INTEGRATEDREPORT 2022
The company name will be Open Up Group Inc.
in January 2023.

Table of contents
1

Table of contents and editorial policy

ProfileIntroduction

2

History3

At a Glance

4

Purpose/The spirit expressed by our
purposeStrategy
5

Message from CEO

7

Value creation model

15 Material issues
17 Message from COO

BeNext-Yumeshin Group upholds the purpose (raison d'etre) of “Open up
individual potential through rewarding work.”
This purpose is “the North Star,” which clarifies our corporategroup’s ideal state for improving our corporate value and is aimed for by
all of us.
In our corporate group’s business, if individual employees perform
well in client companies, the client satisfaction level, our consolidated

sales and profit will improve. We make every possible effort to provide
individual employees, who would determine results, with a working
environment in which they can work with pride.
This integrated report is intended for deepening your understandingof our value creation model and reporting the progress and results of
our initiatives, including the medium-term management plan “BY25.”

20 Medium-term management plan “BY25”
22 Strategies of each segment and results

Editorial policy Foundations
25 Corporate governance
31 Compliance
32 Risk management
33 Sustainability management
34 Other (human resources, human rights,
communities, and the environment)
35 Non-financial indicators

Financial data
36 Major financial indicators
37 Consolidated financial statement, etc.
39 Stock information

This integrated report comprehensively describes the policies, strategies, etc. for creating the value of our business, including the medium-term
management plan “BY25,” as well as the results of our corporate group’s activities.

Reporting period
FY 06/22 (July 2021 to June 2022)* Please note that this report also mentions the activities and outcomes outside the above reporting period.

Reported range
Regarding financial information, we use consolidated figures, but
for qualitative information on our initiatives for sustainability andquantitative information that supplements the qualitative information,
we basically use the data of BeNext-Yumeshin Group Co. and its
subsidiaries in Japan. In some cases, we describe measures according
to the scale, business, etc. of a subsidiary, and when a specific group of
subsidiaries is mentioned, we state the names of respective companies.
* Regarding the scope of our corporate group: In this report, “our corporate group” basically means our groupcompanies inside Japan, as mentioned above.

For the list of group companies, click here (EN).

BeNext-Yumeshin Group Integrated Report 2022

1 / 39

Guidelines for reference“International Integrated Reporting Framework” of International
Integrated Reporting Council (IIRC)

Date of issuance
December 22, 2022

IssuerNoriyuki Murai, Director, Sustainability

Reference information
Website on IR information (EN)
Website on sustainability (EN)Profile

History

The former Yumeshin Holdings Co., Ltd. and the former BeNEXT Group, Inc. merged in April 2021, to make a new start as BeNext-Yumeshin Group Co.
In January 2023, it will be renamed Open Up Group Inc. and forge ahead to achieve further sustainabale growth.

January 2023

Open Up Group Inc.

April 2021: BeNext-Yumeshin Group
Yumeshin Holdings
2019 Transformed
into a pure holding company.

Transferred the construction
business to Yumeshin.
Reorganized Yume Technology as
a wholly-owned subsidiary.

2011

Acquired Fullcast Technology (present
Yume Technology) as a subsidiary.

2007 Acquired Yumeshin.
CONTENTS
Profileto Yumeshin Holdings
2005 Renamed
The construction business was handed
over to Yumeshin.

History
At a Glance	Purpose/The spirit
expressed by our purpose

StrategyFoundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

2 / 392003 Got listed on Nippon New Market Hercules.
1990 Renamed to Yumeshin.
1976 Established Sato Construction Design Office.
The former Yumeshin Holdings

to BeNEXT Group.
2020 Renamed
Transferred its business to BeNext Technologies, toadopt a holding company system.

MTrec as a subsidiary, and started overseas
2016 Acquired
business in the U.K. In the following year, we acquired
Gap Personnel and others as subsidiaries.

August, changed the stock market, and got
2013 Inlistedon the Second Section of Tokyo Stock

Exchange.
In December, got listed on the First Section ofTokyo Stock Exchange.

to Trust Tech, and started
2008 Renamed
expanding the engineer dispatching business.
listed on the JASDAQ Securities
2007 Got
Exchange, after changing its name toTrust Works in 2006.

to Trust Works Sanei, and2004 Renamed
started the worker dispatching business.
as an enterprise that1997 Establishedhires disabled people.

The former BeNEXT GroupProfile

At a Glance

Machinery,electronics, andIT software domain

Construction
management
domainDispatch of engineers fordevelopment and design, andundertaking of tasks<Business description>
We dispatch engineers specializing inmechanical, electrical, and electronicengineering for development, design,
manufacturing technologies, etc. to Japanesemakers, and IT engineers for establishment,
development, and operation of networks,
servers, software, etc. to IT enterprises, etc.
and undertake related tasks.

70.6 billion yen
Operating profit: 7.1 billion yen
Revenue:Group companies
BeNEXT Technologies Inc.
YUME TECHNOLOGY Co., Ltd.
BeNEXT Solutions Inc.
Open Up System Co., Ltd.
AXIS CREATE Inc.
Arrow Trust Systems Co., Ltd.
and other four companies

Dispatch of construction
management staff,
engineers, and CAD
operators to the construction sector

Revenue:

148.5 billion yen
Operating profit:

10.1 billion yen
No. of employees:

19,448

CONTENTS

Manufacturing
domainProfileHistory

Undertaking of tasks and dispatchof workers for the manufacturing ofclient companies

At a Glance	Purpose/The spirit
expressed by our purpose

StrategyFoundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

3 / 39<Business description>
We dispatch workers and undertake tasks mainly in the
manufacturing processes of Japanese makers.

Revenue:
Operating profit:

9.6 billion yen
500 million yen

Group companies BeNEXT Partners Inc.

Others/Adjustment
Revenue:

900 million yen
Group companies
SAMURAI, Inc.
BeNEXT With Inc.

<Business description>
We mainly dispatch construction management staff
and CAD engineers to enterprises in the Japaneseconstruction industry.

36.9 billion yen
Operating profit: 5.3 billion yen
Revenue:Group companies
YUMESHIN Co., Ltd.
YUMESHIN EXPERT Co., Ltd.

OverseasdomainDispatch of workers,
undertaking of tasks,
and introduction of
personnel in the fields ofengineering and manufacturing outside Japan<Business description>
Our corporate group operates business also outside
Japan. Our overseas domain includes the dispatchof workers and the undertaking of tasks in thetechnological and manufacturing fields, and the HR
service business, such as fee-charging job placement
services, outside Japan.

Revenue:
Operating profit:

30.0 billion yen-400 million yen

Group companies
Gap Personnel Holdings Limited (U.K.)
Several other companies* Excluding revenue from internal transactions

Profile

Purpose/The spirit
expressed by our purpose

Open up individual potential
through rewarding work
The spirit expressed by our purpose
Just as each individual has a different way of thinking
about happiness, we believe that rewarding work forworkers is also diverse.

Open up individual potential through rewarding work
様々な個人の可能性が無限に発揮される多彩な社会へ

Our role is to create many doors to open up
possibilities and a milestone toward a rewarding workfor 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.

CONTENTS
ProfileHistory
At a Glance urpose/The spiritP
expressed by our purpose

StrategyFoundations

We believe that people will always grow and drive thesociety forward when they open the next door.
We will increase the number of people who open thedoor to the next to make society more diverse andprosperous.
We, the BeNext-Yumeshin Group, exist to create sucha future.

ひとりひとりの多様な扉
Various doors

社会との接点の扉
Firstdoor to society

for individual

Doors areopportunities 道しるべ
扉は「幸せな仕事」
への機会であり、

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

4 / 39就業機会
New job

トレーニング・研修 キャリア相談
Training
Counseling

CONTENTS
Strategy

Profile Strategy

Message from CEO Value creation model

Material issues

Message from COO

Medium-term management plan “BY25”

Strategies of each segment and results

Message from CEO

We will make contributions
through our business to realize
the happiness of “workers” andprosperity of the society.
To realize the happiness of “workers”“Open up individual potential through rewarding work.” This is the purpose set by the BeNextYumeshin Group. It was born by bringing together the fundamental management philosophy of
the BeNEXT Group Inc., the predecessor of our corporate group, and Yumeshin Holdings Co., Ltd.
when the two companies were merged in April 2021.
We think that the society is formed by workers. And it is our role to make this society more
prosperous through our business which allows for realizing the happiness of these workers. Thereis no goal to a prosperous society, but we would like to increase the “happiness” within the society
even if just a little in terms of economy as well as the environment, and also in a spiritual way.
Of course, the meanings of “happiness” vary among people. What people seek in a job, too,varies. We just want each people to feel their respective forms of “happiness.” And we think that it
is our job to support everyone so that they can encounter the work they want to do and the work
which can satisfy them.
Like this, we want to focus on the feelings and potential of “every individual” concerned in ourbusiness, while we also strive for economic growth and the elevation of customer satisfaction.
Such philosophy is contained in the words of “every individual.”
BeNext-Yumeshin Group Integrated Report 2022

5 / 39

Yutaka Nishida
Chairman and
Representative Director, CEO

Foundations Financial data Stock information

CONTENTS
Strategy

Profile Strategy

Message from CEO Value creation model

Material issues

Message from COO

Medium-term management plan “BY25”

Strategies of each segment and results

Foundations Financial data Stock information

Message from CEO

To make our purpose known and understood
The experience I had soon after starting to work in the society made me have this kind of
philosophy.
The first work I was in charge of after joining the workforce was a job offer advertisement forrecruiting new graduates for a company. Back then, I focused on satisfying the demand of theclient company which was recruiting; “Looking for such-and-such candidates.” However, after that,
I transferred to a personnel staffing business division and by acquiring the opportunity to talk withpeople working as temporary employees, I came to think that it might be more important to satisfy
the feelings of workers.
It is the temporary workers, not me, who actually work at the site. If every individual feels that
their work is rewarding and fulfilling, it will eventually lead to the satisfaction of the client company
as well. I realized that focusing on each working individual also leads to acknowledgment andprofit in the end.
There is still a long way to go, regarding the initiatives to diffuse this kind of purpose in thecompany, but I feel that we are proceeding little by little. For example, on the other day, employees
in charge of sales were discussing what kind of work a certain engineer should do next. The
criterion and theme at that time were not “which work will lead to sales,” but “which work is suitable
for that engineer’s career.” I am thinking that witnessing this kind of scene of pursuing exactly“individual potential” on a daily basis means that our purpose is becoming known and understood.
From now on, we shall further promote the internal activity named “P Activity” for making our
purpose known within the company and accelerate the understanding thereof within the wholegroup.

Power of “continuous growth” as our strength
Moreover, in order to realize our purpose, we considered our “value creation model.”With regard to “value provided to stakeholders,” we mention stakeholders to which we provide
an outcome. On the first place are the people who work at our client companies as engineers andtechnicians, and our office employees who support them. We believe that elevating the satisfactionof these working people will bring significant value to the client companies, their shareholders andinvestors, and the whole society.
What we put in the center of our business activities is “new jobs.” We will produce the value of
new jobs by connecting both client companies who are looking for personnel and people who needa job. That is the starting point of everything.
BeNext-Yumeshin Group Integrated Report 2022

6 / 39In order to meet the expectations of all stakeholders through these activities, it is important for
both a company and respective working people to keep growing together. The results of humanresources development cannot be seen in a day and there is a need for initiatives from a medium/long-term perspective. We firmly believe that this kind of “power of “continuous growth” is what will
become the company’s strength, and keep up our endeavors.

“Purpose Index,” a signpost leading to growth
The condition for creating such value is to become a company “chosen” by client companies andmore than anything, by workers. For this, it is necessary to thoroughly elevate the level of whatis “obvious,” starting with the working environment. Human capital is the most important in our
corporate group, but there is no definite method to secure it. I think that we cannot do anything but
build up what needs to be done every day, soberly and honestly.
This time, we newly set four material items, including “the support for career development andwell-being,” and all of them are important themes whose superiority cannot be ranked. We thinkthat it is vital to raise the level of all of these themes, and not miss important elements aroundtheir foundations, as it does not mean that it is enough to just look at that part.
Moreover, the “Purpose Index” output or a result of our business activities, has been set as asignpost toward realizing our purpose. It is a quantitative target visualizing our accomplishments
until now, but the achievement of these targets itself is not the goal. Quantities and results are not“something that is made,” but “something that comes out” as a result. We would like to emphasize
the reasons for and meanings of promoting the particular initiative and the process thereof rather
than results.

For further changes and progress
Lastly, our corporate group will change its name to “Open Up Group Inc.” on January 1, 2023. Our
corporate group was born as a result of management integration, but we are thinking that the
integration is meaningless, if we just stick to “1 + 1 = 2” instead of making something new, different
from the original companies. This corporate name change can also be viewed as a declaration offurther changes and progress.
The new corporate name is based on the English version of our corporate group purpose(Open up individual potential through rewarding work). This newly reflects our will to express andimplement our purpose with the whole corporate group. Please do keep your expectations high forour corporate group, which continues to further evolve, from now on as well.

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Message from COO

Medium-term management plan “BY25”

Strategies of each segment and results

BeNext-Yumeshin Group’s value creation model

The development and growth of human resources,
which makes the most of human capital to the maximum
extent possible, is the engine for creating new value.

Changes in external
environment

InputsPolitics
Society
Technology
More info on page 8

BeNext-Yumeshin Group Integrated Report 2022

7 / 39Intellectual
capitalSocial andrelational capital

HumancapitalFinancial capitalBusiness activities

Outputs

Creation of
employment
opportunities

Purpose Index

Material issues

Otherhuman resource
indicators

More info on page 9More info on page 10-13

Foundations Financial data Stock information

Our corporate group has formulated a value creation model basedon the belief that achieving the purpose will create value over the
medium to long term and contribute to the sustainable developmentof society.
Our value creation model was developed according to the trendsof “changes in external environment,” “inputs,” “business activities,”“outputs,” and “outcomes,” and we believe that the purpose will be
realized through outputs, outcomes, and their positive impacts.

Outcomes

Contribution to
the sustainable
development of
the labor market

Natural capitalMore info on page 8

More info on page 14

Open upindividual potential
throughrewarding work

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Message from COO

Changes in External Environment | Inputs
Changes in External Environment
We have focused our review on changes in the external
environment that we believe will have a significant
impact on our corporate group.
In a trend where it is becoming increasingly
important for companies to assess the impact on awide variety of stakeholders, we believe that the group’s
human resource services business is closely related
to changes in the external environment, mainly related
to personnel, such as the declining working populationin Japan and changes in the skills required for humanresources due to technological innovation.

