Consolidated Financial Information for
the Six Months Ended June 30, 2024
Link and Motivation Inc.
Securities Code: 2170

© Link and Motivation Inc.

01．Company Overview

AGENDA

02． Business Report① Report on Business Results for the
Six Months Ended June 30, 2024
② Report on Organizational Condition in
the Six Months Ended June 30, 2024
03．Report on Growth Strategy Centeredon Consulting & Cloud Business
04．Business Alliance with FCE Inc.
Reference Materials© Link and Motivation Inc.

01
© Link and Motivation Inc.

Company Overview

MISSION
Through Motivation Engineering,
we provide opportunities to transform organizations and individuals

and create a more meaningful society.

We have set forth a mission of supporting transformation to help our customers realize their wishes and resolve theirproblems, and of providing opportunities to do so. We will achieve this by steadily evolving Motivation Engineering, ourcore technology.
By working to accomplish our mission, we want to create a world in which organizations and individuals use their
dreams and sense of purpose to draw forth deeper meaning from society.

© Link and Motivation Inc.

BUSINESS
Organizational
Development
Division

Individual
Development
Division

Support for creatingorganizations
that individuals choose(Motivation Companies)

Support for creating
individuals
that organizations choose(i-Companies)

Organizational
Development
Division

Individual
Development
Division

Consulting &Support for improving employee engagement
Cloud Business
IR Support
Business

Support for improving investor engagement

Career School
Business

Career development support for working adults

Cram School
Business

Support for improving the academic ability ofelementary, junior high and high school students

Matching Division
Providing opportunities to linkorganizations and individuals

Matching
Division

ALT Placement Support for matching local governments withforeigners who want to work in Japan*
Business
Personnel
Placement
Business

Support for matching job seekers and companies

For details, see our integrated report, IR BOOK 2023 (page 27)* Matching that achieves a high retention rate by taking the applicant’s personality and other factors into account, rather than conventional matching based solely on skills.
© Link and Motivation Inc.

02
© Link and Motivation Inc.

Business Report① Report on Business Results for
the Six Months Ended June 30, 2024

01

Consolidated Statements of Operations

Revenues

YoY increase due to growth in the Consulting & Cloud business and the ALT Placement business.
Progress was as expected.

Gross Profit

Substantial increase YoY as high-margin Consulting & Cloud business and Personnel Placement business,
including OpenWork, progressed as expected.

Operating Income

Substantial increase YoY, driven by growth in the Consulting & Cloud business, which is a focal point
for the Group. Progress was as expected.

Net Income

Substantial increase YoY due to the increase in operating income. Progress was as expected.

2023 2Q Results

2024 2Q Results

Revenues

16,71518,003

7.7%

Gross Profit

8,838

9,889

11.9%

Operating Income

2,215

2,668

20.5%

Net Income

1,423

1,831

28.7%

Net Income Attributable to Owners of the Parent

1,255

1,677

33.6%

(¥ million)© Link and Motivation Inc.
© Link and Motivation Inc.

YoY Change

02

Revenues and Gross Profit by Segment

Progress was as expected in our plans for growth from 2Q onward, resulting in increases in revenues and gross profit inevery division.

(¥ million)

2023 2Q Results

2024 2Q Results

YoY Change

Revenues

16,71518,003

7.7%

Gross Profit

8,838

9,889

11.9%

Organizational
Development
Division

Revenues

6,209

6,810

9.7%

Gross Profit

4,379

4,911

12.1%

Individual
Development
Division

Revenues

3,158

3,215

1.8%

Gross Profit

1,391

1,470

5.7%

Revenues

7,831

8,356

6.7%

Gross Profit

3,490

3,856

0.5%

All Divisions*

Matching Division* Excludes intersegment revenues.
© Link and Motivation Inc.
© Link and Motivation Inc.

03

Organizational Development Division Summary
Consulting & CloudBusinessMonthly fee revenue of the Motivation Cloud series grew significantly due to growth in
new contracts. As a result, revenues and gross profit both increased substantially YoY.

