16

Value Creation Process to Realize Our Mission
Introduction

MissionVisionOutcomeValue provided through business and activities
Return of profits toshareholders

Empowering peopleand industry

Digital Marketing BusinessMedia Platform Businessof a “Nameraka” Society
S Realization
Through Creativity and Technology

Business
activities

of Corporate Value by
S Enhancement
Empowering People Who Create a New Era
Input

Human resource development withreproducibility through digital HRDEI

Democratization of entrepreneurship

Value creation foundation of the Groupan Advanced Governance System
G Buildingto Support Discontinuous GrowthCorporate ProfiletoE Response
Climate ChangeReinforcing Our Management Foundation

Core value

People filled with a strong sense of ownershipand entrepreneurial spirit

Business Activities

Our Group’s core value is “people filled with astrong sense of ownership and entrepreneurialspirit.” We have a value creation foundation tomaximize this human capital, and by conducting
business activities based on this foundation,
we can increase the value we provide to ourstakeholders. We are striving to achieve ourvision and realize our mission.

Improved employee
job satisfaction

Human ResourcesValue
Creation bythe Septeni GroupOutput

Value Creation by the Septeni Group10X

Management

To inspire the world with entrepreneurship

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Explanation of the Value Creation Process

P22

Concept of Human Capital Management

Business Activities

Creating a smooth society
through business

Related page

P43

Creating a “Nameraka” Society
through Business

OutputValue provided to society throughbusiness and activities

Related pages

P21-31Social —Human Resources—

P32-43Social —Business Activities—

P44-51

Reinforcing Our Management Foundation

Corporate Profile

The value we provide through our business operations
is aggregated into the phrase “empowering peopleand industry.” This is because we believe that we will
be closer “to inspire the world” set forth in our mission

Reinforcing Our Management Foundation

Our Group, which is focused on the digital industry,
aims to realize a “nameraka” society by having humanresources with entrepreneurship demonstrate creativity
and operate the businesses while utilizing technology.

We have positioned “E: Response to Climate Change”
as a prerequisite for sustained business operations, and“G: Building an Advanced Governance System toSupport Discontinuous Growth” as a prerequisite forrealizing discontinuous growth and a “nameraka”
future, which supports the entire value creation
process. “S: Enhancement of Corporate Value by
Empowering People Who Create a New Era” is amateriality related to human capital, and the Group’svalue creation foundation corresponds to its
subcategory. Creativity and technology are the sourceof value for all of the Group’s businesses. By aiming for“S: Realization of a ‘Nameraka’ Society ThroughCreativity and Technology” in each of our businesses,
we will expand the value we provide to people andindustry through our businesses.

Business Activities

In the new value creation process, we aimed to moreclearly express that all of our Group’s activities arebased on people. Our value creation foundation,
including our efforts to develop human resources
through digital HR, will promote the active
participation and growth of our people, our greatest
asset. At the same time, we will firmly establish
entrepreneurship as an organizational culture. Throughthis approach, entrepreneurship is also demonstrated
in our businesses and activities, which leads to anincrease in the value we provide to our stakeholders. Itexpresses that such a process leads to the realization ofthe mission and the achievement of the vision.

Related page

Human Resources

Human resources supported by
the foundation promote business andincrease the value provided to society

Positioning of Materiality

Aiming to accelerate value creation,achieve our vision, and realize our mission
from the E/S/S/G perspective.

Value Creation by the Septeni GroupWe utilize our extensive human resource database andtechnologies to optimize the development of humanresources individually. Additionally, we are working to bea place where employees can perform their full potential
and play an active role by promoting and supporting
diverse work styles and encouraging each employee todevelop and demonstrate entrepreneurship. We believethat the value creation foundation that supports themaximization of human capital will enable employees to“create a new era” and lead to the enhancement ofcorporate value.

by supporting the empowerment of all stakeholders andindustry as a whole, including the improvement of QOL
of users who use the services we provide and the mutual
development with our clients and partners. In addition,
the enhancement of corporate value through thepromotion of business activities leads to the return ofprofits to shareholders. Employees gain a sense ofimprovement in their job satisfaction through businessactivities, which is then reflected back into our core values.

Management

Input

Value creation foundation to support
the maximization of human capital

Introduction

In line with the establishment of the Sustainability Policy and the review of materiality announced in February 2024, we have updated the value creation process.