Politics
Politics
SocietySociety
Technology
Politics
Technology
SocietyMedium-term management plan “BY25”

Strategies of each segment and results

Business Activities

Outputs

Foundations Financial data Stock information

Outcomes

Purpose

InputsOur corporate group combines human capital and intellectual capital to dispatch engineers and technicians who possess skills suited for thecurrent times and the industry in order to meet the needs of our clients.
We have the know-how and environment to provide practical career-building reskilling opportunities and promote the acquisition ofqualifications (i.e., intellectual capital) for a diverse range of engineers and technicians, including those with no experience (i.e., human capital).

Human capital

Trend of “stakeholder capitalism”
Development of laws andpolicies regarding human rights,
dispatching, etc.

Decline in Japan’s working
population

A diverse range of engineers and technicians

Employees (sales and recruiting, head office functions)

Progress in diversity and inclusionof human resources
Changes in views on occupations
and work (impact of the COVID-19
pandemic, as well as changes
regarding safety and other issues)

Intellectual capital
Systems and know-how to develop human resources
Systems to support new career development
Identification of qualifications and training required to meet changes in work

Technology

Business model changes inhuman resource services brought
about by the development of ICT
Paradigm shift in technology
required for engineers andtechnicians

BeNext-Yumeshin Group Integrated Report 2022

8 / 39Social and relational capitalSocial demands and requests for temporary staffing and outsourcing
Relationships with the government and client companies thatencourage appropriate employment (improvement of labor force)

Financial
capitalStable financial base thatallows for a multilayered
strategy

NaturalcapitalClimate change action throughactivities and purchases

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Changes in External Environment | Inputs

Message from COO

Medium-term management plan “BY25”

Business Activities

Strategies of each segment and results

Outputs

Foundations Financial data Stock information

Outcomes

PurposeBusiness activities
Our business is based on hiring experienced and inexperienced workers and developing them to their full potential and ability.
Our business model is also based on creating employment opportunities by matching the labor market, human resources, and customers, and thus we sustain rewarding employment.
In addition, we have defined material issues in conducting our business activities, which are classified into two categories: opportunities that contribute to increasing the value of our business (value creation)and risks due to failure to fulfill the goal (business foundation).

Recruitment

Experienced

Training and support

Training andeducation
Appropriate
Career support
assignment
Employment
supportInexperienced

Material issues

More info on page 15-16

Value creation

Business foundation

 upporting career development
Sand well-being

 usiness foundation for security
Band safety ontribution to the sustainableCdevelopment of the labor market

 ighly transparent organizationalH
structure

BeNext-Yumeshin Group Integrated Report 2022

9 / 39

Increase the potential
and value of eachand every one of ouremployees
andcreate employment
opportunities

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Message from COO

Changes in External Environment | Inputs

Medium-term management plan “BY25”

Strategies of each segment and results

Business Activities

Outputs

Foundations Financial data Stock information

Outcomes

Purpose

Outputs
Since our business model is to provide human resource services, we define our output as our engineers and technicians, who are the human capital that is demonstrated through the company’s business activities.
We have established five “Purpose Index” as unique indicators of the expansion and progress of the activities of our engineers and technicians. We believe that the Purpose Index show the status of our
outputs and the degree to which we have achieved our purpose.

Purpose Index 1:

Purpose Index 2:

Purpose Index 3:

Number of employees

Job placement opportunities

Career advancement

We consider an increase in the number of employees who are
active in the company’s business as one of the “Purpose Index,”
as it is a sign that the significance of the company’s existence
in society is being recognized and expanded, both for those
who work for the company and for our corporate clients.
In our medium-term management plan “BY25,” we aim tohave 30,000 employees (in Japan) by the end of the period (endof June 2025).
At the end of June 2022, there are 19,448 employees.

It is important for employees to have opportunities to workin new jobs (the doorway to the career path as envisioned in
our purpose), and to have a platform to expand their career
possibilities. In order to show this situation, we have set the
cumulative number of new projects and other opportunities for
employees as one of the “Purpose Index.”
In our medium-term management plan “BY25,” our target is
to have a cumulative total of 50,000 projects (in Japan) by theend of the period (end of June 2025).
At the end of June 2022, there are 13,172 projects.

Our corporate group values the opportunities for our
employees to grow through their work and through theacquisition of qualifications, and in particular, the ability tomove up from entry-level positions is one of the company’s
unique characteristics. We consider the cumulative number of
employees certified as middle-level engineers at our domestic
engineering companies as one of the “Purpose Index.”
In our medium-term management plan “BY25,” we aim toachieve a cumulative total of 6,000 employees by the end of
the period (end of June 2025).
At the end of June 2022, there are 1,617 employees.

(employees)
31,000(projects)
60,000(employees)
7,000

30,000Results
Targets

29,000Targets

50,00050,00027,00025,50022,00023,00020,00019,000FY2210,000

FY23

FY24

FY25

0

13,172

16,800
2,000

9,400
FY22

1,000
FY23

FY24

FY25

Related indicators: Page 13
BeNext-Yumeshin Group Integrated Report 2022

10 / 39

3,100

3,000

17,0000

6,000Targets

6,000

4,000

25,70030,00019,44819,000Results

5,000

40,00025,00021,000Results

0

1,617

2,200

1,400
FY22

FY23

FY24

FY25

Related indicators: Page 13

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Message from COO

Changes in External Environment | Inputs

Medium-term management plan “BY25”

Business Activities
Employees’ Voices

Purpose Index 2:

Job placement opportunities

Taiga Sato (joined in April 2021)
Construction Management Engineer
Yumeshin Co., Ltd.

Q Were there any conditions that were important to you in your job search?
I myself had the feeling that I did not want to be “tied down by work.”
Therefore, I placed importance on being able to take holidays and balance
work and private life.
At my current workplace, even if I have to work on a holiday, I am given a
compensatory day off, so I think the work environment offers a good balance
between work and private life.

Outcomes

PurposeQ What kind of follow-up staff does Yumeshin have?
The person in charge of follow-up is looking out for me on a monthly basis.
My follow-up person is very helpful as a strong ally, especially since I am theonly young person at this site and weare close in age.
Beyond reporting on my current
situation, they are also concerned about
my relationships with others, how often
I work overtime, and whether or not I
am having a hard time. Sometimes wecommunicate by phone, but more often
they come to the site.

Q What is the most rewarding aspect of your job?

The first site I was assigned to was a new construction site for a refrigerated
warehouse, where we had to work at very high elevations of over 20 meters,
so the special training I received was very useful.
I was able to use the full-harness safety belt without difficulty, and I wasable to perform my duties without being rushed when I went up to high places.

Q Was there any other training that was useful for your work in the field?

Q What qualifications did you obtain?

I received special training on oxygen deficiency and hydrogen sulfide
hazardous work, and occupational health training for organic solvent
workers. I think such knowledge is very useful because you never know whatkind of hazardous work you will be involved in in the future.

The qualifications that are directly related to my actual work are “Hazardous
Materials Handler” and “Second Class Assistant Plumbing Construction
Management Engineer.”In the future, I would like to become a “first-class plumbing construction
management engineer” and a “person in charge of refrigeration equipment.”
My work is mainly related to refrigeration equipment, and I am stationed at
the refrigeration equipment warehouse and try to respond immediately to any
problems that arise. The work of a person in charge of refrigeration equipment
is to perform safety duties at facilities that produce high-pressure gases forrefrigeration, which I believe will be useful for my career in the future.

Q What other efforts did you make?
I just tried to keep a cheerful smile on my face. There are many male workers
at the site, and some of them have harsh personalities or a scary vibe, but
if you just smile, you can quickly get along with them, and I think this iscommon no matter where you go.

11 / 39

Outputs

Foundations Financial data Stock information

I am currently engaged in estimating, designing, and preparing slips inaddition to supervising work. I like going out into the field and giving
instructions through physical work because it is very rewarding, but I also likedesigning. For example, I think it is worthwhile when a construction project
I designed is approved. The general manager of the company where I am
dispatched is very considerate and allows me to experience various types ofwork, saying, “It is good to experience a variety of things before settling on
what you want to do for a long time.”

Q How is Yumeshin’s training useful?

BeNext-YumeshinGroup Integrated
Report2022
2022
夢真ビーネックスグループ
統合レポートStrategies of each segment and results

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Message from COO

Changes in External Environment | Inputs

Medium-term management plan “BY25”

Business Activities

Purpose Index 3:

Career advancement

Employees’ Voices

Yu Kumanomido (joined in April 2020)
IT Engineer
BeNEXT Solutions Inc.

Q Did you have any knowledge of IT before you joined the company as a
new graduate?

No, I had no knowledge at all. I originally intended to become a childcare
worker and attended a childcare course at university.
However, when I was hunting a job, I happened to see a news reportthat said, “Inconvenience in the countryside can be solved by the powerof IT.” In Oita Prefecture, where my grandmother lives, it was impossible
to go shopping without a car, and there were many inconveniences in the
countryside. I decided to become a system engineer because I thought that
if I acquired IT knowledge, I might be able to help my grandmother.

Q What kind of work did you do after joining the company?

Outcomes

Purposemy current project. “Would you like to try your hand at system design?” I was
asked by my division manager. Since system design is an upstream process,
I was able to find exactly the job I wanted. It was my second year.

Q I have since obtained my AWS certification.
AWS certification certifies that you have the necessary knowledge for yourjob in Amazon Web Service, a cloud service provided by Amazon. There are 12
different types (as of October 2022) in terms of difficulty and field of study.
Not long after I was involved in the system design process, my sales
representative suggested that I take the “AWS Certification Training” as partof the company’s internal group training*. This training course is a twomonth intensive curriculum designed to prepare participants to pass two
types of certifications. Therefore, it is not possible to balance the training
with my regular work.
* The AWS certification training is an internal training program of Yume Technology, and we are training IT engineers
in cooperation with other companies in our corporate group.

Q Were you able to take a break from your work?
I was not sure, but the client said, “You can take a break if it’s for twomonths,” so I was able to take the course away from my work.

Yes, I did. I was able to return to my former
job and continue working on system design
project I was in charge of before I left.
Everyone at my workplace said, “We are glad
you came back,” which made me happy.

Q What did you actually study?

Q What are your future career plans?

Within a year of joining the company, I obtained three IT-related certifications,First, I want to take my current project to theincluding the IT Passport.

finish line. After that, I hope to be able to use
my knowledge of AWS certification and work in the upstream process again.
Career-wise, I am closer to being an infrastructure engineer than a developer,
so I would like to become a full-fledged person in that field.

My sales representative approached the client company, which led me to

12 / 39

Outputs

Foundations Financial data Stock information

I had no IT experience, and due to the COVID-19 pandemic, it was difficult tofind a job in the beginning. There was a period of time when I had to work injobs unrelated to IT. After that, I was involved in operation and maintenanceat the data center and clerical work, but my desire to work in upstream
processes such as design as a system engineer was strong, and I repeatedly
said to my sales representative, “I want to work in more upstream processes.
I am making this much progress in my studies.”

Q How did you get involved in the upstream process?
BeNext-Yumeshin Group Integrated Report 2022

Strategies of each segment and results

Q Were you able to return to your former workplace afterwards?

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Changes in External Environment | Inputs

Message from COO

Medium-term management plan “BY25”

Business Activities

Retention rate
For continuous employment, we believe it is necessary to
improve retention rate (100 - resignation rate) from the initial
80% or less at the beginning of the BY25 and have it as one of
the “Purpose Index.”
On the other hand, our company’s value in Purpose is that
it is one of the possibilities to move on to the next career after
resigning, and we especially encourage temporary workers
to work for a company to which they are assigned. Based onthese ideas, the medium-term management plan “BY25” aims
to achieve a retention rate of 85% of regular employees (inJapan) by the final year of the plan (FY 06/25), while striving to
improve the retention rate every year as a balance not to force
retention too much.
In FY 06/22, retention rate was 82.6%.
Results

85.0

Targets

85

82.7

82

Our corporate group believes that employees who are
motivated to work, not by loyalty to the company or a strong
sense of belonging, will lead to their own growth, and will be
more active and highly regarded by client companies.
Therefore, we will analyze changes in the NPS® over thefour years of BY25 based on the worker NPS® for engineers
and technicians, and take action accordingly.
As a “Purpose Index,” we have set a target of increasing
the ratio of passives (7 and 8 points) and promoters (9 and
10 points) in the NPS® from 0 to 10 points by 1.2 times in FY
06/25, three years after the results of FY 06/22.
Since this is an indicator of rate of change, theannouncement will be based on results for FY 06/23.

81.8

Total training hours*2

FY23

FY24

FY25

Related indicator (retention rate)
Number of job transfers toclient companies in FY 06/22

319 people
Voluntary resignation rate in FY 06/22
98%•• • • • • • • • • • • • • •BeNext-Yumeshin Group Integrated Report 2022

13 / 39•• • • • •55 people

842,769 hours
22,406 people
1,419 million yen•••••••

Total training investment*2
Number of new IT-related
certifications acquired by
employees*2
Number of new construction-related
certifications acquired by
employees*2•••••••••••••••••••••••••••••••••

We surveyed the degree of recommendation for working at our
corporate group with a range from 0 to 11*. Then, NPS® wasused to indicate the value (percentage) which was obtained bydeducting “9 to 10 (promoters)” from “0 to 6 (detractors).”
In the first fiscal year, NPS® of our group companies wasfrom 0 to -82.8. The ratio of promoters and passives was 29.1%
in total.
* Each company conducted the survey with a range from 0 to 10.
Detractors

Passives

Promoters

0 1 2 3 4 5 6 7 8 9 10Each company analyzed the Purpose Index,
and continually promoted Pe activities, which
implement measures to attain the purpose throughtheir businesses, and initiatives on material issues.

We will increase the ratio of
promoters and passives

1.2-fold by FY 06/25.

••••••••••••••

25.6%
Percentage of foreign nationals
3.5%
Percentage of seniors
2.6%
Ratio of employees with disabilities
2.32%
Paid leave utilization rate
71.76%
Number of serious occupational
30 cases
accidents
Percentage of women*1•••••••••••••••

Total number of trainees*2

80
FY22

PurposeOther output-related indicators (engineers and technicians)

Related indicator (career advancement)

810Outcomes

NPS® (Net Promoter Score) is a registered trademark of Bain & Company, Inc., Fred Reichheld
and Satmetrix Systems, Inc. (current NICE Systems, Inc.).