IR Support Business

Revenues increased YoY, led by growth in the core service of integrated report
production in line with expectations. Gross profit increased substantially due toimproved productivity.
Motivation Cloud Series Monthly Fee Revenue

Revenues and Gross Profit by ProductResult2023 2Q
Results

2024 2Q
Results

YoY Change

Revenues

5,403

5,945

10.0%

Gross Profit

4,092

4,516

10.4%

Revenues

918

970

5.7%

Gross Profit

353

468

32.6%

(¥ million)

Consulting& Cloud
Business
IR Support
Business¥458,130 thousand(¥ thousand)

458,130

450,000

compared withprevious year

358,792
350,000

284,692
250,000
Jun. 30,2022© Link and Motivation Inc.
© Link and Motivation Inc.

＋27.7%

Jun. 30,
2023

Jun. 30,2024

04

Individual Development Division Summary

Career School Business

Revenues increased YoY as a result of an increase in revenues per enrollee due to the
expansion of new courses and other factors.
As a result of restructuring, the gross profit margin increased in line with expectations.

Cram School BusinessAs a result of increases in both enrollment and revenues per enrollee, both revenues
and gross profit increased substantially YoY.

Revenues and Gross Profit by Product

Career School Business Gross Profit Margin
Result2023 2Q
Results

2024 2Q
Results

YoY Change

Revenues

2,816

2,838

0.8%

Gross Profit

1,260

1,319

4.7%

Revenues

342

377

10.3%

(¥ million)

CareerSchoolBusiness
Cram School
Business

130

151

46.5

（%）

46.0

44.8
44.0

42.0

Gross Profit

46.5%

16.0%

41.0

40.0
2022
2Q
© Link and Motivation Inc.
© Link and Motivation Inc.

2023
2Q

2024
2Q

05

Matching Division Summary

ALT Placement Business
Personnel Placement
Business

The number of ALTs dispatched increased in line with expectations, resulting inincreases in both revenues and gross profit YoY.

Revenues and gross profit both increased substantially due to growth in OpenWork
Recruiting in line with expectations.

Revenues and Gross Profit by Product

OpenWork Recruiting Sales
Result(¥ million)

2023 2Q
Results

2024 2Q
Results

YoY Change

6,037

6,369

5.5%

¥1,140 million＋28.5%(¥ million)

1,140

1,200

ALT
Placement
Business

Revenues

Gross Profit

1,729

1,900

9.9%

Personnel
Placement
Business

Revenues

1,816

2,006

10.4%

Gross Profit

1,783

1,975

10.8%

887

900

600

362
300

0
2022
2Q
© Link and Motivation Inc.
© Link and Motivation Inc.

2023
2Q

2024
2Q

compared withprevious year

06

Consolidated Statements of Operations: SG&A Expenses

Investment in advertising to increase awareness of OpenWork in the first quarter and accelerated investment
in human resources resulted in a YoY increase in SG&A expenses.

(¥ million)

2024 2Q Results

YoY Change

Total SG&A Expenses

6,613

7,123

7.7%

① Personnel Expenses

3,257

3,573

9.7%

360

394

9.2%

③ Office and System Expenses

1,210

1,194

-1.3%

④ Sales-related Expenses

1,326

1,462

10.2%

458

499

9.0%

② Recruiting, Training and
Welfare Expenses⑤ Other Expenses© Link and Motivation Inc.
© Link and Motivation Inc.

2023 2Q Results

07

Consolidated Statements of Financial Position

Assets and liabilities increased. In liabilities, current liabilities decreased and non-current liabilities
increased because of a change in the balance of long- and short-term borrowings. Total equity increased
because the Group recorded net income.

(¥ million)

June 30, 2024

Increase (Decrease)

Current Assets

12,701

13,568867

Non-current Assets

18,141

17,715(426)

30,84331,284441

Current Liabilities

13,127

10,972(2,155)

Non-current Liabilities

4,774

7,147

2,372

Total Liabilities

17,902

18,119216

Total Equity

12,94013,164

224

Total Assets© Link and Motivation Inc.
© Link and Motivation Inc.

