Septeni’s Value Creation
The Septeni Group’s Value Creation Model

Inspiring the world with entrepreneurship

The Septeni Group has grown as a result of two factors. First, it has a corporate culture of hiring and cultivating
individuals who possess a sense of ownership, who then create new businesses. Second, unbiased by previous
experience or common practice, the Group picks up on signs of social change to provide those new businesses
as services to clients. By establishing an environment and organization that make it easy for individuals whopossess a good sense of ownership and a strong entrepreneurial spirit to create new services, we aim to fulfill
our mission of “Inspiring the world with entrepreneurship,” and thus to contribute to society.

Empowering people andindustry through our businesses＋The Key Source of Our Value

Human resources who possess a good sense ofownership and a strong entrepreneurial spirit
The Septeni Group’s mission, “Inspiring the world with entrepreneurship,” expresses ourreason for existence and our purpose in society. To us, entrepreneurship means individuals
who possess a good sense of ownership and a strong entrepreneurial spirit, and webelieve that such individuals are the key source of the Company’s value.

The Septeni Group’s Growth Engine

Corporate culture and measures thatcultivate human resources
We have created a unique model in which we use our original methods for hiring andcultivating individuals who have the potential to develop a good sense of ownership anda strong entrepreneurial spirit, and proactively invest in a working environment andmeasures to instill our corporate philosophy and code of conduct. These individuals thendevelop and cultivate businesses and services. Through this model, the Septeni Group isachieving sustainable growth.

Becoming a group that cantake the lead in social change

STRENGTH

Measures to instill and pass on ourunique philosophy
Pages 7-8	Vigorous measures by top management to instilland promote the corporate philosophy andcode of conduct●	7th Code Project programs toestablish the corporate
philosophy and codeof conduct

An organizational cultureof taking on challenges

The Septeni Group’s
Growth Engine

Pages 9-10	Average age of 29	Human resources with enthusiasm,speed and flexibility●	A culture of empowering
young employees●Instilling OurCorporate
Philosophy and
Code of Conduct

STRENGTH●●The Key Source ofOur Value

Human resources whopossess a good sense ofownership and a strong
entrepreneurial spirit

An Environment
That Empowers
Young Employees

STRENGTH

A scientific approach
to hiring and developing
human resources

AI-Based Personnel SystemPages 11-12	Combining AI with personnel programs(Human Capital Lab)
●	Online recruiting●	Human Capital Lab, etc.

●

Code of Conduct: The Septeni Way

5

SEPTENI HOLDINGS CO., LTD.

Integrated Report 2018

6

Strengths
Measures to Instill and Pass on Our Unique Philosophy
Specific Initiatives

Instilling Our Corporate
Philosophy and
Code of Conduct
Approach to Corporate Philosophy and
Code of Conduct
Since its founding, the Septeni Group has responded flexibly to changing client needs
amid the rapid transformation that society has undergone in recent years due totechnological innovation and the diversification of values. As it conducts business on aglobal scale, the Septeni Group must constantly evolve while responding accurately tochange in order to continue meeting the expectations of clients and society. At the sametime, we will remain committed to our unwavering corporate philosophy, which comprises
the fundamental concepts behind our aims and the kind of value the Group creates.
The Path to Achieving Our Mission

The spirit of the Septeni Group’s creed of “Hinerankai” (Think outside the box) and theSepteni Way, its code of conduct, summarize the ideas and values we cherish, and serve
as guidelines for all the actions of Group employees. Regarding the Septeni Way, which
was revised in 2016, we have been conducting the 7th Code Project (programs to instill
the corporate philosophy and code of conduct), chaired by President Koki Sato andcomprising volunteer members from throughout the Group.

Main Programs of the 7th Code Project
Program

Overview

7th Code Awards

All employees vote to choose and honor employees and a team that
embody the corporate philosophy and code of conduct.

Email Relay

A program in which employees take turns sharing examples of how they
have embodied the code of conduct via Company-wide email, in the formof a relay.