Number of employees transferred
between group companies*2

82.6

83

Outputs

Related indicator (career opportunities)

84.0

84

Foundations Financial data Stock information

Purpose Index 5: Engagement

Purpose Index 4:(%)
86

Strategies of each segment and results

2,564 cases
2,004 cases••••••••••••••••••••••••••••••••••*1• • • • • • • • • • • • • • • • • • • •*1• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •*1• • • • • • •*2•• • • • • • • • • • • • • • • • • • • • • •••••••••••••*3

Number of use of helpline andother consultation services*2••••••••••••••••

45 cases*1. Domestic: End of June 2022
*2. Domestic: FY 06/22 (annual)*3. Domestic: Cases resulting in four or more days of absence from work or residual disability
in FY 06/22 (annual)

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model Material issues

Changes in External Environment | Inputs

Message from COO

Medium-term management plan “BY25”

Business Activities

Strategies of each segment and results

Outputs

Foundations Financial data Stock information

Outcomes

Purpose

Outcomes
We will provide new value to various stakeholders through our business activities and outputs.

We will provide new value to realize happiness ofeach and every one of our diverse stakeholders.
Engineers and technicians
Encounter with a wide variety of jobs
Provision of many career opportunities toacquire new skills
Support of new career development

Employees
Rewarding work
Environment which enables employees toflourish in diverse working environments andaccording to their ages
Personnel who can support careerdevelopment

Society

Expansion of possibilities of industry development, etc.
through the sustainable revitalization of the labor market
and active participation of human capital
Clients
To meet the needs of human resources by
providing clients required personnel
Contribution to the human resource
strategies of clients

Shareholders and investors
Provision of return over a long period
BeNext-Yumeshin Group Integrated Report 2022

14 / 39

Purpose
BeNext-Yumeshin Group’s purpose

Open up individual potential
through rewarding work

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model

Material issues

Material issues Message from COO

Medium-term management plan “BY25”

Strategies of each segment and results

Foundations Financial data Stock information

Improvement of outcomes/attainment of purpose

Improvement in output (statuses of Purpose Index and human capital)-We will achieve each desirable figure of “Purpose Index” by attaining the “goals” through initiatives on the four material issues.

<Purpose Index 1><Purpose Index 2>

Number of employees Job placement opportunities

1<Purpose Index 3>

Career advancement

Support for career development and well-being
Personnel development
through training and education

Provision of
rewarding work

<Purpose Index 4><Purpose Index 5>

Retention rate

Engagement

2 Contribution to the sustainable development of the labor market

Promotion of
the work-life balance

Promotion of diversity & inclusion

Coexistence with society

Creation of value

3 Business foundations protecting security and safety
Pursuit of occupational safety
and health

Securing of information security
and protection of privacy

4Highly transparent organizational foundations
Tightening ofgovernanceCompliance with laws
and regulations

Thoroughgoingrisk management

Foundation for business
For the creation of the mid/long-term value of our corporate group, our material issues are related
to mainly human capital, which is the most important for input, and we will address the material
issues through business activities based on human capital. We believe that the initiatives foraddressing material issues will help attain our purpose and solve social issues.
As material issues, we have identified “support for career development and well-being,”“contribution to the sustainable development of the labor market,” “business foundations protecting
security and safety” and “highly transparent organizational foundations,” We have also classified
BeNext-Yumeshin Group Integrated Report 2022

15 / 39them into “opportunities,” which would improve the value of our business (value creation), and“risks,” which would arise due to failure (business foundation).
Opportunities (value creation) are “support for career development and well-being” and“contribution to the sustainable development of the labor market,” and risks (business foundation)
are “business foundations protecting security and safety,” and “highly transparent organizationalfoundations.” We put importance on the efforts to seize the opportunities and avoid the risks asmaterial issues.

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation modelMaterial issues Message from COO

Medium-term management plan “BY25”

Identification process

STEP 1: Selection of themes for potential challenges

Considering elements which could possibly pose a challenge and should be addressed when
thinking of sustainable growth (potential themes), we took into consideration investigation
items of major ESG evaluation institutions as well as our company’s purpose, etc., to select
17 potential themes based on international frameworks (GRI Standard, SASB, and SDGs).

STEP 2: Narrowing down challenges with a significant impact on the company

We evaluated the potential themes selected in STEP 1 based on the opinions of our
stakeholders inside and outside the company and narrowed them down to challenges
with a significant impact on our company. We conducted interviews with the management
and surveys among the staff inside the company and engaged in dialogue with outside
specialists outside the company.
As for the interviews of the management, we included executive officers of holding
companies and presidents of major group companies in addition to full-time directors
including the Representative Director and interviewed them on the priority of the potential
themes prepared by the secretariat.
Furthermore, we conducted dialogue with outside specialists on the priority of thepotential themes, in the same way as interviews with the management.
Moreover, as for surveys among our staff, we implemented an investigation of items
considered important in the personnel service business during a staff survey by the HR
department.
We narrowed down matters which could possibly pose a significant challenge out ofthese results.

STEP 3: Identification of material issues

We created a final draft of material issues based on the last version of the extracted potential
themes with a high priority and identified them following a discussion and formulation at aworkshop of the management meetings and confirmation by the Board of Directors.
BeNext-Yumeshin Group Integrated Report 2022

16 / 39

Priority matrix of potential material issues
Out of the 17 material issues, five challenges (Tier 1) were recognized as having high priority both
inside and outside the company and other three (Tier 2) were acknowledged as having high priority
either inside or outside the company.

<Priority matrix of in-house management executives and stakeholders>Priority degree from stakeholders

In regard to identification, we placed importance on the viewpoint of our stakeholders,
not only our corporate group. In the process of STEPs 1-3 as outlined below, we narrowed
down our challenges through the selection of potential challenges referring to frameworks
in Japan and overseas, interviews of the management, dialogue with specialists, surveys
among our staff, etc.

Foundations Financial data Stock information

Strategies of each segment and results

No.7

Tier 2Tier 1

No.8

No.6

No.14

No.11
No.12

No.3

No.5

No.16 No.17
No.13

No.9

No.4
No.10

No.1
No.2

Tier 2

No.15

Priority ranking of the in-house management

We extracted the last version of the potential themes with a high priority
through the aforementioned process (please see below).
We classified the last version of the potential themes as follows.
Tier 1: R ecognized as having an especially high priority by “both” the management and staff (inside thecompany) and specialists (outside the company): Five themes
Tier 2: R ecognized as having an especially high priority by “either” the management and staff (inside
the company) and specialists (outside the company): Three themes<Last version of potential themes for material issues with a high priority>
Tier 1

No.3

Pursuit of occupational safety and health

No.7

Provision of rewarding work

No.8

No.5

Promotion of the work-life balance

Personnel development through training and education

No.14 Achieving thorough governance, risk management and compliance in group management
Tier 2

No.6

Promotion of diversity & inclusion

No.10 Securing of information security and protection of privacy

No.11 Coexistence with society

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model

Material issues

Message from COO Medium-term management plan “BY25”

Strategies of each segment and results

Foundations Financial data Stock information

Message from COO

To open up the potential of
workers, build a virtuous cycle
for the elevation of customer
satisfaction, recruitment andretention, and realize our purpose

Daio Sato
President andRepresentative Director, COO“The year of integration” ended favorably.
It has been over a year since the establishment of the BeNext-Yumeshin Group in April 2021 and
we reported our financial results in June 2022.
While the social and economic circumstances remain unstable due to the novel coronavirus
and the situation on Ukraine in addition to the rapid depreciation of the yen, we recognize that
there has not been a considerable impact on the business of our corporate group. However, we
think that it is necessary to keep an eye on how the global inflation and downturn of economic
growth are going to influence the situation in Japan.
We recognize that the current challenge of our corporate group business is the fact that our
supply is not keeping up with the demand of our client companies. Personnel staffing businesslike ours used to be called “the control valve of economic situation” and has been considered as
extremely vulnerable to recession, but this kind of role has shrunk in recent years and the chroniclabor shortage is now continuing even if the economic situation worsens. While we recognizethat our business will not be significantly impacted by economic trends, we surmise that we willcontinue to face hardships when it comes to recruiting sufficient personnel.
Nonetheless, the term ended June 2022 (hereinafter referred to as “FY 2022”), which was
the “year of integration” for our corporate group, ended favorably in terms of performance as
well. Revenue were 101.7% of our forecast. We made upward revisions to the earnings forecast
BeNext-Yumeshin Group Integrated Report 2022

17 / 39

for all types of profit during the term, and all profits exceeded this forecast, reaching 106.3% forOperating profit (110.8% of the forecast at the beginning of the term), 111.3% for ordinary income(136.3% of the forecast at the beginning of the term) and 132.3% for profit attributable to ownersof parent (225.7% of the forecast at the beginning of the term), respectively. Moreover, as we
expanded our investments in recruitment during the second half of the term, the number of ourengineers and technicians also increased more than we expected.
I think that one of the major causes of this positive performance is the fact that the
management integration progressed relatively smoothly. Of course, this does not mean that we
did not encounter any obstacles, but we managed to make a favorable progress especially in thedevelopment of management divisions. In addition, it was significant in terms of business that wemanaged to properly build the relationship of mutual support at an early stage through the crosssectoral exchange of information.

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model

Material issues

Message from COO Medium-term management plan “BY25”

Strategies of each segment and results

Foundations Financial data Stock information

Message from COO

Formulation of the medium-term management plan “BY25”
Our corporate group holds up the purpose of “Open up individual potential through rewarding
work.”
It is sometimes said that “there will be less work for people as AI evolves” in the future outlook,but in my opinion, work which can be done only by people will remain in the end and “workers” willcontinue to be needed. On the other hand, the level of work sought by client companies will beeven higher, while the value of “working” diversifies. I believe that we also need to keep growing instep with the changing times so that we can meet such kind of demand.
In order to realize this growth, we formulated the medium-term management plan “BY25,” forthe four business years from the term ended June 2022 to the term ending June 2025.
The aim of BY25 is to achieve “the growth of profit for realizing a sustainable society,” and work
toward the confirmation and accomplishment of the above-mentioned purpose as something forwhich everybody in the group aims.
While there are many competitors, our corporate group is expanding shares targeting low-end
and middle-end clients, who are dominant in the technical personnel staffing market in Japan.
Based on this condition, we stated becoming “a leading company in the technical personnel
staffing industry” as our goal in BY25.
In order to proactively forge ahead with new challenges and accelerate our growth speed, we
have set the quantitative goals of 200 billion yen in Revene and 16 billion yen in Operating profit
as our promised goal, and Revene of 250 billion yen and Operating profit of 25 billion yen as achallenge goal, so as to aim even higher.

◦Revene plan

◦Operating profit plan(100 million yen)(100 million yen)

1,566 1,640

Target value(Challenge
goal)

Plan
(Promised
goal)

2,500

2,000

2021 2022 2023
Japanesestandard

BeNext-Yumeshin Group Integrated Report 2022

18 / 39

2025
IFRS

(FY)

116
53

Plan
(Promised
goal)

250

160

2021 2022 2023
Japanesestandard

Target value(Challenge
goal)

2025
IFRS

(FY)

To raise the comprehensive strength of the groupand bring about a virtuous cycle
Several months have already passed since the start of the second year of BY25 and I feel that asfor now, we are performing favorably, almost according to the plan.
What is the most important in order not to stop this growth speed is how we conduct
recruitment and how we train the recruited personnel. I believe that what is necessary for the
recruitment of many personnel is raising the comprehensive strength of the whole group.
What kind of company attracts people? It is a company where workers can properly acquire
skills, based on which their wages grow as well and they can do the work they want to. When
workers feel meaningfulness in their work and engage in their jobs, personnel will remain andpeople will gather there naturally. Furthermore, as these human resources demonstrate theirabilities at client companies, it will also lead to elevating the satisfaction of client companies.
I think that a company where this virtuous cycle is properly functioning is a company where people
gather, and consequently will become a company with high comprehensive strength. I am certainthat if this kind of virtuous cycle is created and functions properly, we will get closer to achieving
the quantitative goals stated in BY25. For this sake, our corporate group will primarily focus on the
recruitment and development of human resources.
While challenges toward this goal differ depending on the segments and business fields, I think that
it is important to keep raising the overall standard while we smooth out the unbalances between them.
For this, we need to properly maintain and elevate the strengths of our corporate group in each field.
In the machinery, electronics and IT software field, we have attracted diverse human resourcesby handling diverse projects, and our biggest strength lies in our capability to introduce humanresources who can meet the needs of each client company. We also assume that having the knowhow for training inexperienced personnel and introducing them in the IT field, where the labor
shortage is grave, is also connected to the acknowledgment from our client companies.
As for the construction management field, we assign follow-up staff to each and every
dispatched employee and provide a strong support system. By engaging in close communication
with both engineers and technicians and the client company, we not only bring about a reassuring
atmosphere, but have also succeeded in maintaining a low turnover rate compared to other companies.
Moreover, in the manufacturing field, our significant strength lies in the fact that we canimmediately introduce human resources in any area as we have engaged in marketing tailored foreach area.
The staffing business in the UK accounts for the majority of the overseas field and it is amarket where the needs for human resources are rapidly growing due to the decrease in foreign

CONTENTS
Strategy

Profile Strategy Message from CEO

Value creation model

Material issues

Message from COO Medium-term management plan “BY25”

Strategies of each segment and results

Foundations Financial data Stock information

Message from COO

workers brought about by Brexit and the stimulation of economic activities following the COVID-19
pandemic. As we have the opportunity to expand our shares and operation areas, we will forge
ahead with the development of our business portfolio, including highly specialized and highly
profitable operations.
In addition, I think that when considering the group as a whole, our primary strength lies in ourability to increase capable human resources instead of merely matching up human resources and jobs.
In other words, it is to produce new capable human resources by training the inexperienced
from scratch and having them acquire sufficient skills through the training programs preparedby our company, etc., and to provide meticulous follow-up and support afterward. This approachof developing “personnel” and treasuring them above everything else is characteristic of ourcorporate group, which is highly regarded by our client companies.
In order to achieve BY25, we are naturally going to recruit and develop even more humanresources and elevate their satisfaction from now on as well, and we would like to make endeavors
to secure diverse human resources by proactively forging ahead with M&A at the same time.
Nevertheless, we are not considering the expansion of our business portfolio through M&A. As wethink that there is still room for addressing the needs of our client companies even better in ourcurrent portfolio, we intend to enrich that part as our priority.
What we place the greatest importance on when it comes to considering our partners for M&A
is whether they agree with our corporate group’s purpose. If we can encounter a company whichshares our thoughts on this point and has a strength which we do not, we would be very pleased
to team up with them.