December 31, 2023

08

2024 Dividends

Shareholder returns are a management priority, and our policy is to pay dividends based on performance.
For the second quarter, we plan to pay a dividend of ¥3.0 per share on Wednesday, September 25.
Annual Dividend

Quarterly Dividends in 2024
(Yen)

11.90

12

11.30

Dividend per Share (Yen)First
Quarter

SecondQuarter

Third
Quarter

FourthQuarter

AnnualDividend

10(Scheduled)(Scheduled)(Scheduled)

8
6.80
6.20

6

2.9

3.0

3.0

3.0

5.30

11.9

4.20 4.40

4
2.50

2

0

© Link and Motivation Inc.
© Link and Motivation Inc.

2.87

3.15

7.20 7.20 7.40

7.70

02
© Link and Motivation Inc.

Business Report② Report on Organizational Condition in
the Six Months Ended June 30, 2024

09

Approach to Human Capital Management

We treat business strategy and organizational strategy as equal and link the two in management. Within the organization,
we invest in recruiting, training, systems, and corporate culture to improve human resource capabilities andorganizational capabilities (engagement) and thus maximize productivity, which indicates the return on human capital
investment.
Business Strategy
Maximize Customer Value

Link

Human Resource
Capabilities

Investment
Targets© Link and Motivation Inc.
© Link and Motivation Inc.

Maximize Human Capital

Productivity

KGI

KPIs

Organizational Strategy

Organizational Capabilities(Engagement)

Key indicator: Role survey score

Recruiting

Training

×

Key indicator: Engagement Rating

Systems

Corporate
Culture10

Human Resource Capabilities: Role Survey Score Results

Performance of the roles required for each job level is ranked on an 11-level ratings scale using a score calculated basedon the degree of matching between the expectations and satisfaction of others who work with the subject. The percentageof employees with an “A” rank or higher was more than 50% overall and more than 70% at the management level, indicatingthat our human resource capabilities were maintained.
Role Survey Score

April to May 2024 Results (Percentage with “A” Rank or Higher)
2022

2023

All employees (%)

56.8

55.4

Managers and above (%)

75.3

73.1

Measures the degree of matching between expectation and satisfaction
from others regarding the fulfillment of roles.

Management
Leaders
Mid-level employees
Junior employees

Rating

Score

AAA
AA
A
BBB
BB
B
CCC
CC
C
DDD
DD

67 or higher
Less than 67
Less than 61

73.6(77.0)

Note: Plan values in parentheses

Less than 58
Less than 55

Perception of 2024 Results

Less than 48

Due to initiatives to improve human resource capabilities, approx. 40%of employees maintained an “A” rank or higher from 2023.

Averageamong theLess than 52
general public
Less than 45
Less than 42
Less than 39
Less than 33* Calculated based on data from approximately 820,000 respondents in 7,570 corporate diagnoses.
© Link and Motivation Inc.
© Link and Motivation Inc.

54.0
(57.0)

Rating*Role

Upper management

2024

Results fell short of the plan because the ranks of some employees
dropped, but we will continue to focus on initiative for employees
below “A” rank.

11

Organizational Capabilities (Engagement): Engagement Rating Results

Companies are ranked on an 11-level ratings scale according to the Engagement Score,1 which is calculated based on the
degree of matching between employees’ expectations and satisfaction with their company, superiors and workplace.
Of the eight Group companies,2 six were rated AAA and two were rated AA, meeting our plan for all eight companies to be
ranked AA or higher.
Engagement Rating3

August 2024 Results

Ranked on an 11-level ratings scale according to the Engagement Score, whichis calculated based on the levels of employee expectation and satisfaction with
their company, and the degree of matching between the two factors.

Company
foundation
Philosophy andstrategies

Provision of
information
Collection of
information
Decision-making

Work content

SupportOrganizational
climateExternal adaptation

Human resources
Facilities andenvironment
Systems andbenefits

Workplace

Company

Business content

Boss

16 Areas for Measuring
Employee Engagement

Internal
cohesivenessTransformation
activities
Succession

Rating

Score

AAA
AA
A
BBB
BB
B
CCC
CC
C
DDD
DD

67 or higher
Less than 67
Less than 61

Company

Division

Rating 4
Organizational
Development
Division

August2022

August2023

August2024

Link and Motivation Inc.

