Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

Company Overview

01

Introduction: About the Septeni Group
Digital Marketing BusinessMedia Platform Business

Overseas

The Septeni Group isa group of companies that createsa nameraka future through businessactivities that adapt to the changing
times and society.

¥1,404 million¥3,297 million

4.8%

11.3%

Japan

¥24,458 million
83.9%

Consolidated
revenue structure(FY2022,IFRS standard)

Digital Marketing BusinessMedia Platform Business

Strategy & Performance (P.23)*The Japanese word nameraka means a harmonious state without friction and barriers.

The Septeni Group isa group of companies that empowers
people and creates a place whereindividuals can demonstrate theirabilities according to their personalities.
The Competitive Advantage of the Septeni Group (P.19)
Human Resource Strategies in Human Capital Management (P.21)

20years of accumulated human resource data
Over 10 years of researching human resource development
OverHR initiatives that apply an extensive

human resource database and technologies

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from ManagementValue Creation Process for “10X”

The Septeni Group isa group of companies that continuously
develops new businesses.

Strategy & PerformanceCorporate Governance

02Company Overview

COMICSMART INC.

Qzil.la, Inc.

Vivivit, Inc.

gooddo Inc.

TowaStela, Inc.

Delight Tube, Inc.

ALPHABLE, Inc.

Human Capital Lab, Inc.

Strategy & Performance (P.23)
Septeni Incubate, Inc.

At the root of this isa culture that always thinks
about creativity.

Sustainability

Our Group has a culture where companies change as employees
brimming with entrepreneurial spirit voluntarily develop new businesses.
We focus on providing an environment for people who want to try
creating businesses, and as a result we have successfully created avariety of new businesses.

The creed of the Group is “Hinerankai(Think outside the box).”“Hinerankai” in Japan’s Kansai dialect
means to use wisdom and display ingenuity.
The Group has grown together withthis creed.
See the next page for ourjourney of change

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

Company Overview03

A Journey of Continuous Growth and Adapting to Change
Since our establishment, we have continued to grow by transforming our mainstay businesses fromthe recruitment consulting business to the Direct Marketing Business to the Internet Advertising Business.
While maintaining the spirit inherited from our founding, we will continue to aim for growth through change.

Founded in
Establishment of SUB & LIMINAL CO., LTD.

Achieved strong growth throughthe Internet Advertising BusinessToward further growth through organic
growth and alliances with the Dentsu GroupIn 1990, our founder Mamoru Nanamura established SUB &LIMINAL CO., LTD., the forerunner of SEPTENI HOLDINGS CO.,LTD., to embark on the recruitment consulting business. In 1993,
we launched the Direct Marketing Business (an agency servicefor sending direct mail). Business grew steadily, laying thefoundation of the Group.
The Group was not affiliated with any conglomerate andcommenced business with hardly any capital, human resources
or operations. Our staff’s wisdom and ideas alone were ourinitial assets. We constantly bear this inaugural spirit in mind as
we continue to grow.

In 2000, the current Representative Director, Koki Sato,launched the Internet Advertising Business. The Group grew
rapidly as it continued to steadily scale up its business
operations for a speedy response to the expansion of theinternet advertising market and constantly changing advertisingneeds. In addition to opening regional bases, we also expanded
our business domains through M&A and other methods.

We have continued to grow while adapting to changes in industry
and society, including focusing on smartphone advertising andsocial media advertising, and launching the Manga ContentBusiness. In addition, we aim to achieve further growth through theCapital and Business Alliance with Dentsu Group Inc. and its
deepening. Going forward, to enhance the digital transformation(DX) supporting area, we will focus on integrated online and offline
proposals and strengthen capabilities in the solutions domain
utilizing data and AI, which will lead to earnings growth.

Mamoru Nanamura,Founder ofthe Company

Creed
In Kansai dialect, this means “Think outside the box.”

2000 Apr.
Started the Internet Advertising Business2001 Aug.
Listed on JASDAQ
2006 Oct.
Became a holding company under the trade name SEPTENIHOLDINGS CO., LTD.
The Internet Advertising Business was taken over by SEPTENI CO.,LTD. through an incorporation-type company split, and the Direct
Marketing Business was taken over by SEPTENI DIRECTMARKETING
CO., LTD. through an absorption-type company split2012 Mar.
Began conducting the Internet Advertising Business outside Japan
2013 Feb.
Established COMICSMART INC. and started
the Manga Content Business2014 Oct.
Sold all shares of SEPTENI DIRECTMARKETING CO., LTD.
2018 Oct.
Entered a capital and business alliance with Dentsu Inc.
(currently Dentsu Group Inc.)
2022 Jan.
Became a subsidiary of Dentsu Group Inc.

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate GovernanceDigital advertising is establishing its position as the largest advertising media in the Japanese
advertising market. Since the launch of the Internet Advertising Business in 2000, we have achieved
sustainable growth and established our current core value by flexibly responding to the shift from mass
advertising to digital advertising and to changes in the format and objectives of internet advertising.

Net sales

approx.

Operating profit

approx.

16%
17%*Combined net sales and operating profit ofOriginal Businesses and Internet Businesses.

Net sales

FY2000/9¥

4.9

approx.

billion27 times

Operating profit
FY2000/9¥

0.18

approx.

billion

33 times

Net sales¥131.4 billion
With entrepreneurshipas our core value,
we aim to achieve
discontinuous growthand “10X” by exploringand deepening
businesses.

FY2022/9¥

131.4

billionFY2022/9¥

5.9

billion*Figures presented are based on J-GAAP for FY2000 and IFRS for FY2021.

Net sales and operating profit
Net sales

Operating profit

1990

1995

2000

Original Businesses (Direct marketing, etc.)

2010

2005

04

10X

A Journey of Continuous Growth and Adapting to Change

Average annual growth rates of net sales
and operating profit since the fiscal year
ended September 2000

Company Overview

20152020

2022

Internet Businesses (Digital Marketing Business, Media Platform Business)

1994-1998

1999-2003

2004-2007

2008-2013

2014-

Internet usage becomeswidespread among thegeneral public.
Era of banner ads.

The internet becomes available
anytime and anywhere.
Diversification of advertising methods(affiliate marketing, keyword search.)

Dawn of social media.
Attempts atcross-advertising withexisting media.

Evolution of ad technology.
Conceptual shift from “buyingad space” to “buying a
number of people to reachwith information.”

Double-digit growth in internet
advertising expenditures continues, withmobile advertising driving market
expansion. The COVID-19 pandemic
accelerates the digital shift and DX.