To make the term ending June 2023 “the year of growth”
I said before that the term ended June 2022 was “the year of integration.” In contrast to that, mycurrent intention is to make the term ending June 2023 “the year of growth.”
We will aim for the growth of each group company and focus on establishing the foundations
for expanding the range of that growth.
We believe that it will be an extremely important year also when it comes to implementing
BY25. As for concrete goals, we are planning to reach Revenue of 164 billion yen and an EBITDA of
11.6 billion yen, and increase the total number of engineers and technicians to 22,200.
In order to keep improving our performance, it is absolutely vital to become a “company where
people gather” or a “company chosen by workers.” As the labor shortage is lingering, we supposethat the way in which job seekers evaluate companies will become even stricter. We recognize that
implementing the “support for career development and well-being,” “contribution to the sustainable
BeNext-Yumeshin Group Integrated Report 2022

19 / 39

development of the labor market,” “business foundations protecting security and safety” and “highly
transparent organizational foundations,” stated as our material issues, is the basic requirement forbeing a “company that will be chosen.”

Treasuring “workers” above everything else
We are currently operating the personnel staffing business, while recruiting personnel even if they
are inexperienced and having them acquire proper skills through a training program, do a job theywant to in the market and actively work. We continue to place importance on “broadening the rangeof recruitment” and “developing human resources” as I myself have received the opportunity tohave a variety of experiences as a fresh working adult and I feel that I am where I am now because
I was able to grow through those experiences. I believe that receiving the opportunity to grow invarious ways will become considerable motivation when it comes to working and will enrich theperson’s life. Workers grow through work and experience a great feeling of accomplishment byworking at our corporate group. I would like to give this experience to as many people as possible.
If we treasure “individual workers” with this kind of mindset, the corporate value will improveand people will gather as a result, while elevating the customer satisfaction and realizing the
purpose. In order to realize this virtuous cycle and treasure “workers,” we shall increase employees
and client companies who share this kind of value and go on to grow.
-Open up individual potential through rewarding work
Our corporate group will continue its progress toward realizing this purpose without wavering.
We would appreciate your kind support and encouragement.

Strategy

Medium-term management plan “BY25”

Performance plan andstrategy
CONTENTS
ProfileStrategy

Message from CEO
Value creation model
Material issues
Message from COO
 edium-termMmanagement plan “BY25”
Performance plan andstrategy
Review of FY 2022 andforecasts

	Strategies of eachsegment and results

Foundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

20 / 39

Using the opportunity of management integration to set high management goals
in order to work on new challenges and further accelerate growth speed
On April 1, 2021, we took a new step forward as BeNextYumeshin Group, following the management integration of
BeNEXT Group Inc. and Yumeshin Holdings Co., Ltd. Using
the opportunity of management integration to work on new
challenges and further accelerate growth speed, we formulated
the “BeNext-Yumeshin Group medium-term management plan
BY25.” BY25 was formulated based on the three following points,
and covers the four years from the term ended June 2022 until
the term ending June 2025.

BY25
Promisedgoals

Revenue:

Operating profit:

200 billion yen 16 billion yen

Surrounding environment
1. Significant changes were brought to the working environment
such as workstyles and workplaces by the novel coronavirus.
2. Changes in the working environment prompt workers toreview what they work for and how they want to work.
3. On the other hand, the interest in SDGs has grown andpromotion of the “8. Decent Work and Economic Growth” in
SDGs is expected.

Situation of BeNext-Yumeshin Group
1. Becoming a staffing company that has the largest number ofengineers in Japan due to management integration
2. Operating business in diverse industries, including machinery,electronics, IT and construction management in Japan
3. Values, social significance and code of conduct which canbe shared by all group employees is required as we operate
diverse businesses.

 hat kind of vision do we have and what kind ofW
reform do we aim for?
1. Considering the growth of profit for the realization of asustainable society as a primary condition
2. Resetting and reconfirming the purpose of all group employees
in response to changes in the society and integration(Unit: million yen)

Revenue

FY25-FY22inc.

FY06/25
Challenge
goal

148,573 164,000 200,000

51,427250,000

FY06/22
actual

FY06/23
forecast

FY06/25
plan

IFRS

IFRS

IFRS

34,43239,00046,80012,36860,000

Ratio to sales

23.2%

23.8%

23.4%

0.2 pt24.0%

SG&A expenses

24,871

27,70030,8005,929

35,000

Ratio to sales

16.7%

16.9%

15.4%

−1.3 pt

14.0%

10,103

11,60016,0005,897

25,000

Ratio to sales

6.8%

7.1%

8.0%

1.2 pt10.0%

No. of employees

19,44822,200Gross margin

Operating profit

Strategy

Value creation model
Material issues
Message from COO
 edium-termMmanagement plan “BY25”
Performance plan andstrategy
Review of FY 2022 andforecasts

	Strategies of eachsegment and results

Foundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

21 / 39In FY 2022, we set the purpose of “Open up individual potential throughrewarding work” in order to confirm the direction in which our corporate groupis heading as it was the first fiscal year of the medium-term management plan
“BY25.” In addition, we launched “P Activity” to facilitate the understanding,diffusion, and action toward the realization of the purpose. Moreover, we
implemented the following measures for achieving our goals.
Streamlining management by changing and building the organizational structure
Integrating and relocating our offices to facilitate business streamlining
Expanding new business fields in the machinery and electronics segment through M&A
Integration of three IT
development-related companies
Three ITdevelopmentrelated companies
Information
Port
Arrow
Information

New company

Cooperation of three IT
infrastructure-related companies
in sales and recruitment
YUME
TECHNOLOGYOpen Up
SystemSBO

Integration and relocation of offices
IT-related group companies:
Integrating Tokyo branches in Akihabara
Construction group companies:
Relocation from Marunouchi to Toranomon

Enhancement
BeNEXT
Solutions

AXIS CREATE

Integration of machinery andelectronics business divisions
YUME
TECHNOLOGY

M&A with Nihon Axis
Recent performance

FY12/19
Net sales
606
Operating income Ratio to sales 46 (7.6%)

External environment
We recognize the following as the current external environment for achieving “BY25.”
Invasion of Ukraine by Russia: Stagnation of production activities stemmingfrom the lack of materials, and standstill of logistics
Inflation and rising interest rates: Who will bear the increase in costs (theside of supply or demand?)Concerns about worldwide recession: Decline in revenues of enterprises,
concerns about production adjustment
Nevertheless, as for the environment surrounding the business of dispatching
technical and manufacturing workers, the market will not be as weak as theunclear macroeconomy, and healthy demand is projected to continue.
Structural labor shortage: Demand for human resources did not decline evenduring the COVID-19 pandemic and is not prone to economic trends.
Japanese-style employment system and acceleration of technologicalinnovation: Companies will incorporate outsourcing in the development
process to maintain employment and achieve rapid technological innovation.

Continuous growth is projected thanks to high demand.

 usiness environment and initiatives in each field in the termBending June 2023
Business environment

Initiatives

Machinery andElectronics

Almost no requests for cost
reduction in development fromour clients.
Demand for human resources
remains high.

Elevation of skills and averagespending per customer basedon the establishment of the EV(Engineer Value) model.

IT

Booming regardless of theexternal environment.
Demand for human resources
remains high.

Developing the inexperienced
into mid-level engineers.

Construction
management

Structural labor shortage due tothe aging population, regardlessof the business environment.
Demand for human resources
remains high.

Pursuing the LTV (Life Time
Value) for engineers throughcareer support in acquiring
qualifications and reinforcementof the follow-up structure.
Cementing long-term
relationships with our clients.

Manufacturing

Suppression of production
occurring in some industries.
Demand for human resources
varies among industries.

Acquiring key clients in local
areas, and promoting retailsales.
Reinforcing our recruitment.

Worsening of revenues ofenterprises due to the inflation.
On the other hand, we suffer fromlabor shortage, which makes it
difficult to recruit personnel.

Raising profitability by
expanding the specialized work
sectors.

BeNEXT
Technologies
Machinery andElectronics
Business

Message from CEO

Looking back at the first fiscal year of “BY25”

Absorption
and split

Strategy

Revenue in the consolidated fiscal year (ended June 2022, hereinafter referred
to as “FY 2022”) stood at 148,573 million yen (up 50.2% year on year). The
main causes for this increase in revenue were the contribution made by theperformance of the former Yumeshin Holdings Co., Ltd., which joined our
corporate group as a result of management integration on April 1, 2021, in themachinery, electronics, IT and construction management fields throughout theterm, and the growth of performance in the manufacturing field brought about by
the recovery of the economic situation. In terms of profit, while growth caused byincrease in Revenue and growth in profit due to overall improvement of operating
rate in each field have been observed and there was a revenue of approximately
1.1 billion yen in employment adjustment subsidy, etc., we have recorded theamortization expenses for intangible assets caused by PPA stemming frommanagement integration especially in the construction management field,
and impairment losses on goodwill and intangible assets caused by PPA in
the overseas field. As a result, Operating profit stood at 10,103 million yen (anoperating loss of 25,220 million yen in the same period of the previous year),income before taxes was 10,238 million yen (a loss before taxes of 25,063
million yen in the same period of the previous year) and profit was 7,046 million
yen (a loss of 27,096 million yen in the same period of the previous year).

IT Division

ProfileAbout the forecast for “BY25”

Machinery andElectronics
Division

Medium-term management plan “BY25”

Review of FY 2022 andforecasts
CONTENTS

Business results(Unit: million yen)
FY12/20688
58 (8.4%)

FY12/21729
51 (7.0%)

Overseas

Strategy

Strategies of each segment and results

Machinery, electronics
and IT
CONTENTS
ProfileStrategy

Message from CEO
Value creation model
Material issues
Message from COO
Medium-term	management plan “BY25”
	Strategies of eachsegment and results
Machinery, electronics and IT
Construction management
Manufacturing/Overseas

Foundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

22 / 39

Strategies in the IT field

FY 2022 results

Revenue:

Operating profit:

70.6 billion yen 7.1 billion yen
Overview of business results
The performance of several companies such as Yume Technology Co., Ltd.,
which joined the segment as a result of the management integration on April 1,
2021, made a contribution throughout FY 2022. As for profit, while profit margin
slightly declined as we are making proactive investments in recruitment andtraining of the inexperienced as well as marketing activities with the scheme
for further increasing the number of assigned employees, operating rate has
shown an improving trend since the beginning of the term and there has also
been a steady progress in maintaining and improving average spending per
customer amid the growing demand for engineers.
As a result, Revenue of the segment in FY 2022 stood at 70,677 million yen(up 42.2% year on year) and segment profit was 7,118 million yen (up 58.8%
year on year).

Future outlook
In the machinery, electronics and IT field, we will forge ahead with expanding
the number of recruits based on proactive recruitment in machinery andelectronics as well as cost optimization, and work toward increasing thenumber of working employees and improving average spending per customer
by raising the number of assigned staff based on expansion into new areasand continuously recruiting the inexperienced and focusing on developing theirskills and career after they join the company in IT, in addition to deepening therelations with our existing clients, while maintaining high operating rate andhigh operation efficiency.

Strategies in BY25
[IT field] Training of inexperienced workers to develop

The environment surrounding the IT industry has changed considerably.
Further shortage of IT engineers
There is great demand for experienced IT professionals who can work
immediately.
From
now onA rapid increase in development needs accelerates the shortage of humanre-sources. Experienced workers are in short supply and cannot meet thedemand alone.
New technologies are emerging rapidly and cannot be handled byexperienced staff alone.

Lowering of the hurdle of IT technology
Medium-term period required to achieve business proficiency = High hurdle
to becoming an IT engineer
From
now onGeneral-purpose packages have become the mainstream due to theevolution of IT technology.
Shorter training periods possible in the low-code era for both development
and infrastructure

In-house IT development at user companies
End-user companies fully outsourcing IT development to system integrators
IT engineers are now concentrated in system integrators and orders have become
multi-tiered.
From
now onIT has become a key strategic business issue for business companies.
End-user companies are hiring IT engineers by themselves.
Promoting the in-house development of IT.

The industry is changing in a beneficial fashion for training-based IT
engineer staffing firms.

Strategies in the machinery and electronics field
By upgrading, enriching, and thoroughly pursuing the elements of the Engineer
Value (EV) model, we will further promote improvement in the skills and careersof engineers as well as average spending per customer.
Visualizing the“value”of engineers(middle-level) IT engineers[Machinery and electronics field] Establishment of an EV(Engineering Value) model to increase skills and averagespending per customer
Goal for
FY06/25

Revenue:

Operating profit:

97 billion yen 11 billion yen

Engineer
Value (EV)model

Increasing the“value”of engineers

Continuing to create
opportunities toendeavor to workon “the next”

Enriching the“potential”
of engineers

Actualizing the“active performance”
of engineersStrategy

Strategies of each segment and results

Construction
management
CONTENTS
ProfileStrategy

Strategies in BY25

FY 2022 results

Revenue:

Operating profit:

36.9 billion yen 5.3 billion yen
Overview of business results* Life Time Value: Total profit contribution during an employment period.

In FY 2022, profit increased due to the increase of employees in service and a
relatively high operating rate compared to the end of the previous fiscal year,
in addition to the inclusion of full-year results of Yumeshin Co., Ltd., which wastaken into account in this segment through the management integration on
April 1, 2021.
As a result, Revenue in this segment amounted to 36,921 million yen (up323.4% year on year) and segment profit was 5,327 million yen (a loss of
28,295 million yen in the same period of the previous year) in FY 2022.

Future outlook

Material issues

In the construction management field, to further fortify and expand our
position as an industry leader in Japan, we will work to increase the number ofexperienced workers in service through the diffusion of our corporate appeal
in recruitment activities, and promote the LTV of our engineers through thestrengthening of our business structure with major clients to stabilize longterm employment.

Needs from
corporations

Message from COO
Medium-term	management plan “BY25”

Effective use ofhuman resources	Strategies of eachsegment and results

Prompt acquisitionof human resources

Machinery, electronics and IT
Construction management
Manufacturing/Overseas

Foundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

23 / 39

Human resource
management
Follow-up systemof engineers

Goal for
FY06/25

Revenue:

Operating profit:

49 billion yen 6.8 billion yen

Strategies in the construction management field
To further fortify and expand our position as a leading provider of temporary
staffing services to the construction industry in Japan, we are aiming for stable
employment and stable transactions for both engineers and clients.

