RAKUSSUSTAINABILITYREPORT 2022

RAKUS SUSTAINABILITY REPORT 2022

01

Contents
About Us

ESG

Editorial Policy
This report contains the business, financial, and

P02

Long-Term Vision
MISSION / VALUE

P03

Leadership Principles

P04

Message from the President

P07

P18

Environmental Data

ESG information of RAKUS, and has been issued

P19

Social Contribution in Businesses

for the purpose of improving corporate value by

P20

Organizational Structure and Governance Policy

and other stakeholders about its contents. Scope 2

P21

Policy on Remuneration for Officers /Attendance at Meetings of the Board of Directors and the
Audit & Supervisory Board

energy consumption in the report because in many

Directors/Audit & Supervisory Board Members

and amount of power consumption.

Company History That Has Led to Value Creation
P22

Value Creation

Data Section

P09

Growth Trajectory

P24

Consolidated Statements of Income

P10

Business Model and Performance of Cloud Business

P25

Consolidated Balance Sheets

P11

Features and Growth Strategy of Cloud Business

P26

Consolidated Statements of Cash Flows

P12

Services:
Raku Raku Seisan / Raku Raku Meisai

P27

Non-financial Data

P28

Changes in Capital Structure and Dividends

P13

Services:
Raku Raku Hambai / Mail Dealer

P14

Services:
Hai Hai Mail / Services Being Nurtured to Contribute to
the Growth of the Next Generation

P15

Business Model and Performance of IT Outsourcing
Business

P16

Management Resources That Underpin Value Creation
and Growth

P17

Medium-Term Management Targets

Company Information
P29

Company Outline & Group Structure

engaging in dialogue with shareholders, investors,
Standard has been applied for CO2 emissions fromcases the data centers used mainly by our Cloudbusiness do not disclose the environmental impacts

Websitehttps://www.rakus.co.jp/en/
IR Information
https://www.rakus.co.jp/en/irnews/[Contact]

ir@rakus.co.jp
Scope of Report
This report covers RAKUS Co., Ltd. and its
consolidated subsidiaries within and outside
Japan as well as some other affiliates. For
environmental data, please refer to therespective notes. The report applies to theperiod from April 2021 to March 2022.
* It also includes some information outside that period.

Performance Forecasts
Forecasts of performance contained in thisreport are determined based on information
available at the time. Actual results may
differ due to a variety of factors.

About Us

RAKUS SUSTAINABILITY REPORT 2022

Long-Term Vision

02

MISSION
We constantly help companies
grow their business byproviding IT services.
RAKUS has promoted digitalization of SMEs whichhave faced challenges of budget and digital literacy.
But digitalization is essential for not only SMEs but also
larger companies which use costly and inefficientlegacy systems. When all of the 50 million workers inJapan benefit from the latest IT services, Japan will
truly be a prosperous nation. We are determined tocontribute to business growth of companies andwell-being of their workers by helping them promote
digital transformation through our IT services.

VALUE
VALUE 01

Fulfillment

We fulfill and go beyond our customers’
expectations.

VALUE 02

NurtureWe nurture human resources who have thecapability to yield tangible results.

VALUE 03

Improvement

We improve our activities day and night.

VALUE 04

Integrity

We have integrity with our stakeholders.

VALUE 05

Evolution

We capture signs of potential changes
and evolve proactively.

Become a Company
Representing Japan

About Us

RAKUS SUSTAINABILITY REPORT 2022

03

Act to become ‘a company representing Japan’
Our Leadership Principles are a code of conduct, highlighting the mindset
that management of RAKUS should embrace. Leaders correctly understandthese principles, which enables them to judge and act with a well-balanced

approach from multiple perspectives. Each principle may appear obvious, butwhen put together create an unrivalled company. This gives us confidence
that RAKUS will become ‘a company representing Japan’ in future.

Take ownership

Aim for overall optimization

Treat people with sincerity

Leaders consider themselves to be owners of thecompany. That is why they always act with asense of ownership. They prioritize matters that
contribute to the company’s long-term sustained
growth. A leader will speak out forcefully if
feeling that his or her boss or an executive ismaking a decision that will negatively impact thecompany’s growth.

Leaders always think and act according to what
is important for the company’s overall growth.
They focus beyond the interests of their own
department or team. They actively collectinformation from other departments to optimize
activities.

Leaders listen to what each and every individual
has to say with sincerity. They consider thingsfrom the other party’s perspective and not justfrom their own or the company’s perspective.
Leaders do their utmost to convince the otherparty and bring about a desirable outcome forboth parties.

Continue learning and growing

Start small and grow big
Leaders actively try new things. There is no
knowing if new initiatives will actually work. So,
leaders start test cases on a small scale and witha small budget to verify their hypotheses. They
gradually increase the scale and budget while
making choices and ultimately grow thebusiness.

Consider the cost-benefit
performance

Focus on results

Leaders have an insatiable desire to acquire newknowledge and experience necessary to achieve
their own goals. They constantly update theirknowledge through exposure to the latest
information. Leaders actively learn fromcompetitors and prime companies in otherindustries and utilize this for their own
company’s growth.

Leaders are authorized to execute budgets. Allbudgets need to be verified for their cost-benefit
performance. When leaders execute budgets,they demonstrate restraint because they are
spending the company’s money.

Communicate ideas with words

Tolerate failure

Accept others’ views

Do what needs to be done

Leaders can certainly communicate their own
ideas with words. One’s ideas can only be
communicated with words. If not well understood,
leaders will repeatedly communicate their ideas
in a courteous way, until they make themselves
understood.

Leaders tolerate failures based on hypothesis put
forward by people around them. Even if having
the knowledge sometimes things cannot be
understood without actual experience. Leadersconsider failure to be a learning opportunity, andencourage others to learn from their failures.

Leaders sincerely accept others’ views evenwhen different from their own thinking. Leaders
have a healthy skepticism about themselves
and objectively consider what is genuinely
correct. Leaders confess their own mistakes
and constantly strive to move forward in abetter direction.

Leaders always think about what should be done.
Leaders implement measures to solve issues forcustomers and the organization and not what
they would like to do.

Leadership
Principles

Leaders are goal-oriented and do their very best
to achieve their goals. They take a firm stance,even when facing difficulties, and do notcompromise. Anticipating the unexpected,
leaders always have an alternative plan.

