INTEGRATEDREPORT 2023
Open Up Group Inc.

Integrated Report 2023

Open Up Group Inc.
Integrated Report 2023

Overview

Sustainability

2	Our Purpose / The Spirit Expressed by Our Purpose

41

Sustainability Management

3

Message from the CEO

44

Material Issues Action Plan

6

Competitive Advantages of the Open Up Group46

Respect for Human Rights

9

Value Creation Model

47	Human Resource Employment
and Development

10	External Environment:
Changes in the Technical Personnel Staffing Market

Reporting Period

Fiscal 2023 (July 1, 2022 to June 30, 2023)

This report also mentions activities and outcomes fromoutside the above reporting period.

51

A Comfortable Working Environment

12

Five Input Capitals

52

The Environment

15

Business Model

53

Social Contribution Activities

16

Material Issues

Strategy

Governance
54

Management

17

Message from the COO

57

Corporate Governancefigures, but for qualitative information on our sustainability

21

Message from the CFO

65Compliancethe qualitative information, we use the data of Open Up24	Medium-Term Management Plan BY25:
Financial Targets and Business Strategy

67

Risk Management

Regarding financial information, we use consolidated

initiatives and quantitative information that supplements
Group Inc. and its subsidiaries in Japan. In some cases,sub­sidiaries is mentioned, we state the names of the26

At a Glance

respective companies.

27

Review of Operations: Business Results

Note: In this report, “the Group” refers to Group companies in

29

Review of Operations:etc., of a subsidiary, and when a specific group ofJapan, as mentioned above.

Referenced Guidelines

This integrated report has been produced with reference
IFRS Foundation, and Guidance for Collaborative Value
Creation, published by the Ministry of Economy, Tradeand Industry.

Machinery and Electronics

31

IT

33

Construction

35

Manufacturing

36

Overseas / Other Business (Education)

37	Review of Operations: Training and Follow-Up
System for Engineers and Technicians

Data
70

Financial Highlights

71

Non-Financial Highlights

72

About this Report73

Company Overview / Shareholder Data

Data

to the Integrated Reporting Framework, published by the29

69	Information Security Management in IT /Protection of Personal Information
Governance

we describe measures according to the scale, business,

25	Medium-Term Management Plan BY25:
Open Up Purpose Index

Sustainability

Scope of This Report49	Promoting the Successful Advancementof a Diverse Workforce
Strategy11	Open Up Group and the Development ofJapan’s Personnel Staffing Market

Overview

CONTENTS

1Open Up Group Inc.
Integrated Report 2023

2

OUR PURPOSE
Overview

Open Up Individual Potential
through Rewarding Work
Expressed by
Our Purpose

Just as each individual has a different way of thinking about happiness,

Strategy

The Spirit

we believe that rewarding work for workers is also diverse.

Our role is to create many doors to open up possibilities and a milestone
toward a rewarding work for each employee.

Sustainability

We support the workers to open the doors.

– For some people, the challenge to a new job.

– For some people, to improve their skills in training.

– For some people, the time to consult future careers.
We believe that people will always grow and drive the society forward

when they open the next door. We will increase the number of people
and prosperous.

We, the Open Up Group, exist to create such a future.

First door to society

Various doors for individual

Governance

who open the door to the next to make society more diverse

Doors are opportunities

Training

Counseling

Data

New job

Open Up Group Inc.
Integrated Report 2023

Chairman and Representative Director, CEO

Governance
Data

Message from the CEO

Sustainability

Yutaka Nishida

Open Up Group Inc’s Purpose—its reason for being—is toopen up individual potential through rewarding work. We
believe that rewarding work is the kind that allows eachindividual to demonstrate their strengths and expand
their potential.
Work is one of the most important aspects of life in modern
society besides the need for food, water, and shelter, but inreality not many people are able to find the jobs that theywant. In particular, only a handful of people are able to findthe jobs they are looking for right after graduation, and the
majority of people find themselves hindered by various gaps
when they actually start working. These gaps may take theform of missing skills and qualifications, a lack of opportunities and experience, or simply a difference between expectations and reality. Our role in society as a personnel staffing
business is to bridge these gaps and connect people withrewarding work.
We will achieve growth as a Group by supporting the
career development of our employees, creating opportunities for people to do work they are passionate about andincreasing the value of this work in their lives. I believe thismeans no less than helping realize a diverse and prosperous
society where people can fulfill their potential.

Strategy

Connecting People with Rewarding Workto Help Realize a Sustainable Society

Overview

We will strive to satisfy
workers and unlock their true
potential, creating medium- tolong-term value as theiremployer of choice.

3

Open Up Group Inc.
Integrated Report 2023

4

Message from the CEO

help our employees get a better understanding of what our Purpose is trying to achieve.
The key to this understanding is in the work experience of each individual employee.

An employer of choice must do more than provide basic
advice along the lines of “Try this job,” or “Try that job.”
It must provide constructive advice, training, education,
and a wide range of support services that give workers
the resources they need to develop their careers over the
medium to long term. In addition to recruiting, training,and dispatching human resources to meet the needs ofData

I believe that for our Purpose to become embedded throughout the Group, we must

Enhancing Management Capital to Become
the Employer of Choice

GovernanceTo continue to grow in Japan, a country faced with a shrinking workforce, we must continue to be the employer ofchoice for workers. As I mentioned previously, there aremany people with gaps in their work experience. If weoffer services that help employees bridge these gaps andthereby find the jobs best suited to them, we will increase

Sustainability

Unlocking Potential through Career Advancement
and Change

the number of employees invested in their duties. As aresult, the companies they are dispatched to will be moresatisfied with their work, which will elevate the Group in theeyes of society. This virtuous cycle will help increase theGroup’s corporate value and help realize its Purpose.
Previously, the Group built a solid position in the market
by focusing on the early stages of an employee’s career,or the “career-launching stage,” by hiring inexperienced
people, training them as engineers, and dispatching themto companies. We are proud to count our deep well ofknowledge on hiring and training inexperienced people
among our strengths, and it is a strength we intend tomaintain and build on in the future. At the same time,
I would like us to increase our support for career advancement and career chances for more experienced engineers
so that we remain the employer of choice among job
seekers and employees alike.
This is driven by the desire to unlock the potential of
workers. Even if you strive to build up your career, you limit
your possibilities if your work remains the same for years on
end. Social trends change, as do the knowledge, t­ echnologicalcapabilities, and skills required of engineers. To unlock
worker potential, we need to provide opportunities forcontinued learning—reskilling—and create a stage beyond
career-launching that ensures that employees with­motivation and skills can flourish.

Strategy

In fiscal 2023, the fiscal year ended June 30, 2023, theGroup completed its framework for promoting sustainable
management, with our Purpose positioned at the top. In
conjunction with the development of BY25, our mediumterm management plan covering the four-year period fromfiscal 2022 through fiscal 2025, we established the Open Up
Purpose Index, a series of five indicators that allow us tomeasure our progress in achieving our Purpose. Additionally,
we have identified our material issues, which are issues that
could impact our efforts to promote business strategies,
create value over the medium to long-term, and ultimately
our ability to realize our Purpose. More recently, we haveformulated specific action plans to address these material
issues and are incorporating our Purpose and material
issues into the strategies of each operating company.
However, the truth is that there is still a great deal of work
to do in terms of how much employees empathize withconcepts such as our Purpose, material issues, and theOpen Up Purpose Index, and whether they apply them intheir work. I believe that for our Purpose to become embedded throughout the Group, we must help our employees
get a better understanding of what it is trying to achieve.
The key to this understanding is in the work e­ xperience ofeach individual employee.
Therefore, to help employees get a real sense that theirefforts are bringing us closer to achieving our Purpose, we
focus on sharing information within the Group. More specifically, we use our intranet to share achievements throughout

the Group, such as the case where a former food factory
employee changed career and became an engineer with
our support, and the fact that we have helped produce thegreatest number of people with global cloud service platform qualifications in Japan. Another important aspect of
this initiative is that we treat these achievements as achievements not only for the individual companies our employees
belong to but also for the entire Group. This type of information not only inspires engineers and technicians to try
to advance their own careers but also prompts employees
in the sales, recruiting, planning, and administration
departments to think of ways in which they can support
this career advancement.
In this same vein, I believe that our material issues andOpen Up Purpose Index tell us what we need to address
to achieve our Purpose, give us a means to measure ourprogress in achieving our Purpose, and provide us withtargets to reach along the way. At the same time, they give
us an opportunity to reflect both on what we are trying toachieve by promoting initiatives to address these issues andreach these targets, and on our very reason for being.

Overview

Focusing on Work Experience to Embed
Our Purpose

Open Up Group Inc.
Integrated Report 2023

5

Message from the CEO

If increasing their capabilities through taking on challenges leads to higher evaluations,improved compensation, and better benefits, employees will have a greater sense offulfillment and engagement with their work. To create these conditions, we will makethe investments necessary to digitalize information and convert it into knowledge

Overview

while working to enhance our management capital, which is one of the key sources of
the Group’s competitiveness.
Strengthening Governance

Increasing Worker Satisfaction and Creating Value

Governance
Data

There is a belief that higher job satisfaction leads to higher
retention rates. As a result, much attention is given to turnover rates and the reasons why people leave their jobs.
However, I also think it is important to focus on the factthat there are employees who are satisfied with their jobs.
We must ensure that more of our 22,000-plus engineers
and technicians are more satisfied with their jobs. We must
give them the means to embark upon the next stages of
their careers, charged with a sense of fulfillment and accomplishment. We are determined to realize our Purpose by
pursuing employee satisfaction, the source of the value
we create as a personnel staffing business.

Sustainability

In September 2023, we transitioned from a Company with
an Audit and Supervisory Board to a Company with an Audit
and Supervisory Committee, with the goals of speeding up
decision-making and making our governance system more
effective. Under the holding company structure, one of the
major roles of Open Up Group Inc’s Board of Directors is
supervising and monitoring the business status of theGroup’s operating companies. Members of the previous
Audit & Supervisory Board did not have voting rights within
the Board of Directors, whereas members of the Audit &Supervisory Committee are also directors on the Board of
Directors and can be more deeply involved in managementrelated decision-making. I believe that this is a highly significant
step toward stronger supervision and monitoring.
The Board of Directors is a platform to discuss not only
current management but also management for the next
fiscal year, the year after, and beyond. To achieve our
Purpose, I would like the Board of Directors to spearhead
future-facing management, with a sharp focus on determining
which matters are important and what types of initiatives
and results we need to pursue.
The Group positions strict compliance with laws andregulations and information management as key prerequisites for management, and we are promoting initiatives thatemphasize employee education on these topics. This is anecessary step because, no matter how thorough the rules
are, we need to consider the possibility that mistakes will
occur, and having employees who can notice these ­mistakes
is essential for dealing with problems should they appear.
I believe that raising awareness of compliance among
employees boils down to two ideas: “Treat others as you
would like others to treat you,” and, “If you think somethingis wrong, speak up.”

Strategy

our client companies, we also try to learn what type of
people a ­company needs in light of its medium- to longterm human resource strategy and prove ourselves to be acapable partner in resolving their issues. Put another way,
we must improve consulting both for workers and forclient companies.
To that end, we are working diligently to convert information
into knowledge. For example, when making a proposal toa client company, it goes without saying that we need to
be well-versed in the industry and technology trends that
apply to that company. This has required the knowledge
and experience of veteran employees familiar with therelevant industry. In the future, we would like to build asystem that allows us to extract knowledge from an internal
database without having to rely on individual people. If we
can use this database to match client companies with engineers and technicians with appropriate experience, qualifications, and future career plans, our proposals will be much
more compelling to workers and client companies alike.
When we take a close look at our current work, we findtasks that are legitimately difficult, as well as those that seemdifficult on the surface but that can actually be ­performedby anyone if we take advantage of digitalization and automation. If digitalization and automation reduce the time ittakes to perform these latter tasks, employees in the sales,
recruiting, planning, and administration departments will befree to take on more difficult tasks, allowing them to display
their abilities and improve their productivity ­considerably.
If increasing their capabilities through taking on challenges
leads to higher evaluations, improved ­compensation, andbetter benefits, employees will have a greater sense offulfillment and engagement with their work. To create
these conditions, we will make the ­investments necessary
to digitalize information and ­convert it into knowledge
while working to enhance our management capital, which
is one of the key sources of the Group’s competitiveness.

Open Up Group Inc.
Integrated Report 2023

Competitive Advantages of the Open Up GroupA Willingness to Hire Inexperienced People Coupled with a Strong Engineer Training Modelcompanies but who feel that they have not had thechance to learn the necessary skills, or that they areunable to take the first step on their career path without
any technical work experience.
These are the candidates we are willing to hire—people who have the desire to work as engineers but
who may not have experience. We give them the opportunity to gain the knowledge and skills they need tosucceed through extensive training and follow-ups.
In Japan, where the labor force is on the decline, there
is already a shortage of engineers; this is particularly

noticeable in IT fields. Additionally, as technology
evolves and the need for in-house technology development increases, companies are increasingly interested
in using engineers with entry- to mid-level knowledge
and skills. Accordingly, this segment of entry- to midlevel engineers is the largest in the engineer dispatch
market. We have responded to this demand by hiring
inexperienced people and training them through ourengineer training model, which has enabled us to build
a solid position in the dispatch market for engineers
and technicians.

Strategy

Our model for training engineers is our greatest
strength. Under this model, we hire inexperienced
people and help them gain practical knowledge andskills, ensuring that they are ready to start work at thecompanies they are dispatched to.
The number of people who study engineering atuniversities and other institutions and then go straight
into the workplace constitutes only a handful of theengineers and technicians that companies actuallyneed. At the same time, there is a pool of potential
candidates who are interested in positions with these

Overview

01

6

Sustainability

Senior-level

Open Up
Group’s position

GovernanceMid-level

Entry-level

Data

New graduates andinexperienced hires

Open Up Group Inc.
Integrated Report 2023

7

Competitive Advantages of the Open Up Group

Our System for Supporting Career Advancement for Engineers

Our one-on-one support system, with a dedicated follow-up manager
Prevent employees from resigning prior to assignment byusing daily questionnaires to check their understanding oftraining and resolve any concerns

Placement
matching

Clarify the preferences of engineers and technicians throughinterviews
Prevent mismatches between employees and placements

Supporting the improvement of employee skills bypromoting reskilling

Training
instructor

Sales
representative

Obtaining
qualifications
through reskilling

Engineer
Maintain regular contact and visits
 onduct monthly employee satisfaction survey forCengineers and technicians

Off-the-job
training

Careercounselor

Skill development
cycle

Gaining experiencefrom preferredassignments

Governance

Joining thecompany andtraining

Under our “workers first” policy, we support the growthand career advancement of our engineers. This support
begins at the time that employees join the Group, when
we use interviews and comprehensive assessments tounderstand their abilities, qualities, and aspirations, andit continues post-training when we match and assign
employees to their positions. This support extends­further, after they get acclimated to their positions, atwhich time we follow up on their progress. We also help
them with advancing their careers once they havegained more experience.

Sustainability

management of our training program, we can facilitate asmooth and efficient learning process.
We also help our employees gain qualifications, whichallows us to measure the skills and technical level of ourengineers. This form of support extends beyond inexperienced workers to include engineers who already havebasic knowledge, skills, and qualifications and want toachieve a new level of success by acquiring more specialized knowledge and advanced technical skills. These
engineers are given ongoing opportunities to reskill.
In addition to our training programs, we also placeemphasis on our system for following up on employees.

Strategy

Our method of hiring inexperienced people and training them through our engineer training model is underpinned by comprehensive training programs andfollow-up systems for our engineers and technicians.
The Open Up Group has operating companies working in segments that include Machinery and Electronics,
IT, and Construction. These companies have developed
a thorough understanding of technology trends, marketrecognized qualifications, and customer needs, as well
as extensive expertise in encouraging trainees in theirpursuit of learning. By taking advantage of this understanding and expertise in the development andOn assignment

Overview

02

Management

Conduct AI-driven risk analysis (employee turnover, etc.)

Follow-up manager

On-the-job
training

Data nsure that any concerns or dissatisfaction among engineersE
and technicians can be quickly addressedOpen Up Group Inc.
Integrated Report 2023

8

Competitive Advantages of the Open Up Group

Overview

03

A Portfolio that Leverages Open Up Group’s Industry-Leading Scale and Positioning(As of June 2023)

Cumulative number of employees
hired by client companies(As of June 2023)

3,400(As of June 2023)

Operating profit¥12.8 billion(Fiscal 2023)¥120.5 billion
8.1%

Other

Net sales in manufacturing domains
by industry¥10.9 billion
7.0%

Other

Construction

16.8%

Other manufacturing

9.7%

Other manufacturing

3.9%
4.4%
5.8%
3.7%

Food products
Pulp and paper

13.4%

Electrical equipment

13.4%

Transportation equipment

22.6%

Information andtelecommunication

32.8%

FY23

Building materials and housing

Chemicals

30.0%

Machinery

11.3%

Electrical equipment

17.1%

Transportation equipment

FY23

Data

669

Over

Net sales in engineering domains by industry

Governance

22,105

Number ofclient companies

In order to continue growing and expanding our business base, we intend to ramp up hiring in engineering
domains, which include the two previously mentioned
segments as well as IT, a segment that is expected tosee medium-term market growth. In addition, we havebuilt a customer base across a wide range of industries,
including the manufacturing domain, which has resulted
in a highly resilient business portfolio that does not relyon economic trends in any particular industry.

Sustainability

Number of engineers
and techniciansclient companies with the appropriate services in atimely manner while also avoiding mismatches between
new employees and the client companies they are
assigned to. These qualities help improve customer
satisfaction.
This industry-leading scale has also helped us build abusiness portfolio that balances profitability and growth.
We have worked continuously to improve operations
in our Machinery and Electronics and Construction
segments—areas in which we have become industry
leaders—and we have seen high profitability as result.

Strategy

Japan’s engineer dispatch market is valued at approximately ¥4.0 trillion. We have built up an impressive trackrecord to become one of the largest players in this market,
with over 22,000 engineers and technicians in our employ
and a customer base of over 3,400 client companies.
The scale of our operations is attractive to job seekers, since it allows us to offer a wide selection of workplace options and a plethora of opportunities for careeradvancement. In addition, our strong sales team and its
work with client companies and our follow-up systemfor engineers and technicians ensure we can provide

Open Up Group Inc.
Integrated Report 2023

Value Creation Model9

We believe that initiatives aimed at realizing our Purpose will create medium- to long-term value and contribute to the sustainable development of society. With this in mind, we havedeveloped a value creation model that shows the relationship between our Purpose and the external environment, input, business, output, and outcome. By maximizing output, weEngineers andtechnicians
Realization of diverse work styles andformation of new careers

Employees

Provision of an environment
where employees can demonstrate
their performance throughfulfilling and rewarding work
Diverse engineers and technicians(both inexperienced and experienced)●

Employees responsible for sales,
recruitment, and head office functions

Value proposition
to stakeholders
Society

Numberof employees
Job placement
opportunities

Labor market● Talent education and development●

Training systems and know-how
for nurturing talent●

Systems and mechanisms
to support the formation of new careers●

through training and on-the-job training● Hiring diverse talent,

Career advancement

including those
without prior experience

Creating job
opportunities

Identification and preparation of usefuland necessary qualifications and training● Building trusting relationships● Discovering changing needs over time

Decrease in Japan's
working population● Progress of D&I(diversity and inclusion)●

Natural capital

Changes in views
on occupations and employment

Financial capitalSocial capital

Trends instakeholder capitalism● Advancements in laws and reforms related
to human rights and dispatch work●

Politics
Technology

Social demands and legal measures●

Relations with the human resource services
industry and client companies
Contribution to regional revitalization●●●

Materiality●

relating to dispatch and outsourcing

Advancement of ICT
Paradigm shift in technology

Data

External
environment

Engagement

Client companies and technology

Intellectual
capital●Society

Retention rate
Governance

Human capital

Sustainable revitalization of
the labor market and industrial development Client
through the active participationcompanies
of human resources
Realization of a talent strategy
prepared for evolving technology
Shareholders/and a changing business
Investors
environmentLong-term total return

Sustainability●

StrategyOpen up individual
potential throughrewarding work

Overview

create outcomes that produce value for a variety of stakeholders, and we aim to realize our Purpose by expanding and building up the positive effects of these outcomes.

Open Up Group Inc.
Integrated Report 2023

External Environment: Changes in the Technical Personnel Staffing Market

10Japan’s technical personnel staffing market continues to grow as economic activities return to normal following the stagnating effect of the COVID-19 pandemic, coupled with thestrong demand for human resources in industrial sectors. The market is expected to continue to expand for the time being, in light of the shrinking working population, which bodes
Overview

well for the Group in terms of the external environment.

Size of human resource services market by business segment(¥ billion)
5,000
4,000
3,000
2,000
1,000

2019

2020

Technical personnel staffing services

2021

2022

2023

2024
(Forecast)

2025(Forecast)(FY)

Sustainability

0

Manufacturing personnel staffing and contracting services

Human resource services for construction management

Active job-to-applicant ratio by position(Regular employees excluding part-time)

Number of job seekers, job openings, and active job-to-applicant ratio(Thousands of people)

Strategy

Although the human resource services market—the Group’s main business domain—suffered atemporary contraction in scale in 2020 as a result of the COVID-19 pandemic, the market has
started to recover as various industries and companies resume their business activities. As
these industries and companies shift back to full-scale operations, this has put a spotlight on
the shortage of labor, which is driving market growth. Growth is expected to exceed prepandemic levels, and most notably, the active job-to-applicant ratio for the Group’s businesssegments remains comparatively high in contrast to the ratio for the market as a whole.
Securing human resources remains an important Group issue, and we will continue toactively recruit new graduates and mid-career employees through a variety of channels
suited to our operating companies.

(Times)

2.5

8

2,400

2.0

1,800

1.5

1,200

1.0

600

0.5

0

0
2022 (FY)

Governance(Times)

3,000

7
6
5
4

Active job seekers

2005
Active job openings

2010

2015

2020

Active job-to-applicant ratio

Source: Created in-Company based on various statistical surveys by the Ministry of Health, Labour and Welfare

2
10

2018/92019/9Architectural, civil, and survey engineers
IT engineers

2020/92021/9Manufacturing engineers (development)

2022/9Production workers

Active job-to-applicant ratio (seasonally adjusted)

Source: Created in-Company based on various statistical surveys by the Ministry of Health, Labour and Welfare

2023/8

Data

2001

3

Open Up Group Inc.
Integrated Report 2023

Open Up Group and the Development of Japan’s Personnel Staffing Market

11

A key factor in the formation and development of Japan’s personnel staffing market has been the implementation and amendment of the Act on Securing the Proper Operationof Worker Dispatching Businesses and Protecting Dispatched Workers (the Worker Dispatch Act). Open Up Group, Inc. which is the product of the 2021 merger between

1990

Changed name from Sato
Architectural Design Office
to Yumeshin

2003

2019

Listed on the Nippon New Market Hercules(former name)

Transitioned to a pureholding company
structure

2005

Strategy

Changed name to Yumeshin Holdings
Co., Ltd.; established Yumeshin Co., Ltd.
as a successor company

Established as
Kyousei Sangyou
Inc., an enterprise
to employ people
with disabilities

2007
2004

Listed on the
JASDAQ Securities
Exchange(former name)

Launched labor staffing business after acquiring businessfrom Sanei Shouji Co., Ltd.

2013

Listed on the First
Section of the Tokyo
Stock Exchange(former name)

2021

2023

Established

Changed namethe BeNEXT
YumeshinGroup Inc.

2020

Changed name to
BeNEXT Group Inc.
and transitioned to aholding company
structure

to Open Up
Group Inc.

Sustainability

1997

BeNEXT Group Inc.

Yumeshin Holdings
Co., Ltd.

We will continue to do business in a way that puts workers first, to contribute to their happiness and to help create a prosperous society.

Overview

Yumeshin Holdings Co., Ltd. and BeNEXT Group Inc. has continued to grow while remaining compliant with all relevant laws and regulations and their subsequent amendments.

