Management Message

Message from Our President and CEO

January 31, 2025), we have set a goal to increase theIn FY2024, the world made a full-scale entry into thepercentage rose from 8.6% in the previous year to 9.3% and ispost-COVID-19 era. It was a year in which a resumption ofprojected to reach the 10% target by the final year of the plan.

manufacturers in industries related to automobiles andProgress of Our Carbon Neutrality Efforts

semiconductor manufacturing equipment. There was extremely

At Artner, we position “carbon neutrality” as a pillar of ourstrong demand for our engineers, and we achieved growth inbusiness activities in our Medium-Term Business Plan. By
having our engineers participate in carbon neutrality-related

a continued rise in development drive across various industries

technology development projects, we will advance theand demand for engineers to exceed the previous year’s. Alongdevelopment of these technologies and support theirwith this trend, we anticipate steady business performance.

widespread use in the market. This is how we contribute toEspecially salient in FY2024 is the increase in the unit price ofcarbon neutrality. Today, ESG initiatives are being scrutinized byengineers, which has the most significant impact on improvement

clients and employees alike.

in operating margin. In FY2024, the unit price of engineers rose

To contribute to carbon neutrality, we have set two numericaltargets. One is the ratio of carbon neutrality hires among new

margin from 12.9% in the previous fiscal year to 15.1%.

graduate and career hires, and the other is the ratio ofContributing to the rise in the unit price of engineers is ourengineers working on carbon neutrality projects among ourability to supply talent to projects with high demand for engineer

currently assigned engineers. We have secured 46.1% newdispatching services. Recent years have witnessed

graduates as of FY2024, compared to our FY2025 target of

considerably greater demand from carbon neutrality-related

55.0%. We will continue to strengthen our recruitment efforts toprojects than from other industries. By supplying engineers withachieve the 55.0% target. In addition, the ratio of currently

high added value to these projects, we have secured contract

assigned engineers was 48.3% as of FY2024, just shy of ourFY2025 target of 50.0%. If we can steadily supply talent tounit price of new graduate engineers at their first assignments

meet the strong demand from carbon neutrality-related projects,

increased more than in other years.

we believe we can fully achieve our targets by FY2025, the final

Another key factor supporting the increase in the unit price ofyear of the Medium-Term Business Plan.

07

Artner Co., Ltd. Annual Report 2024

Future Growth Strategy

in their respective projects. We offer engineers a comprehensive

Clients have speeded up development more than the previous

curriculum and our own education system to improve theiryear, which has greatly increased the demand for engineers.

individual skills. We will further strengthen our training programs

Our performance this year, the final year of the Medium-Termand provide career support to help engineers succeed and to

Business Plan, depends on how well our talent supply can meet

contribute to client satisfaction.

this demand. Labor shortages have become a major social

In order to continuously secure and develop excellent talent inissue in recent years, and the shortage of engineers is noan increasingly competitive environment, it is critical to expand

exception.

talent utilization channels. In our Medium-Term Business Plan

In the increasingly competitive recruitment market environment,(fiscal year ending January 31, 2023 to fiscal year ending

it will be crucial to secure the number of engineers needed forArtner Co., Ltd. Annual Report 2024

Data Section

President and CEOwith our clients are delivering strong performance and outputs

Governance

unit prices above the market average. Notably, in FY2024, theSustainability

by 3.2% year on year, resulting in an increase in the operating

Growth Strategy

both sales and profit for the tenth consecutive year. We expect

engineers is the fact that our existing engineers under contract

SEKIGUCHI Sozo

percentage of our contracting business, which accommodates
diverse work styles, to 10%. Due to high client demand, theValue Creation Story

normal operations could be felt among our main clients,

Management Message

Business Environment andFY2024 Financial Results

Introduction

We aim to further increase enterprise value by
supporting engineers’ dreams, growth, andself-actualization, while at the same time living up tothe trust we have earned from our clients over themore than 60 years of our existence.

08

Management Message

measures or consider strategies for recruiting foreign nationals.

increasing parental leaves.

To increase the share of our contracting business going forward,

At Artner, talent turnover is distinguished between passive andit will become important to utilize outside talent and better

constructive turnover. We view constructive turnover asappeal to candidates with project themes and the companies

organize our partner companies. In our current fields, weengineers growing at Artner, graduating from the Company, andwith which they may be placed. Those with whom this resonatedbelieve that we can resolve the quantity challenge by further

moving on to new challenges. They are supported by our “jobtend to join the Company. Despite the challenging recruitment

securing our own engineers, foreign talent, and partnerchange assistance program.” We have also established the “jobmarket environment, our unified recruitment activities from startcompany talent.

return program” for those who wish to return to Artner afterengineers joining us in April 2024, about 40 more than in theArtner’s Strengths and Advantages

These initiatives are based on our Management Philosophy andprevious year. In addition, we are committed to achieving ourArtner started this business in 1962. No other listed companiesPurpose. Our Management Philosophy and Purpose are truly

target of 100 career hires to meet client demands.

in the same industry have a history longer than ours. I believe it

the “roots” of the Company. They allow us to implement a

We have a three-fold strategy for future growth. The first is tois not an exaggeration to say that we are pioneers in thevariety of measures flexibly. As a result, when engineers moveactively negotiate the unit price of engineers, taking into

engineer dispatching business. We have built a solid position in

on to the next stage, we are able to send them off with a smile,account the current market environment, the so-called

this industry for over 60 years through our achievements and byrather than thinking, “why are they quitting when we have taken

supply-demand balance, with the aim of increasing the unit

earning the trust of our clients. This is an undeniable fact andtime to train them?” We hope that this mindset ultimately leads

price of engineers to at least that in the previous year. The

constitutes a value of the Company. Compared to other companies

to employee satisfaction and creates a cycle in which our

second is to further educate and train engineers who are ourin the same industry, we have a higher project participation rate

former engineers succeed at various manufacturers and use theto end, from hiring to placement, led to 171 newly graduatedservices of Artner’s engineers.