AAA

AAA

AAA

Link Event Produce Inc.

AAA

AAA

AAA

Link Corporate Communications Inc.

AAA

AAA

AAA

Link Academy Inc.

AAA

AAA

AAA

Motivation Academia Inc.

AAA

AAA

AAA

Link Interac Inc.

AA

AA

AA

OpenWork Inc.

AA

AA

AA

Link-i Inc.

AAA

AAA

AAA

Less than 58
Less than 55

Average
Less than 52
among theLess than 48 general public

Individual
Development
Division

Less than 45
Less than 42
Less than 39
Less than 33

1. Engagement Score is a registered trademark of Link and Motivation Inc. (registration no.6115383).
2. Excluding Link Dining Inc. in the Other segment© Link and Motivation Inc.
© Link and Motivation Inc.

RatingMatching
Division

3. Engagement Rating is a registered trademark of Link and Motivation Inc. (registration no.6167649).
4. Calculated based on data from approximately 4,420,000 people in 11,890 corporate diagnoses.

12

Promoting Digital Transformation (DX) to Improve Productivity

We are focused on promoting DX to improve productivity. Our DX Score continues to improve, and in 2023 it exceeded
the average score at other companies. We will continue to invest in improving productivity through promoting DX.

2023 DX Score*

DX Promotion Initiatives

124.3(Points)

120

102.6
90

Group-wide Chat
GPT training

Held Group-wide Chat GPT training
provided by the Career School business

Project
promotion using
generative AI

Proactively used generative AI,
including Chat GPT, in consulting
and other projects

60

30

0
Other companies′
average

Link and MotivationGroup* Indicates results of DX Survey Basic level. Evaluated on a scale of 200 points.
© Link and Motivation Inc.
© Link and Motivation Inc.

03
© Link and Motivation Inc.

Report on Growth Strategy
Centered on Consulting & CloudBusiness13

09 of Our Growth DriverCompetitive Advantage

For the time being, given the rising importance of and difficulty for companies in adapting to the labor market,
we will focus on the Consulting & Cloud business, which has high growth potential. We will continue to expand
our support by leveraging our unique ability to comprehensively support companies in human capital management,
and use it to drive our growth.
Core Business

Our Competitive Advantage
Human Capital Management

Organizational
Develop Division
Consulting &Cloud Business
IR Support BusinessIndividual Development
Division
Career School Business
Cram School Business

Matching Division
ALT Placement Business
Personnel Placement Business

Diagnosis

Transformation

Disclosure

Precise diagnosis of engagement
for transformation

One-stop organizational HR
consulting

Support for enhanced disclosure
based on diagnosis
and transformation

Recruiting

Training

Systems

Corporate
cultureReportproduction

No. 1 share for 7
consecutive years1
One of Japan’s largest databases

Approx. 4.42 million people in

11,890 corporate diagnoses

Streaming
video

Companies supported
annually2

Companies that disclose
Motivation Cloud diagnosis results3

Approx. 900

149

1. ITR Corporation, ITR Market View: Human Resources Management Market 2024, Employee Engagement Market: Sales and Share by Vendor (FY2017-FY2023 forecast)
2. Number of companies with transactions between July 2023 and June 2024.
3. Number of companies disclosing the Engagement Rating and other diagnosis results in Motivation Cloud, which is provided by Link and Motivation Inc., as of June 30, 2024.
© Link and Motivation Inc.
© Link and Motivation Inc.

14

Growth Potential and Strategy

Our Consulting & Cloud business is providing support to approximately 1,500 companies in Japan. For now, we will
expand sales by focusing on major domestic companies, where there is still substantial room for development, whilerolling out the Motivation Cloud series to domestic small and medium-sized companies (SMEs) and overseas subsidiaries
of Japanese companies to accelerate medium- to long-term growth.