Governance

1996

2004

2012

2020

Expansion of sectors available
for worker dispatch

Lifting of dispatching restrictions on
manufacturing sectors

Tightening of worker dispatch
regulations

Assurance of equal pay for
equal work

Dispatch of workers withspecialized knowledge andskills begins in 16 job sectors

Number of available job
sectors expands to 26 (R&D
and other sectors added)

Limitations to dispatch periods removed
from existing 26 sectors, dispatch to
manufacturing sectors permitted with a
one-year dispatch limit

Worker Dispatch Act revised toprotect workers, including a ban on
day labor (in principle), and inclusionof regulations for dispatch among
Group companies

Amendments introduced toeliminate unreasonable differences in treatment of dispatch
workers and employees as they
relate to wages, benefits,
education, training, opportunities, or otherwise

2007
Extension of employment period in
manufacturing sectors
Dispatch period to manufacturingsectors extended to three years

2015

2021
Mandatory pre-dispatch
explanations regarding
education and training
Enhancement of services
for handling complaints
Disclosure of information
regarding digitalization

Notification-based system for worker dispatch abolished and merged with license-based system
Upper limit for dispatch period unified at three years, with no upper limit for indefinite-term employment
Education, training, and consulting services for dispatched workers become mandatory requirements

Data

Key Amendments to the Worker
Dispatch Act

1986
Establishment of the Worker
Dispatch Act

Open Up Group Inc.
Integrated Report 2023

Five Input Capitals

12

Open Up Group possesses two forms of intellectual capital—which it has gained by emphasizing the ideas and potential of each and every worker—as well as human, financial, andsocial capital brought forth by the business merger that created the Company and enhanced its management base. The Group uses these capitals to create value for workers, client
value, and the realization of our Purpose.

Operating Company ExpertiseIntellectual capital built up in the Machinery and Electronics, IT,
Construction, and Manufacturing segments
Intellectual Capital 2Intellectual Capital 1

Recruitment and Training
Know-How

An Understanding of Client Company
Needs and Industry Trends

people and develop them as engineers

required by client companies as well as market

The know-how needed to hire inexperienced

Strategy

Understanding of the skills and qualifications
and technological trends

Sustainability

Benefits from the Group’s Scale
Human Capital

Financial CapitalSocial Capital

A Deep and Diverse
Pool of Human
Resources

A Solid
Financial BaseA Robust Client
Company Base

An industry-leading ability tosupply engineers to clientcompanies, and extensive

The capacity to generate¥10.0 billion or more in free

cash flow annually and a stableshareholders’ equity ratio

Business with approximately

3,400 client companies covering a wide range of industries
including construction, infor-

human resources in executive

mation and telecommunication,

recruitment, planning, andand machinery.

positions as well as sales,

within the Grouptransportation equipment,Dataadministration departments

Governance

As a Group dedicated to opening up the individual potential of workers, we treat intangible management capitalwith the utmost importance.
Intellectual capital is a vital example of intangible capitaland key to realizing our Purpose. It is what gives us ourcompetitive edge in the form of the know-how indispensable for opening up worker potential at every stage,
including recruitment, the planning and operation of posthiring education and training programs, the provision offollow-up support to alleviate any post-hiring anxiety, andsupport for career advancement. Operating companies
are also constantly working to update a different kind of
intellectual capital, which we treat as its own separate
capital. These companies, which conduct business in our
Machinery and Electronics, IT, and Construction segments,
make continued efforts to deepen specialist knowledge intheir respective fields and keep abreast of any changes,
whether in terms of client companies’ needs and businessissues, or global trends in technology. Intellectual capitalof this sort supports the Group’s growth.
In addition to intellectual capital, the Group has boosted
its human, financial, and social capital significantly following the 2021 merger, which also increased the scale of theGroup and made it one of the largest engineer dispatch
businesses in Japan. We strive for efficient management
and increased corporate value by leveraging the management capital provided by economies of scale, including
the number of our engineers and technicians, our cash
generation capacity, and our client company base.

Overview

companies, and the society they are part of. We intend to keep renewing and building up this collective management capital with the goals of sustainable growth, greater corporate

Open Up Group Inc.
Integrated Report 2023

13

Five Input Capitals

The Group has strengthened its intellectual, human, financial, and social capital while keeping up to date with social and regulatory changes, which include the mindful approachyoung workers take toward their careers, the needs of client companies, and the loosening of restrictions put forth in the Worker Dispatch Act, which forms the basis of the personnel

Recruitment andTraining Know-How

Governance

An Understanding ofClient Company
Needs andIndustry Trends

Key Example

The demand for engineers familiar with cloud service technology is increasing rapidly as client companies
embrace digital transformation (DX). Open Up IT Engineer Inc., which works in the IT infrastructure sector,
has been quick to focus its attention on training engineers to acquire certification for Amazon Web Services(AWS), a cloud-based platform. In recognition of its efforts, the company received the AWS Japan
Certification Award 2020 Rising Star of the Year, the only personnel staffing company to do so. From April
2021 to June 2023, the company’s employees have acquired over 5,900 IT-related qualifications, and thecompany is an AWS Certified Partner.

Sustainability

Intellectual Capital 2

Data

We provide timely and efficient services madepossible by the deep well of knowledge unique tothe Group, which specializes in engineering. This
includes a pinpoint understanding of the skills andqualifications that client companies require fromengineers, and a good grasp of the impact thattechnological advances have on real-life engineering work. This knowledge also helps with securing
human resources quickly and efficiently and­conducting human resource planning in linewith medium- to long-term strategies.

Key Example

Yumeshin Co., Ltd., an operating company in the Construction segment, offers a free e-learning course forengineers and technicians to help them pass the exam to become qualified 2nd class assistant construction
management engineers. To learners preparing for the exam, which is held twice a year, Yumeshin distributes
easy-to-access videos viewable during commuting or free time, so that engineers and technicians who are
already employed can study while working. This original course takes advantage of Yumeshin’s knowledge of
the work required of construction management engineers as well as the company’s knowledge of the content covered by the exam. The course is popular for its focus on important content, which is s­ upplemented
with photos and illustrations and delivered in an easy-to-understand manner. The company also provides astrong support system for prospective test-takers, sharing guidance on how to proceed with studying, how
to find study time, and how to apply for the exam.

StrategyIntellectual Capital 1

We are highly adept at creating opportunities forjob seekers who want to build careers as engineers.
Moreover, we have the specialized knowledge
needed to plan and run education and training
programs that match the knowledge and skills
levels of engineers and technicians. We also
­provide counseling skills that can help employees
advance their careers. This accumulation of­intellectual capital allows us to open up the­potential of workers.

Overview

staffing business. We will continue to update these capitals through digital technology and more sophisticated Group management for sustainable value creation.

Open Up Group Inc.
Integrated Report 2023

14

Five Input Capitals

A Deep and Diverse
Pool of Human
Resources

Key Example

Open Up IT Engineer Inc., which works in the IT infrastructure sector, is focused on expanding its clientcompany base and to this end has established its IT Solutions and Sales Department, which specializes infinding new client companies. In addition, Yumeshin Co., Ltd., which is part of the Construction segment,takes advantage of its extensive sales staff and employs a two-pronged approach that differentiates between
sales staff for new client companies and sales staff for existing client companies. By having a dedicated staff
focused on new client companies, Open Up IT Engineer and Yumeshin can listen more deeply to theseclients’ needs and make tailored proposals. Conversely, the sales staff in charge of existing client companies
and their engineers can concentrate on high-quality follow-up activities. Thanks to this dual approach, OpenUp IT Engineer and Yumeshin have been able to increase the number of contract renewals and add­additional contracts, which has improved employee satisfaction.

Data

A Robust Client
Company Base

We have approximately 3,400 client companies
across a wide range of industries, including construction, information and telecommunication, transportation equipment, and machinery. This robust base ofclient companies means that our engineers and technicians have access to an abundance of work opportunities. By simultaneously increasing the number ofthese employees and expanding our client company
base further, we will open up the potential of evenmore workers and achieve greater growth.

Key Example

GovernanceSocial Capital

The Accounting and Finance Division works to increase growth, improve profitability, and strengthen the
Company’s financial structure, thereby increasing corporate value. The division is also responsible fordisseminating information to investors. As one of its functions as a holding company, Open Up Group Inc.
assesses its business portfolio in terms of Groupwide optimization over the medium- to long-term, and thenformulates and implements financial strategies that align with management strategies and business plans. The
Company also maintains an understanding of business-specific business models, which includes the situation
regarding investment and return cycles, competitive environments, risks, and supply chains. It uses this knowledge to make thorough assessments of potential growth investments that include consideration of expected
returns and business risks. Following this step, it allocates funds to each business and manages risk.

Sustainability

A Solid
Financial Base

We continue to provide shareholder returns whilestill taking advantage of profit opportunities exceeding cost of capital thanks to a sound balance sheet
coupled with our ability to generate stable cash
flows. In addition, our practice of sharing, utilizing,
and assessing benchmarks within the Group facilitates effective use of funds and appropriate risk
management and is part of our ongoing effort to
optimize overall Group management.

Key Example

Strategy

Financial Capital

We hold regular meetings across the Group to share information by function, such as recruitment, training,
employee retention, and sales planning. These meetings give us a stronger sense of what job seekers andengineers and technicians are thinking, what client companies need, and current technological and economic developments. At the same time, the meetings allow us to exchange opinions on business strategies
and management issues, and to share best practices within the Group. As a result, we can learn from eachother the best ways to proceed with work, optimize operation, and increase the satisfaction engineers andtechnicians derive from their jobs. Additionally, we hold an event called OPG Purpose Day, where Group
employees from operating companies can interact with each other, with the goals of enhancing Group
collaboration and ultimately realizing our Purpose.

Overview

Human CapitalIn addition to the large number of outstanding­engineers and technicians working in Japan’s engineer staffing industry, we are proud to say that theGroup has executives who share its values and alignwith its Purpose, as well as people working in thesales, recruiting, planning, and administration departments at each Group company who are willing to takethe initiative and share best practices with each other.
The diversity and depth of this workforce fosters anorganizational culture focused on the achievement ofoperational excellence and the creation of new value.

Open Up Group Inc.
Integrated Report 2023

Business Model

15

The Group invests in human resources to support the growth and career advancement of each employee while creating different employment opportunities, in an effort to remain theemployer of choice for job seekers who wish to work as engineers. We aim to realize our Purpose by bringing more engineers and technicians into contact with a greater number ofRealizing Our Purpose
Social Contribution
Expansion of
employment opportunities

Company Characteristics“Employee-first”
2

Achieve Open Up Purpose

Realize our Purpose

Increase corporate value

3

1

Human resource
growthHuman resource
investment• Benefits from theGroup’s scale• Human resource planning• Job placement opportunities:
50,000• Solution proposals

7• Career advancement:• Education system and facilities

Attracting humanresources

6,000 certified employees• Retention rate: 85%• Employee support system

Sustainability• Number of employees: 30,000

Increase Performance

Employment
opportunities

Index Targets

Strategy• Career support• Engagement: 1.2-fold increase(Fiscal 2025 targets)

4

6

Higherstaffing rates

Highersatisfaction
5

Resolve Social Issues
ReskillingGreaterbenefits

Fulfill Employees’ Dreams
Career advancement
Transfer to client companies

Governance
Data

Our business model begins with recruiting and training
employees, followed by supporting their success andgrowth at their assigned workplaces. To open up the
potential of a diverse range of job seekers, including thosewith no experience, we invest in human resources by providing unique training programs and support for obtaining
qualifications. When engineers and technicians haveacquired the knowledge and skills necessary to flourish in
the field, we match them with a placement based on theirindividual career ambitions and desired work conditions.
We continue to support the growth and career advancement of employees after they receive their assignments,
in the form of follow-ups by our sales representatives,
career counseling, continued learning opportunities, andassistance with obtaining more advanced qualifications.
As our engineers and technicians grow, it opens up­possibilities for them to take the next steps in their careers
and join the ranks of their assigned client companies as
employees. This same growth also makes it possible forengineers and technicians to engage in more advanced
work. The higher value they contribute allows us to chargehigher staffing rates, enabling us to increase employeecompensation and offer greater benefits. When e­ mployees
know that this process of obtaining qualifications, c­ ontinuing
to learn, and taking on more advanced tasks leads togreater compensation, their work becomes more
rewarding and satisfying.
By creating such a positive cycle, we can achieve­sustainable growth and increase corporate value.

Overview

job placement opportunities, thereby opening up their potential.

Open Up Group Inc.
Integrated Report 2023

Material Issues

16Open Up Group Inc. has identified material issues that must be addressed in order to realize its Purpose, which is to open up individual potential through rewarding work. Issues are

considered material when they directly impact the Group’s ability to create value, and when addressing them is crucial to gaining the trust of employees, client companies, and otherEngineers andtechnicians
Realization of diverse work styles andformation of new careers

Employees

Provision of an environment
where employees can demonstrate
their performance throughfulfilling and rewarding work●

Diverse engineers and technicians(both inexperienced and experienced)●

Employees responsible for sales,
recruitment, and head office functions

Value proposition
to stakeholders● Talent education and development

Systems and mechanisms
to support the formation of new careers●

Identification and preparation of usefuland necessary qualifications and training

Human capitalthrough training and on-the-job training● Hiring diverse talent,

Career advancement

including those
without prior experience

Creating job
opportunities

Natural capital

Changes in views
on occupations and employment

External
environment

Financial capitalSocial capital●●

Engagement● Discovering changing needs over time

(diversity and inclusion)●

Retention rate

● Building trusting relationships

Decrease in Japan's
working population● Progress of D&I●

Society

Sustainable revitalization of
the labor market and industrial development Client
through the active participationcompanies
of human resources
Realization of a talent strategy
prepared for evolving technology
Shareholders/and a changing business
Investors
environmentLong-term total return

Client companies and technology

Intellectual
capitalTrends instakeholder capitalism
Advancements in laws and reforms related
to human rights and dispatch work

Politics●●

Provision of
rewarding work

Promotion ofwork–life balance●Social demands and legal measuresrelating to dispatch and outsourcing

Materiality

Relations with the human resource services
industry and client companies● Contribution to regional revitalization

Support for career development and well-being

Promotion ofdiversity andinclusion

Coexistence withsociety

Contribution toward the sustainable
development of the labor market

Material Issues for Protecting Our Business Foundation
Thoroughdedication to
occupational
health and safety

Ensuring of
information security
and protectionof privacy

Enhancement ofgovernanceCompliance

Thoroughdedication torisk management

Sustainability

Training systems and know-how
for nurturing talent●

Human resource
development
through training
and education

Society

Numberof employees
Job placement
opportunities

Labor market●

Material Issues for Creating Value
StrategyOpen up individual
potential throughrewarding work

Overview

stakeholders. The Group formulates specific action plans to tackle material issues and discloses the results of its efforts internally and externally.

●

Advancement of ICT
Paradigm shift in technology

A business foundation that maintains
security and safety

Promotion of a highly transparent organizational structure

Technology

GovernanceFor details about our material issues, please refer to the Material Issues section ( Page 42), theMaterial Issues Identification Process section ( Page 43), and the Material Issues Action Plan
section ( Pages 44–45) of this report.

Data

As we promote efforts to address these material issues, we make sure to instill in our employees the importance of these efforts and how they bring us closer to our future vision. We do
this because it gives employees a clear idea of how these issues tie in with day-to-day tasks
and our Purpose. We want all employees to ask themselves what they need to do to fulfill therole that stakeholders—including our engineers and technicians—expect from the Group, andwhat actions are needed to strengthen the foundation of the Group’s business, since webelieve that this mindset will contribute to value creation and the realization of our Purpose.

Open Up Group Inc.
Integrated Report 2023

Daio Sato

President and Representative Director, COO

Results that Exceeded Expectations, with
Significant Progress in the Open Up Purpose Index

Sustainability
Governance
Data

Looking at our consolidated results for fiscal 2023, the fiscal
year ended June 30, 2023, revenue, business profit (a proprietary indicator), operating profit, and profit attributableto owners of parent increased compared with the previous
fiscal year. Revenue increased in the Machinery andElectronics / IT segment, the Construction segment,
and the Manufacturing segment, which offset an overall
decrease in the Overseas segment. On the profit side, profit
margins improved overall, overcoming a rise in recruiting
costs due to the tight supply and demand for humanresources in the wake of the COVID-19 pandemic. This
positive result comes thanks to higher staffing rates andimproved productivity, and the fact that segments with highprofit margins comprised a larger proportion of revenue.
I believe this puts us on a steady track toward the financial
goals put forth in BY25, our four-year medium-term­management plan which came into effect in fiscal 2022.
The Open Up Purpose Index is a set of five indicators used
to assess the degree to which we have achieved our Purpose,
which is to open up individual potential through rewarding
work. Of these indicators, the figures for retention rate andengagement remained relatively unchanged compared withthe previous fiscal year, but we made progress as expected
in regard to the remaining indicators—number of employees,
job placement opportunities, and career advancement.
In particular, we positioned fiscal 2023 as a year forincreasing the number of employees, and as a result of ourefforts to enhance recruiting, the biggest growth driver for

Strategy

Message from the COO

Overview

We aim to increase the value of the Group to engineers,
achieve sustainable growth, and realize our Purpose.

17

Open Up Group Inc.
Integrated Report 2023

18

Message from the COO(¥ billion)

148.7

161.6

7.9

178.0

6.8
6.4
Announcement
planned for theend of FY23

95.1

3.5

7.4
12.8

(%)

8.0

14.3

10.1

Announcement
planned for theend of FY23

3.4

FY22

FY23

Note: The figure for FY2021 is based on JGAAP.

FY24
full-year
forecast

FY25
plan

FY21

Operating profit

FY22

FY23

Operating profit margin

Note: The figure for FY2021 is based on JGAAP.

FY24
full-year
forecast

FY25
FY25
plan

Business profit margin

Data

FY21

GovernanceOperating profit(¥ billion)

Earlier I alluded to an increase in the Group’s executive
capabilities, which is due to the sharing of best practices
among its operating companies. After the management
integration in 2021 following the merger of BeNEXT Group
Inc. and Yumeshin Holdings Co., Ltd, the holding company
led this initiative by providing a platform for operating companies to amalgamate their respective collections of bestpractices built up through their recruitment and sales activities. Fast forward two years to today, and information is now
actively shared thanks to person-to-person networks set up
between recruitment departments, sales departments, andother related departments at each operating company.
This has created a snowball effect, leading these companies to­reconsider the notion of “our way, our rules” and adopt thebest practices shared within the Group, thereby improving
the capacity and efficiency of their recruitment andsales activities.
I believe another contributing factor—one that cannot
be evaluated quantitatively—is the Group’s organizational­culture. Pre-integration, both companies had a strong belief
in respecting each other’s methods and cultures. This wasrooted in the fact that each company had grown throughrepeated organizational changes and therefore was notinclined to cling to its own way of doing things. We have notmerged the cultures of the two former companies, nor have
we been reborn as a new organization. Rather, I believe that
preserving the original cultures of each company helped uscomplete a post-merger integration (PMI) swiftly.
During this process, I drew a great deal of encouragement from the passion exuded by employees working in thesales, recruiting, planning, and administration departmentsfor overcoming the issues at hand and improving the newly
formed Company in any way possible. In some cases,
people have been able to break through operational barriers they were struggling with because they could see theSustainability

Revenue

Fiscal 2024—A Year for Building Further

Integrated Management to Stimulate Group
Company Growth

Strategy

I would like fiscal 2024 to be a year in which we build steadily
upon the operational achievements we achieved in fiscal
2023. I anticipate that the business environment will remain in
our favor for the time being and expect that we will comfortably reach our goals, even if we set them higher than in theprevious fiscal year. Bearing this in mind, we plan to achieve
revenue of ¥178.0 billion, operating profit of ¥14.3 billion, andan operating profit margin of 8.0% on the back of continued
efforts to actively recruit workers and achieve growth, focusing
on the engineering domains where we excel—Machinery andElectronics, IT, and Construction.

On the point of recruitment, we aim to recruit 3,000
people, an increase from approximately 2,500 people in theprevious fiscal year. We will also work to improve the value
added by our engineers, thereby increasing the level of fees
client companies are willing to pay for their services. Regular
price increases are essential for raising employees’ salaries
and offering them greater benefits. Therefore, we willemphasize communication via our sales representatives tohelp client companies understand just how much value iscreated by the human resources we dispatch.
As the hurdles that hinder us from securing humanresources are becoming higher and higher, we recognize
retention rate as an issue we will need to address over the
medium term. In my personal opinion, we will need to keep
working at the essentials, like supporting the careers of ourengineers and technicians and helping them solve their
day-to-day problems. As a first step, we will build up a series
of initiatives at each of the Group’s operating companies toraise their retention rates, using successful examples to guidethe development of measures and investments for the Group
as a whole. From there, we will continue to implement andimprove upon said measures and investments.

Overview

the personnel staffing business, we achieved a net increaseof approximately 2,500 employees. There were concerns
over whether this accelerated recruitment would match thenumber of assignments, but we exceeded expectations here
as well. This favorable performance extended to Machineryand Electronics, which was believed to be the segment withthe most difficult-to-reach targets. This tells me that the e­ xecutive
capabilities of our operating companies are on the rise.

Open Up Group Inc.
Integrated Report 2023

19

Message from the COO

The Group’s response to the decline in working population and other challenges

1. Providing a more enriching
work experience

2. Considering M&As

3. Revising overseas
business

Our Purpose

Data

The Group’s initiatives, strategies, and reforms

4. Considering new
businesses

GovernanceNew growth opportunities

As it becomes increasingly difficult to secure humanresources, we need to increase the level of job satisfaction
among engineers and technicians and make sure that they
feel glad to work for the Group, to ensure that we can continue to recruit employees and achieve growth. To be more
specific, we need to make sure that employees feel that
becoming a member of the Group increases their value asengineers and that their choice is helping them advance theircareers. This means providing engineers with a more enriching work experience and also increasing the value of theGroup from an engineer’s point of view.
Up to this point, the Group has focused on the entry-levelstage of employee careers, when inexperienced people setout on their new path as engineers. There is no doubt thatour business model of hiring and training inexperienced
workers has carved out a competitive advantage for us in
Japan’s personnel staffing industry and has been the driverof our growth to this day. However, to achieve sustainablegrowth and realize our Purpose, I believe we need to go
beyond supporting inexperienced employees at the start oftheir careers and support engineers and technicians withestablished careers in engineering by assisting them withcareer advancement and career changes. We will therefore
focus on providing a more enriching work experience forengineers under our next medium-term management plan.
The services needed for engineers at the start of theircareers—what I call the “career-launching stage”—are relatively
unambiguous and straightforward. Good career-launching
services develop and provide training programs that give
people the knowledge and skills essential to being an engineer, encourage the acquisition of qualifications that holdweight with client companies, and help dissipate the concerns that many people have at the early stages of theircareers. While the specifics differ by segment, be it

Sustainability

Since it seems almost certain that we will reach the targets
we committed to under BY25, we are currently formulatinga new medium-term management plan, which we expect toannounce at the end of fiscal 2024. That being said, creatinga plan should not be an end in itself—it is the underlying
approach that is key. Accordingly, I would like to devote somespace here to highlighting the strategies we should implement
over the medium to long term for the Group to grow sustainably, increase corporate value, and realize its Purpose.
Although we are still in the early stages of consideration,

Enhancing Work Experience forFurther Group Growth

Strategy

Medium- to Long-Term Strategies Mindfulof Social Changes

I reckon that retention rate will be one of the major themesof the next medium-term management plan. If we canincrease our employee retention rate, we will be able tomeet the strong demand from client companies, which willlead to better business results. I believe that the key to ahigher retention rate is providing a more enriching work
experience—a point we will return to later—and ultimately
employee satisfaction.
As part of the formulation process for our new plan, we
will also look into M&As, overseas business, and new business. Regarding overseas business, I believe we need toredefine our strategy going forward, despite the fact that
the Overseas segment achieved a profit in fiscal 2023.
Given that the Japanese domestic market is facing a
medium- to long-term decline in the working population,
withdrawing from overseas business is off the table. On theother hand, I believe that we must reexamine what kind ofvalue we can provide as we expand our business overseas.
We must also find a direction for M&As and new business,while finding methods to navigate shifts in the market,­technological changes, and any potential risks.