About Us

RAKUS SUSTAINABILITY REPORT 2022

04

Message from the President
Q. You published a sustainability report last year. What is the status ofyour ESG initiatives and information disclosure?
Publishing our first Sustainability Report last year provided us opportunities
for discussion with many investors. Those discussions included numerous
questions about materiality. We have been progressing discussions internallyamong management with a view to identifying materiality issues andpublishing such information as soon as possible.
At our 22nd Annual General Meeting of Shareholders, Reika Saito, a lawyer,
joined our board as an Outside Director. In addition to being a lawyer, because
Ms. Saito also has experience overseas, she brings unique strengths to theboard in terms of legal and overseas business experience. Going forward, wewould like to consider expanding our business overseas, and in that event we
expect Ms. Saito will bring her knowledge and experience to bear for us. Froma governance perspective, Outside Directors account for 50% of our Board of
Directors, so we believe we have strengthened our governance.
We are also progressing our efforts when it comes to investing in our people.
We have been rewarding the efforts of employees who have been supporting
the growth of the business by raising their salaries, continuously improving theworking environment, and establishing a framework for employee wellbeing
including the introduction of sick leave. We have also set up an enablement

Takanori Nakamura President and Representative Director

organization and, in addition to on-the-job training carried out in each business
unit, we have started creating a framework to support training andAbout Us

RAKUS SUSTAINABILITY REPORT 202205

development. By providing ongoing support to help each employee develop hisor her abilities, we plan to expand the organization while maintaining andimproving quality.
In terms of the environment, as it is difficult to get carbon dioxide emission
volumes at data centers in Japan, we disclose Scope 2 carbon dioxide emission
volumes. We have also received requests from many investors about Scope 3
disclosures, so along with aiming to make early calculations we will determine
our carbon neutrality goal.

Q. P lease tell us about your business environment and performancefor the fiscal year ended March 31, 2022.
We worked to realize the significant sales growth targets we set for the year,
the first year of our Medium-Term Management Targets. During the year, with
the issuance of state of emergency declarations and priority measures toprevent the spread of COVID-19 it was a challenging business environment. Yet
sales well exceeded expectations, so it was a satisfying year from thatperspective.

Although we saw profits decrease across all income items, this was theresult of bolstering our investment for growth in line with plan, including

In the context of the increasing scale of our sales, it is difficult to achieve

investment in hiring human resources and proactive advertising spend. We will

growth rates similar to those of the past. In aiming to achieve a 25-30% sales

achieve the profit of 10 billion yen in our Medium-Term Management Targets by

CAGR, the upper end of the range in our Medium-Term Management Targets,meeting our sales goals, and by controlling SG&A in the final year just as we

we have been able to accelerate our growth rate. In light of these results, we

did at the time for the previous Medium-Term Management Targets.

decided to raise the lower bound for the sales CAGR from 25% to 26%. We will

We also redoubled our initiatives on hiring which is key for our business

continue working toward realizing growth at the upper end of the range, a 30%

growth going forward. By increasing the number of people in our recruitment

sales CAGR. We feel our growth has been well received, and we also haveteam, we have ensured sufficient time is devoted to hiring. Consequently, we

increasing confidence that we will achieve our growth targets.

have been able to welcome many new employees.

About Us

RAKUS SUSTAINABILITY REPORT 2022

06

Q. What is your current management policy?

Q. What are your views on shareholder returns?

The key point to consider when we think about the future growth of our

We believe continuing to pay dividends to provide a return to shareholders isservices is not competition with competitors but how to get potential

important. Because our business is a subscription model where profit margins

customers to change their mindsets, like with the transition to digitalizing

increase as sales increase, we see it as a business model that can continue toanalogue business processes. As we have expanded the scale of the business,regularly generate profits and increased dividends each year. This year, we are

we have had sufficient capacity to invest in hiring and marketing strategies

planning to increase dividends for the eleventh consecutive year in line withessential for growth. And we are aiming to achieve high sales growth throughour policy of increasing dividends each year.

the acquisition of many new customers while continuing to proactively invest
for growth.
However, we will not focus solely on sales growth but manage the businesskeeping a close eye on profits. We must ensure that we do not reduce our

As a manager, being aware of dividends is also an opportunity to consider
our financial health. Because profits must be secured considering
dividends, we believe that continuing to increase dividends improves thequality of management.

awareness of cost-benefit as we continue strengthening our investment for
growth. Though we will remain thoroughly aware of our need to spend

Q. Please tell us about your efforts to realize your long-term vision.

strategically, including from the perspective of temporarily raising our SG&A
ratio to increase sales which results in a lower future cost ratio.
From the management perspective, ultimately, we believe that profits must

In addition to achieving our long-term vision and addressing social challenges
in our mission, clarifying our purpose is important. To that end, we have clearly

increase. Although we will also place importance on cost-benefit, we will

stipulated our vision and goals and we are striving to have them permeate

accept that investment efficiency will fall within acceptable limits during

throughout the company. Also, to avoid confusing ends and means, we haveperiods when sales growth is a priority. While continuing to grow in a balanced

established our “Leadership Principles” which serve as a code of conduct. We

manner, we will make the organization capable of generating large profits.

are focusing on cultivating a corporate culture, including through training to

For the time being we will disclose our plan semi-annually, and, by

provide a deeper understanding of the “Leadership Principles” so that new

repeating the Plan-Do-Check-Act (PDCA) Cycle for our marketing strategy andbudgets at pace, we will respond flexibly and quickly to changes in thebusiness environment.

hires will be able to demonstrate their capabilities.
Our current Medium-Term Management Targets are important steps towardrealizing our long-term vision. We will work toward the goal of achieving these
Medium-Term Management Targets.

About Us

RAKUS SUSTAINABILITY REPORT 2022

07

Company History That Has Led to Value Creation
RAKUS was founded in November 2000 by four people: President Takanori

his time at Infocast. The other was an IT engineering school to accommodate

Nakamura, Director Yoshifumi Matsushima, Audit & Supervisory Board

the shortage of IT engineers. Although he saw a huge potential in the system

Member Toshihiro Nojima, and RAKUS Light Cloud (a subsidiary of RAKUS)(Mail Dealer), there were two issues. The first was that to provide the service

President Fumihiko Asano. Before RAKUS was established, these four wereto SMEs where needs were highest, RAKUS would need engineers who could

shareholders and the main members of mailing list service provider Infocast

engage in continuous development. This is because the most effective way toCo., Ltd. When a rival company was acquired by an internet media giant andprovide the service was thought at the time to be with an application service

it became clear that the competitive environment was becoming

provider (ASP, now cloud). The second was that it would take time to acquire

increasingly challenging, they sold off Infocast after receiving an offer fromenough customers to have a sufficient cash flow.

an e-commerce giant and established RAKUS with the capital gained fromthe sale.
President Nakamura had two business concepts when RAKUS was founded.