- Maximizing the LTV of engineers

Message from CEO
Value creation model

In order to further stabilize our position as an industry
leader, we will maximize the LTV (Life Time Value)* of ourengineers and cement long-term relationships with ourclients.

Establishment of a dedicated team to provide timely follow-up services toengineers on assignment
Prioritization of projects for assignment with emphasis on a high retention
rate
Sales andassignment
Staff

Staff
responsible forfollow-ups

Engineers in service
at each site

Needs fromjob-seekers
Largest number ofengineers in theindustry
Proposal of solutions
for each issue
Construction managing
engineerBest plan actualized
by economy of scale
New graduates/
inexperienced

Environment whichenables young
engineers to growand lead the industry

Construction managing
engineer

Optimal working conditions
More available options

Periodic timely
follow-ups

Sufficient support structure
New graduates/
inexperienced

Suitable career track
Environment which allows
for skill advancement
Stable job still needed in
the future*Surveyed by our company based on the IR materials of three major competing companies which engage inconstruction managing engineer dispatch business (as of June 2022)- Provision of systems and services that prioritize long-termtransactions with clients.
Dedicated sales staff will be assigned to major general contractors andother clients with multiple job sites and projects.
Prioritized assignment of engineers to clients with long-term, continuous
staffing requirements.
Measures such as web-based services will be implemented to improvebusiness operations jointly with clients, to generate benefits of continued
business with our company.

Strategy

Strategies of each segment and results

Manufacturing/Overseas
CONTENTS
ProfileStrategy

Message from CEO
Value creation model
Material issues
Message from COO
Medium-term	management plan “BY25”
	Strategies of eachsegment and results
Machinery, electronics and IT
Construction management
Manufacturing/Overseas

Foundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

24 / 39

Manufacturing field

Overseas field

FY 2022 results

Revenue:

9.6 billion yen

FY 2022 results

Operating profit:

500 million yen

Revenue:

Operating profit:

30.0 billion yen -400 million yen

Overview of business results

Overview of business results

In FY 2022, while demand for human resources was sluggish in someindustries due to supply limitations for parts and semiconductors, production
recovered in the field of raw materials, etc. due to a recovery in consumption
accompanying the easing of restrictions on activities, and other factors.
Although there were some variations among domains and clients, we continued
to secure orders through meticulous sales activities and maintained profitability
in the subcontracting business by continuing to focus on controlling cost ratio.
As a result, Revenue in this segment amounted to 9,682 million yen (up11.8% year on year) and segment profit was 561 million yen (up 11.8% year onyear) in FY 2022.

In FY 2022, demand for temporary staffing and fee-based job placement
services in the U.K. showed a recovery trend as the impact of the COVID-19
disappeared. Profit dropped due to a decrease in the number of workers fromoutside the U.K. following Brexit and the resulting higher costs of recruitment.
The public subsidies which ended last year also diminished profit, in addition to
impairment losses on goodwill and intangible assets from PPA.
As a result, Revenue in this segment amounted to 30,076 million yen (down
4.3% year on year) and segment profit was -417 million yen (a profit of 422
million yen in the same period of the previous year) in FY 2022.

Future outlook
In the manufacturing field, we aim to improve profitability by increasing sales
while maintaining and improving gross profit margin, thereby absorbing
increased recruitment and personnel costs.

Strategies in BY25
The acquisition of key clients in respective areas,
promotion of retail sales and the strengthening of ourunique recruitment for stable growth while maintaining
the highest level of profitability in the temporary staffing
industry for manufacturing.
Goal for
FY06/25

Revenue:

Operating profit:

17 billion yen 900 million yen

Strategies in the manufacturing field
We are committed to operating our business with an emphasis on efficiency rather
than business scale, and have achieved one of the highest levels of profitability
in the temporary staffing industry for manufacturing. Going forward, we will
promote area strategies and strengthen our unique recruiting activities with theaim of achieving stable growth while maintaining even higher profit margins.

Future outlook
In the overseas field, we will improve profitability in the manufacturing sector
and shift to expanding our business portfolio in the specialized work sector in
the medium term, as we begin to see signs of a lull in the job change market in
the wake of uncertainty of the economy due to concerns over fuel price hikes
and inflation associated with the situation in Ukraine.

Strategies in BY25
[Europe] Increase profitability by expanding thespecialized work sector[Asia] Maintain the status quo and look for opportunities toexpandGoal for
FY06/25

Revenue:

Operating profit:

35 billion yen 800 million yen

Strategies in the overseas field
Large-scale investments and new regional business development have reacheda milestone, and profitability has been secured. we will consider reconfiguring
our business portfolio and new approaches in each of the countries.

Foundations

Corporate governance
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

25 / 39

Philosophy/policy

Structure

Based on our purpose of “Open up individual
potential through rewarding work,” weconsider the continuous and stable elevationof corporate value to be the mission of
corporate management and promote efficientand profitable management while ensuring
the soundness of management.
Furthermore, we treat the reinforcementof the corporate governance system as one of
the most important management challenges
in order to maintain the transparencyof management and form favorable
relationships with our business partners,
employees, stakeholders in the region, society,etc. in addition to shareholders and investors
based on accurate and timely disclosure ofmanagement information, and engage incorporate activities which place sufficientimportance on social responsibility in striving
for the improvement of corporate governance.
Our corporate group has set up its meetingbodies and reporting lines flexibly so thatthey can be adapted to expansion in business
operations and changes in the environment tomake sure that control over labor and humanrights, which is vital for personnel service
business, reaches everybody, while having
the holding company supervise appropriate
business execution of the operating company
by adopting a holding company structure.
Moreover, the transparency and objectivityof our management are ensured through oursystem of the Board of Directors, the Board ofAuditors, etc.

Our directors, who are elected through general shareholders’ meetings, are responsible for making decisions onimportant matters concerning the management of the Group and for overseeing management with a view tomaking the soundness of management more transparent and ensuring that operations are implemented in an
appropriate manner. Additionally, we established a Board of Auditors based on the thinking that non-executive
auditors who are not involve in business operations are most suitable for auditing the execution of duties bydirectors to ensure sound management.
Also, in addition to holding management meetings with the aim of realizing swifter and more efficient decision
making and operational execution, we have also appointed five outside directors among our 10 directors in orderto reinforce management oversight, which includes supervising the appropriateness of the execution of duties bydirectors. In order to ensure audit effectiveness, three out of four auditors are independent outside auditors, andthese auditors strive to regularly collaborate with the accounting auditor and the Internal Audit Department.
As for other meeting bodies, we have set up the Internal Controls Committee and the Sustainability
Committee under the jurisdiction of executive directors, arranged the management structure for operatingcompanies and are reporting the situation thereof to the Board of Directors in a timely manner.

 ddressing the principles ofA
the corporate governance code
We implement all principles of the corporate
governance code. Please see
the corporate
governance report (EN) for the latest situation
regarding each principle.

Governance framework
General shareholders’ meeting
Appointment/dismissal

Oversight ofbusiness
operations

Appointment/dismissal

Appointment/dismissal

Board of Directors

Board of Auditors

Audit

Ratio of female directors: 30%

ReportAppointment/
dismissal
proposals
Full-time
Recommend

Nominating Committee/
Remuneration Committee

Appointment/
Flag
Executive
dismissal
issuesdirectors
Oversight
Report Comprised of a majority of outside directors
Chaired by an outside director

Business
operations

ReportFull-time
Consult

Oversight
and direction

Internal Controls
Committee
Management
meetings

Flag issues/
reportExecutive officers at
subsidiaries (presidents)

Sustainability
Committee

Other, Investment
Consideration Board
Human Resource Committee

Board of Executive Officers

Coordinate

Report(dual reportinglines)

Accounting
auditsInternal
Audit
Department

Risk andopportunity
management

Realizing suitable governanceBusiness divisions (subsidiaries) for each subsidiary
Board of Directors

Audit

ReportRepresentative CEO
directors
COO
Full-time directors

Accounting
auditor

Audit

Auditors

Compliance meetings

Executive director/
full-time auditor
Outside director/
outside auditor

Foundations

Corporate governance
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

26 / 39

Directors/Board of Directors

Nominating Committee/Remuneration Committee

Our Board of Directors is composed of ten directors (including five outside
directors). As a general rule, ordinary Board meetings are held once a monthand extraordinary Board meetings are held as needed. The Board decides
matters stipulated by law and other important management matters, and also
monitors director performance. We appoint two representative directors and in
July 2021, we gave them the titles CEO and COO, distributing the roles of eachdirector to arrange the system for mutual monitoring.

Although we are not a company with committees as stipulated in Japan’sCompanies Act, we have set up the Remuneration Committee and Nominating
Committee with the aim of ensuring management transparency and objectivity.
Members of both committees are appointed through resolutions of the Boardof Directors and in order to ensure objective decision-making, a majority ofmembers must be outside directors who are not directly involved in business
operations, and the committees are chaired by outside directors.

Number of meetings attended Attendance
rate

Nominating Committee Remuneration Committee
Number of
Number ofmeetings Attendance meetings Attendance
rate
rate
attendedattended
Newly
Newly
―
―
appointed on
appointed on
Sep. 2022
Sep. 2022
Newly
Newly
―
―
appointed on
appointed on
Sep. 2022
Sep. 2022

Position
Chairman and
Representative
Director, CEO
President andRepresentative
Director, COO

Name
Yutaka Nishida

17/17

100%

Daio Sato

17/17

100%

Director

Kenjiro Ogawa

17/17

Director

Hiroshi Sato

Director

Position

Name

Outside Director

Mari Oshima

100%

Outside Director

TomokoKawakami

17/17

100%

Noriyuki Murai

17/17

100%

Outside Director

Mari Oshima

Newly appointed on Sep. 2022―

Outside Director(Chair of the Remuneration Rieko Zamma
Committee)

Outside Director

Tomoko Kawakami

Newly appointed on Sep. 2022―

Outside Director

Rieko Zamma

15/17

88%

Outside Director

Arata Shimizu

17/17

100%

Outside Director

Yoichi Wada

12/13

92%

* Information regarding the name, number of meetings attended and attendance rate is for the term ended June 2022.

Outside Director

Arata Shimizu

Outside Director(Chair of the Nominating Yoichi Wada
Committee)
Chairman and
Yutaka Nishida
Representative Director, CEO
President andDaio Sato
Representative Director, COO

1

100%

3

100%

1

100%

3

100%

1

100%

3

100%

1

100%

3

100%

1

100%

3

100%

* Information regarding the name, number of meetings attended and attendance rate is for the term ended June 2022.

Auditors/Board of Auditors
We are a company with a Board of Auditors. The Board of Auditors consistsof four members (three of whom are outside auditors) and meetings are held
once a month as a general rule. Each member audits the performance of thedirectors based on the audit policies, audit plans, and division of duties decided
at Board of Auditors meetings.
Board of Directors
Board of Auditors
Number of Attendance Number of Attendance
meetings
meetings
rate
rate
attendedattended

Position

Name

Full-time
Outside Auditor

Fujio Shimokawa

17/17

100%

16/16

100%

Outside Auditor

Toshio Nago

16/17

94%

15/16

94%
―
100%

AuditorHajime Mita

17/17

100%

Newly
appointed on
Sep. 2022

Outside Auditor

Hiroaki Rokugawa

17/17

100%

16/16

* Information regarding the name, number of meetings attended and attendance rate is for the term ended June 2022.

Accounting auditor
We have appointed Ernst & Young ShinNihon LLC. as our accounting auditor.
Our Board of Auditors and Internal Audit Department work with the accounting
auditor to enhance the quality and efficiency of audits.

Management meetings
We have set up management meetings as a meeting body that determines
important matters concerning business execution in the extent defined by the
Board of Directors in a flexible manner while maintaining transparency andobjectivity. As of the end of September 2022, it is composed of representative
directors, full-time directors and executive officers (13 in total). Importantmatters concerning business execution consulted with the management
meetings are deliberated among the members and a resolution is passed by
the approval of the majority of representative directors and full-time directors(5 in total). Management meetings are held weekly as a general rule, working
toward swifter decision-making.

Foundations

Corporate governance

Executives
Please see

the list of executives (EN) on our website for the biography of each executive.

Directors (in-house)

selected by the Nominating Committee, whose majority is composedof outside directors appointed through the resolution of the Board of
Directors, from the viewpoint of having a high level of professional ethics
and being able to continuously elevate the corporate value of our corporategroup in the medium/long term while respecting the rights and positionof our stakeholders. A resolution is then passed by the Board of Directors
following deliberations and discussed at general shareholders’ meetings.

Yutaka Nishida,

Daio Sato,

Chairman andPresident andRepresentative Director, Representative Director,
CEO
COO

Kenjiro Ogawa,Director

Hiroshi Sato,
Director

Noriyuki Murai,
Director

Corporate governanceComplianceDirectors (outside)

including the CEO and COO (representative directors) is determined by the
Board of Directors following sufficient inquiry, debate and recommendationby the Nominating Committee in case a lack of suitability has beenrecognized, for example, when the situation and quality of their businessexecution failed to meet the required level. Moreover, the Nominating
Committee discusses the education and training of candidates for the CEO
and COO (representative directors) successors, or the possibility of inviting
successors from outside the company.

 riteria for the judgment of independence ofCindependent outside directors and the quality thereof
Mari Oshima,
Outside Director

Tomoko Kawakami,

Rieko Zamma,

Arata Shimizu,

Toshio Nago,

Hajime Mita,

Hiroaki Rokugawa,Outside Director

Outside Director

Outside Director

Auditor

Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

27 / 39<Nomination of auditor candidates> As for auditor candidates, we
strive for selecting individuals from the viewpoint of having the knowledge,
experience and ability to perform accurate and fair audits of the executionof directors’ duties as well as necessary knowledge regarding financial
matters and accounting. After acquiring approval from the Board ofAuditors, a resolution is passed by the Board of Directors following
deliberations and discussed at general shareholders’ meetings.
<Dismissal of management executives including the CEO andCOO (representative directors)> Dismissal of management executives

ProfileFoundations

The policy and procedure for the appointment and dismissal ofmanagement executives including the CEO and COO and the nomination of
director and auditor candidates are defined as follows.