Overview

methods used by others down to the finest detail, inspiringthem to incorporate the positives and try to make changes.
When we share stories of success, we create a virtuous cyclethat motivates us to take on new challenges. I believe thatmanagement integration has strengthened the Group’s“invisible capital,” a kind of capital that supports growthand has brought growth to a new level.

Open Up Group Inc.
Integrated Report 2023

20

Message from the COO

Venture into new work
Skill improvement Career consultations

The Group’s Role

Increase the number of doors (possibilities)
Help people open them

Increase expertise
Learn management skills
Train junior members
Change careers
Learn about cutting-edge technology• Become an expert• Move to an assigned company• Move to a different company

Build a career at an assigned company• Receive training and obtain qualifications• Get a good evaluation
Join the company andget an assignment• Develop a career plan

Take part in in-Group transfers
Participate in contract projects

Datajunior members and people working under them. Or there
may be an engineer who feels stifled by their current job andmay be looking for someone to give them guidance on how
to change careers in a way that uses their previous experience.
In other words, to provide a more enriching work experiencefor engineers, the Group’s services must also become morediverse and sophisticated.
We also need to enhance systems besides career support.
It is extremely important to measure an engineer’s skills
objectively, give a fair assessment of their skills and performance, and increase their remuneration in step with careeradvancement. In addition to assessments and remuneration,
there is also a need for systems to help employees continue

The Group has continued to enjoy consistent growth centered on its engineering domains, adding the ever-growing
IT segment to its tried-and-true Machinery and Electronics
and Construction segments, both of which had been established by the two companies that would become Open Up
Group Inc. prior to their management integration. However,
we face the obstacle of a shrinking workforce, which could
present a future where we are not able to increase recruitment levels, even if there is demand from client companies.
This makes it important that we become the employerof choice for engineers, the place where they most want
to work.
I am convinced that there is more that we as a Group can
do to help each of our employees to thrive, including
expanding initiatives to support workers, such as training,
employment support, reskilling, and career advancement
consulting. If we can do this, we will be able to maintain andstrengthen our market position even in a changing businessenvironment, and our Group will be able to grow in a sustainable way. I am determined to lead the Group closer to realizing its Purpose over the next 10 to 20 years and I would
appreciate your support on this journey.

Governance

Machinery and Electronics, IT, Construction, or otherwise, thevariation in services in not that large.
This, however, is not the case when we talk about midcareer engineers. The services they need are extremely
diverse. Take, for example, an engineer who wants toincrease their expertise and raise their value in a particularmarket; they may want reskilling opportunities related to
cutting-edge technologies or support for obtaining
advanced qualifications. Then again, an engineer whose
career plan involves building a career with the company heor she has been assigned to and ultimately transferring tothat company will want to acquire management skills, such as
project management, and know-how related to training

Be entrusted with management on site

Continued Growth in 10 Years’ Time;
Continued Growth in 20 Years’ Time

Sustainability

Obtain strong qualifications

Strategy• Become a manager

Overview

Doors = Possibilities

their careers, even alongside life events and responsibilities
such as childbirth, childcare, and nursing care. We alsoneed to provide them with information and success stories
to keep them motivated to advance their careers, as well as
opportunities for networking with colleagues on the same
career path.
To make our services more diverse and sophisticatedin these ways, over the course of the next medium-term
management plan I would like us to allocate a portion of our
growth investment to areas that provide a more enriching
work experience.

Message from the CFOOpen Up Group Inc.
Integrated Report 2023

Analysis of factors for changes in operating profit+3,856+512
Other
segment

10,103Engineersegment–1,408–743
Recruitment
segment

Personal
expenses

+240

–430

+630

Other SG&A
expenses

Employment
adjustment
subsidyOther

12,760Governance(¥ million)

Gross profit

Expenses forsales growth
Data

Hiroshi Sato
Director and CFO

Sustainability

We will practice meticulous
scientific management within
the Group to improve ROE andcorporate value.

* Business profit is a unique profit indicator of our Company, which is derived bysubtracting “Selling, general and administrative expenses” from “Gross sales profit.”
It excludes the effects of special items (such as employment adjustment subsidies
and impairment losses) recorded in “Other revenues” and “Other expenses.”

Strategy

Beginning with consolidated results for fiscal 2023, the fiscal
year ended June 30, 2023, revenue and profit increased
across the board, with revenue increasing 8.8% year on
year, to ¥161.6 billion, business profit* increasing 25.7%, to¥12.0 billion, operating profit increasing 26.3%, to ¥12.8
billion, and profit attributable to owners of parent increasing 36.7%, to ¥9.5 billion. The post-merger integration (PMI)that gave birth to Open Up Group Inc. in April 2021 hassince settled, and, from the beginning of fiscal 2023, wewere able to put ourselves back on a growth trajectory, withhigher revenue and profit to show for it.
This fits the overall theme for fiscal 2023, namely figuring
out how to get back on track toward growth, while maintaining utilization and turnover rates for dispatched employees

through the pursuit of operational excellence. In the personnel staffing business, utilization rate serves as an indicatorfor operational performance. To address operating companies with room for improvement, we introduced measures infiscal 2022 to raise the quality of Group management, andthese measures are close to completion. These measures
include sharing best practices among companies to bring
operations to a certain benchmark or higher. The effect ofthese efforts has been to bring the quality of operations at
operating companies up to a similar level, specifically
improving utilization and turnover rates, and helping
improve business performance.

Overview

Achievement of Both Improved Growth andQuality of Operations

21

FY22
Operating profit

FY23
Operating profit

Open Up Group Inc.
Integrated Report 2023

22

Message from the CFO

Forecast for revenue and business profit (margin)(¥ billion)

FY24 forecast

Revenue

161.6

178.0

+10.1%

Gross profit

38.8

44.5

+14.7%

Margin

24.0%

25.0%

SGA cost

26.8

30.2

Margin

17.0%

12.0

14.3

Margin7.4%

8.0%

Operating profit

12.8

14.3

Margin

7.9%

8.0%

9.5

10.0

5.9%

5.6%

Profit attributableto owners of theparentMargin

7.4%
6.4%

178.0

161.6

148.7

8.0%

+12.7%+19.0%+12.1%

12.0

9.5
FY22

+4.9%

Revenue

FY23
Business profit

Business profit margin

14.3
FY24
Forecast

Data

16.6%

Business profit

YoY

We have set the following three policies for our financial
strategy, which aims to increase corporate value. The first is
to bring return on equity (ROE) back to approximately 20%.
ROE temporarily fell to 2.7% under Japanese GAAP following the post-­integration expansion of the balance sheet,
but with the transition to International Financial ReportingStandards (IFRS) we have carried out retroactive impairment
accounting which returned ROE to a provisional value
approaching 15% for the first half of fiscal 2024. We aim
to raise this number back to 20% over the medium termby continuing to improve profitability and utilizing debt
to finance M&As.
The second policy is to maintain a debt-to-equity ratio(D/E ratio) below 1.0. Ratio of equity attributable to ownersof parent to total assets was high at 64.0% as of June 30,
2023, which was indicative of an extremely sound financialbase. On the other hand, given that goodwill accounts forapproximately ¥45.0 billion in assets, our policy is to keep

Governance

FY23 full-year
total

A Growth-Oriented Financial Strategy

Sustainability

Fiscal 2024 consolidated business forecasts(¥ billion)

operating companies. In order to avoid the decline in utilization
rates that occurred in fiscal 2023, we will conduct meticulous
scientific management within the Group. This includes
increasing capacity based on productivity per employee.
Management integration has enabled the Group to build
an efficient management structure. When merging operating companies in the same segment, we bring together thebest systems from each of the original companies andadapt them for the resulting company. In fiscal 2024, weplan to finalize the integration of back-office systems andinfrastructure for two operating companies in the IT infrastructure sector, which were merged in July 2023. While
making a certain level of investment, such as centralizing IT
systems that support operations, we will manage selling,
general and administrative expenses efficiently andstrengthen productivity over the medium term.

Strategy

For fiscal 2024, we anticipate a 10.1% year-on-year increase
in revenue, to ¥178.0 billion, a 19.0% increase in businessprofit, to ¥14.3 billion, a 12.1% increase in operating profit,
also to ¥14.3 billion, and a 4.9% increase in profit attributableto owners of parent, to ¥10.0 billion.
One point of action toward reaching these targets isstrengthening recruitment, our driver of business growth.
Competitors who hire experienced engineers are constrained by the limited number of job seekers. To avoid thispitfall, we target new graduates and people without experience, which opens up a much greater number of potential
employees to us. We believe that by continuing our current
efforts, we will be able to increase recruitment for the immediate future, and we will therefore continue investment
along this path in fiscal 2024.

There is another point of action—increasing profitability.
For the Group to improve profitability further, we must first
improve utilization rates. In the second half of fiscal 2023,
we ramped up recruitment to drive growth, and a larger
number of employees, both new graduates and mid-career
professionals, joined the Group than ever before. Although
the assignment of these hires progressed more smoothly
than we had originally anticipated, a decline in utilization
rates was inevitable, particularly in the fourth quarter. This is
an issue we must improve upon in fiscal 2024.
A detailed analysis of the operational data for our operating companies reveals that productivity is increasing rather
than declining. The fact that utilization rates decreased
despite an increase in productivity suggests that there is alack of capacity within the Group for supporting the growing
number of engineers and technicians while also engaging insales, running training programs, and executing all the otherfunctions our businesses need to operate fully. To be clear,this does not mean that there is a lack of capacity in all of our

Overview

Increasing Profitability by Enhancing Recruitment
and Capacity

Open Up Group Inc.
Integrated Report 2023

23

Message from the CFO

Acting as a Capital Market Intermediary

ROE trends (results basis)

Dividends

20.0%(¥/share)

FY23
result

FY24
forecast

ChangeMid-term

¥17

¥20

+¥3

Year-end

¥33

¥35

+¥2

Annual

¥50

¥55

+¥5

14.5%
11.0%
CAPM: 7.2%

35.0

2.7%

FY22

FY23

Medium-term• The figure for FY2021 is based on JGAAP. The figures after FY2022 onward are
based on IFRS.
• ROE = Net income at the end of the period ÷ Equity• Capital asset pricing model (CAPM) as of the end of FY2023 (our calculation)

5.0
FY10

7.0

7.0

7.5

FY11

FY12

FY13

12.5

FY14

15.0

FY15

20.0

22.5

40.0

44.0

45.0

FY21

FY22

50.0

55.0

27.5

Data

FY21

My role as CFO is to act as an intermediary between­management and the capital market. In this role, I intend
to communicate the Group’s path toward increasing its
corporate value to the capital market. At the same time,
I also intend to provide objective assessments from the­perspective of the capital market during Group discussionsof management strategy, and work toward resolving­management issues. I am determined to guide the Group
as it strives to grow and create value in an effort to realize
its Purpose.

Given that we are close to achieving the commitments laidout in BY25, our medium-term management plan, we are
currently formulating a new medium-term management
plan for growth beyond fiscal 2025. From a financial management perspective, the next plan targets an operating
profit margin of 10% or more. I believe that this is the minimum rate needed to compete with other companies in thesame industry. This is crucial if we are to be seen as the“employer of choice” for employees and job seekers, andfor our efforts to improve corporate value to be held in highregard by shareholders and investors.

GovernanceLooking Beyond BY25 to a 10% Operating
Profit Margin

Sustainability

Another theme of the new plan is reviewing our overseas
businesses. This does not mean, however, that we are planning to pull out of overseas operations, since expansion
overseas is one of the most promising strategies for con­tinued growth, considering the expected decline in thedomestic working population. Based on our overseas business strategy, which we will clarify after thorough ­discussion,
we will consider ways to implement it, such as M&As.

Strategy

prices are trending upward as other companies enter themarket. In this sort of market environment, we need to makesure that we remain disciplined with our investments, so wehave set an 8% return on invested capital (ROIC) as a hurdle
rate. In addition, while we will primarily use debt to procure
the funds for M&As as mentioned above, we will also consider raising capital from the capital market for M&As above
a certain size.

Overview

the D/E ratio below 1.0 based on net assets after deducting
goodwill and risk assets.
The third policy is cash allocation. Generally speaking, theGroup’s policy is to generate ¥10.0 billion each year in free
cash flow and then allocate half of this amount to shareholder returns and the other half toward growth investment.
Regarding shareholder returns, we have increased these for11 consecutive years leading to fiscal 2023 based on ourbasic stance of increasing dividends in proportion to ourincrease in profit. The personnel staffing industry follows acash-generating business model that does not involve
large-scale capital investments, so I believe that there isalmost no logical reason to increase internal reserves.
Regarding investing in growth, we plan to shift theapproach we took in fiscal 2022 and fiscal 2023. During that
period, PMI was our priority, so we focused on acquiring
treasury stock instead of conducting M&As. From fiscal
2024, however, we will invest in growth, including throughM&As. We can frame M&As as an alternative means oframping up recruitment. Considering the existing strong
demand from client companies, it may be more efficient
to conduct M&As than taking time to recruit new hires.
However, M&As depend on opportunity, and acquisition

FY16

FY17

FY18

FY19

FY20

FY23

FY24
ForecastMedium-Term Management Plan BY25: Financial Targets and Business Strategy

Open Up Group Inc.
Integrated Report 2023

24

BY25 is the Group’s four-year medium-term management plan, covering the period from fiscal 2022, the fiscal year ended June 30, 2022, through fiscal 2025. We have set ambitious­management targets under this plan and are pursuing growth in order to achieve them. In fiscal 2024, which is the third year of BY25, we are working to continue the steady upward
implementing Groupwide measures to improve corporate value.
Targets under BY25

Promotion of Groupwide Measures to Increase Corporate Value

Revenue

Operating profit margin

8%

Operating profit

billion¥16.0• Implement medium digitaltrans­formation (DX) measures:

billionNumber of domestic employees

30,000Analyze data within internal systems or datathat can be easily collected and stored to
identify and systematize business processes
that can be improved

Reduce costs by centralizing the Group’s
back-office operations

Centralize common tasks such as attendance,salary, billing, and contract-related work to takeadvantage of the economies of scale createdby the business merger that formed the Group• Continue active M&A efforts:

Select key investment projects for each segment
1. Machinery andElectronics andConstruction

Focus on M&As which further enhance and expand businesses
Introduce business management methods, enhance marketing and recruitment capabilities, improve efficiency of SG&A expenses, etc., post-M&A

Sustainability

Expand opportunities to improve engineers’ skills and careers
2. IT

Improve value by taking advantage of the Group’s recruitment capabilities
Establish a cooperative model with companies with technological capabilities

ESG and SDG-Related Initiatives

Capital and Financial Strategy and Shareholder Return Policy• Identify material issues andformulate an action plan

• Recover ROE to 10% or higher• Expand disclosure of
non-financial information• Implement two fundamentals: stable dividends andthe purchase of treasury stock

Governance• Maintain a 1.0 D/E ratio

For details about our business strategies, please refer to the Review of Operations section of this report (Pages 27–39).

For details about our ESG and SDG-related initiatives, please refer to the Sustainability Management section of this report( Pages 41–43).
For details about our capital and financial strategy, as well as our policy for shareholder returns, please refer to Message fromthe CFO in this report ( Pages 21–23).

Data

Despite uncertainty stemming from emerging geopolitical risks, ongoing inflation, andhigh interest rates, primarily in Europe and the U.S., and the slower-than-expected
recovery of the Chinese economy, 2023 has been a year in which economic activity,
which stagnated during the COVID-19 pandemic, has made an overall return tonormal. For Japan, it has been a year of steady economic recovery, and the dispatch
markets for both engineers and manufacturing workers has remained strong. To meetthis growing demand, most Japanese human resource companies—including us—haveramped up hiring post-pandemic.
Concurrent with these macroeconomic trends, Yumeshin Holdings Co., Ltd. and
BeNEXT Group Inc. merged in April 2021, forming Open Up Group Inc. The result of thismerger has been an increase in business scale, a greater ability to generate cash stably, asound financial base, and more robust management resources. BY25 was formulated toleverage this management capital to take on further challenges and under its guidance
we intend to grow by targeting the entry- to mid-level market, which is the largest segmentof the engineer dispatch market and where the Group has particular strengths.
In fiscal 2024, our financial performance has been increasing at a rate faster thanoriginally planned, thanks to the steady rollout of our business strategy and the promotion of Groupwide measures. As a result, we are making good progress toward achieving the targets set out in BY25.

Investigate and establish data utilization methods to enhance business efficiency, sophistication, and speed• Implement medium-term businessprocess re-engineering measures:
Strategy¥200.0Overview

performance of the previous fiscal year and promote business strategies adapted to changes in markets relevant to our business segments and domains. At the same time, we areOpen Up Group Inc.
Integrated Report 2023

Medium-Term Management Plan BY25: Open Up Purpose Index

25

We have established the Open Up Purpose Index (OPI), a series of indicators that enable us to visualize the extent to which we have realized our Purpose, which is to open up­individual potential through rewarding work. The index also provides the key performance indicators for our medium-term management plan, which was developed in response toefforts and uncover issues that may exist. At the same time, this understanding helps us fulfill our duty to keep employees and other stakeholders informed.
Job placement
opportunities

Number of employees

30,00019,4486,000

50,00030,000(Jobs)

50,0006,000

Engagement

85%
(%)

1.2-fold increase
85.0

22,10529,948

1.2

3,184

FY25

82.7

FY22

FY23

1,617

FY23

FY25

Providing people with the opportunity tofind rewarding work lies at the very heartof the Group’s business and is directly
linked to the realization of its Purpose.
We have therefore set the total numberof new jobs and other opportunities (jobplacement opportunities) as an indicatorwithin the OPI, aiming for 50,000 jobs by
the end of fiscal 2025.
The number of job placement­opportunities grew considerably in fiscal
2023, increasing 2.27-fold year on
year to 29,948 projects.

FY22

FY23

FY25

Our forte is recruiting and training
people without experience, so weemphasize giving our engineers andtechnicians opportunities to grow andadvance their careers, be it throughon-the-job experience or by obtaining
qualifications. To monitor employee
progress, we have set the cumulative
number of employees certified as midlevel engineers at domestic operatingcompanies as an indicator within the
OPI, with a goal of 6,000 certified engineers by the end of fiscal 2025.
Career advancement grew considerably in fiscal 2023, doubling year on
year, to 3,184 certified mid-levelengineers.

FY25

FY25

We believe that when employees feel
fulfilled in their work, it leads to theirpersonal growth, success in their roles,
and better evaluations from client companies. For this reason, we have set
engagement as an indicator within the
OPI, defining engagement as the NPS®*
for engineers and technicians within theGroup. NPS® is a score that measuresthe extent to which an employee would
recommend their company of employment to someone else, and we have set
a goal of increasing this score 1.2-foldby the end of fiscal 2025, three years
after our baseline of fiscal 2022 (1.0).
Engagement in fiscal 2023 wasunchanged from the previous fiscal year.

* NPS® is a registered trademark of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.

Data

We utilize retention rate—100% minus therate at which people leave the Group—as away to monitor whether people are willing
to remain with the Group, and we have set
retention rate as an indicator within the
OPI under the belief that the retention rate
reflects employee satisfaction. However,
we also believe that an employee leaving
the Group to pursue the next stage of theircareer—in particular, leaving the Group tojoin the client company they were dispatched to—is simply another form of
opening up new possibilities for them.
We therefore aim to balance retention
rate with the encouragement of employees’ career pursuits. As a result, we areaiming for a retention rate of 85% for
domestic, full-time employees by theend of fiscal 2025.
Retention rate was 82.7% in fiscal
2023, which is relatively unchanged fromthe previous fiscal year.

FY23

GovernanceWe believe that the increase in thenumber of employees—in particular ofengineers and technicians—flourishing asa result of the Group’s business, is evidence that workers and client companies recognize the Group’s social
significance. For this reason, we have set
the number of employees (engineers
and technicians only) as an indicatorwithin the OPI, with a goal of 30,000
employees by the end of fiscal 2025.
As of June 30, 2023, the number of
employees in Japan is 22,105, a year-onyear increase of 13.7%.

FY22

82.6

Sustainability

FY23(Times)1.0

13,172FY22(People)Retention ratecertifiedengineers

Strategy(People)Career advancement

Overview

our material issues. By gaining a quantitative understanding of the five items that comprise the index, we can assess the progress of business strategies and sustainability-related

Open Up Group Inc.
Integrated Report 2023

At a Glance
Revenue (Fiscal 2023)

Business segments

Machinery andElectronics / ITbillionNumber of OPG engineers and technicians in Japan(As of September 30, 2023)

Contracting and consignment business engaged in the dispatch of engineers, softwaredevelopment, and other activities

Engages in dispatch and contracting services for mechanical, electrical, and electronics engineers to undertake
development, design, manufacturing technology-related work, and other tasks at Japanese manufacturers andIT engineers to undertake the establishment, development, and operation of IT infrastructure such as networks,
servers, and software at IT enterprises and other companiesGroup
companies

Construction

BeNEXT Technologies Inc. BeNEXT Solutions Inc. Open Up IT Engineer Inc.
Open Up System Co., Ltd. Four other companies

Business dispatching construction management staff, engineers, and CAD operators to theconstruction industry

Primarily dispatches construction management engineers and CAD engineers to enterprises in the Japaneseconstruction industryGroupcompanies

Distribution ofrevenue

Contracting, consignment, and dispatch business related to the manufacturing sites ofclient companies
Engages in dispatch and contracting services, primarily in relation to manufacturing processes at
Japanese manufacturers
Group
company(Fiscal 2023)

YUMESHIN Co., Ltd.
YUMESHIN EXPERT Co., Ltd.
Sustainability

Manufacturing

Strategy

22,140Overview¥161.626

BeNEXT Partners Inc.

Note: Due to the sale of BeNEXT Partners Inc., businesses in the Manufacturing segment are scheduled to cease operating on
March 31, 2024.

(%)
Distributionof revenue

Machinery
andElectronics /IT

Construction

49.7

24.8

Manufacturing

6.8

Overseas

17.9

Dispatch, consignment, and job placement business in the engineering and manufacturing fields
outside JapanEngages in dispatch and contracting services for the engineering and manufacturing fields overseas, and in
human resource services which involve fee-charging job placement and other activities

OthersGap Personnel Holdings Limited (U.K.)
25 other companiesGroup
companies

SAMURAI, Inc. SAMURAI Career, Inc.
Open Up With Inc.

0.8

OthersData

Groupcompanies

GovernanceOverseas

Open Up Group Inc.
Integrated Report 2023

Review of Operations: Business Results

Construction

Revenue

Segment profit

Segment assets

Revenue

Segment profit

Segment assets(¥ million)(¥ million)(¥ million)(¥ million)(¥ million)(¥ million)

70,67780,34236,25739,22336,921

8,609

40,12145,0007,118

FY23
ResultFY24
Forecast

Review of Fiscal 2023

FY22
Result6,690

50,02151,512FY24
Forecast

FY22
ResultFY23
Result

6,271
5,327

FY23
ResultFY24
Forecast

FY22
ResultFY23
ResultFY23
ResultFY24
Forecast

FY22
ResultFY23
ResultReview of Fiscal 2023

In fiscal 2023, the number of employees in the segment increased as a result of measures tostrengthen and improve recruitment channels and retain employees, which began in fiscal
2022, and the utilization rate remained at a high level due to buoyant demand for humanresources in the construction industry.
As a result, revenue was ¥40,121 million (up 8.7% year on year), segment profit reached¥6,271 million (up 17.7%), and segment assets totaled ¥51,512 million (up 3.0%) in thissegment in fiscal 2023.