So we launched an IT engineering school business to teach programing fora fee. Our aim with the school was to generate sales and scout talented
students to gain engineers. Incidentally, engineers from the school have

One was a business to provide a system for managing, sharing, and improving

contributed greatly to the growth of RAKUS and the current head of

efficiency of large volumes of inquiry emails, which was a challenge during

development is a graduate as well. The school’s target group was members ofAbout Us

RAKUS SUSTAINABILITY REPORT 202208

the workforce, so during the day on the weekdays we developed Mail Dealer

growth potential by identifying the market potential, customer needs, and theand during the night and weekends we ran and taught at the school. We

competition. If it looks like we can succeed, we invest heavily in growth.

invested profits from the school to boost sales of Mail Dealer, contributing

If we run into unforeseen challenges, such as the market being smaller orgreatly to its growth. As the economy improved and less people were willingcompetitors being stronger than expected, we quickly withdraw to utilize theto pay money to learn programing, so we gradually converted the IT

limited resources efficiently for company-wide growth. At the same time,engineering school into our current IT outsourcing business, in which we hiretaking on challenges in a wide range of fields has given us the expertise topeople with no engineering experience, train them to become IT engineers,

create and grow cloud services in Japan, such as knowing what KPIs to track,and dispatch them to companies. Today we operate two businesses: Cloud

when to invest, how to launch an organization, and how to manage portfolios

business and IT outsourcing business.

of multiple services.

In our Cloud business, after releasing Mail Dealer we continued working on
creating new services, some of which have been discontinued. The main cloudThis has helped our entire company grow bigger and stronger, and createda virtuous cycle that enables us to enter even larger markets.

services we currently offer are Mail Dealer, Hai Hai Mail, Raku Raku Hambai,

Continuously adding functions and making improvements to our services

Raku Raku Seisan, and Raku Raku Meisai. Our basic policy is to focus more on

has led to boosting customer satisfaction. And customers that have used ourcompeting in markets where we can succeed than areas that have potential

services for a long time have reduced costs and working hours by improving

synergy with existing services, and gradually enter big markets. In line with

operational efficiency. By investing the value generated through this process

this policy, we start a service with the minimum functions and explore its

in new areas, we realize value-creation chains.

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

09

Growth Trajectory
Changes in Net Sales and Important Milestones

(Millions of yen)March 2021
Changed to First Section of
the Tokyo Stock Exchange

22,00020,000July 2018
IT outsourcing business
was succeeded to
RAKUS Partners

18,00016,00015,387

December 2015
Listed on Tokyo Stock
Exchange Mothers

14,00012,00010,0008,000

20,629April 2001
IT engineering school business started
Cloud business started

6,000

May 2002

4,000

March 2009
IT engineering school
business was discontinued

May 2014
Subsidiary establishedin Vietnam
January 2015
All shares of US subsidiarywere sold

April 2011
Subsidiary establishedin the US

February 2018
Blaynmailconsolidated
as subsidiary

11,608
8,743

6,408
4,932

IT outsourcing business started
2,000

0

November 2000
RAKUS wasestablished
FY2001.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 FY2012.3 FY2013.3 FY2014.3 FY2015.3 FY2016.3 FY2017.3 FY2018.3 FY2019.3 FY2020.3 FY2021.3 FY2022.3

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

10

Business Model and Performance of Cloud BusinessBusiness Model of Cloud Business

Our Cloud business offers subscription services to help
companies improve operational efficiency throughMonthly fee

digitalization. The business model enables stable sales
growth by accumulating new subscribers. Maintaining a

Cloud services (SaaS) that contribute to improving operational efficiency

Corporate
customer
Cycle to sustainably expand subscription sales
New orders increase

Investments for increasing
customer satisfaction

Net sales increase

Low churn rate

Changes in Sales, Segment Income, and Subscription Sales Ratio (Millions of yen)
92.9%

91.9%

91.7%

91.5%

Segment income

12,298Subscription sales ratio

4,748

6,725

8,952
3,568

1,082

1,261

898

FY2018.3

FY2019.3

FY2020.3

1,227
FY2021.3

FY2022.3

rates, and have established a pricing structure thatmakes it easy to continue using the service.

Sales by Service

91.7%
16,716Sales

the rate low, we constantly work to improve customer
satisfaction, target segments with low business failure

Satisfaction increase
Continuous improvement ofoperational efficiency

Strengthening
investment in growth

low churn rate is key in this model, so in order to keep

(Millions of yen)

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

1,601

2,579

3,935

5,559

7,658

Mail Dealer

149

326

552

1,177

2,260

Email distribution services

445

598

866

1,281

1,867

Raku Raku Hambai

939

1,410

1,573

1,963

2,367

Raku Raku Meisai

1,339

1,538

1,732

1,979

2,178

274

273

291

336

384

4,748

6,725

8,952

12,298

16,716

Raku Raku Seisan

OthersTotal of Cloud businessValue Creation

11

RAKUS SUSTAINABILITY REPORT 2022

Features and Growth Strategy of Cloud Business

1
2

Offers subscription-based cloud services that
contribute to improving operational efficiency

Growth Cycle of Cloud Business
Develop
functionsBest-of-breed focused

3

Aims for both profitability and high sales growthby managing a portfolio of multiple services

4

Strives for high sustainable sales growth byincreasing the number of services

Incur

Strengthen
investment ingrowthIncreasesales deficit

Turn

Decrease
SG&A

profitExpandinvestment
capacity

Conduct PMF*
activities

Decline in cost of
sales ratio

High growth phase

New service development

Improve profit
marginIncrease sales

Increase
profitDecline ingrowth rate

Maturity phase

Profit
Add new services and strengthen investment in growth* PMF: Product Market Fit

RAKUS offers multiple best-of-breed services that improve
efficiency of specific operations, with the aim of taking the top sharein each service. The biggest feature of our growth strategy is that we

Achieve sustainable growth by increasing services
Service Improvement Cycle

simultaneously roll out different services during their growth phase.

Customer

If a service exhibits growth potential after we determine its productmarket fit, we invest greatly in SG&A and let it go into the red. During
the ‘high growth phase,’ the gross profit margin improves as sales
increase and the service turns a profit. By investing the operating

Reasonfor losing
orders
Needs

Improve and increase order and retention rates

Reason forcancellation
Needs

profit of services that have reached the ‘maturity phase’ in newservices, we generate profit and achieve sustainable growth for the

Cloud service

business overall. We will leverage the expertise we have gained
from launching and growing a large number of cloud services overmany years. Thus, we will strive to expand our service lineup by
launching new services, and M&As.

Sales team

Feedback

Development
team

Feedback

Customersuccess teamValue Creation

RAKUS SUSTAINABILITY REPORT 2022

12

Services
Raku Raku Seisan

Raku Raku Meisai

Dramatically reduces time and costs in settling expenses!

Eliminates the time-consuming work of printing, sealing, and sending bills

File an expense claim
from a computer or
smartphone

I can check it without having
to deal with errors in claims!

STEP1

With Raku Raku Seisan,
you can carry out a wide
range of accounting
processes including
making journal entries,
requesting payments,
and creatingbank transfer data.