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Promotion of Sustainability Management

Sustainability Policy

Sustainability Committee
Chairperson

MISSION

External advisors
Members

Management Office(CEO Office / Public Relations Department)

Promotion of sustainability activities

Philosophy Penetration ProjectSSG

Response to
Climate Change

Enhancement ofCorporate Value byEmpowering People WhoCreate a New Era

Realization ofa “Nameraka” Society
Through Creativity andTechnology

Building an Advanced
Governance System toSupport Discontinuous
GrowthThe Subcommittee for
Measures against Discriminationand Harassment

SEPALLY RAINBOW(LGBT)The Gender Equality Subcommittee
ECHO (environment)

Corporate ProfileE

Materiality

Individuals responsible for each materiality
Corporate Design Manager
Employees under 30 years oldFemale managers

Reinforcing Our Management FoundationVISION
To be a place where people are empowered to create a new era
To open the door to a “nameraka” future with creativity and technology
To make a complex world bright and simple through the power of digital

Business Activities

To inspire the world with entrepreneurshipGroup President and Chief Executive Officer

Human Resources

Sustainability Committee Organizational Chart

Value Creation by the Septeni Group

Overview of Sustainability Activities

The Committee includes members such as employees
under the age of 30 representing future generations,
female managers, individuals responsible for eachmateriality, and external advisors, all contributing tovigorous discussions from various perspectives.
Furthermore, subcommittees have been establishedunder the Committee to promote initiatives related tomateriality within the Group, working towards solving
issues and achieving KPIs.

Management

Companies can only operate in a sustainable andhealthy society. A globalized, diversified and complex
society has many challenges, and the various impactsof these challenges cannot be considered separatelyfrom corporate activities. We believe that in order tocontinue our corporate activities and develop
sustainably with our stakeholders, it is imperative that
we actively address these challenges and continue tocontribute to their resolution.

Sustainability promotion structure

Introduction

We believe that contributing to the resolution ofsocial issues through our corporate activities is what isrequired of us by our stakeholders in order to realize
our mission of “To inspire the world withentrepreneurship” and our Group vision, and we arepromoting sustainability activities.
In our sustainability activities, we have set ourGroup’s mission and vision as our basic policy, and weare actively promoting activities with the aim ofachieving sustainable growth of the Group, improving
corporate value, and realizing a sustainable society.

Sustainability policy

19Materiality of the Septeni Group

Confirmation of priority issues

Collection of opinions at multiple meetings

Based on the draft, we conducted multiple rounds of opinion
collection at the Sustainability Committee, Group Management
Meeting, and Board of Directors.

Identification of Materiality

The collected opinions were compiled, and the final draft wascreated at the Sustainability Committee. At the Board of Directors,
we confirmed the connection with the Group’s philosophy, including
the vision, and the validity as an important matter for the Group.

HighImportance to the Group’s Businesses

Very highCorporate Profile

STEP 4

Reinforcing Our Management Foundation

STEP 3Expectations for the GroupWe comprehensively assessed the identified social issues basedon their importance to the Group’s business and the expectationsof stakeholders towards the Group, categorized them according
to the ESG framework, and created a draft of materiality.

• Creating a fulfilling workplace
Very high

STEP 2• Elimination of gender gap • Improving productivity in Japan

Business Activities

Identified social issues based on SDGs, ISO26000, and otherinternational standards.

Examples of priority issues

In the fiscal year ended December 2023, the second
year of the formation of the Sustainability
Committee, we adopted and established themission and vision as a sustainability policy from theGroup’s philosophy revised in October 2022 withthe aim of promoting more effective activities aimed
at enhancing corporate value.
To date, we have conducted regular inspectionsof the materiality identified in 2016 as a priority
theme in our sustainability activities. We havereviewed the materiality in response to revisions tothe Group’s philosophy, changes in social conditions,and changes in the expectations of our stakeholders
toward the Group. We have set strategic KPI for
each materiality, and by aggressively promoting
activities in each ESG area, we will lead to thesustainable growth of our corporate value. Looking
ahead, we will consider the visualization of value
created through sustainability activities, and aim toimprove the resolution of how our Group
contributes to the realization of a sustainable and“nameraka” society.