Governance
Data

In fiscal 2023, the fiscal year ended June 30, 2023, the number of employees in the segment
grew more than 10% compared with the beginning of the fiscal year due to aggressive
investment in recruitment, which continued from fiscal 2022, a recovery of business confidence in a broad spectrum of industries, and rising demand for human resources. In addition,
the employee utilization rate remained stable at more than 95% for most of the fiscal year,
except during and immediately after April, when employee inactivity increases as a result of
new graduate training and other programs. In terms of profit, despite a significant increase inrecruitment costs owing to tight conditions in the human resources market, the profit margin
improved slightly due to higher staffing rates for dispatch workers through the expansionof advanced training programs and a shift in projects and reduction in selling, general andadministrative (SG&A) expenses thanks to improvements in operational efficiency.
As a result, revenue came to ¥80,342 million (up 13.7% year on year), segment profit
stood at ¥8,609 million (up 20.9%), and segment assets amounted to ¥39,223 million (up8.2%) in this segment in fiscal 2023.

FY22
ResultSustainability

FY22
Result10,200Strategy

94,000Overview

Machinery and Electronics / IT

27

Open Up Group Inc.
Integrated Report 2023

28

Review of Operations: Business Results

Overseas

Overview

Manufacturing
Revenue

Segment profit

Segment assets

Revenue

Segment profit and loss

Segment assets(¥ million)(¥ million)(¥ million)(¥ million)(¥ million)(¥ million)

12,000

561

556

600

3,310
2,870

398
30,07628,959

300

6,899

6,979

FY24
Forecast

FY22
ResultFY23
Result25,900Strategy

9,682

10,992–417
FY23
ResultFY24
Forecast

FY22
ResultFY23
ResultFY24
Forecast

FY22
ResultFY23
ResultReview of Fiscal 2023

FY24
Forecast

FY22
ResultFY23
ResultReview of Fiscal 2023

In fiscal 2023, although demand for human resources in the United Kingdom recovered
temporarily following the end of the COVID-19 pandemic, economic activities slowed
toward the end of 2022 due to factors including soaring commodity prices, rising interest
rates, and a downturn in trade. Despite the beneficial effect of a weak yen, revenue declined
as the impact of such factors led to sluggish dispatch sales in the busy season before
Christmas. On the profit front, while the profit margin in the business as a whole was largely
unchanged, the termination of public subsidies for addressing the impact of the COVID-19
pandemic resulted in a decline in profits. On the other hand, the impairment loss of ¥744
million recorded in fiscal 2022 by our subsidiary in the UK was absent in fiscal 2023.
As a result, revenue came to ¥28,959 million (down 3.7% year on year), segment profit
reached ¥398 million (compared with a segment loss of ¥417 million in fiscal 2022), andsegment assets stood at ¥6,979 million (up 1.2%) in this segment in fiscal 2023.

Data

Note: Due to the sale of BeNEXT Partners Inc., businesses in the Manufacturing segment are scheduled to cease operating on
March 31, 2024.

FY23
ResultGovernanceIn fiscal 2023, we continued to develop demand in the segment for human resources ona wide scale in sales areas without favoring certain sectors or large client companies, andwe increased the number of dispatched workers while striving to maintain and improve
profitability through efforts including negotiations on staffing rates. As a result, the dispatch
business saw an increase in the number of dispatched workers in a variety of sectors, suchas materials, electrical and precision machinery, and logistics warehouses. However, thenumber of dispatched workers declined in the contracting business, due in part to a decreasein production related to semiconductors. Although the cost ratio remained steady or showed
an improving trend, an increase in recruitment costs and personnel expenses led to a slightdecline in the profit margin.
As a result, revenue stood at ¥10,992 million (up 13.5% year on year), segment profit was¥556 million (down 0.8%), and segment assets came to ¥3,310 million (up 15.3%) in thissegment in fiscal 2023.

FY22
ResultSustainability

FY22
ResultOpen Up Group Inc.
Integrated Report 2023

Review of Operations: Machinery and Electronics

29

Business Activities

BeNEXT Technologies Inc.

Overview

Contracting and consignment business engaged in the­dispatch of engineers, the development of embedded software, testing, evaluation, and other activities

BeNEXT Solutions Inc.

Strategy

Many mid-level engineers play an active role in the Machineryand Electronics segment, which supports a wide range of sectors, such as transportation equipment, semiconductor-related
equipment, electrical and electronic equipment, machinery,information and telecommunication, and chemicals. Also operating a contracting and consignment business engaged in thedesign and development of embedded software, the development of production technologies, testing and evaluation, information processing, and other activities, the Machinery andElectronics segment has built a client base spanning more than
900 client companies.

Nihon Axis Co., Ltd.

Recruits, resignees, and turnover rate

(People)(%)

7500

98.0

5,326

98.0

5,383

97.9

5,689

97.7

5,798

97.9

96.8

5,965

6,077

96.2

1000

17.1

16.9

6,493

16.2
15.4
209

16.5

17.0

(¥)

793

584

3,582
16.2

405

340

267

16.8

Hourly staffing rate

3,542

426

392

3,487

–252

1Q

2Q

FY22

3Q

4Q

1Q

2Q

FY23

3Q

4Q

Number of machinery and electronics engineers
Machinery and electronics engineers utilization rate
Notes: Utilization rate = (Number of active employees + Number of employees ofpartner companies) ÷ (Number of employees + Number of employees ofpartner companies – Number of employees on leave)
Excludes resignations at the end of the fiscal year

-600

1Q

2Q

–336

FY22

Number of recruits

3Q

–287

4Q

–323

1Q

Number of resignees

–237
–373

2Q

FY23

Turnover rate

3Q

3,494

3,522

3,514

4Q

1Q

3,495

3,526

–316

4Q

1Q

2Q

FY22

3Q

2Q

FY23

3Q

4Q

Data

0

–233

Governance

5,303

98.4

(People)(%)

Sustainability

Number of engineers and utilization rate

Open Up Group Inc.
Integrated Report 2023

30

Review of Operations: Machinery and Electronics

Message from the Head of the Machinery and Electronics Unit

the Career Enhancement of Engineers to Extend
Their Working Lives

Opening a New Training Center for the Semiconductor Field

Governance

In December 2023, we opened a new training center to develop
and produce for various client companies the human resources
who will underpin Japan’s semiconductor industry. The training
center offers reskilling opportunities to jobseekers who do nothave knowledge or experience of semiconductors. Specifically,in addition to classroom courses for the systematic acquisitionof knowledge in the semiconductor field, the center conducts anintense learning program that includes training in which participants come into contact with the main equipment and materials
used at actual production sites and training in model clean rooms
similar to those in semiconductor plants.

Sustainability

Corporate Officer
Head of the Machinery and Electronics Unit

In July 2023, we launched joint research with Associate Professor
Katsutoshi Furuta from the Graduate School of Technology
Management at Ritsumeikan University, who conducts researchon the topic of career growth and development. The goal of theresearch is to clarify those measures that would be effective inincreasing employee retention based on analysis of the factorsthat prompt resignations. Through methods including questionnaires and employee interviews and the establishment of hypo­theses using data analysis, the research examines measures thatwill be effective in reducing the turnover rate among engineers
and improving their skills.

Strategy

Einobu Yoshii

The Machinery and Electronics Unit has adopted the goal of improving
lifetime value (LTV), that is, cumulative profit from engineers, by e
­ xtending
the working lives of engineers through support for their career enhancement. To realize this goal, we promote an Engineer Value (EV) model.
Under this model, we provide support for engineers to improve their skills
and implement a plan to ensure that they are assigned appropriately byvisualizing each engineer’s value, thereby enabling their further success.
In fiscal 2023, we worked to transfer engineers to more suitable workplaces as part of our EV model measures, which led to an increase instaffing rates. In addition to increasing the staffing rate of engineers,changes in workplace help reduce the turnover rate. Accordingly, weplan to continue promoting EV model measures going forward.
Meanwhile, we opened training centers in Tokyo in July 2022 andOsaka in May 2023 to conduct machinery and electronics engineer training for novice engineers. Satisfaction with the training among participants
is exceptionally high, and results show that the contract continuation rate
is higher for engineers who have undergone such training than it is for
those who have not. In December 2023, we opened a new training facility
for semiconductor engineers, where we plan to develop approximately
200 such engineers each year.
Amid projections that recruiting human resources, particularly new
science and technology graduates and people with experience, will
become increasingly challenging, the Machinery and Electronics Unit will
work to strengthen LTV, fulfilling the career aspirations of engineers byenhancing the EV model.

Launching Joint Research with Ritsumeikan University into
Establishing a Career Development Support Programfor Engineers

Overview

Improving Lifetime Value by Supporting

TOPICS

Data

Open Up Group Inc.
Integrated Report 2023

Review of Operations: IT

31

Business Activities
Overview

Infrastructure  Dispatch of IT engineers, outsourcing,job placements, and IT consulting

Open Up IT Engineer Inc.

Development  System planning, development, installation,

Open Up System Co., Ltd.

With a focus on its business dispatching IT engineers, theIT segment operates businesses in the IT infrastructure
sector offering total solutions, such as contracting, consignment, and job placement, and a broad spectrum ofservices in the IT development field, encompassing everything from system planning to development and installation, upgrading and maintenance and operationof existing systems, and IT consulting.

Arrow Trust Systems Co., Ltd.

Strategy

AXIS CREATE Inc.

upgrading, maintenance, and operation, andIT consulting

Garenet Co., Ltd.

8000

(People)(%)

92.4

5,323

5,461

93.0
5,772

92.9
5,956

93.9

93.7

6,145

6,310

1000

6,845

(People)(%)
944

89.7
334

359

477

16.3
398

FY22

3Q

4Q

1Q

2Q

FY23

3Q

4Q

-600

IT engineers utilization rate
Number of IT engineers
Notes: Utilization rate = (Number of active employees + Number of employees of partnercompanies) ÷ (Number of employees + Number of employees of partner­companies – Number of employees on leave)
Excludes resignations at the end of the fiscal year

1Q

2Q

FY22

Number of recruits

493

463

–271

–244

3Q

4Q

589

16.1

15.6

599

601

598

600

3Q

4Q

1Q

610

15.8

–328

1Q

Number of resignees

15.3

–269

2Q

–366

FY23

Turnover rate

3Q

–331

4Q

1Q

2Q

FY22

2Q

FY23

3Q

4Q

Notes: Billing amount = Net sales ÷ Average number of active employees (active
employees, excluding employees of partner companies)
Average number of active employees constitutes the average over theprevious six-month period (average of the preceding quarter and thecurrent quarter)

Data

2Q

–225

615

613

601

17.1

–270

1Q

(¥ thousand/month/employee)

18.5

15.2

0

Monthly billing amountGovernance

5,211

94.6

94.4

Recruits, resignees, and turnover rate

Sustainability

Number of engineers and utilization rate

Open Up Group Inc.
Integrated Report 2023

32

Review of Operations: IT

Message from the Head of the IT Infrastructure Unit

Message from the Head of the IT Development Unit

Realizing Continuous Growth by

for IT Engineers to Grow

Where Even Inexperienced

Consistently Creating Opportunities

Corporate Officer
Head of the IT Infrastructure Unit

Engineers Can Play an Active Role

Takuro Ito

Head of the IT Development Unit

Governance
Data

In fiscal 2023, the IT Development Unit focused on the post-merger integration (PMI) of thethree IT development operating companies that merged in April 2022, enhancing operational efficiency by making improvements to systems, including the personnel system andsystem integration, and to business procedures and regulations, such as the operational
flow and internal rules. As the final step in the reorganization of the Group, we took over thebusiness of another company in April 2023, for which PMI is proceeding.
Alongside this PMI, the number of new recruits during fiscal 2023 rose to 79 thanks to ourefforts to bolster recruitment. We also worked to enhance our existing training programs,
centered on areas including basic IT training, web application development training, andproject-based learning, and we established project manager and project leader development programs. Furthermore, we obtained engineering partner certification for mcframe—
packaged software for the manufacturing industry—with the aim of expanding the scope ofservices to our client companies.
In fiscal 2024, we are facilitating the formation of teams whereby inexperienced engineers
are partnered with their more experienced colleagues. We are also expanding opportunities
for inexperienced engineers to play an active role by promoting project management
restructuring in approximately 60 projects, whichreassigns engineers and shifts the emphasis
on work from upstream processes to those indevelopment and manufacturing processes.

Sustainability

In July 2023, YUME TECHNOLOGY Co., Ltd. and BeNEXT Solutions Inc., the two operatingcompanies of the IT Infrastructure Unit, integrated to establish Open Up IT Engineer Inc. All
employees, including engineers—augmented in number to approximately 5,000 through the
integration—are working on activities to spread the newly formulated philosophy, vision, andmission of the new company.
With regard to augmenting the number of mid-level engineers, which is the fundamental
strategy of the IT Infrastructure Unit, we have increased their number significantly by
expanding our range of training programs and introducing e-learning-based training.
Through these efforts, mid-level engineers now account for 24% of all engineers, up 10
percentage points from the previous fiscal year. With the establishment of advanced training, the number of engineers with Amazon Web Services (AWS) certifications has surpassed
the 1,800 mark. In addition to our selection as an AWS-certified partner, one of our engineers was selected as a 2023 Japan AWS All Certifications Engineer. In these ways, theGroup’s presence is growing in the cloud and network
engineer field.
In fiscal 2024, we will work to increase satisfactionlevels among engineers through various measures
such as revising the remuneration program andimproving working environments. We will also realize
business expansion in cities other than Tokyo, Osaka,
and Nagoya, train human resources, invigorate our
Employee event to mark the establishment
organizations, and foster a corporate culture withof the new company
the aim of achieving continuous growth.

Establishing Work Environments

Strategy

Junji Nakashima

Overview

Realizing Continuous Growth by

Open Up Group Inc.
Integrated Report 2023

Review of Operations: Construction

33

Business ActivitiesYUMESHIN Co., Ltd.

Recruits, resignees, and turnover rate

(People)(%)
96.6

95.5

5,238

5,234

95.7
5,465

96.5

95.9

95.3

5,633

5,746

5,766

1000

21.7

92.5

–337

2Q

FY22

3Q

4Q

1Q

2Q

FY23

3Q

4Q

Utilization rate
Number of engineers
Note: Utilization rate = Number of active employees ÷ (Number of employees –Number of employees on leave)

-600

1Q

–292
–422

FY22

3Q

21.4

20.5

899
20.9

545

623

634

625

637
619

621

4Q

1Q

630

628

3Q

4Q

470

426

394

325

2Q

21.6

(¥ thousand/month/employee)

–385

–387

–390

–421

–436

4Q

1Q

2Q

3Q

4Q

FY23

Number of recruits
Number of resignees
Turnover rate
Notes: Turnover rate = Number of resignees during the given year ÷(Number of employees at the end of the previous fiscal year +Number of new recruits during the given year)
Includes resignations at the end of the fiscal year

1Q

2Q

FY22

3Q

2Q

FY23

Notes: Billing amount = Net sales ÷ Average number of active employees
Average number of active employees constitutes the average over theprevious six-month period (average of the preceding quarter and thecurrent quarter)

Data

1Q

727
20.4

341

0

21.6

21.6

Monthly billing amountGovernance

5,247

96.5

6,204

(People)(%)

Sustainability

Number of engineers and utilization rate

Strategy

Economies of scale afforded by its position as the industry leader
in terms of number of construction engineers constitute a major
strength of the Construction Unit. Together with nurturing many
­inexperienced human resources through our unique training system,
we are particularly strengthening our system for following up on the
progress of engineers, visiting the construction sites to which they
have been dispatched. Meanwhile, our 250-employee strong businessengaged in contracting for the preparation of construction plans has
garnered praise for its quickness, accuracy, and cost competitiveness.
In addition, we are building a track record for dispatching constructionengineers with advanced skills and a wealth of experience.

YUMESHIN EXPERT
Co., Ltd.

6500

Overview

Businesses engaged in the dispatch of construction engineers(construction management engineers, CAD operators, and­construction-related clerical staff), contracting for the preparationof construction plans, and dispatch of workers with construction­industry experienceOpen Up Group Inc.
Integrated Report 2023

34

Review of Operations: Construction

Message from the Head of the Construction Unit

by Pursuing Effective Ways
to Support Engineers

Sustainability

Corporate Officer
Head of the Construction Unit

In June 2023, we refurbished the Yumeshin Training Center, thetraining facility for newly graduated and novice engineers in theConstruction segment, installing new industry-specific booths
focused on practical training for civil engineering, electrical engineering, and various other equipment. The booth with surveying
instruments, distribution switchboards, air-conditioning ducts,
model water pipes, and other features enables such engineers toexperience basic site work, including the operation of instruments
and equipment, further improving training content.
The center also features a new cafe, putting in place an environment where trainees can relax in between training sessions. We
encourage interactions among engineers based on our view that
their sense of belonging will increase, enhancing work motivationand the retention rate, if they are among colleagues who support
each other.

Strategy

Kenjiro Ogawa

Governance
Data

In April 2024, legal restrictions on overtime work will come into effectin the construction industry. Amid projections that attendant reduction
in working hours per person will further intensify labor shortages, therestrictions are expected to further accelerate efforts to secure humanresources through improvements to both overtime work and the overall
working environment.
The Construction Unit is working to strengthen recruitment and improve
the turnover rate as part of measures to address such changes in the business environment. In fiscal 2023, we continued to recruit proactively andestablished a follow-up system for new employees during the period
between joining the company and beginning stable work. Efforts to standardize support measures based on analysis of past resignation reasonsand to improve the skills of follow-up managers bore fruit, reducing theturnover rate among engineers who had been with the company less than
one year. In addition, among the 6,087 qualifications acquired in fiscal
2023, the number of construction management engineer qualifi­cations
rose to 320 as a result of efforts to promote the acquisition of qualifications by engineers to support their career development and create added
value for client companies.
Meanwhile, we are also working to strengthen our system that places
priority on maintaining extended business partnerships with client companies. To this end, we deploy sales staff to work exclusively with clientcompanies that have large numbers of construction sites and projects,
such as major general contractors, while assigning engineers on a priority
basis to meet human resource requests from client companies that can be
expected to provide long-term and continuous dispatch opportunities.
We will continue to steadily expand our number of active employees
and maximize their LTV by promoting the long-term employment ofengineers to further solidify our position as the leading player in Japan.

Refurbishing the Yumeshin Training Center

Overview

Working to Maximize LTV

TOPIC

Open Up Group Inc.
Integrated Report 2023

Review of Operations: Manufacturing
Message from the Head ofBusiness Activities
Contracting, consignment, and dispatch business forthe manufacturing processes of client companies

Note: Due to the sale of BeNEXT Partners Inc., businesses in the Manufacturing
segment are scheduled to cease operating on March 31, 2024.

2,386

2,561

2,682

2,766

(Days)(Hours)

80

2,726

2Q

FY22

3Q

4Q

1Q

0.78

0.77
0.70

0.73
0.65

52.1

2Q

FY23

3Q

4Q

1Q

2Q

FY22

3Q

4Q

1Q

2Q

FY23

3Q

4Q

0

1Q

54.5

2Q

FY22

53.3

53.3

52.0

3Q

4Q

1Q

Number of operating days

Hours of overtime

54.0

2Q

52.8

FY23

3Q

0.62
54.6

4Q

Data

1Q

0.71

2,120

2,088

0

0.76

Governance

2,319

Number of operating days and hours of overtime

(¥)

3000
2,278

Head of the Manufacturing Unit

Unit price of contracts(People)

2,522

Corporate Officer

Sustainability

Number of technicians

Seiki Haruta

Strategy

In fiscal 2023, contracts with new clients increased considerably, up 40% compared withfiscal 2022, as we carried out sales activities through collaboration between local
branches and offices and the call marketing team as part of our area strategies. As aresult, we expanded our client base in industries including chemicals, medical equipment, machine tools, and construction, in addition to our conventional client base in thetransportation equipment, precision electronics, and materials industries. By diversifying
our business portfolio by industry, we have been able to reduce volatility resulting frombusy and slow periods at specific companies as well as maintain employment on a­continuous basis. In terms of recruiting, we saw an increase in job applicants due in partto efforts such as the strengthening of our owned media, Job Park. Furthermore, we
successfully expanded the range of jobs to which we can introduce applicants. As ofJune 30, 2023, our number of registered technicians exceeded 2,700. In fiscal 2024, we
will aim for further growth by continuing to promote area strategies in our sales activities while strengthening our relationships with existing client companies and enhancing
the efficiency of our recruitment activities.

BeNEXT Partners Inc.

In the Manufacturing Unit, we operate a personnel
placement business that aims to provide job opportunities to job applicants in a manner that caters to theirindividual lifestyles while at the same time contributing
to the development of local communities.

Aiming for Growth through the Promotion of Area Strategies
Overview

the Manufacturing Unit

35

Open Up Group Inc.
Integrated Report 2023

Review of Operations: Overseas

Review of Operations: Other Business (Education)
SAMURAI, Inc.

SAMURAI Career, Inc.

Business Activities

Business Activities

Business pertaining to online IT education, job placement, corporate training,
programming education, and programming learning media

Our overseas operations center on the United Kingdom, where we dispatch workers to awide range of companies under our corporate umbrella, primarily Gap Personnel Holdings
Limited, to engage in a variety of duties.

To realize a world in which all people can utilize technology to forge a path to the future, we
provide high-quality IT education that closely caters to individual needs and goes beyond
boundaries such as age, learning environment, and value systems.

Comparison of real GDP by country

Programming Education

2.0

1.8

UK

2022 estimates

2023 forecasts–0.6

Source: World Economic Outlook Update, International
Monetary Fund, January 2023.

12.2

26.5

6,052

7,309

47.7
Food-related
Logistics
Manufacturing-related
Other
Healthcare

1Q

2Q
3Q
FY22

4Q

1Q

2Q
3Q
FY23

4Q

Job Placement BusinessWe provide job placement support for people with no experiencethroughout the process of career-changing to become an engineer.
Through our specialized know-how in changing jobs to the engineering
field, we help people select the best possible career from among a wide
range of job opportunities. In collaboration with Group companies, weoffer ways for those with no experience to acquire practical training in theengineering field while attending courses.

Governance

Revenue composition ratio of
the UK business
5.7

7,187 7,581

In 2013, we commenced Japan’s only person-to-person programming
lessons provided by specialist instructors. Since then, we have createdcourses on AI, career-changing for engineers, and website design. As allof our information and communications technology (ICT) education­provides person-to-person guidance, we help ensure that everyone isable to find jobs that are productive and fulfilling.
We also provide programs for elementary school, junior high school, and high school students
as well as women and people with disabilities to help realize their dreams of enhancing their IT
skills, becoming engineers, and creating apps.

Sustainability

US

7.9

6,654

8,162

1.4

Japan

(%)

(¥ million)

8,103 8,264

4.1

1.4

Revenue in the Overseas segment

Strategy

Dispatch, contracting, and fee-charging job placement services in the engineering andmanufacturing fields

Overview

Gap Personnel Holdings Limited

(%)

36

Corporate Training Business

Data

We offer programming training to corporations with the aim of helping
their employees enhance their skills, acquire certifications, and receive
employee benefits. Engineers with an abundance of practical experience
propose training details tailored to the business models of clientcompanies.

Review of Operations: Training and Follow-Up System for Engineers and Technicians
Machinery and Electronics Segment• Increase utilization of newly hired andreassigned employees

Comprehensive evaluation based on skills,
qualifications, and requests of trainee
Two weeks

Two weeks

Basic training 1

Basic training 2

Two months
Intermediate-leveltraining

Engineer
Value Model
Creating ongoing

opportunities for the
next endeavor• Leverage human resources tech to establish various frameworks for promoting
skills enhancement, tailored to the visualized capabilities, issues, and ambitionsof engineers

Novices

Assignment
Practical work
experience• Create assignment plans based on thelevel of engineer expertise and billappropriately in accordance with market
evaluation

Realizing Active Roles• Respond flexibly to diversity and changing
work styles in terms of personnel evaluations
and employment status optimized fortechnical fields• Promote recognition systems, pay increases,
bonus systems, and training programs thatenable engineers to work with pride and asense of fulfillment

Salesforce

387

AWS

1,683

Assignment

Employeeswith top ratingsfrom clientcompanies

Practical work
experience

Azure

501

Total number of certifications acquired

5,958

Mid-level
engineers

Other

3,387

Note: Total between April 2021 and June 2023

Data

• Improve expertise through the division oflabor and specialization of sales processes toenhance job postings and personnel proposals

Training programs of Open Up IT Engineer Inc.