Compliantwith rules

ApplicantNon-compliant
with rules

Approver

Accounting personnel

Select a fileCSVC umulative Number of Companies
Using the Service
10,065For many companies in Japan the expense
settlement process is still paper-based. Managing

Sends out inaccordancewithrecipients’
needsBill data.csv

PDF

Download fromthe website

Attach to thenotification email

Automates issuance of awide range of
documentation
Bills
PDF
Deliverystatements
Payment
statements
Receipts

Improves efficiency ofwork of issuing bills

Postal mailFaxC umulative Number of Companies
Using the Service
3,877

Accounting personnel in companies with a large
number of clients must create and print bills, seal

7,860

and confirming so many documents takes up aconsiderable amount of time for accounting

them in envelopes, and send them out in only a
few days. Raku Raku Meisai is easy to introduce

6,086

personnel. Raku Raku Seisan digitalizes the entire
process, from claims to journal entry, reducing thebills—electronically, by post, or fax. Just enter yourbilling data in Raku Raku Meisai and it takes care

3,027

1,190

of everything from creating and sending bills, andrules in claim procedures, thereby lightening theif you send bills electronically, you can check

workload for accounting personnel and improving

whether the electronic bills have been received.

efficiency of expense settlement tasks.

Thereby Raku Raku Meisai lightens the workload
2018.3

2,240

because it lets you choose the method of sending

4,382

time required to manage documents. The system
also prevents errors and non-compliance with the

STEP3

Uploaddocument data

Automatically blocks expense claims non-compliant with the rules!

Solves all your expense
settlement problems

STEP2

2019.32020.32021.32022.3and improves efficiency for accounting personnel.

363
2018.3629

2019.32020.32021.32022.3

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

13

Services
Raku Raku Hambai
Improves operational efficiency through central management of emails

Automates and streamlines operations without the need for spreadsheets•Register customer information •Create estimates•Process orders •Report projects •Manage sales•Process delivery

Don’t know which emails have been
responded to and which have not…

Customer master data

Complex sales management tasks

Employee A

Project DB
Not responded

Estimate DB
Sales
manager

Sales rep

Improves
efficiency

Sales repwith databases andworkflows

Order DB
Inventory DB

Responded

Sales
managerBill DBNot responded

Not responded

Not responded
Not responded

Responded
Not responded

Not responded

Responded

Not responded

Not responded

Access frombrowser

Not responded

Customer

Buyer

Inventory management
Bill processing
Procurement processing

Response teamProvides at-a-glance response statusof who has responded to which inquiry

Accountant

Improves efficiency for all
sales management operations

Buyer

AccountantC umulative Number of Companies
Using the Service
2,511

Raku Raku Hambai is a system that improves
efficiency of sales management tasks carried outC umulative Number of Companies
Using the Service
7,428

Mail Dealer is a system that improves efficiency of

6,754

among members. It eliminates errors such as

1,486

customized without the need for coding, and you
can make improvements while you use it. It

duplicate responses and lack of response, and5,353

members through creation of response logs.

916

2019.3

4,757

enables smooth transition between team

1,163

2018.3

6,006

to centrally manage and share email inquiries

databases and workflows, it can easily beroutine work and sharing information in real time.

Improves operational efficiency
by centrally managing inquiries

customer support operations by enabling teams

1,946

with spreadsheets and paper. Combining

improves operational efficiency by automating

Employee B

2020.32021.32022.32018.32019.32020.32021.32022.3

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

14

Services
Hai Hai Mail

Services Being Nurtured to Contribute to the Growth of the Next Generation

Tool for improving efficiency of email marketing

An essential part of launching a new service is the product market fit process.

Calculates email delivery rate, open rate, and click-through rate after sending emails
Also measures conversion rate through integration with external servicesa

SenderImproves
mailinglists

The process from selecting the suitable market to functional development,
marketing and sales, and strengthening customer support takes about three

Cycle of delivery, measurement, and improvement
grows potential customers and contributes to sales

Opened!

Send to everyone or by groupto five years. Once product market fit is determined, the next step is theRecipient

Email magazine (bulk email)Segmented and scheduled emails

Triggered emails and visit notifications

Sends out the same contents in bulk

Sends individualized contents

Sends an email when your website
is visited

Sends out the optimal emails foremail marketingC umulative Number of Companies
Using the Service

RAKUS offers three email distribution services: Hai

9,478

Hai Mail, Curumeru, and blastmail. Hai Hai Mail, our

8,574

biggest seller, is a system that improves efficiency of

7,411

email marketing. You can send emails by group or
attribute, and it comes with analytical functions that

6,442

Chat Dealer AI is a chatbot that responds to inquiries.
The AI chatbot answers frequently asked questions,improving efficiency of support operations and boostinguser satisfaction.

Raku Raku Jinji is a human resources and labor
management system that collects necessary informationon the Web at the time of joining a company and enables
centralized management of employee information. It canalso conclude employment contracts online, making it
possible to achieve a paperless system for documentation
for new employees.

5,589

are essential for measuring the effectiveness of email
marketing such as functions that track click-throughand email open rates, and display graphs of reports. It
also includes a function that lets you use the open
rate tracking function to send additional emails. Hai
Hai Mail improves the efficiency of email marketingwith functions for measuring effectiveness.

growth phase where we invest heavily in SG&A.

2018.32019.32020.32021.32022.3

Raku Raku Kintai is an attendance management
system that centrally manages employee attendance
information. In addition to managing paid leave andovertime, it can also flexibly accommodate needs suchas types of leave and employment specific to individualcompanies, thereby improving efficiency of attendance
management operations.

Value Creation

15

RAKUS SUSTAINABILITY REPORT 2022

Business Model and Performance of IT Outsourcing Business
Sales and Segment Income

Making it easy for everyone involved in IT
Unlike registration-type personnel dispatching,personnel hired as employees of RAKUS Group are dispatched.

(Millions of yen)

3,912

Sales
Segment income

3,089
2,655

Assign tocustomer’s
workplace

Hiringinexperienced
personnel

Training

Leverage expertise gained from our
IT engineering school business

Dispatching◦Java◦Infrastructure◦Machine learning,
etc.

1,660

2,017

158

206

276

330

351

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

Features of RAKUS Partners’ Engineer Dispatching Service
We hire and train people to be IT engineers, andprovide recruitment services.
Leveraging the expertise gained from the IT engineering school we previously

Top talent
STRENGTH

1

operated, we select people without engineering experience who show
potential to become engineers from applicants wishing to change careers.
We train them for about three months to turn them into IT engineers who areFirst class training
STRENGTH

2

proficient in Java programing, infrastructure, machine learning, and quality
assurance, and dispatch them to corporate customers. We also provide
recruitment services, serving as a career hub for IT engineers andcontributing to society by helping accommodate the shortage of them.