engineers. The third is to properly respond to the needs of ourand something we should continue to maintain. Notably, ourRespecting Human Rights

main clients, manufacturers in industries related to automobiles

main clients in industries related to automobiles andArtner is a company engaged in the business of human talent.

and semiconductor manufacturing equipment.

semiconductor manufacturing equipment sectors view Artner

Without underlying policies that value people, people will

Moreover, reflecting on the progress made over the past two

as a go-to brand for quality engineers. This is a value we must

become mere “objects.” As long as we continue to develop thisyears, we believe we can increase our market advantage bycontinue to uphold. Such an image is based on our strength inbusiness, it is vital to give various considerations to all of our

expanding and deepening the first basic measure of “Promoting

being able to provide a continuous and stable supply of talent,

employees, whom we call “talent,” and we will advance thestrategies by segment” in our Medium-Term Business Plan, asand it is our mission to keep meeting this expectation.

business accordingly. To make this intention clear, in January2024, we announced our support for the United Nations Global
Compact. In addition, we conduct ongoing training for all

same industry.

Our basic view on human capital aligns with our Management

employees to familiarize them with our approach to human

Philosophy, “Engineer Support Company: We support ourrights and to raise their awareness of human rights.

engineers’ dreams.” Based on the fundamental philosophy

Last year, we held a training on human rights, and the year

embodied in our Purpose, “support the growth andbefore that on LGBTQ+. Going forward, when we consider

self-actualization of engineers, who are Japan’s world-classorganizing our partner companies, it will be very important toA key challenge for the Company is to secure the quality andassets,” we conduct business by continually considering

determine whether or not they have the same policies on talentquantity of talent. Failing to meet the quality and quantity

measures to support the growth and dreams of our engineers.

as we do.

demands of our clients could open the door for competitors.

Education is at the core of our human capital initiatives. Under

In particular, it will be essential that they agree with and share

Artner needs to put all that it has to address this challenge.

our education philosophy to support engineers’ personal andour Management Philosophy of being an “Engineer Support

To secure the quality of talent, we will obtain even more attractive

professional growth, we offer various education and training

Company” and our Purpose. If they agree with and are able towork to provide engineers with job opportunities, and offer

curricula to support engineers, including our own “T-shaped

uphold our Management Philosophy and Purpose, there may beappropriate education, training, and follow-up. Additionally, we

specialist education system.”an opportunity to expand the scope of our partnership andmust create a business environment that allows for continuous,

Furthermore, promoting women’s participation is one of theengage in further collaboration, such as providing education torather than temporary, improvement and enhancement of work

important initiatives outlined in our Medium-Term Business Plan.

the partner company’s engineers as “shared assets.”

We are working to establish a working environment and support

added value.

programs for those who have temporarily left their engineer

As for the quantity of talent, we anticipate that we can recruit

careers due to marriage, childcare, or other reasons and wish to

approximately 200 to 250 new graduates and 100 to 150 career

return to the job market as engineers. We will also continuously

We extend our deepest sympathies to everyone affected andhires in our current business fields. If more talent is needed, wefoster a corporate culture in which both men and women candisplaced by the Noto Peninsula Earthquake that occurred inwill need to secure the necessary numbers through M&A

freely take childcare leave and will develop a track record in2024. As part of our support for the people affected by theArtner Co., Ltd. Annual Report 2024

Donations forthe 2024 Noto Peninsula Earthquake

technology as a local industry. Our clients and Japan’s otherleading precision machinery manufacturers are located in thisregion. We believe that the recovery of the Hokuriku area will
help benefit Japan as a whole. We sincerely pray for the swift
recovery of the affected regions.

To Our Stakeholders
Our 60-year history has witnessed oil shocks and the global
financial crisis of 2008. And then there was the COVID-19
pandemic. From these past experiences and history, we havelearned that being able to adapt the business rapidly to societal
changes is essential for a company to survive and persist.
As we aim for our 100th anniversary, it is my role as the head of
the Company to swiftly grasp the changes in client needs, shifts
in employee preferences, and change in the market
environment, and address them flexibly by discerning whatmust never change and what needs bold overhaul. We willcontinue to support our engineers and work to increase Artner’svalue as a group of high value-added engineers. We appreciate
your continued support and cooperation.

Data Section

conditions. To this end, the Company will aim to increase its

regularly recruit, also has a long history of developing precision

Governance

Human Capital Approach and Initiatives

Community Chest of Japan. The Hokuriku area, home touniversities and other educational institutions from which we

Sustainability

strengths and weaknesses compared to other companies in theearthquake, Artner made donations through the Central
Growth Strategy

in high-level technology fields, including upstream andmidstream processes. This is an advantage of the Company

Value Creation Storyhuman capital and enhance their added value. This will contribute

Building a Business Environment that Enables
Continuous Improvement and Enhancementof Work Conditions for Securing Talent09

leaving us and moving on to their second stage.

to client satisfaction and in turn to higher unit prices ofwell as breaking down, enhancing, and complementing Artner’sManagement Message

Supporting engineers’ dreams and self-actualization is at thecore of Artner’s business. In our recruitment activities, we fully

Introduction

our plan.

Artner Co., Ltd. Annual Report 202410