*7

92.3

50.7

45.4

42.8

40.0

127.6

Price-earnings ratio (times)*8

26.8

17.1

22.0

30.3

17.5

30.0

Price-book value ratio (times)*9

1.2

4.9

6.4

6.0

4.2

3.5

2,160

(388)

(121)

2,424

3,598

2,830

Current ratio (%)*

2

Net assets per share*6 (yen)Free cash flow

BeNext-Yumeshin Group

Financial statements for the fiscal year ended June 2021 have been compiledusing Japanese GAAP and comprise the full year results of the former
BeNEXT Group Inc. and three months of the results of the former
Yumeshin Holdings Co., Ltd.
Merged on April 1, 2021 Surviving company: BeNEXT Group Inc.
Records related to the merger are as follows.
・Goodwill 70 billion yen (amortization period:
20 years)・Purchase price allocation 1 billion yen(amortization period: Max. 1 year)
From the fiscal year ending June 2022,
securities reports will be released using IFRS.

NoteFinancial indicator trends from the fiscal
year ended June 2021 changed
significantly as a result of the merger.
Please consider these financial indicators
in conjunction with the various IR
materials available on our website.

*1 Shareholders’ equity pertaining to common stock/total assets x 100*2 Current assets/current liabilities x 100*3 Includes contract workers*4 Profit attributable to owners of parent pertaining to common stock/average shareholders’ equity x 100*5 Ordinary income/average total assets x 100 (for the FY ended June 2021, year-end total assets was used)*6 (Net assets – non-controlling interests – subscription rights to shares)/(number of shares outstanding – year-end
treasury stock)*7 Cash dividends per share/profit attributable to owners of parent per share x 100*8 Share price (year-end)/profit per share*9 Share price (year-end)/net assets per share(Note)
For points 7-9, the figures for cash dividends per share have been adjusted to reflect stock splits of one share for each 100
shares implemented on July 1, 2013, and one share for every 2 shares implemented on April 1, 2016, and July 1, 2019.

17 Integrated Report 2021

Financial Data

Current situation in each business domain (Fiscal year ended June 2021)*Business results have only been recorded forthe three-month period following the merger

Machinery, electronics, and IT software

Construction management

Employee numbers increased following the merger andalthough income rose, profits decreased due to the pandemic

Although new placements have slowed, following up on
placed engineers has led to improved retention rates

The assimilation of the former Yumeshin Holdings Co., Ltd.’s engineer staffing businesses,
including YUME TECHNOLOGY Co., Ltd., following the merger on April 1, 2021, led to an increasein the number of engineers in fields such as systems development, IT infrastructure, andmechanical and electrical engineering. However, the impact of the COVID-19 pandemic resulted ina decrease in overtime hours, working days, and dispatch prices. Although we managed to avoid
effects like contract cancellations for dispatched engineers, there was a fall in demand forentry-level personnel which meant there were few placements available for less-experienced
engineers, such as new graduates. As a result, utilization rates dropped.

In the construction industry, the impact of the COVID-19 pandemic and a lull in demand following
the Olympics meant that the speed of decision making concerning new placements remained
slow and the number of engineers on our staff fell. In response to this situation, we recruited
fewer new engineers than initially planned and we have strived to improve retention rates bystrengthening follow up efforts concerning placed engineers through a dedicated team. Also, theamortization expenses of the goodwill and purchase price allocation generated by the merger havebeen applied to the anticipated earnings of our companies in this segment, resulting in therecording of around 1.3 billion yen in segment amortization expenses.

Manufacturing

Overseas

The number of active employees has increased and we have
improved profitability by optimizing costs

Profits decreased due to a slowdown at our staffing businessin the UK

Although the COVID-19 pandemic had a strong impact at the beginning of the fiscal year, in the second
half of the year, each of our companies in the manufacturing domain saw a recovery in demand for
dispatch employees to a wide range of industries. As a result of active recruitment and placement inresponse to this demand, employee utilization rates increased. Also, in regard to contracts, cost
optimization efforts led to a recover in the volume of orders which has boosted profitability.

A lockdown in the UK from the beginning of the fiscal year led to a severe market contraction, but
demand continued to recover in the second half of the year, particularly in the dispatch business.
However, our staffing business, which is a significant contributor to profits, was impacted byongoing inactivity at customer companies and efforts such as lowering the amount of goodwill
amortized and reducing fixed expenses were not enough to offset the fall in profits.

Business Results by Segment

Unit: Millions of yen

Machinery, electronics, and IT software

Construction management

Manufacturing

Overseas

FY ended June 2021

FY ended June 2021

FY ended June 2021

FY ended June 2021

Net sales

49,077

8,721

8,662

28,423

Segment profit (loss)

5,050

(517)

550

28

Segment assets

31,97378,664

1,968

10,218BeNext-Yumeshin Group

18 Integrated Report 2021

Corporate Data (as of the Fiscal Year Ended June 2021)

Name

BeNext-Yumeshin Group Co.

Head office

2-14-1 Higashi-shimbashi, Minato-ku,
Tokyo 105-0021, Japan
https://www.yumeshin-benext.co.jp/en/

Representative
directors

Yutaka Nishida, Chairman
and Representative Director, CEO
Daio Sato, President
and Representative Director, COO

Established

August 1997

Capital4,436 million yen (as of June 30, 2021)

Employees(consolidated)

30,067

Business
description

Dispatch, outsourcing, subcontracting,and fee-charging employment placementof engineers

Securities code2154

Stock listing

Tokyo Stock Exchange, First Section*We have applied for a listing on
the new Prime market segment

Authorized shares

360,000,000

Shares outstanding

91,000,534

Share trading unit

100 shares

Shareholders

20,146

Breakdown of shareholders by type

Major shareholders
Name of individual ororganization

Sharesheld

Shareholding
ratio (%)

Hayao Nakayama

8,378,000

9.20

Amuse Capital, Inc

8,240,000

9.05

Kokoro Co.,Ltd6,773,256

7.44

Yoshiko Sato

5,809,054

6.38

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

4,366,400

4.80

Custody Bank of Japan, Ltd.
(Trust Account)

3,989,205

4.38

Daio Sato

1,538,778

1.69

Kanto Local Finance Bureau

1,368,737

1.50

Securities companies

2.4%

National/public entities

1.5%

Financial institutions

14.1%
Overseas investors

17.8%

Individuals, other

44.7%

Other corporations

19.5%

STATE STREET LONDON CARE OF
STATE STREET BANK AND TRUST,BOSTON SSBTC A/C UK LONDONBRANCH CLIENTS-UNITED KINGDOM

1,293,522

1.42

Yoshimi Sato

1,261,777

1.39

Disclaimer Statements in this Integrated Reports, such as
forecasts and estimates, are judgements based on the information
available at the time of issuance and the complete accuracy of suchstatements cannot be guaranteed. Furthermore, they are subject tochange without warning going forward. While every effort wasmade to use the latest information in the formulation and issuing of
this report, the Company and information providers are not to beheld liable in the unlikely event that said information causes loss ordamage. Thank you for your understanding.