<Nomination of director candidates> Director candidates are

CONTENTS
Strategy olicy and procedure for appointment, dismissalP
and nomination

Fujio Shimokawa,Full-time Outside
AuditorOutside Auditor

AuditorOutside Auditor

Yoichi Wada,

Outside Director

Criteria for the judgment of independence of independent outside directors
and the quality thereof are defined as follows.
Our company selects individuals who have not been executive directors
or business executors at our company in the past and who meet therequirements for an outside director as defined in the Companies Act aswell as the requirement of being an individual who presents no concern
in having a conflict of interest with general shareholders as defined in
the Tokyo Stock Exchange criteria for independence. Moreover, we invite
individuals with abundant experience and extensive expertise in theirrespective fields with the objective of elevating the transparency andsoundness of decision-making concerning management, such as advice
and checking from an independent position.
Furthermore, the majority of our directors are outside directors with theobjective of providing management appropriate advice and suggestions
based on an outside perspective from an objective standpoint as well
as reinforcing supervisory functions of the Board of Directors. Moreover,by having outside directors serve as chair of the Nominating Committee
and Remuneration Committee, which are advisory bodies to the Board of
Directors, we ensure the appropriateness and transparency concerning theappointment and compensation of directors.

Foundations

Corporate governanceDirector skills matrix
Combinations of skill categories according to the management environment and business nature of our company and each director’s career are as follows.
Type

Knowledge and experience that are important for Group management (skill categories)
Executive of aGovernance,
DigitalTechnology/
listed company/
M&As,
Finance andsocialtechnology education ineconomics, International
investment,
financialresponsibility,business
experienceand cyber science andand PMIstrategyandadministration,
securitytechnology
sustainability
etc.

Position at thecompany

Name

Age

Industry Management
Outside Independent
experience experience

Chairman and
Representative
Director, CEO

Yutaka Nishida

59

◎

○

President andRepresentative
Director, COO

Daio Sato

38

○

◎

Director

Kenjiro Ogawa

49

○

○

Director

Hiroshi Sato65

Director

Noriyuki Murai

50

Director

Rieko Zamma

72

■

■

Director

Arata Shimizu

50

■

■

Director

Yoichi Wada

63

■

■

CONTENTS

Director

Mari Oshima

60

■

■

ProfileDirector

TomokoKawakami

57■■

Strategy* The matrix shows the top three skills each director is particularly expected to demonstrate for the group. For representative directors, the skill each director is particularly expected to demonstrate for the company is represented by a ◎ mark.
* Age as of Sept. 2022

Foundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

28 / 39

○

○
○
○

○

○

○

○
○

○
○

○

○
○

○

○

○
○

○
○

○

○

○

○

 ombination of skill categories according to management environment and business natureC
Reason for selecting the skill category
The group puts an emphasis on growth potential so we need directors who can make management judgements based on actual experience of thechanges, challenges, opportunities, and other aspects of industry.
As a group comprising multiple business companies, we need directors with comprehensive experience of managers, including business promotion andManagement experiencerisk management.
Executive of a listed company/
We need directors who have experience of business promotion and risk management in a variety of industries or extensive knowledge on businesseconomics, business administration, etc. administration which enables them to contribute to enhancing the objectivity and transparency of the group’s management.
The group conducts business in the U.K. and many other countries around the world, so we need directors who have international management experience
International experienceand an understanding of overseas environment.
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 have diverse experience in regard to M&As.
The group is looking to invest in growth (M&As) and to stably enhance shareholder return, so we need directors with wide-ranging knowledge andFinance and financial strategy
experience of finance and other related matters.
Governance, social responsibility, andWe aim to realize sustainable growth while staying in harmony with society, so we need directors with experience in fields such as governance, risksustainability
management, and social contribution.
The group is advancing a digital transformation, so we need directors with knowledge and experience of making appropriate judgements in this field and of
Digital technology and cyber security
the new risks associated with IT.
Technology/education in science andWe need directors with expertise regarding the changes and trends in technology concerning manufacturers who are our clients, as well as the education
technologyof human resources who have to adapt.
Industry experienceFoundations

Corporate governance
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

29 / 39

Analysis and assessment of the overall
effectiveness of the Board of Directors

Once each fiscal year, we carry out an assessment of the effectiveness of
the Board of Directors in order to verify that the Board is properly fulfilling thefunctions expected of it and to improve its performance. An overview of theanalysis and assessment of the effectiveness of the Board of Directors in thefiscal year ended June 2022 is as follows.

The method and process of the analysis and assessment
We assessed the effectiveness of the Board of Directors through the following
process.
Targets: All directors and auditors (14 people in total)
Assessment method: A self-administered questionnaire survey was carriedout and an assessment was made at the Board of Directors based on theaggregation and analysis of the survey answers.

Overview of the analysis and assessment results
It was recognized that the Board of Directors appropriately fulfills its expectedrole of supervising the management, making decisions concerning importantmatters, etc. and that it does not exist as a mere form, but its effectiveness issufficiently ensured as follows.
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.
Furthermore, following challenges were extracted from this term’s assessment.
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
planning and education.
Enhance the advance provision of materials and administration of Board
meetings in order to further improve deliberation on agenda items anddiscussion of management matters by the Board of Directors.

Please see
the corporate governance (EN) report for details of theeffectiveness assessment.

Officer remuneration

Our policy for decisions, procedures and resolutions regarding the remuneration
for directors and auditors is as follows.

Policy for determining officer remuneration, etc.
(Executive directors)
The remuneration for our representative directors and full-time directors
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 determinedbased on the group’s business performance over each fiscal year. It is paid asa short-term incentive with the aim of strengthening the executive directors’commitment to enhancing business performance Moreover, it is designed asa fluctuating sum multiplied by 0-150% including cancellation of the payment
according to the extent to which the announced performance forecast ofordinary income was achieved.
Restricted stock remuneration is an allotment of shares in the company
awarded each year 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 asa restriction period and an option for the company to reacquire the shares
without compensation.
(Outside directors)
Remuneration comprises fixed remuneration only in order to preserve a
standpoint independent of business operations. The amount paid to eachdirector is determined based on professional expertise and other factors.
(Auditors)
Remuneration comprises fixed remuneration only in order to preserve a
standpoint independent of business operations. The amount paid to each
auditor is determined based on discussions with said auditor.

Resolutions regarding the sum of officer remuneration, etc.
Based on the resolution passed at the extraordinary general shareholders’meeting held on March 26, 2021, the sum of the remuneration for our company
directors shall be up to 600 million yen per year (out of this sum, the portion foroutside directors shall be up to 100 million yen per year).
Moreover, a resolution to adopt the restricted stock remuneration wasmade at the 14th general shareholders’ meeting held on September 21, 2018,with the objective of having directors (excluding outside directors) stably holdour company shares in a long term, giving them the incentive to work toward

Foundations

Corporate governance
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management

continuous improvement of our corporate value and promoting further sharingof value with our shareholders. Remuneration based on this system is thesum of monetary compensation claims provided as remuneration related torestricted stocks, etc. to the respective director apart from the aforementioned
remuneration for directors, and based on the resolution passed at theextraordinary general shareholders’ meeting held on March 26, 2021, it shallbe up to 400 million yen per year. As for the sum of remuneration for auditors,
it shall be up to 100 million yen per year based on the resolution passed at theextraordinary general shareholders’ meeting held on March 26, 2021.

Processes for determining officer remuneration, etc.
Regarding remuneration for directors, we ensure the transparency andobjectivity of the entire remuneration system, including remuneration levels
and processes for determining remuneration, by having it considered by
the Remuneration Committee, which is comprised of a majority of outside
directors who are appointed through the resolution of the Board of Directors,
and reported to the Board of Directors. Therefore, in order to determine thefixed remuneration and performance-linked remuneration, the Remuneration
Committee first considers the remuneration details for each individual anddescribes them in a report for the Board of Directors. After this, representative
directors are fully entrusted with the final decision to pass a resolution following
the discussion of the report by the Board of Directors. Furthermore, in order todetermine the restricted stock remuneration, the Remuneration Committee firstconsiders the remuneration details for each individual and describes them in areport for the Board of Directors. After this, a resolution is passed by the Boardof Directors.
The policy regarding the decision on the ratio of the payment of respective
remuneration is considered every fiscal year by the Remuneration Committee
and fixed remuneration generally accounts for 50%, while the sum of thereference value of the performance-linked remuneration and the restricted
stock remuneration makes up 50%.
Breakdown of executive director remuneration
About 50%

About 50%

Fixed remuneration

Performance-linked remunerationand the restricted stock
remuneration

Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

30 / 39

With regard to fixed remuneration and performance-linked remuneration for
the term ended June 2022, following a prior consideration by the Remuneration
Committee, the Board of Directors approved that representative directors
will be fully entrusted with the report of the Remuneration Committee on
September 28, 2021, when the 17th ordinary general shareholders’ meeting washeld, and the remuneration was determined through the deliberation of both
representative directors on the same day. As for restricted stock remuneration,
following a prior consideration by the Remuneration Committee, it was also
determined by the Board of Directors on September 28, 2021, when the 17th
ordinary general shareholders’ meeting was held.
Sum of remuneration, etc. in the term ended June 2022
Type of
Officer

Total of each type of remuneration
Total(millions of yen)remuneration,
Performance- Restricted
etc.
Fixed
linkedstock(millions of yen) remuneration
remuneration remuneration

Numberof eligible
officers

Directors(outside
directors)

313
(41)

195
（41)

45
(─)

72
(―)

11
(5)

Auditors(outside
auditors)

23
(23)

23
(23)

―
(―)

―
(―)

4
(4)

Total
(outside
officers)

337
(64)

218
(64)

45
(―)

72
(―)

15
(9)

Notes:
1. The table above includes one director who retired as of the conclusion of the 17th ordinary general shareholders’meeting held on September 28, 2021.
2. Officers eligible for restricted stock remuneration are directors, excluding outside directors, and allotted shares areawarded with a restriction period spanning from 3 years to 30 years which were determined by the Board of Directors
and an option for the company to reacquire the shares without compensation.
3. Officers eligible for performance-linked remuneration are directors excluding outside directors and the compensation
paid in the term ended June 2022 depends on the extent of achievement in the term ended June 2021, which is theprevious term. Ordinary income in the relevant term reached 4,935 million yen, while the goal set at the beginning of
the term was 4,800 million yen, and the reference value of the performance-linked remuneration was multiplied by
130% according to the extent of achievement, following a discussion of the Remuneration Committee.
4. Out of the four auditors in the term ended June 2022, four are outside auditors.

Foundations

Compliance
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

31 / 39

Philosophy/policy

Executives and employees of our corporate group are required to act withrigorous professional ethics, profound insight, and self-discipline, and we regard
compliance as following not only laws and regulations but also corporate
ethics and social norms. “Corporate Ethics for Society, Human Rights, and theEnvironment” has been established as the action guidelines, and we follow it as
our basic philosophy and policy.
 or more information about “Corporate Ethics for Society, Human Rights, andF
the Environment,” click here (EN).

SystemThe compliance promotion system of our corporate group is based on the
supervision and instruction of our company as a holding company, with amonthly compliance meeting set up for each major company in our business(responsible persons: presidents of operating companies), and othercompanies also carry out equivalent compliance-related checks on a monthly
basis, to assess their situation in detail, so that all operating companies canagilely respond accordingly.
The holding company fulfills functions of monitoring the effectiveness andcontrol of the compliance meetings established at each operating company,
and our company’s Board of Directors receives monthly reports on the status ofthese activities and encourages them to make improvements. In addition, a fulltime director who oversees compliance under the supervision of an executive
officer of the General Affairs and Legal Department is in charge of compliancefor the entire group.
As it is important that compliance related to our business is handledautonomously by the system within each operating company, the compliance
meetings (or checks covering control details) are held monthly as anopportunity for operating companies to constantly check and rectify theircompliance status. At these meetings, we share the status of guidance fromthe Labor Bureau and the Labor Standards Inspection Office, and properly
identify issues to be addressed as well as efforts on reduction of working
hours and related to laws and regulations, to provide instructions and carrythem forward. Furthermore, we monitor items related to human rights, theenvironment, information management, misconduct, whistleblowing, etc., andquickly assess the situation and take countermeasures if a serious incident
should occur.

Response to amendments to related laws andregulations, and review of appropriate operations
Human Resources Services, our main business, are regulated by laws andregulations such as the Labor Standards Act, the Act on Securing the Proper
Operation of Worker Dispatching Businesses and Protecting Dispatched
Workers, and the Employment Security Act, and we consider complianceefforts to be extremely important.
Specifically, we promote various measures such as management of working
hours, promotion of the use of paid leave, measures to prevent industrial
accidents, review of employment and contract terms and conditions,prevention of harassment, and health management, in cooperation with related
departments in operating companies.
Moreover, we have established policies on the prevention of bribery andcorruption, the elimination of antisocial forces, and prevention of insider tradingin the “Corporate Ethics for Society, Human Rights, and the Environment,”
with which all executives and employees must comply, and provide employee
education on these matters.

Education and training on compliance

Our corporate group considers that education and training are our important
initiatives in maintaining and promoting compliance, and conducts an annual“Compliance Confirmation Test” for all in-house employees* for all groupcompanies. The test consists of questions on the understanding of the
purpose, questions on business ethics, and questions on general laws andregulations. In addition, materials with easy-to-understand explanations oneach topic are distributed with the aim of deepening their understanding ofcompliance.
* In-house employees: Employees working in the sales, recruitment, administration, and other departments (including
contract employees)

Whistle-blowing system utline of theOwhistle-blowing
systemBoard of Directors
ReportResponsible person: Director inGroup Administration
charge of complianceDepartment of the company
Execution: Executive Officer, General(holding company)
Affairs and Legal Department

Monthly Monitoring and Guidance

ReportCompliance meetings (major operating companies)
Responsible person of each company:
Presidents of operating companies
Confirmation of facts, rectification, measures to prevent recurrence

Compliance item checks (other companies)

ReportingInternal reporting
contact point

Harassment
consultation desk

(internal) Group Administration Dept.
Reporting

Whistleblower
Consulter

Number of reports Outline of cases
Rectification and measures to prevent recurrence

Auditor contact
point(auditors)

External reporting
contact point(law firm)

Reply as needed

All employees of our group(Retirees including)Foundations

Risk management
CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

32 / 39

Philosophy/policy

We recognize that the role of risk management is becoming increasingly
critical as uncertainty surrounding the business environment, such as trends
in client companies caused by economic security, the diversified working
patterns and values in the wake of the COVID-19 pandemic, has been growing.
In order to enhance the effectiveness of measures against risks in theenvironmental, social and governance aspects, management processes havebeen systematized in accordance with our corporate group’s organization andbusiness, so that monitoring and decisions can be made at the management
meetings, the Sustainability Committee, the Internal Controls Committee, andthe Board of Directors.