Governance• Make full use of online interviews andmarketing tools

Sustainability

Enhancing Potential

With the growing trend of digital transformation (DX) by corporations, IT (infrastructure and development-related) is positioned as a growth industry which also faces a pressing shortage of engineers. Under these circumstances, the Group continuously produces a high volume of engineers
who play an active role on the front lines, centered on Open Up IT Engineer Inc., which specializes
in infrastructure-related IT, and Open Up System Co., Ltd., which excels in development-related IT.
Our robust lineup of training programs, which help novice engineers acquire technical skills
from the ground up, have underpinned our human resource development efforts in the IT segment. After completing introductory training when entering the company, new employees undertake one-month basic training and two-month advanced technical IT training in stages, based on
their skill level. The advanced technical IT training, which enables participants to acquire various
certifications such as AWS and Salesforce Developer, also includes e-learning courses, and isavailable anytime after an employee has started working.
After employees complete training, they interview with sales representatives regarding the kind ofengineer they want to be, and they are assigned to suitable companies. An engineer who works forthree years or more in the same company they are dispatched to is able to transfer to a full-time
position as long as their request aligns with said company.

Improving Value• Bring together a multitude of skills,­experience, achievements, and customer
evaluations at workplaces, etc.
• Collect information on technical capabilities,
career ambitions, and desired workplaces
via smartphone site for engineers andanalyze such information using AI

IT Segment

Strategy

Visualizing Value

37

Overview

The Machinery and Electronics segment covers a broad range of industries, including­automobiles, energy, and home appliances, and it requires vast and extensive knowledge inmachinery, electronics, and electrical engineering. The Group supports the skills and career
enhancement of each of its employees while at the same time creating opportunities for them topursue new endeavors toward growth. By doing so, the Group works to continuously enhance thevalue of its human resources, or Engineer Value (EV), in the Machinery and Electronics segment.
At BeNEXT Technologies Inc., a major operating company in the Machinery and Electronics segment, we have opened training centers at the Tokyo and Osaka offices that offer training programson electrical engineering for novices. These programs, e-learning included, provide a diverse arrayof over 1,630 courses. For example, with regard to the QC KENTEI (Quality Management andQuality Control Examination), which is required in a broad range of fields and highly recognizedamong corporations, the rate of participants in training seminars at BeNEXT Technologies who havepassed levels 3 and 4 of this exam has recently exceeded the nationwide pass rate by more than 12
percentage points. This is one measure that demonstrates the positive impacts and high reputationof the company’s training programs.
In addition to these training programs for inexperienced employees, another major componentof the BeNEXT Technologies training structure is its career brush-up training, which targets engineers in employment. This training is held twice a year and provides an opportunity for participants to reflect on their own career and skills and consider the kind of career that they want for
the future. Also, the Career Center, a specialized division, provides robust support that includes
interviews with employees regarding any concerns they may have in the workplace and any
requests for improvement. The company also provides smartphones to all employees to ensuresmooth communication via the intranet.

Open Up Group Inc.
Integrated Report 2023

Open Up Group Inc.
Integrated Report 2023

38

Review of Operations: Training and Follow-Up System for Engineers and Technicians

Construction Segment

Major offices
GovernanceEngineers assigned toeach workplace

Routine side-by-side
follow-up support

2nd class assistantconstruction
management
engineers

107

1st class assistantconstruction
management
engineers

55

1st class construction
management
engineers

Total number of certifications acquired

31

3,719

Other

3,173

Note: Total from April 2021 to June 2023

Clients in various industries, such as machinery,transportation equipment, electronic devices,
home appliances, food, pharmaceuticals,
medical products, and printing

25 offices across Japan, contributing to the development of local
communities and providing work opportunities for job applicantsthat cater to their individual lifestyles

Note: D ue to the sale of BeNEXT Partners Inc., businesses in the Manufacturing segment are scheduled to cease operating on
March 31, 2024.

Data

353

2nd class construction
management
engineers

Sustainability

Follow-up
managers

Strategy

Sales and assignment
representatives

Manufacturing Segment

In the Manufacturing segment, BeNEXT Partners Inc. (BNP) handles the dispatch of technicians
specializing in manufacturing, providing job opportunities that cater to the preferences of job
applicants, including the preference to work in their hometowns and the desire to work in waysthat accommodate their lifestyles. With 25 offices located in major cities across Japan from
Hokkaido to Okinawa, the connections we forge between job applicants and client companies
dealing with labor shortages also contribute to the development of local economies. The numberof personnel has grown steadily year by year. As of June 30, 2023, the number of technicians andemployees involved in sales and corporate planning was over 2,800.
The Manufacturing segment itself comprises client companies from various industries andinvolves various positions. Among this vast range of work, BNP strives to introduce job applicants
to companies that best match their requests and ambitions. In situations where the hurdle forrecruitment is high due to such factors as work experience, we hold direct negotiations withclient companies on behalf of the job applicant to explore the possibility of employment. We also­strategically find other places of employment in these cases so that applicants can reapply to thecompanies they originally desired after building sufficient experience.
After employment, technicians gain months of work experience on the manufacturing front
lines and receive support from our sales representatives who understand their working conditions, thereby securing an environment in which technicians can work with peace of mind. In
addition to supporting the acquisition of certifications for each technician with a view to building
their careers, we have introduced a career exploration system where technicians can transfer tosales or corporate planning positions, providing other options for their career paths.

Overview

In the Construction segment, we produce a large number of personnel primarily from YUMESHIN
Co., Ltd., Japan’s largest provider of dispatch services for construction-related engineers, to meetthe needs of an industry facing the issues of a rapidly aging population and labor shortages, andthe needs of society as a whole.
As a general rule, all employees who are hired as new graduates or without experience undertake new employee training before assignment to construction sites. To enhance the quality ofthis new employee training, it is conducted at the Yumeshin Training Center, a proprietary facility
that was refurbished in June 2023. In addition to classroom lectures on topics such as safety andhealth management and material management and courses to build PC operation skills andinterpersonal skills, new employee training also offers practical training in environments similar to
the front lines, thereby nurturing engineers who can be effective in the workplace immediately.
There are roughly 100 types of construction-related certifications, starting with registered architect and construction manager, and a total of 200 types of certifications including adjacent qualifications. Holding multiple types of qualifications is an effective means for enhancing the careersof employees. To that end, in 2022 we launched the Certification Promotion Project and set up
rank-based training and e-learning courses.
In addition, our support team, comprising roughly 60 follow-up managers, conduct interviews
with employees and visit their workplaces once a month. When doing so, they hold consultations
on improving the engineering skills of employees, respond to issues faced at work, and ask
questions and propose improvements that help bridge any gaps between companies and theirfrontline operations. By assigning follow-up managers to each engineer, we are able to holdconsultations regarding certification acquisition and provide advice regarding methods for securing
time to study amid busy schedules, thereby supporting the career development of engineers.

Open Up Group Inc.
Integrated Report 2023

39

Review of Operations: Training and Follow-Up System for Engineers and TechniciansTM

Mechanical Engineer
BeNEXT Technologies Inc.
Joined in 2021

Engineer (Salesforce)
Open Up IT Engineer Inc.
Joined in 2022

I am achieving both an enriched lifestyle andenhanced job satisfaction.

Construction Management Engineer
YUMESHIN Co., Ltd.
Joined in 2022

Encouraged by the relationship of trustwith my follow-up manager, I was able to pass
the qualification exam.

Data

Currently, I am mainly engaged in exterior finishing work, but since there
are often cases where general knowledge of construction work is required
even when specializing in one part of the entire process I concluded thathaving a qualification would broaden the scope of my work. Therefore,
I decided to take on the challenge of obtaining a qualification.
My follow-up manager had already obtained the qualification I wasaiming for and provided me with generous support, including sharing
the actual test strategies they had used themselves and analyzing thetrends of the exam for the year I would be taking it. Encouraged bytheir friendly support, I was able to stay motivated and work on pre­paring for the exam right through to the end. Since obtaining thequalification, I feel that I am better equipped to make decisions armed
with new knowledge and that the fruits of my efforts in studying for theexam have helped me in my daily work, especially with regard toadministrative tasks.
In addition, my career counselor worked closely with me from the very
beginning of my employment and engaged in frequent dialogue, which
I believe has helped contribute to my current motivation at work. By
having other people to rely on in addition to the sales representatives,
I can work with peace of mind and face the future without worry.
Going forward, I aim to be able to run the site so that everyone
involved can carry out their work smoothly, while making use of thepractical experience in hazard prediction I gained through the training at
the Yumeshin Training Center. To this end, I am working with a view toacquiring further qualifications.

GovernanceOut of the basic training options that I could choose from when I joined
the company, I selected training that would allow me to work in a waythat suited the lifestyle I was seeking. I feel the results of this training
every day. Thanks to the basic knowledge I learned in training, I am often
able to solve any issues that I face in the field by myself.
As part of the support provided to engineers when they change
assignments, the sales representative interviewed me about what kind ofwork I would like to take on, which gave me an opportunity to reconsider
my future career. The sales representative also advised me that obtaining
higher-level qualifications in addition to the ones I would obtain during
training would broaden the range of jobs I could be referred to, which
helped motivate my self-improvement.
I wanted to engage in work at a higher level for my personal growthand decided to undertake advanced training to improve my skills. I
have taken Salesforce developer training via e-learning, and I am also
currently taking an AWS e-learning course. Even when studying forhigher-level qualifications, I find it easier to understand new concepts
and functions because of the foundation of knowledge that I built during
basic training. I hope to become an even more marketable engineer inthe future by acquiring new knowledge and skills from courses otherthan those I selected in the basic training program and expanding myareas of expertise.

YK

Sustainability

When I attended the training program at the Career Center, I chosecourses that were in areas that I was interested in, highly versatile, andthat would allow me to learn skills that I wanted to continue to develop
in the future. I try to keep a record of every time I learn or realize something new, and I feel a sense of growth when I revisit my notes and cast
my mind back to the time when I took them.
Career brush-up training, which is held every six months, provides
us with an opportunity to regularly reflect on our own careers. Until I
entered the company, I had been unable to approach my work fromthe perspective of actively embracing my personal dreams and aspirations
and engaging in work that only I could do. However, after attending
career brush-up training, taking stock of my skills, reflecting on theprevious six months, and setting goals, I came to believe that I could
transform my career as much as I wanted to.
I also receive follow-up support from the sales representatives. WhenI consult with them about any challenges I am facing, to the extent thatit does not raise any issues in relation to my current assignment, theylisten carefully and encourage me to achieve my goals with a “first, justgive it a try” attitude, which I find reassuring.
In the future, I want to take on the challenge of obtaining professional
engineer qualifications. This is because, as an experienced engineer,
pursuing challenging qualifications will lead to the next stage in mygrowth. My goal is to acquire difficult-to-obtain national qualifications
to enable me to take on greater responsibilities at work.

NA

Strategy

Being in an environment where I can face my careerhead-on has enabled me to take steps to develop
my skills.

Overview

Messages from Engineers and Technicians

Open Up Group Inc.
Integrated Report 2023

40

Overview

sustainability-related activities to increase corporate value. At the sametime, we aspire to a sustainable society where diversity is lauded andSustainability

We strive to use the growth of our business and the promotion ofStrategy

Sustainability
individuals can showcase their abilities to the world.

Governance
Data

Open Up Group Inc.
Integrated Report 2023

Sustainability Management
Basic Stance

Sustainability System

Sustainability Committee Meetings

The Group’s Sustainability Committee meets at least twice a year. The committee manages
any examinations of and updates to the Group’s value creation process and material issues
and aggregates risk management status updates highlighted during the monthly compliance
meetings at each operating company. The following are key agenda items from Sustainability
Committee meetings held in the period from April 2022 to October 2023.

Overview of Sustainability Committee meetings
Date of meeting

Third meeting
May 11, 2023

Discussed progress of ongoing activities at the time and considered next steps• Publishing value creation model and material issues on corporate website• Sharing schedule for development of the material issues action plan
• Preparing to endorse the TCFD recommendations
Reviewed the status of sustainability items• Human rights: Confirmed Human Rights Policy, joined the UN Global Compact• Confirmed Social Contribution Policy

Board of Directors
ReportingInstruction and reporting
Each Company division / Each operating company
Compliance meeting

Sustainability secretariat(Group Administration
Department)

Data

Second meeting
December 22, 2022

 hared decisions on the Group’s value creation model, material issues, and theS
TCFD recommendations and confirmed policies for future initiatives
Formulated key performance indictors (KPIs) for material issues
Confirmed sustainability-related items to be included within risk management(requested feedback from each Group company)

GovernanceFirst meeting
April 12, 2022

Discussed the Sustainability Committee’s operating policy
Began initial deliberations on the Group’s value creation model, material issues,and TCFD recommendations
Discussed annual schedule
In addition to the activities of the Sustainability Committee, an outside consulting firm
held several meetings for executives in charge of business execution, including
feedback sessions and workshops in which participants examined and discussed issues
related to sustainability and environmental, social, and governance (ESG) factors.

Sustainability promotion system

Sustainability Committee

Main items

Sustainability

The Group has developed a sustainability promotion system that centers on its Sustainability
Committee. The committee is chaired by the person serving as representative director, chairman,
and CEO, and also comprises the person serving as representative director, president, and COO,
the person serving as director and CFO, presidents from the Group’s major operating companies,
and Group officers and employees designated by the chair. As a result, the committee's structure
ensures representation from throughout the Group. The committee reports to the Board of
Directors regarding its efforts to manage the examination and update of the Group’s value creation process and material issues. It also reports its reviews of risk management related tomedium- to long-term sustainability and discussions of countermeasures, covering topics such as
human rights, the environment, and the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
Each division of the Company holds a monthly compliance meeting as does each operatingcompany. The Sustainability Committee receives reports about the content of these meetings toassist with overall management of the Group’s response to sustainability-related risks. The secretariat duties regarding these meetings are handled by the Group Administration Department, which
ensures that sustainability measures are both flexible and consistent.

• Sustainability management is conducted primarily by the Sustainability Committee, chaired by the
person serving as representative director, chairman, and CEO.
• Presidents of major operating companies participate in our sustainability system as members of the
Sustainability Committee.
• The Sustainability Committee is also in charge of reviewing sustainability-related risk management anddiscussing countermeasures.
• The Group Administration Department carries out secretariat duties for the Sustainability Committee andcompliance meetings, ensuring consistent sustainability measures.

Strategy

Basic Sustainability Policy
The Group’s Purpose is to open up individual potential through rewarding work. The Group aims
to help build a sustainable society and achieve corporate growth by working closely with job
seekers (the people it finds work for), client companies, and all other stakeholders to leverage
its business to resolve issues faced by society.

Characteristics of Our Sustainability System

Overview

Our basic stance toward sustainability is to conduct business activities that are sustainable over thelong term and in harmony with both society and the natural environment. Bearing this in mind, we
draw upon our independently established Basic Sustainability Policy and Corporate Ethics forSociety, Human Rights, and the Environment to conduct business that helps resolve social issues,achieving sustainable growth for the Group and contributing toward building a sustainable society.

41

Open Up Group Inc.
Integrated Report 2023

42

Sustainability Management

Material Issues

Analysis of Opportunities and Risks Related to Material Issues
We have analyzed our 10 material issues for the material impact they have on Groupmanagement in terms of opportunities and risks. The findings are shown below.
Material issues

creating value
business foundation

2. Provision of
rewarding work

3. Promotion ofwork–life balance

Support for career development and well-being

6. Thoroughdedication to
occupational
health and safety

7. Ensuring of
information security
and protection ofprivacy

A business foundation that maintains
security and safety

8. Enhancement ofgovernance

4. Promotion ofdiversity andinclusion

5. Coexistencewith society

It may be difficult to
attract human resourcesfrom the labor market,
leading to organizational
stagnation and rigid
management.

10. Thoroughdedication to risk
management

Promotion of a highly transparent organizational structure

Coexistence withsociety

As an industry leader, the Group cansimultaneously contribute to the labormarket and personnel staffing industry
while continuing to work with clientcompanies and securing human resources.

The Group’s brand may
suffer from a social
impact perspective,
while the Group itself
may lose business fromclient companies andencounter difficulty insecuring humanresources.

Thoroughdedication to
occupational
health and safety

The ensuring of health and safety gives
employees peace of mind while theywork, which can contribute to better
performance and productivity.

In addition to having anegative impact on thehealth of employees,
serious industrial
accidents may cause adecline in the Group’s
reputation.

A businessfoundationthat maintains
security andsafetyEnsuring of
information
security andprotection ofprivacy

Information security and protection ofprivacy are the foundation for trustbuilding for potential job seekers,
employees, and client companies.

The Group may lose
the trust of job seekers,
employees, and clientcompanies, while also
suffering a decline in its
reputation.

Effective supervision of management canhelp create corporate value over the
medium to long term and contribute to
the realization of the Group’s purpose.
Information security and protection ofprivacy are the foundation for trustbuilding for potential job seekers,
employees, and client companies.
Risk management is the foundation fortrust-building for potential job seekers,
employees, and client companies, and it
is key to fulfilling responsibility toshareholders.

Corporate value may
be negatively
impacted, and theGroup’s reputation may
decline, preventing theGroup from realizing its
Purpose.

Enhancement ofgovernance
Promotion ofa highlytransparent
organizational
structure

Compliance

Thoroughdedication to risk
management

—

—

—

—

Data

We have identified 10 material issues, which are separated into two categories: material issues
for creating value; and material issues for protecting our business foundation. Issues 1 to 5
fall into the first category and create opportunities for business growth by supporting the
career development and well-being of each individual worker, while also contributing to thesustainable development of the labor market. On the other hand, issues 6 to 10 fall under
the latter category and, if not properly addressed, they could actualize management risks
that negatively impact our business foundation for ensuring a safe, secure, and highly transparent organizational structure. Therefore, a systematic approach to addressing these material
issues is directly related to the Group’s ability to both take advantage of business opportunities
and enhance its risk management.
Our goal is to leverage our business activities to address material issues and improve
output by doing so, specifically in terms of the indicators listed in the Open Up Purpose
Index and other aspects of human capital. We believe that compounding these inputs one
upon the other will improve outcomes, including sustainable improvement of corporate
value, provision of new value to a wide range of stakeholders, resolution of social issues,
and ultimately realization of our Purpose.

Contribution
toward thesustainable
developmentof the labormarketGovernanceBy making it possible to attract a diverse
range of employees in terms of age,gender, nationality, sexual orientation,and other characteristics, the Group will
be able to provide value to a wider rangeof client companies.

Promotion ofwork–life balanceContribution toward the sustainable
development of the labor market

9. Compliance

Promotion ofdiversity andinclusion

Provision of
rewarding work

Sustainability

Material issues for­protecting our

1. Human resource
development
through training
and education

If the Group does notoffer sufficient support
for its employees, there
is a risk that their job
satisfaction will decline,
resulting in highturnover and a drop in
its hiring ability.

SDGs

Strategy

Material issues for

Improvement of output

Supportfor careerdevelopment
and well-being

Risks presented by
not addressing issues

Helping employees update their skills
allows them to stay with the Group for
longer, expand their career options, andgain opportunities to increase theircompensation.
By providing work that is rewarding toemployees, the Group can help improvetheir performance and growth while
increasing client company satisfaction.
By creating a positive working environment, the Group enables employees towork with peace of mind, which can
reduce turnover and enhance theGroup’s reputation.

Human resource
development
through training
and education

Improvement of outcomes and realization of Purpose

Opportunities gained fromaddressing issues

Overview

Material issues are important issues that a company needs to prioritize to ensure its
sustainable growth. In October 2022, Open Up Group Inc. identified 10 material issues
that must be addressed to promote its medium- to long-term business strategy andrealize its Purpose, which is to open up individual potential through rewarding work.

Open Up Group Inc.
Integrated Report 2023

43

Sustainability Management

Material Issues Identification Process

Material Issues Matrix

In the final step, we created a final draft based on the Material Issues Matrix. Material issues were
derived from these eight themes after repeated workshop-style discussions at the Management
Meeting and final approval by the Board of Directors.

Common corporate issues

Select candidate themes relevant to the Group
from common themes, based on the nature of
the Group’s business and the Group’s Purpose

STEP 2Create a shortlist of candidate themes basedon interviews with management and employee
opinions

Material issues witha significant impact on the Group

Determine material issues of high importanceto both stakeholders and the Company

No. 10

No. 9

No. 4

No. 15

Priority for the Group

Final list of candidate themes for determining high-priority material issues

Tier 1

Tier 2

No. 3

Thorough dedication to occupational health and safety

No. 5

Promotion of work–life balance

No. 7

Provision of rewarding work

No. 8

Human resource development through training and education

No. 14

Thorough governance, risk management, and compliance as part ofGroup management

No. 6

Promotion of diversity and inclusion

No. 10

Ensuring of information security and protection of privacy

No. 11

Coexistence with society

Tier 1

Recognized as having particularly high priority both within the Group and with stakeholders outside the Group:
Five themes

Tier 2

Recognized as having particularly high priority either within the Group or with stakeholders outside the Group:
Three themes

Data

STEP 3Tier 2Governance

STEP 1

No. 1

No. 14

No. 3

No. 5

No. 17
No. 13Tier 1

No. 11
No. 12

No. 16

No. 2

Identification based oninternational frameworks,
the 17 SDGs and other guidelines(selected from international frameworks)

No. 6

No. 7

Sustainability

STEP 3

Identify
material issues

We assessed the 17 candidate themes based on feedback from stakeholders both inside and outside
the Group. We used this information to narrow down the list of themes to those believed to have aparticularly significant impact on the Group.
First, we conducted interviews with management (representative directors, executive directors,
corporate officers of holding companies, and representative directors of major operating companies)
regarding the importance of each candidate theme, and then we held similar discussions with outside
experts. Additionally, the Human Resources Department conducted a survey asking employees about
issues that they consider important in the human resources services business.
The results of this process are shown in the Material Issues Matrix on the right. A total of eight themes
were identified as final candidates and separated into two tiers. Five were categorized as Tier 1 (highpriority both inside and outside the Group) and three were categorized as Tier 2 (high priority either
inside or outside the Group).

No. 8Strategy

STEP 2

Narrow down listof themes to thosewith a significant
impact on the GroupWe selected 17 candidate themes that could affect the Group’s pursuit of sustainable growth, based oninternational frameworks (GRI and SASB Standards), the Sustainable Development Goals (SDGs) of theUnited Nations, survey items used by major ESG evaluation agencies, and the Group’s Purpose.

Priority for stakeholders

STEP 1

Select potential
themesTier 2

Overview

When identifying material issues, we used a three-step process to select and narrow down
potential material issues, focusing on the perspectives of stakeholders inside and outside
the Group.

Open Up Group Inc.
Integrated Report 2023

Material Issues Action Plan

44

We have identified 10 material issues, which are separated into two categories: material issues for creating value and material issues for protecting our business foundation. To addressthese issues, we have formulated a material issues action plan. By setting out a clear vision for 2030, with specific initiatives and quantitative indicators to bring us toward this vision, we
holders up to date with our initiatives.

Provision of rewarding work

Promotion of diversity andinclusion

Quantitative target: Achievement of Open Up Purpose Index (OPI)
targets by fiscal 2025 (50,000 job placement
opportunities, retention rate of 85% or higher,
1.2-fold increase in engagement)• Establishment of a human resources system that motivates employees• Development and operation of a system for internal recruitment andvoluntary job transfers• Provision of quality job options in sufficient quantity• Provision of job placements that match employees’ career aspirations• Improvement of evaluation systems, feedback content, and follow-ups
to increase employee motivation• Provision of greater compensation in line with improvements intechnical skills* In-house survey measuring the experience of employees in the sales, recruiting,planning, and administration departments• Scores on relevant items from EX Survey* (job aptitude, existence ofa clear evaluation system, fair evaluations and compensation, etc.)• Number of job transfers to client companies (engineers andtechnicians)• Satisfaction with work at assigned client company according toengineer surveys•O PI targets (job placement opportunities, retention rate, engagement)* In-house survey measuring the experience of employees in the sales, recruiting,planning, and administration departments• Optimal employee performance will be possible thanks to a work
environment and systems that facilitate flexible work styles, as well as
an appropriate corporate culture.
• We will provide many jobs options, enabling employees achieve their
desired work–life balance.