7th Code Training

Training for understanding and practicing the corporate philosophy andcode of conduct. Employee volunteers are invited to share experiencesthat embody the corporate philosophy and code of conduct, and President
Sato and other Company officers present their personal experiences.

Learn about the Septeni Group through Its People!

Employees Who Embody Septeni’s Standards

Koki Kaku
MissionVisionStrategy
The
PresentPresident and CEO, SIGNCOSIGN,INC.
Head of Corporate Design Office,
SEPTENI HOLDINGS CO., LTD.
2006
Entered SEPTENI CO., LTD. after graduating from university
April 2018	Established SIGNCOSIGN,INC. and took office as President and CEO

Ever since entering the Septeni Group, I have been working with an awareness of the creedof “Hinerankai” (Think outside the box) and mission of “Inspiring the world withentrepreneurship.” I support the view that “entrepreneurship is the pursuit of opportunity
beyond resources currently controlled.” In rapidly changing markets and an era of great
uncertainty, we must come up with ways to get things done, not reasons for why we cannot.
In the creative field, I believe that human resources with a firm footing in this philosophy
grow by continuing to take on unprecedented challenges. If each of us in every company anddivision continues to pursue and create mechanisms for change, the Septeni Group is sure toovercome all adversities and continue to grow.

Creed and Code of Conduct

7SEPTENI HOLDINGS CO., LTD.

Integrated Report 20188

Strengths

An Organizational Culture of Taking on Challenges

An Environment
That Empowers
Young Employees
Approach to Organizational Culture
To fulfill its mission of “Inspiring the world with entrepreneurship,” the Septeni Groupintends to use its human resources as the basis for developing its businesses, with each
employee fully demonstrating his/her capabilities. We have set up a variety ofenvironments that encourage employees to take on challenges so they can demonstrateentrepreneurship, and we are also focusing on expanding our system to create
opportunities to take on challenges.

Various Types of Support for
Human Resources

Specific Initiatives
With the Septeni Group’s history of ongoing transformation due to the strong will of its
young employees, we believe that an environment that fosters youthful passion andpotential is essential for the Group’s evolution. We conduct various programs and events
that include opportunities for employees to take on challenges and to talk directlywith management.

Main Programs

Support for employee
growthProvision ofopportunities to takeon challenges

Creation ofopportunities for praise

Program

Overview

Self-Development
Support System

Introduced to create opportunities for developing capabilities outside theCompany, this system provides subsidies covering 70% of the total cost (¥70,000maximum) of study at external seminars, business schools and elsewhere.

Job Rock Festival

Aimed at cultivating human resources and vitalizing the organization through job
rotation, this is an event where employees can consult with Company officers about
their personal career plans.

BLP Management

A development program specializing in management to train future senior
management candidates. Applicants who are selected attend an external businessschool for two years free of charge.

Gen-tenAn in-house contest for new business plans held once a year for the past eightyears. Applicants whose plans are highly rated and who show strong enthusiasm
for developing their proposed businesses are given an opportunity to pursue theircommercialization at SEPTENI VENTURES Co., Ltd.

Proposals toManagement

Once a year, regardless of department or length of employment, employees havean opportunity to make proposals to management.

Essay Contest

Each year, a theme related to the Company’s future is chosen, and entrants submit
essays on what they can and should do.

Seven StarAwards

Outstanding employees, regardless of job title or years of employment, are chosen
twice yearly for honors by a vote of all employees.

Note: The Job Rock Festival, BLP Management, Proposals to Management and Seven Star Awards programs are implemented at main Group
companies only.

Learn about the Septeni Group through Its People!
Support foremployee
growthDaichi Komiya
President and Representative Director, Vivivit, Inc.
2010	Entered SEPTENI HOLDINGS CO., LTD. after graduating from university
2013 Established Vivivit, Inc.

Provision ofopportunities
to take onchallenges

9SEPTENI HOLDINGS CO., LTD.