SystemOur system for risk management was set up in two aspects. One is for ourcompany (holding company) to confirm risks including the medium/long-termrisks on an annual basis, and the other is for operating companies to confirm
risks on a constant, bottom-up basis.
The approach on an annual basis is done through the Sustainability
Committee and the Internal Controls Committee. The Sustainability Committee
manages risks through general management and deliberations of opportunities
and risks, etc. for the realization of a sustainable society, while taking into
consideration human rights, the environmental issues and coexistence withsociety. The Internal Controls Committee evaluates and identifies impacts andpossibilities according to changes in the external environment, using a generalrisk catalog in addition to the categories related to financial reporting.
These committees are both chaired by the Chairman and Representative
Director, CEO, and composed of the President and Representative Director,
COO, full-time directors, and executives and employees of our corporate group
appointed by the chair. The outcomes of these discussions and evaluations arereported to the Board of Directors.
For constant risk management in operating companies, potential risks
are identified at their compliance meetings, which are held or conduct checks
on a monthly basis, so that systematized control is in place to ensure thatrisks are controlled by continually implementing individualized measures andmonitoring. In addition, we have established “Group Company Management
Rules” and “Reporting Rules,” which require reporting to or obtaining approval
from the company, and carry out management by identifying matters that may
pose risks and instructing how to respond to them.
Moreover, the company’s Internal Audit Department conducts internal
audits of the overall business activities of the group companies, and eachgroup company reports to our auditors and the Internal Audit Department on
the status of business execution including risk information.

Identification and management of risks

Our corporate group has developed the risk catalog as a fundamental databasefor risk identification. The risk catalog is a comprehensive list of 207 specificrisks that can be assumed from all factors surrounding our corporate group,
including the external and internal environment. On an annual basis, we review
the risk catalog on internal control and identify risk items in the business.
Important matters requiring countermeasures are discussed and resolved at
the management meetings and the Board of Directors of the company.

Major risks and the status of countermeasures
Major risks and description

Major countermeasures and status of the implementation

Spread of COVID-19
Decrease in demand from the client companies due
to business closures and personnel cutbacks andadjustments (a decrease in the number of enrolled
employees of the company and the lower operating
ratio).
Impact of further spread of infection on clientcompanies’ activities.
Circumstances that may restrict the economic
activities of employees.

To establish a business operation system that improves efficiency, while
implementing infection control measures taking into consideration
the individual business environment, such as further penetration of
telecommuting and online meetings, using a follow-up system for employees
in recruitment and sales, and engineers and technicians.

Climate change and natural disasters
Suspension of business activities in some areas due
to natural disasters including earthquakes, tsunamis,
and typhoons.
Possibility of disability to work due to damage toclient companies.
Client companies request carbon neutrality initiatives
in their business partners.

To conduct risk assessment related to climate change and natural disasters,
led by the Sustainability Committee, and systematize the flow of studies onchanges in risk situations and responses to them.
To establish a system and IT infrastructure capable of providing backup atother regional sites even if a certain level of impact occurs.
To apply environmental performance of products and promotional materials
as the selection criteria, and promote initiatives to reduce CO2 emissions by
reducing the number of company vehicles and reusing materials.

Legal restrictions
Violation of laws and regulations related totemporary staffing and job placement services (inJapan, they are the Labor Standards Act, the Act on
Securing the Proper Operation of Worker Dispatching
Businesses and Protecting Dispatched Workers, theEmployment Security Act, etc.).
Tighter guidance policies of the supervisory authorities
and implementation of our corporate group’s efforts
not adequately reflected in the client companies.
In addition, future revisions to related laws andregulations and tighter guidance principles ofthe supervisory authorities will cause the clientcompanies to re-evaluate their use of temporary
staffing and outsourced contractors, resulting in a
decline in demand.

To implement reviews and checks in the work flow to prevent violations fromoccurring, and carry out monitoring on a regular basis and prevention efforts
through the compliance meetings.

Client information management
Incidents of leaks and unauthorized use ofconfidential information of the client companies.

To provide all employees with guidance and education on the handling ofconfidential information when they join the company and on a regular basis.
To monitor and inspect the status of information management throughoperational audits and the compliance meetings.
To restrict access to IT devices that process client information andimplement measures to prevent leaks.

Personal information management
Incidents of leaks and unauthorized use of personal
information.

To properly manage personal information, establish related rules andregulations, acquire the Privacy Mark, and conduct employee education when
they join the company and on a regular basis.
To monitor and inspect the status of information management throughoperational audits and the compliance meetings.
To restrict access to IT devices that process personal information andimplement measures to prevent leaks.

Industrial accidents
Impact on lives and bodies as well as suspension oftransactions due to serious industrial accidents.

To provide safety and health education and training in cooperation with clientcompanies at the time of the assignment, etc. to prevent industrial accidents.

Business contracting (contracted services, etc.)
In the event of suspension of business with aclient company or a claim for compensation fordamages, due to poor quality, late delivery, defects indeliverables, etc., in the provision of services basedon a contract agreement.

Provide services after preliminary study and preparation for possible risks
associated with business contract in the outsourcing contract different fromthe temporary staffing service, because we will be providing instructions
for the execution of work and assuming management and supervisory
responsibilities.

Acquisitions, business alliances, etc.
Impact of not achieving expected results on
performance.

To follow the procedures for carefully conducting multifaceted verificationand evaluation of confirmation items at investment review meetings when
considering M&As and other transactions.
Focusing on PMI in M&As, we conduct checks of PMI resources, postacquisition management, and measure and determine the ongoing return ofinvestment, from the time of consideration.

Foundations

Sustainability
management

Purpose and basic sustainability policy

Our corporate group’s basic perception in promoting sustainability
activities is to continue our long-lasting business activities for the
future through actions in harmony with human society and the naturalenvironment. Based on this perception, we have established thefollowing “Basic Sustainability Policy” based on the “Purpose,” which is
the most important approach of our corporate group.

Basic Sustainability Policy
The Group’s purpose is to “open up individual potential throughrewarding work.” The Group aims to help build a sustainable
world and achieve corporate growth by working closely with job
seekers (the people we find work for), our corporate clients, andall stakeholders to promote solutions through our business for theissues human society faces.

Dialogue with stakeholders

Our corporate group has established internal rules that respect the position of
stakeholders involved in carrying out the business activities. We have establishedthe “Corporate Ethics for Society, Human Rights, and the Environment,”“Environmental Preservation Rules,” “Health and Safety Rules,” etc. to build soundrelationship with customers, employees, local communities, society, shareholders
and investors, to contribute to society, and to conduct our business with integrity.
Primary responsibilities, main point of contact and methods for communication
Stakeholders

CONTENTS
ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

33 / 39

Methods (systems of respective Major operating companies)

Engineers andtechnicians(off-site employees)

Human Resources
Department of operatingcompanies, etc.

Training, on-the-job training, backup and support
Career development support
Employee survey
Contact for reporting, etc.

Employees(in-house employees)

Human Resources
Department, etc.

Career development support
Contact for reporting, etc.

Customers

Sales Department
and Administrative
Department of operatingcompanies

Customer complaints and inquiries (extract and respond ona monthly basis)
Customer satisfaction survey
Contact for reporting, etc.

Shareholders

IR Department

General shareholders’ meeting
Announcement of financial results and financial results
briefing sessions
Sending information through IR information (website), etc.

SocietyGroup Planning
Department

Community-level volunteer activities
Participation in local community events
Social contribution activities, etc.

Sustainability system

Our corporate group has established a system under the Sustainability
Committee, which meets at least twice a year, designed to promotesustainable development by continuously expanding our corporategroup’s business and solving social issues.
The Sustainability Committee manages the review and update of
the value creation process and material issues, while discussing risk
management and countermeasures related to sustainability in themedium/long term. Risk management includes matters concerning
human rights and the environment, as well as considerations of theframework of TCFD recommendations. The Sustainability Committee
is one of the executive bodies and is chaired by the Chairman and
Representative Director, CEO, which consists of the President andRepresentative Director, COO, full-time directors, presidents of the major
operating companies, and executives and employees of our corporategroup, appointed by the chair.
In addition, the Sustainability Committee oversees occurrence andresponse management of sustainability-related items in risk management
at the monthly compliance meetings (reporting) in each operatingcompany, and the Sustainability Committee and the compliance
meetings are managed by the same administrative department (theGroup Administration Department), thereby promoting management of
the sustainability-related structure throughout the fiscal year.

Communication
Point of contact

Employee survey

External recognition, awards, etc.
Our company

Yume Technology Co., Ltd.

DX certification by the Ministry of Economy,
Trade and Industry

Received the Rising Star of the Year at“AWS Japan Certification Award 2020”

Specific subsidiary BeNEXT With Inc.

You can find more information here (JP).
Kanagawa SDGs
Partner

Sagamihara SDGs Partner“Monisu certification(certification forsmall and mediumsized business
operators excellingin the employmentof persons withdisabilities)” by the
Ministry of Health,Labour and Welfare

Foundations

Other (human resources,
human rights,
communities, andthe environment)

Human resources

Human rights

For our corporate group, the sourceof value creation is “each individual(worker),” and we believe thatmaintaining and improving theenvironment in which all employees canwork vigorously with confidence are thefoundation for unlocking the potentialof each individual. As a corporategroup engaged in the human resources
service business, we strive to fulfill our social responsibilities through various
efforts and to improve employee engagement.

The source of value creation of ourcorporate group with the Purpose“Open up individual potential throughrewarding work” is “each individual(worker),” and we believe that therespect for human rights is thefoundation for blooming the potential of“each individual (worker)” in society.
To ensure that everyone working forour corporate group understands how to respect human rights and that
respect for human rights is maintained, the following items are set forth in
the “Corporate Ethics for Society, Human Rights, and the Environment” aspart of our policy on human rights. As a corporate group engaged in humanresources services, we believe it is our responsibility to respect humanrights of all people affected by our business activities and fulfill our social
responsibilities in accordance with the “Corporate Ethics for Society, Human
Rights, and the Environment” and related laws and regulations,

CONTENTS

Communities

ProfileStrategyFoundations
Corporate governanceCompliance
Risk management
Sustainability management
	Other (human resources,
human rights,
communities, andthe environment)

Employment of
human resources
and human resources
development

To promote activities
of diverse humanresources

To establish a goodworking environment

You can find more information here (JP).

Our corporate group actively promotes
activities that contribute to local
communities and society, emphasizing
the viewpoint of the Purpose “Open up
individual potential through rewarding
work,” in our involvement with
communities, not only in our businessactivities, but also in our non-businessactivities. Particularly, we placeemphasis on support and cooperative activities related to expanding various
possibilities and creating opportunities for people and organizations, and wework with local governments, NGOs, NPOs, and other diverse stakeholders, torealizate a better society.

Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

34 / 39

You can find more information here (JP).

You can find more information here (JP).

The environment/
TCFD Recommendations

In order to realize a society that is
capable of sustainable development
and contribute to the conservation of
the global environment in all of ourbusiness activities while taking into
consideration the impact on the naturalenvironment and biodiversity at all
times, we have established a basic
environmental policy .
Our review and disclosure of TCFD recommendations is updated on our
website (in Japanese).
Environmental
policy1. Compliance with
2. Reduction ofenvironmental laws
environmental
and regulations
burdens

3. Conservation of
biodiversity

4. Conduct

6. Continuous
promotion

5. Education

You can find more information here (JP).

Foundations

Non-financial indicators
CONTENTSFor ESG data and non-financial information, click here (EN).

We actively disclose non-financial data on our website, including “Purpose Index”, and updating it quarterly or annually by item.
The following data is for FY 06/22 in Japan.

Information on the distribution of human resources
Item
Human resources composition

StrategyFoundations

Item

Engineers and technicians: 91.6%
Employees (managers): 1.3%
Employees(non-management employees): 7.1%

Age composition

29 or younger: 45.3%
Age 30 to 39: 29.1%
Age 40 to 49: 14.0%
Age 50 to 59: 9.1%
Age 60 and above: 2.6%

Ratio of female employees

25.6%

Ratio of non-Japanese employees

3.5%

Ratio of employees who are 60 and over

2.6%

Ratio of employees with disabilities

2.32%

Total hours of training
Total number of training participants

Most recent data
842,769 hours
22,40630%

Ratio of outside directors (As of Dec. 2022)

50%

Ratio of non-Japanese directors (As of Dec. 2022)

0%

83.2%

Ratio of female managers

10.5%

Serious advisories concerning licenses

0

Criminal or corruption claims or high-value legal actions

0

Number of serious information leak incidents

0

Ratio of employees who received compliance training

93%

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

82%

Amount spent on political donations and lobbying

0 yen

1,419 million yen

Number of transfers to client companies

319

I nformation on environmental conservation andsocial contribution activities

Risk management

Voluntary turnover rate

98%

Item

Sustainability management

Paid leave utilization rate

71.8%

Compliance	
Other (human resources,
human rights,
communities, andthe environment)
Non-financial indicators

Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

35 / 39

3

Ratio of managers who are joined mid-career

Total investment in education and training

Corporate governance

Most recent data

Ratio of female directors (As of Dec. 2022)

Independent officers’ meetings

Information on investing in human resources and well-being
Item

ProfileInformation on governance

Most recent data

Amount spent on regional and social contribution activities

Most recent data
38,513,000 yen

Employees taking childcare/nursing care leave(The parenthesis represents male employees)

225
(19)

Amount of paper purchased (by weight)

23.1 tons

Serious workplace accidents

30

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

3.83 tons

Reports made through whistleblowing channels(Reports concerning highly serious matters)

45(0)

CO2 emissions (amount generated by office electricity use andgasoline consumption during commutes)

732 tonsFinancial data

Major financial indicators
CONTENTS
ProfileStrategyFoundations
Financial data
Major financial indicators
	Consolidated financial
statements, etc.

Stock information
BeNext-Yumeshin Group Integrated Report 2022

36 / 39

For performance and financial information, click here (EN).