• Promotion, establishment, and provision of more diverse work styles(telework, shortened work hours, 3-day work weeks, etc.)• Encouraging employees to take childcare leave• Encouraging client companies to promote the use of paid leave• Creation of a appropriate corporate culture by changing conventionalmodes of thinking and promoting dialogue within the Group• Monthly average of working hours (overtime work) / Annual total ofworking hours• Average number of paid leave days granted• Average number of paid leave days taken• Ratio of employees who take childcare leave (men and women)• Turnover rate

• We will have a corporate culture that is conscious and considerate ofdiversity in terms of gender, age, nationality, ability or disability, andsexual orientation and provide an accommodating workplace environment No matter what, every employee will receive fair evaluationand treatment, ensuring our highly diverse workforce is able to thrive.
• We will continue to promote diversity in the job market and expand
the number of job options that enable our wide range of engineers
and technicians to succeed.

• Promotion of efforts to recruit female employees• Promotion of active efforts to appoint female managers• Development of a work environment with consideration given to
diversity, including a review of company efforts to accommodate
premenstrual syndrome, a review of rules related to nursing care,extension of retirement age, and the introduction of work styles forsales employees with childcare duties• Establishment of a fair and unbiased human resource system• Creation of a corporate culture that is mindful of unconscious bias
• Acquisition and provision of job options that allow a wide range ofhuman resources to succeed• Ratio of female managers at Group companies• Ratio and number of female employees• Ratio and number of employees aged 60 and over
• Ratio and number of foreign nationals• Ratio and number of people with disabilities• Gender pay gap• Expansion of social contribution activities as part of the Group’sbusiness and efforts to fulfill its Purpose, aiming for coexistencewith society• Greenhouse gas emissions (Scopes 1, 2, and 3)• Expenditure related to regional and social contribution

Quantitative target: Ratio of female managers of 30% by fiscal 2030
(consolidated)

Quantitative target: Achievement of carbon neutrality byfiscal 2030

Data

• We will be able to leverage our business and social contribution
activities to fulfill our Purpose in terms of coexistence with society,leveraging collaboration within the Group, as well as collaboration
with external organizations and companies (Open Up 1% Action).
Coexistence with society

Indicators• Scores on relevant items from the EX Survey* (growth opportunities,
training, etc.)• Cost of training per person• Number of qualifications obtained while employed• Satisfaction with training according to engineer surveys

GovernanceContribution toward sustainable developmentof the labor market

Promotion of work–lifebalance• We will offer each employee job options across several types of workthat fit the employee’s desired career path, based on a shared understanding of the employee’s ambitions.
• We will utilize an appropriate evaluation system, provide constructive
feedback, and offer benefits in keeping with the labor market.

Specific initiatives• Establishment and operation of a Human Resources Development
Committee• Development and operation of position-specific and career-specifictraining programs• Operation, update, and expansion of training programs that improve
the skills of our engineers and technicians• Operation, update, and expansion of a support system to help
employees to obtain qualifications• Career support through thorough interviews and follow-ups on
progress

Sustainability

Support for career development and well-being

Human resource
development throughtraining and education

Our vision (2030 targets)
We will help employees develop a career plan by providing thefollowing:• Sufficient career education and counseling• Continuous training to enhance skills to complement employees’
career aspirations• Support and provide opportunities for each employee to achieve
further growth

Strategy

Material issues for creating value

Material issues

Overview

can encourage employees to make an active effort to address these material issues. Moreover, we have made it a policy to disclose information related to this plan, keeping stake­

Open Up Group Inc.
Integrated Report 2023

45

Material Issues Action Plan

A business foundation that maintains
security and safety

Specific initiatives• Obtaining and maintaining status as a Certified Health & Productivity
Management Outstanding Organization• Appropriate management of occupational health and safety• Implementation of health and safety education• Group companies recognized as a Certified Health & Productivity
Management Outstanding Organization• Number of serious workplace accidents• Obtaining and maintaining PrivacyMark or information security management system (ISMS) certifications• Training or testing on protecting personal and client company
information• Internal audits of information security• External audits of information security• Number of Group companies with PrivacyMark certification• Number of serious information leaks• Implementation rate for education on personal information­management, etc.

• Maintaining an outside director majority on the Board of Directors,
Remuneration Committee, Nominating Committee, and Audit &Supervisory Committee• Maintaining a 30% or higher ratio of female directors• Internal Control Committee meetings at each Group company• Certification as an Excellent Dispatch Company• Ratio of female directors• Ratio of outside directors• Creation of a system for implementing human rights due diligence• Obtaining and maintaining certification as an Excellent Dispatch
Company• Training or testing on respecting human rights• Training or testing on harassment• Training or testing on bribery and corruption• Number of grievances filed• Number of uses of helpline and internal consultation, etc.; number ofserious whistleblowing cases• Number of cases that could lead to serious permit-related sanctions• Number of bribery charges, criminal charges, and large compensation
lawsuits• Compliance education and training implementation rate
• Expenditure related to political contribution and lobbying• Whether cases of bribery or corruption have been identified• Whether requests or usage by antisocial forces have been identified• Whether cases of insider trading have been identified

Ensuring of information
security and protectionof privacy

Enhancement of governance

Quantitative target: Ratio of female directors of 30% or higher(Achieved; continue to maintain)

Thorough dedication torisk management

Sustainability Management section of this report (Pages 42–43) .

For details of the latest information on the Group’s sustainability, please refer to the Sustainability section of
the corporate website.

Data

For details about our material issues and material issue identification process, please refer to theGovernance• Risk management via the Sustainability Committee• Internal control meetings at operating companies

Sustainability

Compliance• We will continue to maintain an outside director majority on the Boardof Directors, Remuneration Committee, Nominating Committee, andAudit & Supervisory Committee of the Company.
• By maintaining a proper governance system we will be able to get an
accurate understanding of the rapidly changing business environment,
speed up decision-making and business execution, and ensure fair andtransparent management.
• We will continue to obtain and maintain certification as an Excellent
Dispatch Company.
• We will continue to enhance our efforts to respect human rights,
individuals will have a stronger understanding of human rights,
and the Group will have a system to ensure due diligence.
• Appropriate risk management will continue to be conductedGroupwide.

Indicators

Strategy

Promotion of a highly transparent organizational structure

Thorough dedication to
occupational health and safety

Our vision (2030 targets)• We will actively promote health management and work to obtain andmaintain status as a Certified Health & Productivity Management
Outstanding Organization.
• We will make even stronger efforts to protect personal information andensure that individuals have a stronger understanding of the protectionof personal information, which they incorporate into their work.
• We will have an established information security management system.

Overview

Material issues for protecting our business foundation

Material issues

Open Up Group Inc.
Integrated Report 2023

Respect for Human Rights
Basic Stance, Policy, and Promotion System

100

We have set up a public contact point on our corporate website for all stakeholders, throughwhich we accept whistleblowing reports and consultations on human rights.
For more details about the Group’s human rights initiatives, please refer to the Human Rights Policy and
Initiatives section of the corporate website.

Data

We place great importance on compliance training for
employees. In addition to wider topics such as law and corporate ethics, this training covers human right risks that are more%
applicable to day-to-day operations, such as harassment andCompliance education andtraining implementation rate
employment and working conditions. The training also includes(Fiscal 2023)
a detailed overview of the Group’s whistleblowing and consultation system with instructions on how to use it. We also
conduct compliance tests to check the understanding of those who take this training. These
actions are part of our commitment to raise human rights awareness throughout the Group.
The implementation rate of compliance education and training for fiscal 2023 was 100%.

Reporting and Consultation Contact Point for All Stakeholders

Governance

Human Rights Education and Training

0

Sustainability

 or more details about Corporate Ethics for Society, Human Rights, and the Environment, please refer toF
the Corporate Ethics section of the corporate website.

The Group has established reporting desks for whistleblowing
and consultations, which are available to a wide range of stakeholders, including employees.
An internal reporting desk for general compliance also
Number of cases with serious
human rights violations
receives
reports related to human rights issues. Additionally,(Fiscal 2023)
we have established consultation desks dedicated to harassment both internally, via desks at each operating company
and a desk connected to the Audit & Supervisory Committee, as well as externally, via adesk connected to a law firm. We strive to create an environment that makes it easy for
employees to seek advice, including by giving an overview of our whistleblowing system
during compliance education and training.
These reporting desks are available to anyone working for a Group company, as wellas those who have retired or whose contracts have ended within the past year, including
officers, employees, part-time workers, subcontractors, and the Group’s business partners.
We take every possible measure to protect privacy, and in the unlikely event that a person
is negatively impacted due to a violation of privacy, we will take appropriate remedial andcorrective actions immediately. By extension, we protect those who utilize the reporting
desks for whistleblowing or consulting purposes from retaliatory treatment. When harassment and other incidents occur at dispatch locations, the division in charge of labor affairs
is tasked with understanding all the relevant information and resolving the issue quickly andsoundly. In fiscal 2023, the internal whistleblowing system was used to log 36 cases, none ofwhich were serious human rights violations.

Strategy

For more details about the Group’s Human Rights Policy, please refer to the Human Rights Policy andInitiatives section of the corporate website.

Reporting Desks, Harassment Consultation Desks, and Remedial Actions

Overview

As expressed by our Purpose, individuals—or more specifically, individual workers—are
the source of the Group’s value creation. Accordingly, respect for human rights lays thefoundation for opening up individual potential to society. Therefore, as part our social
responsibility, we are careful to respect the human rights of all people affected by our­business activities, in keeping with relevant laws and regulations, as well as our own Human
Rights Policy and Corporate Ethics for Society, Human Rights, and the Environment.
As for specific efforts, we require major operating companies to have monthly compliance
meetings, the contents of which are reported to the holding company’s Group Administration
Department—the department responsible for overall sustainability. Our promotion system
has been designed so that any matters related to human rights that are brought to light arereported to the Board of Directors. Under this system, instructions for appropriate responses
and improvement measures are given where needed, in addition topromoting Groupwide measures and information disclosure.
As another effort of note, in June 2023 we became a participant
in the UN Global Compact (UNGC) and joined its local network,
Global Compact Network Japan. We support the 10 principles of
the UNGC in the four areas of human rights, labor, environment,
and anti-corruption, and we will continue to practice sustainablebusiness activities.

46

Open Up Group Inc.
Integrated Report 2023

Human Resource Employment and Development
Basic Stance on Human Resource Recruitment and Employment

Sustainability
Governance

It has been two years since the Group formulated its
Purpose in 2021, and there has been ongoing dis­cussion inside the Group about the type of humanresources management that will best help realize that
Purpose, as well as the type of human resource poolthat is ideal for future growth. We reached a milestone
toward these goals in July 2023, with the formulationof our Human Resource Policy, which is a Groupwide
policy targeting office employees in the sales, recruiting,planning, and administration departments, with the goalof fostering individual and organizational growth.
Mitsuyoshi MatsumotoThis policy is underpinned by the idea that our
Corporate Officer
office employees are the starting point from which we
Head of Human Resources
provide value to engineers, technicians, and clientcompanies, and for ensuring that the Group continues
to be an employer of choice. We can also think of office employees as drivers of competitiveness, since the higher efficiency and productivity achieved from their continued
improvement of work processes contribute to sustainable corporate growth.
We are promoting measures designed to actualize our Human Resource Policy based
both on this line of thinking and on the four keywords embedded in the policy: UP ,Fairness, Challenge, and Diversity. These measures include sharing philosophies and business strategies, invigorating communication between office employees, their superiors, andmanagement, establishing fair evaluation and compensation systems, supporting careerand skill development, developing client-oriented work processes, and establishing anorganizational culture and work environment that allows a diverse group of people to flourish.
In addition to these measures, we will keep watch over indicators related to each of the
keywords I mentioned previously, monitor employee engagement, and track changes to
identify other effective measures and help increase corporate value.

Strategy

Fair Employment and Evaluation in Line with Roles
We utilize a fair employment and evaluation system that aligns with an employee’s role, to ensurethat each employee is highly motivated to open the door to their next challenge.
When assigning an engineer or technician to work at a client company, we communicate andconduct interviews with them to learn their individual skills, expertise, qualifications, and career
aspirations. Using this information, we try to find an assignment that will give them the work theywish to engage in. In addition, salary and other work conditions are determined based on theprinciple of equal work for equal pay and are clearly stated in advance.
Meanwhile, Group employees in the sales, recruiting, planning, and administration departments
are given a clear explanation of their expected roles and results, and we strive to provide them withfair treatment, regardless of their age, gender, or any other characteristic. To this end, these employees have one-to-one interviews with direct superiors to discuss their work progress, level of achievement, use of their abilities, their future career vision, and other relevant matters. We then strive toprovide clear evaluations that these employees will find constructive, to increase their motivation
going forward.

Message from the Head of Human Resources
Overview

The Group is rooted in the human resource services industry, and human capital is its most important management resource. This makes the employment and development of human resources acore element of the Group’s business. Its Purpose is driven by the idea of helping more and more
people “open the next door” and progress toward rewarding work, while also creating more“doors” for each worker to walk through in the form of opportunities to encounter rewarding
work. The Group believes that putting this idea into action demonstrates its dedication tocontributing to society.
Workers have a wide variety of expertise and abilities and are at different life stages, meaning eachone has a different definition of “rewarding work.” We welcome and actively recruit a wide range ofmotivated job seekers, whether they are new graduates or mid-career hires. They may be people whowant to materialize their personal career visions; they may be people who want to try use their existing
expertise in a new job; they may be people who want to sharpen their skills; they may be people whowant work that suits their stage in life—or they could be other types of people altogether.

47

Employees in the sales, recruiting, planning, and administration departments—a source of value creation

Employees in the sales,
recruiting, planning, andadministration departments

Engineers andtechnicians

Sales activities
Recruitment activities

Realizing our Purpose

Client companies andstakeholders

Society

DataWork support
Skill development support
Career advancement support

Open Up Group Inc.
Integrated Report 2023

48

Human Resource Employment and Development

Basic Stance on Human Resource Development

1,246,611
2,131

Osaka Branch
Kansai Sales Department
BeNEXT Partners Inc.

dispatch contracts, segmenting this information into separate data sets, and thenferreting out which key performance indicators (KPIs) need improvement. Instead ofjust trying to recreate successful sales experiences, as I did prior to this training, I havebecome more aware of the problems that create bad conditions and how bad conditions differ from the good conditions that lead to success, giving me a much stronger
radar for detecting the path to victory.
Since finishing my training I have been assigned the role of sales leader by mysuperior and given the opportunity to sharpen my business execution skills throughtasks such as creating sales policies for the branch. Now I am focused on performing
my day-to-day duties while honing my ability to elicit strong results from the people
around me, with the hope of becoming a branch leader one day.

Data

Hiroaki Azuma

In 2022 I took part in the company’s Training for the Next Generation, which is meantfor employees looking to become the next generation of branch managers. During
the training, which takes place over 12 lectures throughout the year, we learn how todraft and finalize a business plan, apply this knowledge to develop the next businessplan for an existing branch, and then present our plan to officers of the company.
Making the actual plan was six-step process. First, we analyzed the current situation
at the branch; second, we recognized any problems; third, we gathered information;
fourth, we identified issues; fifth, we determined a course of action toward resolution;and sixth, we came up with specific ideas and included the best ones in the plan.
Learning the process of moving from step one to step two has proven particularly
useful in my work. It is quite a thorough process, which involves gathering information
about sales and orders, applications and job interviews, starting and managing

Governance

Message from a Sales Department Employee

Sustainability

For more details about the Group’s training system and follow-up system for engineers and technicians,
please refer to the Review of Operations: Training system and Follow-Up System for Engineers andTechnicians section in this report ( Pages 37–39).

Strategy

Training System and Follow-Up System for Engineers and Technicians
Instead of matching employees to jobs solely for the benefit of
the client company, we utilize an employee-first approach thatfavors matching employees eager to work to jobs that align with
Total number of training hours
for engineers and technicians
their intentions and career aspirations, satisfying both thein fiscal 2023
employee and the client company alike. To support this approach,we have established a human resource development system
unique to the Group. One major Group strength in this regard is¥millionits engineer training model, through which it provides training
Total amount spent on training
programs specifically designed for its specialized segments,for engineers and techniciansin fiscal 2023
including Machinery and Electronics / IT and Construction. This
training model can develop new graduates and inexperienced
personnel into engineers who are able to play active roles in the field. As we work to raise the­satisfaction level of client companies, we are working just as hard to increase the motivation ofengineers with specialized skills by offering them reskilling and career advancement support, whichhelps them get higher-level jobs and benefits, and ultimately increases corporate value.

 raining System and Follow-Up System for Employees in the Sales, Recruiting, Planning,
T
and Administration Departments
The sales, recruiting, planning, and administration departments of the holding company andoperating companies are staffed with employees with specialized knowledge and skills relevantto their duties. These employees support the Group’s business operations. Their responsibilities
span a wide range of areas, including recruitment activities for job seekers; the planning, development, and operation of training programs and career support for engineers and technicians;
sales and proposals for client companies; and the promotion of sustainability and compliance.
Employees in these departments support the success and growth of engineers and technicians,meaning that any efforts to realize the Group’s Purpose and increase corporate value start withthem. Bearing this in mind, we impart an understanding of our Purpose and values to these
employees during their initial training. After employees are established in their roles, we provide
them with a variety of specialized training depending on their career paths and job skills, and we
encourage them to participate in seminars and other events outside the Company to gain more
specialized knowledge and a broader perspective.
Under our follow-up system, these employees have one-to-one interviews with direct superiors
several times a year to have frank discussions about their work progress, level of achievement,
and the degree to which they use their abilities. We strive to provide them with fair, constructive
evaluations that increase their motivation going forward. In addition, we support employee
growth by providing career advancement counseling and other self-actualizing opportunities
alongside our training system.
In 2023, we formulated a Human Resource Policy for employees in the sales, recruiting,­planning, and administration departments. As part of this policy, we are taking steps to improve
our human resource development system and methods.

Overview

The Group’s role is to create several “doors” by expanding the possibilities for workers, and open
these doors by helping workers obtain opportunities for growth. We treat human resource
development as one of the keys to fulfilling this role.

Open Up Group Inc.
Integrated Report 2023

Promoting the Successful Advancement of a Diverse Workforce
Basic Stance and Policy

26.9%

Ratio of female employees atdomestic Group companies(As of June 30, 2023)

30.0%

Eruboshi certification markMonisu certification,
Kanagawa SDGs Partner
provided by the Ministry of
Health, Labour and Welfare

Sagamihara SDGs Partner

Recruiting Foreign Nationals

We use strict standards when hiring foreign nationals that include
checking the validity and expiration date of their work visas both%
before and during employment. When foreign employees meet
Ratio of foreign nationals
these standards, we provide them with support such as Japaneseemployed at domestic
language education and assistance for day-to-day living.
Group companies(As of June 30, 2023)
Moreover, we ensure that they are treated fairly under our humanresource and evaluation systems. In practice, many foreign­engineers are selected for annual awards granted to engineers and technicians for outstandingachievements. As of June 30, 2023, the ratio of foreign nationals employed at domestic Group
companies was 2.7%.

2.7

Promoting the Success of Human Resources Aged 60 and OverAs the declining birthrate and aging population create an increasingly
dire labor shortage, the Group has opted to use its business to%create job opportunities for human resources aged 60 or older. In
Ratio of employees
addition to establishing a re-employment system for retirees up
aged 60 or over atto the age of 65, we are also actively promoting new employment
domestic Group companies(As of June 30, 2023)
of engineers and technicians aged 60 or older. This is especiallytrue in the Construction segment, in which Yumeshin Expert Co.,
Ltd. is ramping up its efforts to recruit highly skilled human resources aged 65 or older. As of June30, 2023, the ratio of employees aged 60 or over at domestic Group companies was 2.2%.

2.2

Data

Ratio of female directors for theholding company(As of September 30, 2023)* Name changed from BeNEXT With Inc.
in July 2023

Governance

10.9%

Ratio of female managers atdomestic Group companies(As of June 30, 2023)

In today’s society, life events and responsibilities such as childbirth and childcare can have a significant impact on a woman’s
career development. Because of this, we are working to foster anenvironment where female employees can fulfill their potential
and achieve success. Specifically, in addition to offering maternity
leave, childcare leave, and shortened working hours for people
providing childcare, we encourage both men and women to takeadvantage of their childcare and nursing care leave options. We
also consider these conditions when assigning work placements
for employees.
As of June 30, 2023, the ratio of female employees at domestic
Group companies was 26.9%, and the ratio of female managers atdomestic Group companies was 10.9%. Furthermore, the ratio of
female directors for the holding company
was 30.0% as of September 30, 2023.
While the ratio of female employees isincreasing with each passing year, we
recognize that there is significant room
for improvement in increasing the ratioof female managers.

2.3

Sustainability

Promoting the Success of Women

The Group encourages the employment of people with disabilities,
based on both the Act to Facilitate the Employment of Persons with%
Disabilities and the SDGs. As of June 30, 2023, the ratio of employRatio of employees with
ees with disabilities at domestic Group companies was 2.3%, which
disabilities at domestic
meets the legally mandated employment rate. Open Up With Inc.*
Group companies(As of June 30, 2023)
is a special subsidiary that provides clerical services to Group­companies and operates a flower arrangement business as well as
a business for stationery made with recycled paper. The company offers individualized training andfollow-up services while providing a variety of jobs tailored topeople with disabilities, ensuringthat its employees have highlevels of job satisfaction.

Strategy more details about Corporate Ethics for Society, Human Rights, and the Environment, please refer to theFor
Corporate Ethics section of the corporate website.

Promoting the Employment of People with Disabilities

Overview

We believe that in a human resource services business such as ours, a diverse workforce is key tovalue creation. An organizational culture in which a wide range of individuals respect and understand each other increases everyone’s job satisfaction and performance, making it possible toimprove services to client companies and ultimately corporate value. Therefore, we have prohibited discrimination based on gender, nationality, age, disability, or any other characteristic under
the Group’s Corporate Ethics for Society, Human Rights, and the Environment. We also subscribe
to the principle of equal pay for equal work and ensure that work conditions and ­compensation
are not influenced by gender, nationality, or other factors. In Corporate Ethics for Society, Human
Rights, and the Environment, the Group clearly states its stance on promoting diversity and inclusion with the goal of providing decent work (work that is rewarding and humane) and work–lifebalance to all people.

49

Open Up Group Inc.
Integrated Report 2023

50

Promoting the Successful Advancement of A Diverse Workforce

Message from the President of Open Up With

individual to demonstrate
their individuality

Hiroki Sano

Open Up With Inc.

29

2,340

Active Support for Employees Aged 60 or Older
If a company is to maintain its technical capabilities, it is extremely
important that it continues to employ veteran engineers so that they%
can pass on their skills to younger employees. On the other hand, in
Number of engineers
aged 60 or older
order to bring out the full potential of older engineers, who may be(Year-on-year difference
worried about their ability to follow a conventional work style, it is
as of June 30, 2023)
necessary to have a unified system specifically for managing therecruitment, utilization, and care of these engineers. Yumeshin has developed a team structure
under which departments collaborate to recruit these experienced workers, dispatch them torespond to client company needs, and follow up on how they fare in their roles. These actions
serve to support older engineers who wish to remain active throughout their lives.

Governance

A Trailblazer for Recruiting Inexperienced Workers
Spurred by the aging population and increasingly serious labor
shortages at construction sites, Yumeshin was an early adopter of thepractice of hiring inexperienced workers. Supporting the learning
Number of inexperienced
and growth of younger generations and helping them develop into
workers recruited(Fiscal 2023)
full-fledged engineers is no less than weaving a tapestry of humanresources and technology that stretches from the past to the present
and into the future. To fulfill this mission, Yumeshin is working to further enhance its training andfollow-up systems and expand its business scale.