・Unlike registration-type personnel dispatching, personnel hired as
employees of RAKUS Partners are dispatched.
・Since they are employees and not simply registered members, attendanceis stable.

STRENGTH

3

・We provide training in the specialized fields of Java, infrastructure,machine learning, and quality assurance.
・Full-time instructors provide fully practical training to ensure the engineers
perform successfully at the customer’s workplace.

Full-time support
・The engineers we dispatch are selected from full-time engineering staff.
・We interview the customer on how the IT engineers are doing and provide
follow-up.

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

16

Management Resources That Underpin Value Creation and Growth

Importance ofmanagement resource

Strengths

Risks and opportunities

Challenges

Human resources

Technology

Customer basePartners

Finance

Retaining talented employees
and expanding the organization
is essential for achieving
sustainable growth.

Staying on top of the latest
technological trends andtirelessly incorporating needed
technology leads to sustainablegrowth.

Addressing customer needs
gives services competitive
advantage, so expanding thecustomer base is an importantpart of our strategy.

System partners and sales
agents play a major role inaccelerating growth.

Maintaining and expanding astable and solid financial baseis key for achieving sustainablegrowth.

Many employees are midcareer hires with diverse
experiences and specializations,and continuously increasing thenumber of employees is asource of our capability to grow.

We have the technologicalcapabilities to provide services
that are stable, low cost, andsecure.

We have a large customer basecompared to competitors. This
enables us to identify detailed
customer needs, which
contributes to the enhancementof our services.

Our partner base continues toincrease as we grow, as does
our alliances with large
companies that have highname recognition.

We have continuously turned a
profit since our second fiscal
year in business. This hasgrown our equity capital,
enabling us to continue tomake large investments.

Many companies arecompeting over diverse andtalented employees, so
retaining such employees
poses a risk, and our hiring
power could be improved.

Security and system stability
are the most important things
to ensure customers choose us
and can use our services withpeace of mind.

Digitalization in the market
where we offer our services isstill behind. This huge
untapped segment presents
big oppor­tunities but also
poses the risk of increased
competition.

It is important to retain thecompanies that choose us aspartners, so we will strive tostrengthen collaboration andprovide services that contributeto their growth.

We maintain a stable financialbase and control risks.

Boosting awareness in ourcompany name is one of thebiggest challenges in acquiring
talent. Part of the problem isthat the names of our services
and name of the company
differs.

Maintaining strong security is
not easy. We must constantly
acquire the latest informationand technology, andcontinuously invest.

Using our customer base to
cross-sell will be a big
challenge in the future.

Increasing and utilizing ourpartners to achieve further
growth will continue to be amajor challenge.

Using our financial leverage
will be a big challenge in the
future.

Value Creation

RAKUS SUSTAINABILITY REPORT 2022

17

Medium-Term Management Targets
1

Five-year sales CAGR 26%–30%2

Net income for FY2026.3: 10 billion yen or more

3

Net assets as of 2026.3: 20 billion yen or more

Changes in Net Sales and Its Targets(Millions of yen)

48,868–57,134

Our target is to achieve 26–30% sales CAGR. We invest actively overthe first 4 years to meet the sales target. Then, we aim to achieve
over 10 billion yen of net income in the final year by pursuing

CAGR
26%–30%operational efficiency.
Note:The target will be revised if we acquire businesses.

Effects we would like to bring about by strengthening andexpanding the balance sheet
・Reduction in borrowing costs by enhancing our creditworthiness・Mitigation of the impact of impairment generated by large or

20,629multiple business acquisitions
Note:Increase in the amount of goodwill we can handle

15,387
11,608

Our policy is to actively pursue M&A opportunities in thecloud (SaaS) business domain to contribute to our sales
and profit in the mid- and long-term.

4,077
FY2016.3

4,932

FY2017.3

6,408

FY2018.3

Strengthen investment
in growth

8,743

FY2019.3

FY2020.3

FY2021.3

FY2022.3

FY2026.3

ESG

RAKUS SUSTAINABILITY REPORT 2022

18

Environmental Data
Total Energy Consumption and CO2 Emissions

Total energy consumption (GJ)

4,213

0.035

0.04

8,000

7,103
0.030

3,000

(Kg)

CO2 emissions (tons per one million yen in net sales)

4,000

0.039

Paper Usage

2,892
2,375

0.03

2,868
0.022

4,703

0.021

2,000

6,016

6,000

0.02

4,562

4,000

3,406

1,799
1,000

0

FY2018.3

FY2019.3

FY2020.3

FY2021.3

0.01

2,000

0

0

FY2022.3

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

Goals
Because RAKUS is an IT service provider, its CO2 emissions are relatively low.

In the future we will ascertain the circumstances and set targets while

Although we use electricity to provide our services, the data centers we areincorporating the feedback and advice of investors, and consider measures tocontracted with do not disclose electricity consumption and renewable energy

achieve carbon neutrality.

use rates in Japan. For this reason, at present we disclose Scope 2 emissions.

ESG

RAKUS SUSTAINABILITY REPORT 2022

19

Social Contribution in Businesses
RAKUS operates its Cloud business and IT outsourcing business in line with its
Example with 100 employees (per year)

services.” Our Cloud business provides several services that contribute to improving

Raku Raku Seisan
Total: 1,191 hours

237 hours
261 hours
694 hours
Paper-based expense settlement

mission: “We constantly help companies grow their business by providing IT
the efficiency of companies’ back-office operations, thus improving their overall

Total: 271 hours

operational efficiency.

77%
improvementin efficiency

Faced with an expected workforce shortage due to a declining birthrate and8 hours
35 hours

increasing aged population, Japan cannot afford not to improve efficiency throughdigitalization. However, because the country is behind in training workers in the

229 hours

digital field and has not aggressively invested in IT, many processes are still carried

Raku Raku Seisanout with inefficient manual methods. SMEs make up a large part of companies and■Claim filing ■Approval ■Accounting

the workforce. Such companies have had particular difficulty acquiring staff andtend to be behind in digitalization, making them prone to long working hours. And
there are even many major corporations that have shown little progress in improving
efficiency through digitalizing back-office operations. Lacking the ability to allocate

Example with 500 documents per month
Assumes 1.5 minutes per document
Raku Raku Meisai
Total: 750 min.

250 min.
250 min.
250 min.

enough manpower to growth-driving R&D and sales operations is a factor in low
sales growth rates and profit margins.
In this environment, customers that use our cloud services have improved

Total: 30 min.

96%
improvementin efficiency

operational efficiency by digitalizing previously paper-based processes such as
settling expenses and issuing bills. This enables them to strengthen investments for
growth and revise staff allocation, and contributes to improving their performance aswell as the health and well-being of the people who work there.
Improving efficiency through digitalization in Japan requires a huge workforce ofSending paper documents

Raku Raku Meisai■Printing out ■Placing seals ■Sealing envelopes■System operations

people who are well versed in the digital field. Our IT outsourcing business iscontributing to the advancement of society by adding to this workforce throughtraining IT engineers and dispatching them to companies.