Creation ofopportunities
for praise

I believe that in the Septeni Group a culture has taken root that provides venues andenvironments where employees can play an active role regardless of age or length of service,prioritizing each person’s enthusiasm for taking on challenges. Until the end of my third year inthe Company, I conducted recruiting in the Human Resources and General Affairs Department.
At that time, I had no experience and no track record to take pride in. However, I entered theGroup’s new business plan contest, which any member can take part in. Thanks to the highevaluation of my enthusiasm and my plan, I was given the opportunity to put my ideas to thetest. Today, I am entrusted with great authority as president and representative director ofVivivit, Inc., which conducts a recruiting platform business.
Vivivit is now entering its sixth year, and I feel that I have grown significantly over thattime because the Septeni Group provides an environment in which we are all individually
responsible. I intend to continue to grow by taking on challenges that I enjoy, without fear offailure, in order to play a central role in the Septeni Group’s Media Content Business. You canlook forward to it.

Integrated Report 201810

Strengths

A Scientific Approach to Hiring and Developing
Human Resources
Specific Initiatives

AI-Based
Personnel System
Approach to Human Resource Development
The Septeni Group’s concept of human resource development is not to bring people up
but to allow them to grow by building upon high-quality experiences in the workplace.
The Group conducts development based on its theoretical “Formula of Development”
derived from that concept. The formula expresses the principle by which the interaction
between an individual’s innate personality and the surrounding environment has an
impact on his/her growth. The workplace environment (E) is defined as team (T) and work(W) in this formula; the stronger the compatibility between T and W with the individual’spersonality (P), the higher the potential for significant growth (G).
⇒ For details, see “The Septeni Group’s CSR” on page 23.

For about seven years, the Septeni Group has been researching human resource
development with the aim of maximizing each employee’s performance. Since the fiscal
year ended September 2014, we have been using the techniques obtained from thisresearch in our recruiting, and in 2016 we established the Human Capital Lab.

Application in Recruiting
The Septeni Group has been working to quantify compatibility using its unique human resource

development formula. To roll out this theory to recruiting activities, we have used data on approximately

6,000 individuals compiled since 2009 to build a model for predicting each person’s degree of success infuture employment. Therefore, in recruiting, we acquire information mainly on the personality, surrounding
environment, and behavior of job applicants to predict their degree of success. Specifically, we use about

100 items of information from sources including a personality diagnosis test, a questionnaire at the time ofjob application, career history and evaluation during the selection process.

By combining these techniques with the power of technology, we provide information and a selection

process that is unbiased by conventional ideas about job searching.

Human Capital LabIn 2016, the Septeni Group established the Human Capital Lab, which specializes in human resource data

research focusing on the four fields of recruitment, adaptation, development and alumni networks. Basedon the lab’s research findings, we develop and conduct science-based personnel programs for use inmanagement decision-making and human resource development, in addition to publicizing thosefindings once they have been verified.

Learn about the Septeni Group through Its People!

Formula of Development

G ＝ P × E （TGrowthPersonality

Environment

Team+ W）
Work

Tatsuya ShindoDirector, Human Capital Lab
SEPTENI HOLDINGS CO., LTD.
2011	Entered SEPTENI HOLDINGS CO., LTD. after graduating from university. Provided technical support
for analytics to the fields of recruiting, development and placement. Currently devotes his time
exclusively to research in those fields.

As shown in its mission of “Inspiring the world with entrepreneurship,” the Company has aculture of providing each employee with ample opportunities to take on challenges for growth,regardless of length of service. Moreover, rather than adopting a specified style of achieving
growth, the Company offers support that makes the most of each employee’s own personality
and strengths. One mechanism that has arisen from the Company’s commitment to its humanresources is its AI-based personnel system for optimizing individual development. At theHuman Capital Lab, we aim to realize a system for consistently achieving high-quality
recruitment and development by studying and using our aggregated data on people’s growthin different environments.

11

SEPTENI HOLDINGS CO., LTD.

Integrated Report 201812