Sustainability

+25

Data

At Open Up With Inc., a special subsidiary of Open Up Group, our mission is tobe the most accommodating company in Japan, so we make every effort to create a­comfortable work environment that meets the needs of each employee to ensure thatthey can enjoy the fulfillment that comes with an enriching lifestyle and financial
independence.
By carefully matching employees with disabilities with jobs that allow them to flex
their individual skills while accommodating their specific needs, we create work styles
that include a combination of telework and flextime systems, enabling employees todemonstrate what they are truly capable of. We also place a strong emphasis on hiring
women and supporting their career advancement, with women currently accountingfor 58% of all managerial positions. In recognition of our efforts, our company has
obtained Monisu certification, which is granted to small and medium-sized businessowners who excel in the employment of people with disabilities, and Eruboshi certification, which is granted based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace.
The “ideal work style” differs from person to person, whether they have a disability
or not. Going beyond our original framework as a special subsidiary aimed at employing people with disabilities, we also employ people such as senior citizens who haveretired from company work, with the hope that we can provide a place for anyone withthe desire to work, regardless of their age, gender, or the presence of a disability.
I believe that embracing individuality allows diverse human resources to flourish
and succeed. At Open Up With, our slogan is “Recognize each other’s individuality,
and live together in the now.” To do this slogan justice, we will continue our work to
help realize a society where a wide range of human resources can showcase theirindividuality and unlock their potential.

Helping Women Enter the Industry
Yumeshin has been actively recruiting female employees, even backwhen there was a strong notion that construction jobs were for men%
and clerical jobs were for women. It used to be rare for women to be
Ratio of female engineers
recruited into technical positions such as CAD operators and con(As of June 30, 2023)
Industry average: 17%*
struction management engineers, and although some employers
voiced doubts at the beginning, these female engineers dispelled* According to the Labour Forcesuch criticism on the backs of their success. Even now, as women areSurvey, produced by the Ministryof Internal Affairs andincreasingly entering the construction industry, the number and ratio
Communicationsof female engineers at Yumeshin far exceeds the industry average.

Strategy

President and Representative Director

We believe that the Group’s efforts to promote the success of a wide range of human resources
will also help address the various challenges facing Japan’s labor market, brought about by the
declining birthrate, aging population, and population decline. Using the initiatives of YumeshinCo., Ltd., one of the Group’s main operating companies, as an example, we will provide an overview of the value that a diverse group of engineers and technicians can offer society.

Overview

Work styles that allow each

Active Efforts by Yumeshin to Resolve Market and Industry Issues

Open Up Group Inc.
Integrated Report 2023

A Comfortable Working Environment

Promotion System

240(Including 18 men)
Number of employees taking
childcare or nursing care leave(Fiscal 2023)

Governance37

Occupational Health and Safety Initiatives

Data

We strive to improve working conditions and prevent workplace accidents in order to establish an environment where
Number of serious workplace accidents*
employees can work with peace of mind. For example,(Fiscal 2023)* Refers to accidents that require four or
employees who exceed legal limits for overtime receive
more days leave or result in physicalimpairments post-accident
in-person guidance from a doctor, and we also promotehealth and safety education throughout the Group as partof our efforts to raise awareness of safety. If we discover that a client company that utilizes our­engineers and technicians has issues with health and safety management or needs to pay more
attention to mental health, we will encourage that company to improve its workplace. If the situation does not improve, we will respond strongly and terminate the work contract. The holding
company manages and supervises these labor management activities to ensure that they arebeing properly implemented at each operating company in Japan and overseas.

75.4%

Ratio of employees taking
paid leave(Fiscal 2023)

We have introduced a range of support systems that enable each
employee to work in a flexible way that matches their life stage
and accommodates life events.
As part of this effort, we have established measures that help
employees raising children to balance their work and family lives
if they meet certain conditions. These measures apply to engineers and technicians as well as to employees in the sales, recruiting, planning, and administration departments. Specifically, we
have introduced a childcare leave system that employees can use
until their child is two years old and a reduced hours work systemthat can be used until an employee’s children graduate fromelementary school. For employees who take childcare leave,
we provide a return-to-work program which facilitates a smooth
return to their duties. We also promote flexible work styles
throughout the Group with systems to support nursing care,job transfers, remote working, and flextime.

Sustainability

The person serving as president of each operating company determines basic policies on­occupational health and safety and oversees health and safety activities. In addition, we have established a health and safety secretariat at each operating company to ensure the smooth p­ romotion
and management of health and safety activities. Members of this secretariat include department
heads, while presidents of operating companies serve concurrently as secretary general. We havealso established health committees and safety committees at each business location.
In addition, each operating company discusses occupational health and safety during its
monthly compliance meeting. Participants in these meetings share information and gain anunderstanding of the latest guidance from labor authorities, any issues and serious matters thatneed to be addressed, and mandated measures to reduce working hours. They then give thenecessary instructions to implement them within the company. These controls are monitored by
the Group Administration Department of the holding company and reported to the Board of
Directors on a monthly basis.

Basic Stance on Work–Life Balance

Strategy

We believe that for a company to grow sustainably, it needs a system in place that allows each
employee to maintain good physical and mental health as they work to improve their skills andadvance their career in a way that feels rewarding. Therefore, we have established an occupational health and safety policy as part of the Group’s Corporate Ethics for Society, Human Rights,
and the Environment, and we ensure thorough compliance with the Act on Securing the Proper
Operation of Worker Dispatching Businesses and Protecting Dispatched Workers (the Worker
Dispatch Act). In addition, we are working to create an environment where employees can workwith peace of mind, by taking appropriate measures to address health and safety issues. This
includes efforts to reduce long working hours and to promote employee education. We also
encourage client companies to improve their work environments similarly when needed.

Health Management Initiatives

We promote health management throughout the Group so that each employee can perform theirduties with a healthy body and mind. With this goal in mind, we monitor the employee rate ofattendance for regular health checkups and manage how these checkups are implemented tohelp detect illnesses and ensure employees are treated at an early stage, and also to reduce
employee health risks. In 2023 Yumeshin Co., Ltd. and BeNEXT Technologies Co., Ltd. wererecognized by the Ministry of Economy, Trade and Industry as Certified Health & Productivity
Management Outstanding Organizations. Going forward, we plan to strengthen further ourGroupwide approach to health management.

Overview

 asic Stance and Policy on Occupational Health and Safety and
B
Health Management

51Open Up Group Inc.
Integrated Report 2023

The Environment
Environmental Policy

Disclosure of Information based on the Recommendations of the TCFD

Scenario analysis (1.5ºC / RCP*2.6)
Risks

Opportunities

Board of Directors
Reporting/proposal (when necessary)

Supervision

Instruction/planning

Each operating company

Compliance monitoring
format review

Internal Control Committee

Compliance meeting

Once a year

Monthly

Meets twice a year

Twice a year

Risks

Identification of environmental issues

Risk catalog assessment

ImpactMediumterm

Small tomediumTransition risks(Market /Reputation)

Reputation among client companies in a decarbonized society
Client companies are increasingly concerned about climate change, therefore
insufficient disclosure could be perceived as a reluctance to take action, which
could lead to a negative brand image, putting the Group at risk of falling behindcompetitors.

Mediumterm

Small tomediumTransition risks(Market /Reputation)

Reputation among job seekers in a decarbonized society
Inadequate disclosure of information on how we are addressing climate change
could affect recruitment, especially among young people, who are our primarytarget for recruitment, due to their greater concern for climate change andsustainability.

Mediumterm

Small tomediumProducts andservices

Changing needs due to technological change
Client companies’ needs for external engineers and technicians may change due
to technological change. The Group can offer a flexible supply of human resourcesin response to these changes.

Mediumterm

Small tomediumMarket /Reputation

Reputation among client companies in a decarbonized society
By proactively showing our commitment to addressing climate change and fully
disclosing related information, client companies will be more likely to choose to workwith us. This will reduce the cost of building relationships with client companies.

Mediumterm

Small tomediumMarket /Reputation

Reputation among job seekers in a decarbonized society
Proactively demonstrating our commitment to addressing climate change and fully
disclosing related information may increase the chance of job seekers choosing towork for the Group. This will reduce the cost of building relationships with job seekers.

Mediumterm

Small tomediumNon-financial information
Disclosed monthly/quarterly/annually

Monthly or details about the Environmental Policy and items disclosed, as well as specific efforts to reduce theFGroup’s environmental impact, please refer to the Environment section of the corporate website.

Major risks and opportunities

Time frame

ImpactImpact of extreme weather on commuting
Severe extreme weather events, such as heavy rains and typhoons, may prevent
engineers and technicians from accessing client company sites.

Mediumtolong term

SmallPhysical risks(Acute)Impact of extreme weather on client company work sites
Severe extreme weather events such as heavy rainfall and typhoons may cause
client companies to temporarily suspend operations.

Mediumtolong term

Small

Products andservices

Responding to labor needs as client companies relocate their sites
Client company factories and laboratories may relocate to avoid typhoon damage,river flooding, and other forms of damage. We can supply human resources tomeet their needs even at relocated locations.

Mediumtolong term

Small* Representative Concentration Pathways
Note: Regarding time frames, we define up to one year as the short term, up to 2027 as the medium term, and up to 2050 as thelong term. Financial impact is considered major when the impact on operating income is about 30%, medium when theimpact is about 10%, and minor when the impact is less than 10%.

Indicators and Targets

We aim to become carbon neutral by reducing the Group’s CO2 emissions (Scopes 1 and 2) tonet zero by 2030. In the future, we will disclose a road map for reaching this target along with
our reduction efforts.

Data

Note: The Sustainability Committee is responsible not only for addressing climate change but also for managing medium- andlong-term business continuity risks, such as social contribution activities, business continuity planning (BCP), IT security, andimportant regulations and law enforcement in each country.

Opportunities

Category
Physical risks(Acute)Governance

Identification ofenvironmental issues

Time frame

Scenario analysis (4.0ºC / RCP*8.5)

Sustainability Committee
Identification/assessment of climate change risks

Major risks and opportunities
Enhanced carbon pricing
Although the direct impact on business is limited, higher carbon pricing is
expected to increase indirect tax burdens from electricity used in offices and fromtravel for employees, engineers, and technicians.

Sustainability

Governance and risk management system

Category
Transition risks(Regulatory)

Strategy

Risk Management
Governance
The Sustainability Committee, which is chaired by the person serving as representative director,
chairman, and CEO, identifies and determines controls for risks and opportunities related to c­ limatechange. The committee formulates any necessary action plans on a yearly basis and deploys themwithin the Group while working to identify issues in the field using a bottom-up approach. In
addition, the committee investigates any associated financial impacts in conjunction with the risk
catalog, which is produced by the Internal Control Committee and revised annually.
The content of discussions from Sustainability Committee meetings are reported to the Boardof Directors, and the person serving as representative director, president, and COO is responsible
for reflecting and promoting the action plans developed by the Sustainability Committee inmanagement strategy.

Strategy
In 2022, we conducted a scenario analysis based on two situations: one in which the global temperature rises a maximum of 1.5ºC (from before the Industrial Revolution to the end of the 21st
century), and one in which the global temperature rises 4.0ºC.

Overview

We have developed an Environmental Policy to help ensure that all business activities of theGroup are geared toward a sustainable society and global conservation. We are hard atwork to spread awareness of this basic policy, which all officers and employees must comply
with in their duties.

52

Open Up Group Inc.
Integrated Report 2023

Social Contribution Activities
Basic Stancefor Education and Human Resource Development
Workshops That Offer Multi-Faceted Learning

Governance

We are dedicated to social contribution activities that help create a society that opens up individual potential.
To this end, we continue to support the production of reading and drama performances by entertainers withmental disabilities and we promote local development in Isumi City, Chiba Prefecture, where we haveopened the Group-owned land and buildings of Yumeshin Village to the local community, which we use andoperate together. For details about these social contribution activities, those conducted via the UK-basedGroup company Gap Personnel Holdings Limited, and other activities not listed above, please refer to theSocial Contribution Initiatives section of the corporate website.

Data*1 An educational concept that adds creativity-based education to science and mathematics education targeting the fiveareas of science, technology, engineering, arts, and mathematics*2 A program that allows corporations to deduct taxes from their corporate-related taxes when they make donations toprojects of local governments that have been approved by the Cabinet Office as regional revitalization plans

Sustainability

From 2022, the Group has held the Kids’ Tech Caravan, an
event for elementary and junior high school students. The
event features multi-faceted workshops that feature learningfrom an engineering perspective through the creation andprogramming of robots, combined with learning throughcontact with local nature. In 2023, we ran the event inHiroshima Prefecture from May to June.
This initiative, based on the concept of STEAM education,*1
was started out of a desire to unleash the potential of children
by giving them opportunities to learn about manufacturing andnature—an idea very much in line with the Group’s Purpose.
During the 2023 workshop, participants competed in building,programming, and operating robots (an activity commonly
known as “Robot Survival” in Japan), while also enjoying a combination of hands-on activities andnature-based learning in Etajima, an island in the Seto Inland Sea, and at Sandankyo Gorge in themountains of Hiroshima.
Another unique feature of these workshops is that they bring together various stakeholders to
help invigorate local communities. They provide an opportunity for local NPOs tackling social
issues and university students in Hiroshima Prefecture to collaborate with each other, further
increasing the possibilities of their respective activities. We believe that social contributions madethrough this initiative also help our efforts to realize our Purpose.
In addition, we have been an official sponsor of the Robot Survival Project since July 2023,
helping give children the opportunity to experience the joy of building things.

The Group leverages its support of the corporate version ofJapan’s Furusato Nozei hometown tax program*2 to engage inlocal creation projects that help realize the Group’s Purpose.
This is just one of the ways in which the Group promotes
the Sustainable Development Goals (SDGs), in keeping with
its policy of continued involvement in revitalizing local
communities. Specifically, BeNEXT Technologies Inc., part of
the Machinery and Electronics segment, has directed its
corporate hometown tax payments toward Takizawa City in
Iwate Prefecture since fiscal 2019, in support of a project torevitalize the local community through youth exchanges andcutting-edge human resource development.
  This initial initiative sparked further collaboration with
Takizawa City, and in 2020 the company created permanent
stations for BeNEXT Technologies’ engineers at the city’s
IPU Innovation Center, which was established by Takizawa City and Iwate Prefectural University
to promote industry–government–academia collaboration on open innovation. The stationed
engineers currently operate as part of Open Up Lab Takizawa, where they work to resolve local
issues through collaboration with industry, governments, academia, or the local community.
At the same time, they strive to sharpen their skills, build knowledge, and gain experience toadvance their own careers.
This team is working with the local community to create new value, including collaborative
initiatives with a research group at Iwate Prefectural University. Notable initiatives include thedevelopment of an AI-driven image recognition module as part of a system to keep pests awayfrom crops and a system to analyze and predict sales data for restaurants in city-operated­facilities. Lab members also do pro bono work in lecturer or supporting roles and offer website
development courses for local people and students.

StrategySupport for Greater Opportunities and More Conducive Conditions

Support for Local Development and Regional Revitalization
Contributing to Local Communities Through Open Up Lab Takizawa

Overview

We conduct social contribution activities in four main categories: 1) Support for o­ ppor­tunities
and conditions that favor education and sound development, targeting children, students,and job seekers; 2) Support for the transfer of skills and knowledge; 3) Support for the­success of people raising children, people with disabilities, and sexual minorities and for
raising awareness of the issues they face; and 4) Support for volunteer and pro bono workby employees, related parties, and improved conditions to support volunteer activities.
Each Group company works together to promote activities while encouraging employee
participation via a specialized department that plans and manages community relations.

53

Open Up Group Inc.
Integrated Report 2023

Management

54

Directors

Director, CFO

Tomoko Kawakami
Outside Director
Apr.	1979 Joined NEC Corporation
May 2002	General Manager of Corporate Controller Division and Chief Manager ofCorporate Planning Division, Electron Devices Company, NEC Corporation
Dec. 2002 Vice President and CFO, NEC Electronics Corporation
Oct. 2003 Senior Vice President and CFO, NEC Electronics Corporation
Apr. 2010	Senior Vice President, CFO and General Manager of Planning Department,
NEC Networks & System Integration Corporation
Apr. 2013	Executive Officer and CFO, NEC Networks & System Integration Corporation
Feb. 2014 Director and CFO, TechnoPro Holdings, Inc.
July 2014 Director and Senior Managing Executive Officer, TechnoPro, Inc.
May 2020 Advisor, the Company
Sept. 2020 Director, the Company
July 2022 Outside Director, HRnetGroup Limited (current position)
June 2023 Director, CFO, the Company (current position)

Apr. 2000 Full-time Instructor, Faculty of Business and Commerce, Kansai University
Apr. 2002 Assistant Professor, Faculty of Business and Commerce, Kansai University
Apr. 2003 Visiting Researcher, Foster School of Business, University of Washington
Apr. 2007 Associate Professor, Faculty of Business and Commerce, Kansai University
Apr. 2009 Professor, Faculty of Business and Commerce, Kansai University
Aug. 2012 Visiting Researcher, INSEAD Blue Ocean Strategy Institute (current position)
Jan. 2013 Fulbright Researcher, Foster School of Business, University of Washington
Oct. 2013	Research Fellow, Institute on Asian Consumer Insight,
Nanyang Technological University
Apr. 2015	Professor, Graduate School of Business and Finance, Faculty of Commerce,
Waseda University (current position)
Apr. 2016	Secretary, Waseda Blue Ocean Strategy Institute (currently Waseda Blue
Ocean Shift Institute), Comprehensive Research Organization,
Waseda University (current position)
Apr. 2019	Director, Marketing International Institute (currently Marketing andSustainability International Institute), Comprehensive Research Organization,
Waseda University (current position)
June 2019 External Director, Takara Holdings Inc. (current position)
Dec. 2019 Examination Board Member, Certified Public Accountant Examination
Sept. 2022 Outside Director, the Company (current position)
Mar. 2023	Visiting Researcher, Shidler College of Business,
University of Hawai’i at Mānoa (current position)

Data

Hiroshi Sato

Apr. 2006 Joined Nomura Real Estate Development Co., Ltd.
Apr. 2010 Joined YUMESHIN HOLDINGS Co., Ltd.
Dec. 2010 Director, YUMESHIN HOLDINGS Co., Ltd.
Dec. 2015 Representative Director, YUMESHIN HOLDINGS Co., Ltd.
Oct. 2018 President and Representative Director, NEPLUS K.K. (current position)
June 2019 Representative Director, Yumeshin Co., Ltd.
Apr. 2021 President and Representative Director, the Company
July 2021	President and Representative Director, COO, the Company (current position)
Director, Yumeshin Co., Ltd. (current position)
Apr. 2022 Director, Open Up System Co., Ltd. (current position)
July 2022 Director, BeNEXT Technologies Inc. (current position)
July 2023 Director, Open Up IT Engineer Inc. (current position)

GovernancePresident andRepresentative Director,
COO

Outside Director

Sustainability

Daio Sato

Mari Oshima

Strategy

Chairman and
Representative Director,
CEO

Apr. 1992 Assistant, Institute of Industrial Science, the University of Tokyo
Apr. 1995	Overseas Researcher, Ministry of Education, Science, Sports and Culture(Stanford University, United States of America)
June 1998 Instructor, Institute of Industrial Science, the University of Tokyo
Apr. 1999	Assistant Professor, Institute of Engineering Mechanics and Systems,
University of Tsukuba / Institute of Industrial Science, the University of Tokyo
Apr. 2000 Assistant Professor, Institute of Industrial Science, the University of Tokyo
July 2005	Professor, Institute of Industrial Science, the University of Tokyo (current position)
Apr. 2006	Professor, Interfaculty Initiative in Information Studies, the University of Tokyo(current position)
Apr. 2014 Director, National Institute of Technology (until FY2021)
Apr. 2017 President, the Japan Society of Mechanical Engineers (95th term)
Apr. 2017 Director, NSK Scholarship Foundation
Oct. 2017 Council Member, Science Council of Japan
July 2018 Outside Director, Toyota Central R&D Labs., Inc. (current position)
Sept. 2018 Director, Mitsubishi Gas Chemical Memorial Foundation (current position)
June 2019 Director, The Hitachi Global Foundation (current position)
Aug. 2020 Advisor, Japan Society for Science Education (current position)
Apr. 2022 Director, The Japan Society of Fluid Mechanics (current position)
Sept. 2022	Director, steAm BAND (current position)
Outside Director, the Company (current position)

Overview

Yutaka Nishida

Apr. 1987 Joined Recruit Co., Ltd.
Apr. 1990 Joined Recruit Seeds Staff Co., Ltd. (currently Recruit Staffing Co., Ltd.)
Oct. 2003 Director, General Manager of Sales Headquarters, ORIFA Corporation
Apr. 2005 Executive Officer, Recruit Staffing Co., Ltd.
Apr. 2007 Director, Recruit Staffing Cities Co., Ltd.
Apr. 2010 Representative Director, Mates Co., Ltd.
Apr. 2011 Representative Director, Recruit From A Casting Co., Ltd.
Apr. 2014 Advisor, the Company
Sept. 2014	President and Representative Director, COO, the Company
Director,TTM Inc. (currently BeNEXT Partners Inc.)
July 2016 President and Representative Director, the Company
Mar. 2017 Director, FUSIONi Co., Ltd. (currently Open Up IT Engineer Inc.)
Dec. 2017 Director, Gap Personnel Holdings Limited
Aug. 2018 Director, Quattro Recruitment Limited
July 2019 Representative Director, BeNEXT Technologies Inc.
Apr. 2021 Chairman and Representative Director, the Company
July 2021	Chairman and Representative Director, CEO, the Company (current position)

Open Up Group Inc.
Integrated Report 2023

Management

Directors

Arata Shimizu

Apr.
Oct.
Mar.
Mar.
Mar.

Shintaro Takahashi

Outside Director

Apr.
Apr.
Dec.
Apr.