ESG

20

RAKUS SUSTAINABILITY REPORT 2022

Organizational Structure and Governance Policy
The RAKUS Group’s basic philosophy of corporate governance is tohave a lasting organizational structure that enables accurate decisions
to be made in response to changes in the social and economic

Basic Corporate Governance System and Reasons for Adoption
Overview of Corporate Governance System
RAKUS is a company with an Audit & Supervisory Board. The Audit & Supervisory Board Members
attend important meetings such as the Board of Directors meetings, and monitor decision-making
processes and the performance of executive tasks from an independent standpoint. The Board of
Directors is chaired by President and Representative Director Takanori Nakamura. It holds meetings
at least once per month as a rule, where it formulates corporate management policies and plans,confirms the status of executive tasks, deliberates and decides legal matters and important
corporate management-related matters, and monitors the performance of each Director’s duties.
The Internal Audit DIvision conducts internal audits of our divisions and subsidiaries on matterssuch as legal compliance and operational efficiency, and offers concrete advice and suggestions on
making improvements.
Reasons for Adopting Corporate Governance System
We adopted a corporate governance system that we believed was the best system for achieving ourcompany’s purpose at the time. Therefore, we will revise the system as needed in response tochanges in the social and legal environment.
RAKUS ensures that it is run soundly and transparently by ensuring the proper functioning of themonitoring and oversight functions of corporate management by the Audit & Supervisory Board
Members, which includes Outside Audit & Supervisory Board Members. We also appoint Outside
Directors to improve the monitoring and oversight of decision of business execution and corporate
management by the Board of Directors. We have decided to adopt the company with the Audit &Supervisory Board because we determine that the most appropriate governance system is one
based on monitoring and oversight by Outside Directors that are independent from executives, theAudit & Supervisory Board Members, and the Audit & Supervisory Board.

environment. We believe that making accurate decisions with efficiency,
justice, transparency, fairness, and promptness benefit all stakeholders
including shareholders, business partners, and employees.

Percentage of Outside Audit &Supervisory Board Members

Percentage of Outside Directors

3
6

2
3

50%

66%

Organizational Structure
General Meeting of Shareholders

Appoint Dismiss

Appoint Dismiss

Board of Directors
Six Directors(three of which are
Outside Directors)
SelectRemoveOversee

Audit

ReportAudit & Supervisory Board
Three Audit & Supervisory
Board Members(two of which are Outside Members)

ReportRepresentative Director

Internal Audit Division

Collaborate

Appoint Dismiss

Instruct
ReportOverseeControl

Business Execution DivisionInternal
audit

Audit

Advise/guide

Accounting Auditor

Attorneys, etc.

ESG

RAKUS SUSTAINABILITY REPORT 2022

Policy on Remuneration for Officers

Attendance at Meetings of the Board of
Directors and the Audit & Supervisory Board

RAKUS prioritizes aligning the interests of shareholders and investors andAttendance at Meetings ofthe Board of Directors

those of the top management. The current top management team, notincluding outside officers, are the major shareholders of the company. Thanks
to the growth of our businesses, the continuous increase of dividend income
and the improvement of corporate value have led to an increase in the value ofshares held. This means that the responsibility and results of management are

21

Representative Director

Takanori Nakamura

Director

Yoshifumi Matsushima

Attendance at Meetings of
the Audit & Supervisory Board

26/26 meetings
26/26 meetings

linked to assets held. For this reason, we believe that creating a big incentive
plan is not needed for the time being. Monetary remuneration is within thescope of about 3.5 times more than the average income of employees, which
serves to boost motivation to improve corporate value while at the same time
maintaining a level that does not produce too wide of a gap with employees.

Director

Shinichiro Motomatsu

Outside Director

Kenji Ogita

21/21 meetings *26/26 meetings(Millions of yen, unless otherwise stated)

Category

Total
remuneration

Total remuneration by type
Basic
remuneration

Non-monetary
remuneration, etc.

No. of eligible
officers(Persons)

Outside Director

Yukihiko Kunimoto

Outside Director

Directors(Of which Outside
Directors)

68(3)

Audit & Supervisory
Board Members(Of which Outside
Audit & Supervisory
Board Members)

8
(3)

Total
(Of which outside
officers)

77
(7)

63
(3)

5
(-)

6
(2)

Reika Saito
Full-time Audit &Supervisory Board Member

Toshihiro Nojima
8
(3)

(-)

3
(2)

Outside Audit &Supervisory Board Member

Koji Matsuoka
71
(7)

5
(-)

9
(4)

The above includes one Director who retired at the conclusion of the 21st Annual General Meeting of Shareholders held on
June 25, 2021.

Outside Audit &Supervisory Board Member

Natsuro Abe

26/26 meetings-*
26/26 meetings

13/13 meetings

26/26 meetings

13/13 meetings

26/26 meetings

13/13 meetings

Director Shinichiro Motomatsu was appointed as Director after the 21st Annual General Meeting of Shareholders held in June
2021, so the number of times he attended the meeting after his appointment is shown. Outside Director Reika Saito was
appointed as Director after the 22nd Annual General Meeting of Shareholders held in June 2022, so the number of times she
attended the meeting in the previous fiscal year is not shown.

ESG

RAKUS SUSTAINABILITY REPORT 2022

22

Directors/Audit & Supervisory Board Members
President and Representative Director

Takanori Nakamura
April 1996
September 1997
January 2000
November 2000

Outside Director◦Born January 27, 1973 ◦Shares held: 62,240,300

Joined NIPPON TELEGRAPH AND TELEPHONE CORPORATION
Established Digital Network Service GSK
Established Infocast Co., Ltd.; Director
Established RAKUS; President and Representative Director (current position)[Important concurrent positions]
Chairman, RAKUS Vietnam Co., Ltd.
Director, RAKUS Light Cloud Co., Ltd.
Director, RAKUS Partners Co., Ltd.