Growth Potential

Specific Strategies
Major domestic
companies

Step up comprehensive support forhuman capital management

Domestic SMEs

Leverage the customer base of FCE Inc. toroll out the Motivation Cloud series2

Number of domestic companies
with 50 or more employees1

Approx. 100,000

VietnamThailandOverseassubsidiaries

Roll out the Motivation Cloud series starting at

local subsidiaries of Japanese companies
in Thailand and Vietnam

1. Determined based on the 2021 Census for Business Activity from the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry
2. See slide 20 for details.
© Link and Motivation Inc.
© Link and Motivation Inc.

15

09
Key Indicators of Consulting& Cloud Business ①

Monthly fee revenue for the Motivation Cloud series exceeded the ¥450,000 thousand target set for June 30, 2024.
Progress is steady toward the monthly fee revenue target of ¥530,000 thousand by December 31, 2024.

Motivation Cloud Series Monthly Fee Revenue(¥ thousand)

458,130
450,000

427,345424,550

Dec. 31,2023

Mar. 31,2024

395,398
358,792
350,000

339,179

250,000
Mar. 31,2023© Link and Motivation Inc.
© Link and Motivation Inc.

Jun. 30,
2023

Sep. 30,
2023

Jun. 30,2024

16Introduction of the09
Motivation Cloud Series at Major Companies

As a result of our efforts, major companies in a wide range of industries have introduced the Motivation Cloud series.
In addition, almost all the companies that have introduced it have also disclosed the results of their diagnosis.
We will continue to provide one-stop support that extends beyond diagnosis to disclosure.

© Link and Motivation Inc.
© Link and Motivation Inc.

17

09
Key Indicators of Consulting& Cloud Business ②

With the growth in sales of the Motivation Cloud series, the backlog of orders, which is the total orders for future projects
obtained at a given point in time, has been increasing substantially YoY. The order backlog for 2024 has also increased
substantially YoY, and we are progressing steadily toward our earnings forecast.
Consulting & Cloud Business Order Backlog(¥ million)

14,00010,500

7,000

2023
and
after

2024
and
after

Approx. ¥2024

Backlog of order for projects to be delivered
during 2024 included in above

3,500

2022

2023

Note: Figures in bar graph indicate timing of delivery.
© Link and Motivation Inc.
© Link and Motivation Inc.

Jun. 30,2023

14.0 billion (increase of about 20% YoY)

Approx. ¥5.0 billion (increase of about 25% YoY)

0
Jun. 30,2022

Total orders for projects as of June 30, 2024

2025
and
after

Jun. 30,2024

18

09Attention to Human Capital Management
Close Up: Increasing

We held the HR Transformation Summit 2024 as a first-rank event for human resources in Japan. Due to theincreasing attention given to human capital management, approximately 18,000 people, including managers andHR personnel, applied to join the event. We aim to create a link between the event and our comprehensive support forhuman capital management.

The number of applicants was approximately 5,200 in 2023,
and reached approximately 18,000 in 2024, a nearly
250% increase YoY.
© Link and Motivation Inc.
© Link and Motivation Inc.

Speakers included notable people from various fields, such as
former Japan national soccer team coach Okada Takeshi.

Attendee satisfaction has remained high for threeconsecutive years.

04© Link and Motivation Inc.

Business Alliance with FCE Inc.

19

FCE Inc.

09

We have concluded a business alliance agreement with FCE Inc., a company with unique strengths in enhancing
human resource capabilities, and will begin selling each other’s products. In accordance with the basic agreement
on a capital and business alliance we entered into in May, we plan to acquire 20% of FCE’s shares and make it anequity method affiliate.