Human Resources

Identification of issues

Group Executive OfficerValue Creation by the Septeni Group

STEP 1

Confirmation of Priority Issues

Yoko Miyazaki

Management

Identification Process

Group Executive Officer incharge of sustainability

COMMENT

We have been promoting sustainability activities byregularly reviewing the materiality we identified in2016. However, in response to the revision of ourGroup’s philosophy in October 2022, we have renewed
our materiality.
In identifying the materiality, we extracted social
issues mainly from international guidelines, and madea comprehensive judgment based on two axes:“expectations of stakeholders towards the SepteniGroup” and “importance to the Septeni Group’sbusiness.” We identified 29 issues with particularlyhigh priority, categorized them into four major

categories according to the ESG framework, andcreated a draft.
Based on the draft, we collected opinions several
times at the Sustainability Committee, GroupManagement Meeting, and Board of Directors. TheSustainability Committee compiled the opinions fromvarious places and created the final draft. At the Boardof Directors, we confirmed the connection with theGroup’s philosophy, including the revised vision, and theappropriateness as an important matter for the Group.
By addressing the four materialities we have identified,
we aim to achieve our Group’s vision and realize ourmission of “To inspire the world with entrepreneurship.”Introduction

Materiality identification process

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Materiality of the Septeni Group

Materiality

Response toClimate Change

Climate change is threatening the future of our planet. Given that asustainable and sound Earth and society are prerequisites for business
operations, addressing climate change is of high importance and isalso widely demanded by society and stakeholders. By continuously
taking action against climate change, we aim to achieve adecarbonized society.

Reduction of GHG emissions
and disclosure of informationin accordance with TCFD
recommendations

Scope 1 & 2emissions

70% reduction
compared to 2023

2030

Human resource developmentwith reproducibility throughdigital HR

Operation andaccuracy improvementof HR value chain*1

Continuous
implementation

Annually

Ratio of female
managers

30%

2030

Enhancement ofCorporate Value by
Empowering
People Who Createa New Era

As stated in the first clause of our vision, “To be a place wherepeople are empowered to create a new era,” we at the Septeni
Group believe that our most valuable asset is our people. In ourcommitment to nurturing those who will shape the future, we areactively pursuing three themes. The first is enhancing the value ofeach individual through reproducible talent acquisition, placement,and development using HR technology. The second is creating anenvironment where each individual can play an active role in theirown way by promoting Diversity, Equity, and Inclusion (DEI). The
third is democratizing entrepreneurship by nurturing andestablishing the entrepreneurship of each individual. Through theseefforts, we aim to enhance human capital value, empower people
who create a new era, and improve corporate value.
In addition, within DEI efforts, we focus on initiatives related towomen, who represent a majority among minorities, as we believethat addressing gender equity and inclusion leads to the realization ofequity and inclusion for other attributes. Therefore, we aim to close
the gender gap and have set the ratio of female managers as a KPI.

Understanding ofunconscious bias

100%

2030

Number of people
actively participating inevents that nurture
entrepreneurship*2

Year-on-year increase

Annually

Participation rate of
employee stock
ownership plan

Year-on-year increase

Annually

Value creation leading toa “nameraka” society

Providing value andopportunities tosociety throughbusiness and services

Increase in recipients of value

2030

Efforts fordiscontinuous growth

Co-creation of supervisionand execution

Realization of innovation board*32024

Realization of
a “Nameraka” Society
Through Creativity
and Technology

Building an Advanced
Governance Systemto Support
Discontinuous Growth

In the second part of our vision, we express our commitment“To open the door to a “nameraka” future with creativity andtechnology.” Our goal is to realize a “nameraka” future byharnessing each employee’s creativity, utilizing technology to create
new value in the form of new businesses, services, and IP, andexpanding opportunities for both industries and individuals.

By promoting both offensive corporate governance to pursue
discontinuous growth and defensive corporate governance topursue risk reduction, we aim to build advanced corporate
governance system to create a new era and become a place torealize a “nameraka” future.

DEI (Diversity, Equity &Inclusion)

Democratization ofentrepreneurship

Efforts for risk reduction

Ensuring and improving
the effectiveness of theboard of directors*1 HR strategy designed as a consistent service from recruitment to onboarding to development, based on a talent database accumulated over more than 20 years*2 “gen-ten,” slogan contests, Group Sharing Meetings, prize essays, Hinerankai Awards, Diversity Month, Diversity Awards, philosophy-related events, cross-functional committees, etc.
*3 Board of Directors in which the supervising directors utilize their individual expertise to co-create value with the executive side in order to achieve discontinuous growth

executive sessions• Continuous implementation ofAnnually

effectiveness evaluations

Continuous implementation

Annually

Corporate Profile

Discussion ofsuccession planning• Continuous implementation of

Reinforcing Our Management Foundation

TargetBusiness Activities

GKPI

Human Resources

S

Subcategory of Materiality

Value Creation by the Septeni GroupS

Value Provided to SocietyManagementE

TargetAchievement
TimingIntroduction

Materiality and KPIs