Director

Yoshifumi Matsushima
April 1998
January 2000
November 2000

◦Born August 17, 1973 ◦Shares held: 9,340,000

Joined Toppan Co., Ltd.
Established Infocast Co., Ltd.; Director
Established RAKUS; Director (current position)

Director

Shinichiro Motomatsu
April 2001
July 2012
June 2021

Joined RAKUS
Executive Officer
Director (current position)◦Born March 3, 1974 ◦Shares held: 8,814,300

Kenji Ogita
March 1986
June 2005
June 2005
July 2005
September 2005
March 2007
February 2015
July 2020
August 2020

◦Born July 6, 1958 ◦Shares held: 64,000

Joined Toyo Information Systems Co., Ltd. (currently TIS Inc.)
Joined Digital Garage, Inc.
Director, Ibex&rims Inc.
Director, DG Incubation, Inc.
Representative Director, DG & Partners, Inc.
Director, TransWARE CO., LTD. (currently QUALITIA CO., LTD.)
Outside Director, RAKUS (current position)
Representative Director, Orange Company Inc. (current position)
Representative Partner, Antelope LLC (current position)

Reasons for selection
Kenji Ogita was selected to be an Outside Director due to his experience serving as Director atother companies, and his ability to use his broad insight to give feedback and advice, oversee
from a neutral and objective standpoint, and make holistic decisions based on his unique career.
Outside Director

Yukihiko Kunimoto
April 1984
January 2006
June 2020◦Born August 21, 1960 ◦Shares held: 0

Joined Japan Associated Finance Co., Ltd. (currently JAFCO Group Co., Ltd.)
Established Independents Co., Ltd. (currently Kips Co., Ltd.);
Representative Director (current position)
Outside Director, RAKUS (current position)

Reasons for selection
Yukihiko Kunimoto was selected to be an Outside Director due to his ability to oversee themanagement of RAKUS and give advice on a wide range of management issues from an
out-of-the-box perspective based on his extensive experience and keen insight as the headof another company.

ESG

RAKUS SUSTAINABILITY REPORT 2022

23

Directors/Audit & Supervisory Board Members
Outside Director

Outside Audit & Supervisory Board Member

Reika Saito◦Born February 7, 1980 ◦Shares held: 0*Reika Saito’s name is recorded as Reika Koumori in the family registry.

September 2007 Joined Ogasawara & Konno Law Firm
October 2008
Joined the International Legal Affairs Bureau, Ministry of Foreign Affairsof Japan (with limited term)
October 2009
Returned to Ogasawara, Konno & Rokugawa Law Firm
February 2012
Joined the Dispute Settlement Center for Nuclear Damages (part-time)
September 2012 Assigned overseas to Israel and Egypt
January 2018
Returned to Ogasawara, Konno & Rokugawa Law Firm
February 2021
Partner, Amita International Law Firm
June 2022
Outside Director, RAKUS (current position)[Important concurrent positions]
Outside Audit & Supervisory Board Member, Grooves Inc.
Director, Forum on Future Vision
Reasons for selection
In addition to her professional knowledge and experience as an attorney-at-law, Reika Saito has
experience as an Outside Audit & Supervisory Board Member at another company. The Company
therefore nominated her for Outside Director, judging that she can provide supervision from an
independent and objective standpoint and advice from a legal perspective on overall management.
Full-time Audit & Supervisory Board Member

Toshihiro Nojima
April 1997
January 2000
November 2000
June 2011◦Born March 3, 1974 ◦Shares held: 2,640,000

Joined The Yasuda Fire and Marine Insurance Co., Ltd.(currently Sompo
Japan Partners Inc.)
Established Infocast Co., Ltd.; Director
Established RAKUS; Director
Full-time Audit & Supervisory Board Member (current position)[Important concurrent positions]Auditor, RAKUS Vietnam Co., Ltd.
Audit & Supervisory Board Member, RAKUS Partners Co., Ltd.
Audit & Supervisory Board Member, mj Capital Inc.

Koji Matsuoka
April 1997
November 2000
March 2005

◦Born August 5, 1974 ◦Shares held: 520,000

Joined Asahi & Co. (currently KPMG AZSA LLC)
Outside Audit & Supervisory Board Member, RAKUS (current position)
Representative, Matsuoka CPA Office (current position)[Important concurrent positions]
Outside Director, ROCKWAVE Co., Ltd.
Outside Audit & Supervisory Board Member, Asahi Life Science Co., Ltd.
Outside Audit & Supervisory Board Member, Aisawa Construction Ltd.
Outside Audit & Supervisory Board Member, Adachi Co., Ltd.
Audit & Supervisory Board Member, Dream Factory Inc.
Director and Audit & Supervisory Committee Member, HouseFreedom Co., Ltd.
Reasons for selection
A certified public accountant, Koji Matsuoka was selected to be an Outside Audit & Supervisory
Board Member due to his considerable capabilities and experience in overseeing the performanceof Directors’ duties and ensuring transparency, efficiency, and impartiality in decision making.
Outside Audit & Supervisory Board Member

Natsuro AbeMay 1998
August 2002
October 2004
April 2009
June 2014
October 2021
October 2021

◦Born July 19, 1975 ◦Shares held: 64,000

Joined Andersen Consulting Ltd. (currently Accenture Japan Ltd.)
Joined Y’s table corporation
Director, Yume no Machi Souzou Iinkai Co., Ltd. (currently Demae-can Co., Ltd.)
Representative Director, Y’s & partners Co., Ltd. (currently PLATFORM
HOLDINGS Co., Ltd.) (current position)
Outside Audit & Supervisory Board Member, RAKUS (current position)
Representative Director, ANDB Co., Ltd. (current position)
Representative Director, RESPa Co., Ltd. (current position)

Reasons for selection
Natsuro Abe was selected to be an Outside Audit & Supervisory Board Member due to his
experience serving as Director at another company, and his ability to use his broad insight togive feedback and advice, oversee from a neutral and objective standpoint, and make holistic
decisions based on his unique career.

Data Section

RAKUS SUSTAINABILITY REPORT 2022

24

Consolidated Statements of Income(Millions of yen)

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

Net sales

6,408

8,743

11,60815,387

20,629

Cost of sales

2,285

2,989

3,945

5,030

6,598

Gross profit

4,123

5,753

7,662

10,357

14,030

64.3%

65.8%

66.0%

67.3%

Selling, general and administrative expenses

2,882

4,285

6,487

6,459

12,452

Operating profit

1,241

1,468

1,174

3,898

1,578

19.4%

16.8%

10.1%

25.3%

7.7%

0

0

(8)

205

(52)

EBITDA*

1,357

1,809

1,561

4,346

2,158

Profit before income taxes

1,247

1,474

1,169

4,087

1,543

372

455

369

1,150

465

29.9%

30.9%

31.6%

28.1%

30.1%

Profit attributable to owners of parent

874

1,018

799

2,936

1,078

Earnings per share

4.83 yen

5.62 yen

4.41 yen

16.20 yen

5.95 yen

ROE

26.4%

24.5%

16.3%

45.1%

13.1%

Equity ratio

70.9%

74.8%

73.8%

68.4%

73.6%

GP margin

OP margin
Extraordinary income/losses

Total income taxes
Tax rate*EBITDA = Profit before income taxes + Extraordinary income/losses + Depreciation + Amortization of goodwill + Interest expenses

68.0%

Data Section

RAKUS SUSTAINABILITY REPORT 2022

25

Consolidated Balance Sheets(Millions of yen)