Current products for a sales tie-up
Onboarding DX system clearly distinct fromgeneral e-learning
Introduced at more than 900 companies2

Company
Overview

Business
Results(Year ended
September 2023)

1. As of March 31, 2024
© Link and Motivation Inc.
© Link and Motivation Inc.

FCE Inc. (Securities code: 9564)
Employees: 1911
Businesses: Education and Training Business,
DX Promotion Business, Publishing Business

Revenues (consolidated): ¥4,174 million

Personal RPA tool
Received No. 1 ranking as “MostPowerful IT Tool”3Introduced at more than 1,300 companies4

Generative AI prompt platform that can train
prompt engineers

Operating income (consolidated): ¥581 million
Profit attributable to owners of the parent: ¥318 million
2. As of July 31, 2024
3. First out of approximately 7,300 products in “Ranking of 50 Most Powerful IT Tools, Selected by Users” in the
ITreview Best Software in Japan 2023 survey
4. As of May 31, 2024

20

Business Collaboration between FCE and the Consulting &Cloud Business

FCE will sell the Motivation Cloud series to small and medium-sized companies, and we will sell the FCE products
RPA Robo-Pat DX and FCE Prompt Gate in the Motivation Cloud series. By enabling support for enhancing corporate
productivity, this collaboration will achieve true improvement in customer engagement.

Expand sales channels for the Motivation Cloud series

Further increase revenue per customer

Sales of the Motivation Cloud series tosmall and medium-sized companies by FCE

Sales of RPA Robo-Pat DX and FCE Prompt Gate to
major companies by Link and Motivation

Corporate customers

More than

900

Both will be recorded as monthly fee revenue for the Motivation Cloud series,
accelerating the growth of the Motivation Cloud series in 2025 and thereafter.
© Link and Motivation Inc.
© Link and Motivation Inc.

Consulting & Cloud businesscorporate customers

Approx.

1,500

Reference Materials
・Consulting & Cloud Business Supplementary Information
・Research Results
・Business KPIs

© Link and Motivation Inc.

21

Approach to Growth of Consulting & Cloud BusinessSupplementary
Information

Research
Results

Business
KPIs

Since organizational HR problems are difficult to solve in the short term, we are shifting our business model to mediumand long-term support. We will implement the following policy for expansion of recurring revenue by providing ongoingproduct services based on contracts for long-term use of Motivation Cloud, Stretch Cloud or other products. This willserve as a foundation for achieving continuous strong growth.

Recurring revenue
Cloud services providing
regular diagnosis andtransformation at the
optimal frequency for eachcompany

Recurring revenue
per customer① Increase ratio of major companies with highrevenue per customer② Increase cross-selling of Stretch Cloud③ Diversify earnings through M&As

Number of recurring
revenue customers
Focus on sales of Motivation Cloud series

Cross-selling ratio target
30%
One-time revenue
Consulting services providing
focused transformation as
required based on diagnosis
results© Link and Motivation Inc.
© Link and Motivation Inc.

One-time revenue
per customer
Increase revenue per customer bydeepening customer relationships

Number of one-timerevenue customersー22

Recurring Revenue of Consulting & Cloud BusinessSupplementary
Information

Research
Results

Business
KPIs

We will increase recurring revenue by continuing to promote introduction at major companies with high revenue per customer.

Recurring Revenue in Consulting & Cloud Business
Recurring revenue (less than ¥1 million per customer) (left scale)
Recurring revenue (¥1 million or more per customer) (left scale)(¥ million)（％）

Percentage of total revenues (right scale)

6,000

50.0

5,000

40.0

4,459
4,000

3,458
3,000

2,000

30.0

2,696
2016 2Q
Began offering
Motivation Cloud

2,310

20.0

1,933
1,184

10.0

1,000

522
142

0

0.0
2016

© Link and Motivation Inc.
© Link and Motivation Inc.

2017

2018

2019

2020

2021

2022

2023

2024
(Forecast)Relationship between Employee Engagement andInvestment Indicators

23

Supplementary
Information

Research
Results

Business
KPIs

Employee engagement has a positive correlation with ROE, ROIC and PBR.
This suggests that the higher employee engagement is, the more likely it is that human capital will be utilized effectively
and lead to generation of revenues.

Engagement Score and ROIC

Engagement Score and ROE(ROE)

Engagement Score and PBR(ROIC)

(PBR)

(ES)
(ES)

Findings of a study on the relationship between employee engagement and investment indicators are available here (Japanese only)© Link and Motivation Inc.
© Link and Motivation Inc.