Major financial indicators [Unit: Millions of yen]

[Unit: Millions of yen]th

17 Term

Net sales

14th Term 15th Term 16th Term

18 Term

FY endedJune 2021

FY endedJune 2022

Japanese standards

IFRS

95,110

For reference: The former BeNEXT Group, Inc. [Unit: Millions of yen]th

Revenue

148,573
10,238FY ended FY ended FY ended
June 2018 June 2019 June 2020
Japanese standards

Net sales

65,36381,59681,755

Ordinary income

4,228

5,606

4,771

Profit attributable to owners ofparent

2,569

3,706

1,335

Ordinary income

4,935

Profit (loss) before income taxes

Profit attributable to owners of parent

2,611

Profit (loss) attributable to owners ofparent6,975

Comprehensive income

2,992

Comprehensive income attributable toowners of parent

Comprehensive income

2,711

3,672

1,182

6,750

Net assets

13,71515,802

14,765Equity attributable to owners of parent

63,309Total assets

28,127

31,20731,730Net assets per share [yen]320.65364.26341.89Net income per share [yen]

64.31

87.47

31.34

Diluted net income per share [yen]

63.98

87.20

31.18

78.30

Shareholders’ equity ratio (%)

48.3

49.5

46.2

78.03

ROE [%]

25.5

25.5

8.9

Net assets

96,169Total assets

129,374

Net assets per share [yen]1,057.43

Net income per share [yen]47.65

Diluted net income per share [yen]47.49

Shareholders’ equity ratio (%)

74.2

ROE [%]

4.7

Price-earnings ratio (times)

26.8

Cash flow from operating activities

3,510

Cash flow from investing activities△1,350Cash flow from financial activities△5,155

Term-end balance of cash and cash
equivalents
No. of employees[Average number of temporary workers]

Total assets

96,521Equity attributable to owners of parent
per share [yen]716.32

Basic profit (loss) per share [yen]Diluted profit (loss) per share [yen]Price-earnings ratio (times)

30.3

17.5

30.0

Cash flow from operating activities

5,144

5,028

4,819

10.9

Cash flow from investing activities△2,720△1,430△1,98919.1

Cash flow from financial activities

2,415△2,748△1,8309,410

10,257

11,15817,552[—]

20,329[—]18,125[—]

Ratio of equity attributable to owners ofparent [%]65.6

ROE [%]
Price-earnings ratio (times)
Cash flow from operating activities

15,501

Term-end balance of cash and cash
equivalents

Cash flow from investing activities△2,161

Cash flow from financial activities△22,046

No. of employees[Average number of temporary workers]

21,044

Term-end balance of cash and cash
equivalents

12,40430,067[—]

No. of employees[Average number of temporary workers]

29,084[—]Notes
1. The parenthesis in the space for the number of employees represents
the average number of temporary workers per year. Since the ratio of
temporary workers to regular employees is insignificant, we omitted it.
2. On July 1, 2019, we conducted a 2-for-1 stock split for commonshares, but we calculated net assets per share, net income per share,and diluted net income per share, while assuming that said stock split
was carried out at the beginning of the 14th term. The share price asof the end of the 15th term is the ex-rights price after said stock split.
The price-earnings ratio in the 15th term was calculated by dividing
the ex-rights share price by net income per share calculated while
taking into account said stock split.
3. “The Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29; March 31, 2020),” etc. have been applied since the beginningof the consolidated fiscal year ended June 2022, and the major
management indicators, etc. for the FY06/22 reflect said accounting
standard, etc.

Notes
1. Since the 18th term, we have been producing consolidated financial
statements in accordance with the International Financial ReportingStandards (hereinafter called “IFRS”).
2. The parenthesis in the space for the number of employees represents
the average number of temporary workers per year. Since the ratio of
temporary workers to regular employees is insignificant, we omitted it.
3. Diluted profit (loss) per share in the 18th term was calculated without
taking into account 584,577 shares, which are antidilutive, amongshare acquisition rights.

For reference: The former Yumeshin Holdings Co., Ltd.

[Unit: Millions of yen]

FY ended
September
2018

FY ended
September
2019

FY ended
September
2020

Japanese standards

Q2(six months)of FY ended
September
2021

IFRS

Net sales/revenue

40,41952,50558,66929,106

SG&A expenses

7,152

10,552

10,248

5,509

Operating income

5,186

4,719

5,306

1,905

Ordinary income

4,940

4,557

—

—

Net income/profit
for the period

3,635

2,504

3,557

706

Total assets

23,571

28,86336,39931,728

Net assets

13,972

11,92011,561

10,854

Financial data

For performance and financial information, click here (EN).

Consolidated financial
statements, etc.

Consolidated statement of financial position (IFRS)Previous consolidated
fiscal year
[Unit: Millions of yen]

(June 30, 2021)

Cash and cash equivalents

21,13812,404

Operating receivables and other receivables

19,913

20,108Other financial assets

1,100

1,239

Other current assets

4,599

2,856

Total current assets

46,75136,609

1,626

Right-of-use assets

2,613

3,304

Goodwill

45,60545,362Intangible assets

2,461

Foundations
Financial data
Major financial indicators
	Consolidated financial
statements, etc.

Stock information
BeNext-Yumeshin Group Integrated Report 2022

37 / 39

1,624

1,630

455

661

Other financial assets

3,129

4,002

Deferred tax assets

2,691

2,789

Investment accounted for by equity method

Other non-current assets

500

536

Total non-current assets

59,08359,912

105,835

96,521[Unit: Millions of yen]

Strategy[Unit: Millions of yen]

Non-current assets
Property, plant, and equipment

Balance as of July 1, 2021
Net income (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Changes due to business combination
Dividend of surplus
Acquisition of treasury shares
Retirement of treasury shares
Change in the scope of consolidation
Stock-based remuneration transactions
Exercise of share acquisition rights
Change in short-position put option liabilities for non-controlling shareholders
Increase/decrease in equity due to the acquisition of shares of consolidated subsidiaries
Transfer from other components of capital to retained earnings
Total amount of transactions with owners
Total change
Balance as of June 30, 2022

Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Other components of capital
Total equity attributable to owners of parent
Non-controlling interest
Total shareholders’ equity
Total liabilities and shareholders’ equity

Capitalstock

CapitalsurplusRetained Treasury
earnings shares

4,436

82,779△22,646
6,975

△329

—
124

—
124

6,975

—

△16
6

124
124
4,561

36
3
0
△ 568
29
△385
△385
82,394△3,962△4,05073△280△18△4,262
2,712△19,933

Previous consolidated
fiscal year
Liabilities and shareholders’ equity
Liabilities
Current liabilities
Operating payables and other payables
Corporate bonds and debts
Income taxes payable
Other financial liabilities
Reserves
Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds and debts
Other financial liabilities
Deferred tax liabilities
Reserves
Other non-current liabilities
Total non-current liabilities
Total liabilities

Current assets

 onsolidated statement ofCchanges in equity (IFRS)Profile(June 30, 2022 )AssetsTotal assets

CONTENTS

Consolidated fiscal
year under review△3,976△3,976△4,306(June 30, 2021)

Consolidated fiscal
year under review(June 30, 2022 )

2,880
4,695
1,260
4,439
1
17,832
31,110

2,617
1,257
1,774
4,490
68
17,585
27,793

6,307
1,881
50
295
1,468
10,004
41,114

591
2,805
26
436
1,523
5,382
33,176

4,436
82,779△ 22,646△ 329
703
64,943△ 222
64,720105,835

4,561
82,394△ 19,933△ 4,306
594
63,30935
63,34596,521

Consolidated fiscal year under review (July 1, 2021 to June 30, 2022)
Equity attributable to owners of parent
NonTotal
Other components of capital
controlling
net
Share
Exchange differences Financial assets measured Remeasurement
Total
interest
assetsacquisition
on translation of
at fair value through otherof the definedTotalrightsforeign operations
comprehensive income
benefit plan
88
714—
703 64,943
64,720
△99
△222
6,975
71
7,046
△118
△104
△1
△224
△224
△0
△225
—
6,750
70
6,821
△118
△104
△1
△224
65
65
△184
△184
—
—
—
— △3,962△3,962— △4,067△4,067
—
80
80
—
—
△75
△75
313
313
349
349
—
—
△3
△3
—
△280
△280
—
262
△568
△305
1
—
—
△12
△10
125
—
1
114 △8,384
187△12△8,196
125
—
258
△118
△116
△109 △1,634△1,375
213
596
—
594
63,30935
63,345△215

Financial data

For performance and financial information, click here (EN).

Consolidated financial
statements, etc.

 onsolidated profit-and-loss Previous consolidated
Cfiscal year
statement (IFRS)(July 1, 2020 to June 30, 2021)(July 1, 2021 to June 30, 2022)

Revenue
Cost of sales
Gross profit
SG&A expenses
Other revenue
Other expenses
Operating profit (loss)
Finance profit
Financial expenses
Investment gain on equity method
Profit (loss) before income taxes
Income taxes
Profit (loss)

98,887
79,525
19,361
14,5191,471
31,533△25,220144
104
115△25,063
2,032△27,096

148,573
114,141
34,432
24,876
1,664
1,116
10,103202
183
115
10,238
3,192
7,046

Profit (loss) attributable to
Owners of parent
Non-controlling interest
Profit (loss)△27,12226△27,096

6,975
71
7,046

Net income (loss) per share [yen]Basic profit (loss) per share [yen]Diluted profit (loss) per share [yen]△494.85△494.85

78.30
78.03

[Unit: Millions of yen]

 onsolidated statement ofCcomprehensive income (IFRS)[Unit: Millions of yen]

Profit (loss)

CONTENTS
ProfileStrategyFoundations
Financial data
Major financial indicators
	Consolidated financial
statements, etc.

Stock information
BeNext-Yumeshin Group Integrated Report 2022

38 / 39

Consolidated fiscal
year under review

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurement of the defined benefit planTotal of items that will not bereclassified to profit or loss
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation offoreign operations
Equity of other comprehensive income ofaffiliates accounted for by the equity method
Total of items that may be reclassified
subsequently to profit or loss
Other comprehensive income after income taxes
Other comprehensive income
Other comprehensive income attributable to
Owners of parent
Non-controlling interest
Other comprehensive income

Previous consolidated
fiscal year
(July 1, 2020 to June 30, 2021)

Consolidated fiscal
year under review(July 1, 2021 to June 30, 2022)△27,096

7,046

20

△104

4

△1

24

△106

745

△231

26

113

771

△118

796
△26,300

△225
6,821

△26,383
83△26,300

6,750
70
6,821

 onsolidated statement ofCcash flows (IFRS)[Unit: Millions of yen]

Cash flow from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Impairment loss (or reversal)
Interest received and dividends
Interest paid
Investment loss (gain) on equity method
Loss on retirement of fixed assetsD ecrease (increase) in operatingreceivables and other receivablesIncrease (decrease) in operating
payables and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income tax paid
Cash flow from operating activities
Cash flow from investing activitiesP urchase of property, plant and equipment
Purchase of intangible assetsP urchase of the shares of subsidiaries
accompanied by the change in the scopeof consolidationP roceeds on sale of the shares ofsubsidiaries accompanied by the change
in the scope of consolidationP ayment of contingent compensation forshares of subsidiaries
Purchase of investment securities
Other
Cash flow from investing activities
Cash flow from financial activitiesN et increase (decrease) in short-termborrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease liabilities
Payment of dividends
Purchase of treasury sharesP urchase of the shares of subsidiaries
not accompanied by the change in thescope of consolidation
Other
Cash flow from financial activities
Effect of exchange rate changes on cash
and cash equivalents
Increase (decrease) in cash and cash
equivalents
Initial balance of cash and cash equivalents
Increase in cash and cash equivalents due
to merger
Term-end balance of cash and cash equivalents

Previous consolidated
fiscal year
(July 1, 2020 to June 30, 2021)

Consolidated fiscal
year under review(July 1, 2021 to June 30, 2022)△25,063
1,883
31,428
△62
95
△115
69

10,238
3,008
1,039
△73
160
△115
13

△360

145

221

293

1,701
9,797
116
△88
△4,5905,234

2,673
17,38392△164△1,80915,501

△193
△124

△438
△127

△674

△647

—

△483

△343

△365

△175
130
△1,381△82△17△2,161△416△759△1,212△196△2,220△1,786△25△8,485△231△4,113△3,969△4,050

△731

△512

8
△6,581

74△22,046289△26△2,438△8,733

10,835

21,13812,740—21,13812,404

Stock information

For details, click here (EN).

Stock information

Basic information and status of shares
Securities code
Stock listing

Securities companies

3.4%

Prime Market, Tokyo Stock Exchange
360,000,000

Shares outstanding

91,280,119

Share trading unit

100 shares

Shareholders

Self-owned 2.9%2154

Authorized shares

Stock information

Breakdown of shareholders by type (as of June 30, 2022)

Financial institutions

17.9%

Individuals,
other

41.0%

Overseas investors

17.3%

22,036

Other corporations

Major shareholders (as of June 30, 2022)
Name of shareholders

Shares held

Shareholding
ratio (%)

1

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

8,993,300

9.9%2

Hayao Nakayama

8,378,000

9.2%

3

Amuse Capital, Inc.

8,240,000

9.0%

4Custody Bank of Japan, Ltd. (Trust Account)

6,491,305

7.1%

5

Yoshiko Sato

5,809,054

6.4%

6

Kokoro Co.,Ltd.

5,785,256

6.3%

CONTENTS

7

Daio Sato

2,660,678

2.9%

Profile8

BeNext-Yumeshin Group Co.

2,644,548

2.9%

9

STATE STREET LONDON CARE OF STATESTREET BANK AND TRUST

1,985,300

2.2%

1,240,000

1.4%

17.5%

Name:

BeNext-Yumeshin Group Co.
The company name will be Open Up Group Inc. in January 2023.

Head office:	2-14-1 Higashi-shimbashi, Minato-ku, Tokyo 105-0021, Japan
Representative directors:
Yutaka Nishida, Chairman and Representative Director, CEO
Daio Sato, President and Representative Director, COO
Established: August 1997
Capital:4,561 million yen (as of June 30, 2022)
Employees (consolidated):
29,084 (as of June 30, 2022)
Business description:
	Dispatch, outsourcing, subcontracting, and fee-charging
employment placement of engineers
URL:
https://www.yumeshin-benext.co.jp/en/(URL from Jan. 2023) https://www.openupgroup.cp.jp/en/
Disclaimer

StrategyFoundations
Financial data
Stock information
BeNext-Yumeshin Group Integrated Report 2022

39 / 39

10 Amuse Capital Investment Inc.

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 ofsuch statements cannot be guaranteed. Furthermore, they are subject to change without
warning going forward. While every effort was made to use the latest information in theformulation and issuing of this report, the company and information providers are not to beheld liable in the unlikely event that said information causes loss or damage. Thank you foryour understanding.