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

2,802

3,668

4,413

8,580

8,419

201

321

619

730

886

1,283

1,119

955

791

627

Customer relationship

355

282

208

134

61

Software

21

36

49

38

34

1,659

1,438

1,213

964

723

566

714

793

1,195

1,671

2,427

2,474

2,625

2,891

3,281

5,229

6,142

7,039

11,471

11,700

1,418

1,436

1,773

3,606

2,977

104

113

72

22

106

1,522

1,549

1,846

3,629

3,083

3,709

4,596

5,196

7,842

8,604

Total net assets

3,706

4,593

5,192

7,842

8,617

Total liabilities and net assets

5,229

6,142

7,039

11,471

11,700AssetsTotal current assets
Total property, plant and equipment
Goodwill

Total intangible assets
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Total shareholders’ equity

Data Section

RAKUS SUSTAINABILITY REPORT 2022

26

Consolidated Statements of Cash Flows(Millions of yen)

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

1,247

1,474

1,169

4,087

1,543

Depreciation

82

171

219

301

399

Amortization of goodwill

27

163

163

163

163

(206)

(261)

(348)

(552)

(680)

Increase (decrease) in accounts payable — other

69

32

47

314

501

Increase (decrease) in accrued expenses

55

94

115

81

282

Income taxes paid

(316)

(572)

(458)

(464)

(1,770)Net cash provided by (used in) operating activities

1,042

1,120

939

4,271

(11)

Net cash provided by (used in) investing activities(1,523)

(463)

(481)

(432)

(877)

Dividends paid

(88)

(131)

(199)

(289)

(317)

Net cash provided by (used in) financing activities

(113)

(141)

(195)

(303)

(295)

Cash and cash equivalents at beginning of period

2,316

1,719

2,236

2,496

6,035

Cash and cash equivalents at end of period

1,719

2,236

2,496

6,035

4,861

Free cash flow

(480)

656

458

3,839

(888)

Profit before income taxes

Decrease (increase) in trade receivables

Data Section

RAKUS SUSTAINABILITY REPORT 2022

27

Non-financial Data
(Persons)

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3

561

747

1,044

1,230

1,720

Number of employees
Percentage of female
employees

25.0%

26.0%

26.0%

27.7%

28.8%

Cloud business

280

381

538

706

958

IT outsourcing business

254

327

455

459

668

Administrative Division

27

39

51

65

94

Overtime Working Hours

17:47

16:17

Percentage of Paid Leave Taken

81.4%

80.0%

FY2018.3

FY2019.3

FY2019.3

FY2020.3

82.0%

FY2021.3

85.6%

FY2022.3

Turnover Rate

15:01

14:14

15:07

13.3%
8.5%

FY2018.3

86.3%

FY2020.3

FY2021.3

FY2022.3

FY2018.3

FY2019.3

7.8%

FY2020.3

8.9%

FY2021.3

10.0%

FY2022.3

Data Section

RAKUS SUSTAINABILITY REPORT 2022

28

Changes in Capital Structure and Dividends
Changes in Capital Structure

(%)

Fixed shares

Employee Shareholding Association

Individuals or other companies

Domestic institutional investors

Foreign institutional investors

Other financial institutions

0.55
5.23
9.53

3.92

1.39

7.20

14.15

8.77

4.97

0.76
18.59
3.11

2.34
15.65

8.11

27.22
27.47

27.41

28.50

26.28

2.35
2.20

55.12

50.43

1.88

50.21

Top Ten Major Shareholders
No. of Shares Held

Shareholding
Ratio*

Takanori Nakamura

62,240,300

34.4%

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

10,513,600

5.8%

Yoshifumi Matsushima

9,340,000

5.2%

Shinichiro Motomatsu

8,814,300

4.9%

Hideyuki Inoue

8,000,400

4.4%

Fumihiko Asano

8,000,000

4.4%

Noritsugu Ogawa

4,000,000

2.2%

MSCO CUSTOMER SECURITIES(Standing proxy: Morgan Stanley MUFG Securities Co., Ltd.)2,992,844

1.7%

Toshihiro Nojima

2,640,000

1.5%

RAKUS Employee Shareholding Association

2,610,700

1.4%

Shareholder Name

*Shareholding ratio is calculated after deducting treasury shares (1,490 shares).

1.83

1.44

Changes in Dividends

(Yen)

1.6
47.19

46.18

1.75

1.9

1.1

0.075

0.15

0.153

0.218

0.3

0.487

0.725

FY2012.3 FY2013.3 FY2014.3 FY2015.3 FY2016.3 FY2017.3 FY2018.3 FY2019.3 FY2020.3 FY2021.3 FY2022.3
FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2022.3
Note:Figures after retroactively adjusting to reflect stock split

Company Information

RAKUS SUSTAINABILITY REPORT 2022

29

Company Outline & Group Structure

Company Name

RAKUS Co., Ltd.

Foundation

November 1, 2000

Capital378,378,000 yen

Fiscal Year
Number of Employees
as of the end of March 2022

Group Companies

RAKUS Light Cloud Co., Ltd.

Business

Cloud-based software service provider

100%

IT engineer dispatching
RAKUS Partners Co., Ltd.

Consolidated: 1,720
Non-consolidated: 983

Stock Listing

Tokyo Stock Exchange Prime Market

Securities Code

3923

Shareholder Registry
Administrator

Mitsubishi UFJ Trust and Banking Corporation

Auditing Firm

KPMG AZSA LLC

100%
IT engineer career change support

From April 1 of each year to March 31 of the following year
RAKUS Mirai Co., Ltd.

Production and sales of food products andoperation of restaurants

100%

RAKUS Vietnam Co., Ltd.

Cloud service development

100%

RAKUS Co., Ltd. Headquarters
RAKUS Light Cloud Co., Ltd.

Shareholding
Ratio

Link Square Shinjuku, 5-27-5 Sendagaya, Shibuya-ku, Tokyo

RAKUS Mirai Co., Ltd.
RAKUS Co., Ltd. Osaka Head Office

Umeda gatetower, 1-9, Tsurunocho, Kita-ku, Osaka-shi, Osaka

RAKUS Co., Ltd. Nagoya Sales Office

Taijuseimei Nagoya Building, 1-4-6 Nishiki, Naka-ku, Nagoya-shi, Aichi

RAKUS Co., Ltd. Fukuoka Sales OfficeTenjin Front Square, 2-1-10 Maizuru, Chuo-ku, Fukuoka-shi, Fukuoka

RAKUS Partners Co., Ltd.

TOKYU REIT Shinjuku Building, 4-3-25 Shinjuku, Shinjuku-ku, Tokyo

RAKUS Vietnam Co., Ltd.

Bldg. QTSC 9, 4th Floor, Street 3, Quang Trung Software City, Tan Chanh Hiep Ward, District 12, Hochiminh City, Vietnam.