(ES)

24

Supplementary
Information

KPIs by Business

Organizational
Development
Division

Individual
Development
Division

Support for creatingorganizations
that individuals choose(Motivation Companies)

Support for creating
individuals
that organizations choose(i-Companies)

Research
Results

Business
KPIs(Consulting & Cloud business)
・Consulting & Cloud Business Revenues
Organizational
・Consulting: Average revenues per customer for the past
Development
12 months
Division
・Motivation Cloud series
Monthly fee revenue / Delivered orders / Average monthly fee

Individual
Development
Division(Career School Business / Cram School Business)・Average number of enrollees for the past 12 months(Career School Business)・Average revenues per enrollee for the past 12 months
・Online course revenues

Matching Division
Providing opportunities to linkorganizations and individuals(ALT Placement Business)
・LMG share
・Average number of ALTs dispatched over the past 12 months

Matching
Division© Link and Motivation Inc.
© Link and Motivation Inc.

(Personnel Placement Business)
・Number of registered users of OpenWork and employee online
reviews / evaluation scores
・Number of companies under contract with OpenWork Recruiting

25

Organizational Development Division: Consulting & Cloud Business
Revenues / Average Revenues per Customer for the Past 12 Months(¥ million)

Consulting &Cloud Business
Consulting

YoY
ChangeRevenues

5,403

5,945

10.0%

Gross
Profit

4,092

4,516

10.4%

Revenues

3,285

3,194

Business
KPIs

2024 2Q

Result2024 2Q
Results

Research
Results

Consulting Average Revenues per
Customer for the Past 12 Months

Consulting & Cloud Business Revenues
2023 2Q
Results

Supplementary
Information¥8,418 thousand

Average revenues per customer for the past 12 months (left scale)(¥ thousand)Number of customers for the past 12 months (right scale)

10,000(Companies)

1,000

8,547

8,429

8,418
8,069

800

-2.8%
600

Cloud

Revenues

2,117

2,750

29.9%

5,000
400

About Consulting in 2024
To achieve higher profitability, we are changing our portfolio to shift fromconsulting to the cloud and to focus on human capital consulting, which has ahigh profit margin.
Due in part to the impact of first-quarter results, revenues decreased slightly, butrevenues per customer have bottomed out and are recovering. By continuing tofocus on major companies, we expect further recovery in the second half.

© Link and Motivation Inc.
© Link and Motivation Inc.

200

0

0
Sep. 30,
2023

Dec. 31,2023

Mar. 31,2024

Jun. 30,2024

Supplementary

26

Information
Organizational Development Division: Consulting & Cloud Business
Motivation Cloud Series Monthly Fee Revenue / Delivered Orders / Average Monthly Fee

Research
Results

Business
KPIs

Motivation Cloud Series Monthly Fee Revenue
2024 2Q

Result¥458,130 thousand

Monthly fee revenue (left scale)
Average monthly fee (right scale)¹(¥ thousand)(¥ thousand)

395,398

400,000

306,934

328,505

339,179

200,000

374

395

424,550

358,792

300,000

400

427,345458,130

421

500

447

467

480

400
300
200

0

100
Sep. 30,
2022

Dec. 31,2022

Mar. 31,2023

1. Monthly fee revenue ÷ Number of delivered orders
2. Number of delivery starts for each service

Jun. 30,
2023

Sep. 30,
2023

Dec. 31,2023

June 2024

Breakdown of Monthly Fee Revenue

500

100,000© Link and Motivation Inc.
© Link and Motivation Inc.

600

Mar. 31,2024

Jun. 30,
2024

Delivered orders2: 915
Average monthly fee: ¥500,000/month27

Individual Development Division

Supplementary
Information

Research
Results

Business
KPIs

Average Number of Enrollees for the Past 12 Months /Career School Business: Average Revenues per Enrollee for the Past 12 Months
Career School Business

Average Number of Enrollees
for the Past 12 Months

Average Revenues per Enrollee for
the Past 12 Months*

2024 2Q

2024 2Q

14,079ResultCareer School (BtoC)

Career School (BtoB)

ResultCram School（Enrollees）

15,000¥34,051（Yen）

14,703

14,516

14,216

31,73914,07932,62933,17934,051

30,00010,00020,0005,000

Although the average number of enrollees for the
past 12 months decreased, revenues per enrollee
have continued to increase due to the expansion of
new courses.

10,0000
Sep. 30,
2023

Dec. 31,2023

Mar. 31,2024

Jun. 30,2024

0
Sep. 30,
2023

Dec. 31,2023

Mar. 31,2024

Jun. 30,
2024* The figures above represent unit sales of BtoC services in the Career School business.
© Link and Motivation Inc.
© Link and Motivation Inc.

28

Individual Development Division: Career School Business
Online Course Revenues

Online Course Revenues
2024 2Q

Result¥259 million(¥ million)

Supplementary
Information

Research
Results

Business
KPIs

Restructuring of Career School BusinessTo adapt to changes in learning needs during the COVID-19 pandemic,
we closed or relocated schools starting in 2022 3Q and implemented
restructuring to shift to online classes.

Restructuring was completed during 2023.

300

267

259

200

2024

148

The gross profit margin increased as expected due to more efficientschool operations.
Online revenues decreased YoY due to difficulties in new enrollment in
the first quarter and last year's temporary shift online of many
students attending schools scheduled for relocation or closure.

100

0
2022
2Q

© Link and Motivation Inc.
© Link and Motivation Inc.

2023
2Q

2024
2Q

Future orders are progressing smoothly, as the business continues tofocus on expansion.

Supplementary

29

Research

Information
Results
Matching Division: ALT Placement Business
Market Share and Average Number of ALTs Dispatched over the Past 12 Months

Business
KPIs

LMG Market Share1
Private Companies

Overall

Amendment of Law on Social Insurance Coverage of ALTs

Other
Directemployment

JET
Program

19.3%
Other
privatecompanies

Other
privatecompanies

42.6%

The amendment of the National Pension Act in May 20202 expanded
the scope of coverage of social insurance. This amendment newly requires
workers with short working hours (20 to less than 30 hours per week) to beenrolled in social insurance.
This amendment is being applied first to companies with the most employees.
From October 2022, it applies to companies with 101 or more employees.
From October 2024, it will apply to companies with 51 or more employees.

Average Number of ALTs Dispatched over the Past 12 Months
2024 2Q

Result(ALTs)

3,000

2,863

2,866

2,930
2,867

2,930

From April 2024

2,000

External environment: The competitive environment will flatten out associal insurance coverage expands.
Initiatives: Select target customers and strengthen communication.
Achieve differentiation by addressing customers’ underlying issues.

1,000

Results
Recovery is proceeding as expected. The average number of ALTs
dispatched from April to June 2024 exceeded 3,100.

0Sep. 30,
2023

Dec. 31,2023

Mar. 31,2024

Jun. 30,2024

1. LMG survey
2. For details, see “Act of the Partial Revision of the National Pension Act (Act No. 40 of 2020)” issued by the Ministry of Health, Labour and Welfare© Link and Motivation Inc.
© Link and Motivation Inc.

30

Supplementary
Information

Matching Division: Personnel Placement BusinessResearch
Results

Number of Registered Users of OpenWork and Employee Reviews / Evaluation Scores &Companies under Contract with OpenWork Recruiting

OpenWork
2024 2Q

Registered users

Result

6.58 million

OpenWork Recruiting

Employee reviews / Evaluation scores2024 2Q Companies under contract

17.30 million

Result3,300(Companies)

OpenWork Number of registered users

3,300

OpenWork Number of employee reviews/evaluation scores（Million）

17.30

3,000

15.10

16

2,510

13.20
2,000

12

8

4.94

5.75

1,900

6.58
1,000

4

0

0
Jun. 30,
2022

Jun. 30,
2023

Jun. 30,
2024

Jun. 30,
2022

Jun. 30,
2023

Jun. 30,2024

For details, see “IR information” (IR情報) on the OpenWork website (in Japanese only)© Link and Motivation Inc.
© Link and Motivation Inc.

Business
KPIs

Consolidated Financial Information for
the Six Months Ended June 30, 2024
Link and Motivation Inc.
Securities Code: 2170

© Link and Motivation Inc.