Outside Director

Hiroaki Rokugawa

Outside Director(Audit & Supervisory
Committee Member)

GovernanceOutside Director(Audit & Supervisory
Committee Member)

Data

Apr. 1970 Joined Shizuoka Broadcasting System, Inc., Announcer
June 1973	Joined Kobunsha Co., Ltd., Reporter for Josei Jishin (Women’s Self)
Editorial Department
May 1980	Representative Director and President, Candid Co., Ltd. (currently CandidCommunications Co., Ltd.)
Feb. 2001	Panel member, Panel on Infrastructure Development, Ministry of Land,
Infrastructure, Transport and Tourism
Mar. 2004	General Producer, International Skills Festival for All, Japan 2007, Ministryof Health, Labour and Welfare
July 2005	Representative Director and President, Creative Senior Co., Ltd. (currently
Candid Produce Co., Ltd.) (current position)
Jan. 2007 Member, Fiscal System Council, Ministry of FinanceJan. 2009 Representative, club willbe (social network for all adults) (current position)
Aug. 2009 Member, Advisory Committee on Lay Judge system, Ministry of JusticeMar. 2010 Outside Director, Fujita Kanko Inc. (current position)
June 2016 Outside Director, SHIMA SEIKI MFG., LTD. (current position)
Sept. 2016 Outside Director, the Company (current position)
Sept. 2023	Outside Director (Audit & Supervisory Committee Member),the Company (current position)

Apr. 1997 Admitted to the bar (Dai-ichi Tokyo Bar Association) Hori Sogo Law Office
June 2002 Barack Ferrazzano Kirschbaum & Nagelberg LLP (Chicago)
Apr. 2004 Lecturer, Chiba University Law School
Mar. 2007 Baker & McKenzie GJBJ Tokyo Aoyama Aoki Koma Law Office
Apr. 2007	Lecturer, Advanced Institute of Industrial Technology (AIIT) and Tokyo
Metropolitan University (current position)
June 2008 Ogasawara Rokugawa International Law Office
Mar. 2009	Outside Auditor, Funai Zaisan Consultants Co., Ltd. (currently Aoyama
Zaisan Networks Co., Ltd.) (current position)
Apr. 2009 Lecturer, Faculty of Law, Seijo University
Dec. 2010 Outside Auditor, YUMESHIN HOLDINGS Co., Ltd.
Apr. 2013 Professor, Tokai University Law School
Oct. 2013 Lecturer, School of Culture, Media and Society, Waseda University
Dec. 2016	Outside Director, TSUNAGU SOLUTIONS Inc. (currently TSUNAGU GROUPHOLDINGS Inc.) (current position)
Sept. 2020 Outside Director, Abalance Corporation (current position)
Apr. 2021	Outside Audit & Supervisory Board Member, the Company
Apr. 2022 Managing Partner, Tokyo Uchisaiwaicho Law Firm (current position)
June 2022 Outside Director, Meiji Machine Co., Ltd. (current position)
Sept. 2023	Outside Director (Audit & Supervisory Committee Member),the Company (current position)

Sustainability

Yoichi Wada

1984 Joined Nomura Securities Co., Ltd.
2000 Joined SQUARE CO., LTD.
2001 President and Representative Director and CEO, SQUARE CO., LTD.
2003	President and Representative Director, SQUARE ENIX CO., LTD. (currently
SQUARE ENIX HOLDINGS CO., LTD.)
Aug. 2016 Outside Director, WonderPlanet Inc. (current position)
Mar. 2018 Outside Director, Mynet Inc. (current position)
Apr. 2021 Outside Director, GENDA Inc. (current position)
Sept. 2021 Outside Director, the Company (current position)
June 2022 Outside Director, COVER Corp. (current position)

Strategy

Outside Director(Audit & Supervisory
Committee Member)1989 Joined Recruit Co., Ltd. (currently Recruit Holdings Co., Ltd.)
2001 Joined Magclick Inc. (currently GMO AD Partners Inc.)
2006 President and Representative Director, GMO AD Partners Inc.
2008 Director, GMO Internet, Inc. (currently GMO Internet Group, Inc.)
2013	Managing Director, Supervisor of Group Media Division, GMO Internet, Inc.
(currently GMO Internet Group, Inc.)
Mar. 2015 Chairman of the Board, GMO AD Partners Inc.
Apr. 2016 Representative Director, Head of Sales Division, Indeed Japan, Inc.
July 2016 Non-Executive Director, gumi Inc.
Oct. 2017	Representative Director, General Manager and Head of Sales Division,
Indeed Japan, Inc.
Oct. 2020 CMO, USEN-NEXT HOLDINGS Co., Ltd.
Nov. 2020	Director, USEN-NEXT HOLDINGS Co., Ltd. (current position)
Representative Director and President, U-POWER Co., Ltd. (current position)
External Director, CUUSOO SYSTEM Co., Ltd. (current position)
Sept. 2022 Outside Director, ONE MEDIA Inc. (current position)
Sept. 2023	Outside Director (Audit & Supervisory Committee Member),the Company (current position)

Overview

Apr. 1997 Joined Accenture Japan Ltd
Sept. 2005 Executive Partner, Accenture Japan Ltd
July 2015	Executive Officer, General Manager of Strategic Consulting Headquarters,
Accenture Japan Ltd
Mar. 2017 Representative Director and COO, SEAOS, Inc.
Sept. 2017 Outside Director, the Company (current position)
June 2020 Outside Director, MISUMI Group Inc. (current position)
June 2021 Director, P&E Directions, Inc. (current position)

Rieko Zamma

55

Open Up Group Inc.
Integrated Report 2023

56

Management

Officers

Yuichi Kamata

Overview

Kenjiro Ogawa

Mitsuyoshi Matsumoto

Strategy

Einobu Yoshii

Akihito Kato

Sustainability

Junji Nakashima

Akio Takeya

Seiki Haruta

Noriyuki Sasano

Senior Executive Officer

Corporate Officer, Head of the Construction Unit

Corporate Officer, Head of the Machinery andElectronics Unit

Corporate Officer, Head of the IT Infrastructure Unit

Corporate Officer, Head of Human Resources

Corporate Officer, Head of DX Promotion

Corporate Officer, Head of FinanceCorporate Officer, Head of Group Management

Data

Corporate Officer, Head of the Manufacturing Unit

Corporate Officer, Head of Corporate Planning

Governance

Noriyuki Murai

Corporate Governance
Basic Stance and Policy

Structure

Data

Open Up Group Inc. transitioned to a Company with an Audit &Supervisory Committee in September 2023. A problem thatexisted under its previous structure as a Company with an Audit &Supervisory Board was that Audit & Supervisory Board members
did not have voting rights, even when compliance-related matterswere on the agenda. This stemmed from restrictions under Japan’sCompanies Act, under which Audit & Supervisory Board members
are not considered members of the Board of Directors and therefore do not have voting rights at Board meetings. With the shift toa Company with an Audit & Supervisory Committee, all committee
members have voting rights as directors, which I believe has madeHiroaki Rokugawa
Outside Director
the Company’s governance even more robust.
(Chair of the Audit &The two companies that would form the current Group wereSupervisory Committee)
both actively working to increase their number of outside directors
prior to the merger, and following the conclusion of the General
Shareholders’ Meeting on September 26, 2023, the Board of Directors currently consists of 70%
outside directors. In addition, 30% of the Board’s members are women. As a result, I can say that
the Company has made steady progress toward strengthening governance and increasing thediversity of its Board of Directors.
Going forward, I and the other members of the Audit & Supervisory Committee will work to fulfill
the committee’s responsibility to audit business plans and measures aimed at increasing corporate
value that management is currently implementing, or plans to implement in the future, and confirm
whether these plans and measures are compliant with the most up-to-date laws and regulations
and the rules put forth by the Tokyo Stock Exchange, including Japan’s Corporate GovernanceCode. Furthermore, as a member of the Board of Directors, I aim to improve corporate value andmeet the expectations of the Company’s shareholders, investors, and other stakeholders.

Governance

In September 2023, the Company transitioned to a Company with an Audit & Supervisory
Committee. Under this structure, the Audit & Supervisory Committee members, who areresponsible for auditing and supervising the execution of duties by directors, are also
included as members of the Board of Directors. This change will enhance the supervisory
function of the Board and enhance corporate governance. In addition, as the Board of
Directors of a Company with an Audit & Supervisory Committee, the Board will appropriately
delegate decisions on business execution to executive directors, separating business­execution and supervision to speed up management decision-making. The Company believes
that this approach, as well as the further expansion of its business operations, will lead toincreased corporate value.
The Company has also appointed seven outside directors among its ten directors in orderto strengthen its system for monitoring management, which includes supervision to ensure
the appropriate execution of duties by directors. Furthermore, to ensure the effectiveness of

Message from the Chair of the Audit & Supervisory Committee
Sustainability

corporate governance report for the latest disclosure in relation to each principle.

Strategy

We implement every principle of Japan’s Corporate Governance Code. Please refer to the Company’s

audits, the Company has appointed three outside directors as the three members of the Audit& Supervisory Committee, which works in cooperation with the accounting auditor and theInternal Audit Department at all times.
For business execution, we have established the Management Meeting, a meeting body
aimed at prompt and efficient decision-making, which comprises the person serving as
representative director, chairman, and CEO, the person serving as representative director,
president, and COO, and the person serving as director and CFO, all three of whom are
executive directors, as well as other corporate officers. Regarding other meeting bodies, theCompany has established the Internal Controls Committee and the Sustainability
Committee to support business execution and established a risk management system that
includes checks on business operations and compliance with social ethics, the statuses ofwhich are reported to the Board of Directors in a timely manner.

57

Overview

The Group considers the objective of corporate management as the improvement of corporate value in a sustainable and stable manner based on its Purpose, which is to open up
individual potential through rewarding work, and it will promote efficient management thatenables profitability and growth while ensuring sound management.
Furthermore, the Group treats the strengthening of its corporate governance system
as one of its most important management issues, with the aim of ensuring transparent­management and forming positive relationships with its stakeholders, which include­shareholders, investors, business partners, employees, local communities and the broader
society, and it provides accurate and timely disclosure of management-related information
to these ends. The Group’s efforts to strengthen its system for corporate governance enable
it to conduct corporate activities with full awareness of its corporate responsibility.
The Group has adopted a holding company structure under which the holding company
supervises the proper execution of business by the operating companies, and it flexibly designs
meeting bodies and reporting lines in keeping with business expansion and changes in thebusiness environment to ensure that labor and human rights issues, which are important to thehuman resource services industry, are fully controlled. The Group also ensures transparent andobjective management through its Board of Directors and Audit & Supervisory Committee.

Open Up Group Inc.
Integrated Report 2023

Open Up Group Inc.
Integrated Report 2023

58

Corporate GovernanceCorporate governance structure

Audit & Supervisory Committee

Audit andsupervise

Recommend(Voluntary)
Remuneration Committee

Management Meeting

ReportInvestment
Consideration Board

CFO

Human Resource
Committee

Submit importantmatters

Appoint/Dismiss
important officers

Audit

Coordinate

Coordinate

Sustainability Committee
Whistleblowing system
Coordinate grievances

Directors and Board of Directors

3

3

Male directors* The Company’s outside directors have adopted the independence

Outside expert
lawyer, etc.

The Company’s Board of Directors is composed of 10­directors (including seven outside directors). As a generalrule, regular Board meetings are held once a month and­extra­ordinary Board meeting are held as needed. The Board
decides matters stipulated by law and other important­management matters in addition to monitoring directors’­execution of duties. The Company appoints two represen­tative directors, and in July 2021 we gave these positions
the titles of CEO and COO and divided responsibilities
between the two roles in order to establish a system ofchecks and balances.
The Nominating Committee, the majority of whom areoutside directors, discusses and selects candidates to ensurethat the Board maintains a good balance of knowledge,­experience, and ability. At the same time, the committee also
considers factors such as gender diversity. The committee
then reports its recommendations to the Board of Directors.

of the Board of Directors and, in order to ensure objective
decision-making, a majority of members must be outside
directors who are not directly involved in business operations,and the committees are chaired by outside directors.
The Nominating Committee selects director candidates
on the basis of skill, gender, and diversity and reports to theBoard of Directors. It also discusses topics such as succession
planning and communicates with internal employees asappropriate.
The Remuneration Committee discusses the remuneration
system for directors, who are tasked with contributing to theCompany’s sustainable growth and increase of its corporate
value, and it reports to the Board of Directors regarding policies and other matters related to determining remuneration.
The committee also provides the Board of Directors with
reports regarding remuneration amounts for individual directors. For the latest information, please refer to the Company’s
corporate governance report under the section titled“Disclosure of Policy on Determining Remuneration Amounts
and Calculation Methods.”
In fiscal 2023, the Nominating Committee met twice, with all
members in attendance. The Remuneration Committee met
twice, with all members in attendance.

Data

7

Coordinate

Although the Company is not a Company with a Nominating
Committee, etc., as stipulated in Japan’s Companies Act, it
has established its Remuneration Committee and Nominating
Committee to ensure transparent and objective management.
Members of both committees are appointed by a resolution

GovernanceInside directors

Female directors

requirements of the Tokyo Stock Exchange

Nominating Committee and Remuneration Committee

Coordinate

Internal Controls Committee

Composition of the Board of Directors(As of September 30, 2023)

7

Audit/
InstructInternal Audit Department
Audit

Corporate Officers (Business operations)

Outside directors*

Accounting auditor

Support

Audit & Supervisory
Committee
Management Office

CEO
COO

Instruct

Coordinate

Sustainability

Instruct/Supervise

Executive
directors

Audit & Supervisory
Committee

Strategy(Voluntary)
Nominating Committee

Submitimportantmatters

Appoint/
Dismiss

ReportAudit & Supervisory
Committee members

Board of Directors
Consult

Appoint/Dismiss
Audit & Supervisory Committee members

Overview

General Shareholders’ Meeting
Appoint/Dismiss
directors(excluding Audit & Supervisory Committee members)
Report

The Company transitioned from a Company with an Audit &Supervisory Board to a Company with an Audit & Supervisory
Committee by resolution at the 19th Ordinary General
Shareholders’ Meeting. The committee is composed of threeoutside directors and works in cooperation with the accounting auditor and the Internal Audit Department.

Open Up Group Inc.
Integrated Report 2023

59

Corporate Governance

List of Directors
Chairman and
Representative
Director, CEO

Name

Roles and important concurrent positions
None

President andRepresentative
Director, COO

Daio Sato

Director, BeNEXT Technologies Inc.
Director, Yumeshin Co., Ltd.
Director, Open Up IT Engineer Inc.
President and Representative Director, NEPLUS K.K.
Director, Open Up System Co., Ltd.

17/17

100%

Director, CFO

Hiroshi Sato

Outside Director, HRnetGroup Limited

17/17

100%

Mari Oshima

Professor, Institute of Industrial Science, the University of Tokyo
Professor, Interfaculty Initiative in Information Studies, theUniversity of Tokyo
Outside Director, Toyota Central R&D Labs., Inc.

13/13
Newly appointed
in Sept. 2022

100%

13/13
Newly appointed
in Sept. 2022

100%

Outside Director

17/17

100%

TomokoKawakami

Professor, Graduate School of Business and Finance,
Faculty of Commerce, Waseda University
External Director, Takara Holdings Inc.

Outside Director

Arata
Shimizu

Outside Director, MISUMI Group Inc.
Director, P&E Directions, Inc.

17/17

100%

Outside Director

Yoichi Wada

Outside Director, WonderPlanet Inc.
Outside Director, Mynet Inc.
Outside Director, GENDA Inc.
Outside Director, COVER Corp.

17/17

100%

Outside Director(Audit &Supervisory
Committee
Member)Outside Director, SHIMA SEIKI MFG., LTD.
Outside Director, Fujita Kanko Inc.
Rieko Zamma
Representative Director and President, Candid ProduceCo., Ltd.

Outside Director(Audit &Supervisory
Committee
Member)Shintaro
Takahashi

Director, USEN-NEXT HOLDINGS Co., Ltd
Representative Director and President, U-POWER Co., Ltd.
External Director, CUUSOO SYSTEM Co., Ltd.
Outside Director, ONE MEDIA Inc.

HiroakiRokugawa

Lecturer, Advanced Institute of Industrial Technology (AIIT)
and Tokyo Metropolitan University
Managing Partner, Tokyo Uchisaiwaicho Law Firm
Outside Auditor, Aoyama Zaisan Networks Co., Ltd.
Outside Director, TSUNAGU GROUP HOLDINGS Inc.
Outside Director, Abalance Corporation
Outside Director, Meiji Machine Co., Ltd.

100%

Newly appointed
in Sept. 2023

17/17

—

100%

Remuneration Committee

Attendance rate*

Number of­meetings attended*

Attendance rate*

Outside Director (Chairof the Nominating
Yoichi Wada
Committee)

2

100%

2

100%

Outside Director

Mari Oshima

2

100%

2

100%

Outside Director (Chairof the Remuneration
Rieko Zamma
Committee)

2

100%

2

100%

Outside Director

TomokoKawakami

2

100%

2

100%

Outside Director

Arata Shimizu

2

100%

2

100%

Chairman and
Representative
Director, CEO

Yutaka Nishida

2

100%

2

100%

President andRepresentative
Director, COO

Daio Sato

2

100%

2

100%

Members of the Audit & Supervisory Board (Inactive)
Position

Name

Board of Directors
Number of­meetings attended*

Full-time Outside Audit& Supervisory Board
Fujio Shimokawa
memberOutside Audit &Supervisory Board
memberAudit & Supervisory Board

Attendance rate*

Number of­meetings attended*

Attendance rate*

17/17

100%

14/14

100%

Toshio Nago

17/17

100%

14/14

100%

Audit & Supervisory
Board member

Hajime Mita

17/17

100%

10/10

100%

Outside Audit &Supervisory Board
memberHiroakiRokugawa

17/17

100%

14/14

100%

Note:The Company transitioned to a Company with an Audit & Supervisory Committee in September 2023.

Notes:
1. Directors were appointed at 19th Ordinary General Shareholder’s Meeting held on September 26, 2023.
2. Concurrent positions are as of September 2023.

GovernanceOutside Director(Audit &Supervisory
Committee
Member)17/17

Nominating Committee
Number of­meetings attended*

Sustainability

Outside Director

Name

Strategy

YutakaNishidaPosition

Overview

Position

Members of the Nominating Committee and the Remuneration Committee
Attendance
Number of­meetings attended* rate** “Number of meetings attended” and “Attendance rate” figures are for fiscal 2023.

Members of the Audit & Supervisory Committee, Nominating Committee, and Remuneration Committee (As of September 30, 2023)
Daio
Sato

HiroshiSato

Mari
OshimaTomokoKawakami

Arata
Shimizu

Remuneration Committee
Note: Members were appointed as directors at 19th Ordinary General Shareholder’s Meeting held on September 26, 2023.

Rieko
Zamma

Shintaro
Takahashi

HiroakiRokugawa
Chair

Audit & Supervisory Committee
Nominating Committee

Yoichi
Wada
Chair

Chair

Data

YutakaNishidaOpen Up Group Inc.
Integrated Report 2023

60

Corporate GovernanceManagement Meeting

Sustainability Committee

Internal Controls Committee

Criteria for Assessing the Independence and Efficacy of Outside Directors

Criteria for assessing the independence and efficacy of outside directors are defined as follows.
The Company selects individuals who have not been executive directors or business executives
for the Company in the past and who meet the requirements for an outside director as definedin the Companies Act. These individuals also meet the requirements for an outside director who
is unlikely to have conflicts of interest with general shareholders as defined in the Tokyo Stock
Exchange criteria for independence. Moreover, the Company seeks out individuals with extensive
experience and expertise in their respective fields, who can provide advice and recommendations
from an outside and objective perspective or serve in other ways that will elevate the transparency
and soundness of management-related decision-making.
At least half of all directors are outside directors to ensure the Board receives appropriate
advice and recommendations concerning Company management from an objective, external
perspective, and to strengthen the supervisory function of the Board of Directors. Furthermore,
outside d­ irectors serve as chairs of the Nominating Committee and the Remuneration Committee,
which are advisory bodies to the Board of Directors, to ensure appropriateness and transparency
in the appointment and remuneration of directors.

Data

The Company has established the Internal Controls Committee to understand, manage, and control
the risks that pertain to the Group’s financial reporting. To carry out these duties, the c­ ommittee
works across related departments throughout the Group to ensure the efficiency of any work related
to financial reporting. The committee comprises the CEO, who serves as chair, the COO, the CFO,
and other Group executives and employees as designated by the committee chair.

Dismissal of Representative Directors
Dismissal of representative directors is determined by the Board of Directors following sufficientinquiry, debate, and recommendation by the Nominating Committee in cases where an inadequacy has been recognized, for example, when the quality of their business execution has failed
to meet the required standard. Moreover, the Nominating Committee discusses the educationand training of candidates for successors to the representative director positions and the possibilityof inviting successors from outside the Company.

GovernanceFor details about the Company’s sustainability promotion system and its activities, please refer to the Sustainability
Management section of this report ( Pages 41–43).

Nomination of Director Candidates

The Nominating Committee discusses and selects director candidates based on whether candidates display a high level of professional ethics and whether they are able to continuously elevatethe corporate value of the Group over the medium- to-long term while respecting the rights andpositions of stakeholders. The list of candidates is reported to the Board of Directors for resolution, and then submitted to the General Shareholders’ Meeting.

Sustainability

The Company has established the Sustainability Committee to ensure that its business is sustainable, taking into account human rights, environmental issues, coexistence with society, and otherrelevant factors. The committee is tasked with managing opportunities and risks comprehensively
and from a sustainability perspective, reflecting them in management. It comprises the CEO, who
serves as chair, the COO, the CFO, and other Group executives and employees as designated by
the committee chair.
The Company intends to utilize this committee to conduct risk management and monitoring forclimate change and the medium- to long-term business environment, to continue the development
and updating of the Company’s material issues and its value creation models, and to reflect these
activities in management plans and wherever else relevant.

Policy and Procedure for Appointment, Dismissal, and Nomination

The policies and procedures for the appointment and dismissal of the representative directors
and the nomination of director candidates are set out below.

Strategy

The Management Meeting has been established as a meeting body to enable swift and flexible
decision-making for the entire Group, including important matters regarding business executionthat have been approved by the Board of Directors. The Management Meeting, which meets oncea week in principle, comprises the person serving as representative director, chairman, and CEO,the person serving as representative director, president, and COO, and the person serving as
director and CFO, and 13 corporate officers as of September 30, 2023. After thorough discussion
among members, resolutions are approved by majority decision by the CEO, COO, and CFO.

Directors

Overview

Accounting Auditor
We have appointed Ernst & Young ShinNihon LLC as our accounting auditor. The Audit &Supervisory Committee and Internal Audit Department work with the accounting auditor toenhance the quality and efficiency of audits.

Open Up Group Inc.
Integrated Report 2023

61

Corporate GovernanceDirectors’ Skills Matrix (As of September 30, 2023)

Type
Position at the Company

Chairman and Representative
Director, CEO

YutakaNishida60

President and Representative
Director, COO

Daio Sato39

Director, CFO

HiroshiSato66

Outside Director

Mari
Oshima61

Outside Director

TomokoKawakami

58

Outside Director

Arata
Shimizu

51

Outside Director

Yoichi
Wada

64

Outside Director (Audit & Supervisory Rieko
Zamma
Committee Member)

73

Outside Director (Audit & Supervisory Shintaro
Takahashi
Committee Member)

58

Outside Director (Audit & Supervisory Hiroaki
Rokugawa
Committee Member)

60

OutsideIndependent

Industry
experience

International
experience

M&As,
investment,
and PMI

Law

Finance andfinancialstrategy

DigitalGovernance,risk management, technology andand sustainability
cybersecurity

Technology /Education inscience andtechnology

Sustainability

Age

Strategy

Name

Knowledge and experience important for Group management (skill categories)
Executive of alisted company /Management
Economics,
experiencebusiness
administration,etc.

symbol.

Reasons for Selecting Skill Categories (Management Environment, Nature of the Company’s Business)

Management experienceAs a Group comprising multiple business companies, we need directors with comprehensive
and extensive managerial experience, including business promotion and risk
management.

Executive of a listed company /Economics, business­administration, etc.

The Group needs directors with experience of business promotion and risk management
in a variety of industries or extensive knowledge of business administration, so that they
can help enhance the objectivity and transparency of the Group’s management.

International experience

The Group conducts business in the U.K. and many other countries around the world andtherefore needs directors with international management experience and an understanding of the business environment outside Japan.

M&As, investment, and PMI

The Group has positioned M&As as a key strategy in its medium-term management plan,and therefore needs directors with wide-ranging experience of M&As.

Finance and financial strategy

The Group is looking to invest in growth through M&As and to stably enhance shareholder
returns and therefore needs directors with wide-ranging knowledge and experience offinance and related matters.

Governance, risk management,
and sustainability

The Group aims to achieve sustainable growth while remaining in harmony with society
and therefore needs directors with experience in fields such as governance, risk­management, and social contribution.

Digital technology andcybersecurity

The Group is moving forward with digital transformation efforts and therefore needs
directors with knowledge and experience of making appropriate decisions in this field andof the new risks associated with IT.

Technology / Education inscience and technology

The Group needs directors with expertise in the changes and trends in technology affecting
clients in the manufacturing sector, as well as in the education of human resources who
must adapt to these changes.

Data

The Group emphasizes growth potential, so it needs directors who can make management
decisions based on real-life experience of the changes, challenges, opportunities, andother aspects of the personnel staffing industry.

GovernanceNotes: The above matrix shows the top three skills each director is particularly expected to demonstrate in their role. For representative directors, the skill each director is particularly expected to demonstrate in their role is represented by a

Industry experience

Overview

The following matrix shows skill categories required by the Company based on its management environment and the characteristics of its business and shows which directors possess theseskills based on their work experience.

Open Up Group Inc.
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62

Corporate GovernanceReasons for the Appointment of Outside Directors

The reasons for appointing each outside director are as follows.
Name
Mari

OutsideDirector

TomokoOshimaKawakami

Arata

OutsideDirector

Yoichi

Shimizu

Wada

Rieko

OutsideDirector

Shintaro

OutsideDirector

Hiroaki

Zamma

Takahashi

Rokugawa

Arata Shimizu has a wealth of consulting experience and insights,
and he is capable of providing advice and recommendations to
the Company’s Board of Directors to ensure objectivity in its
decision-making.
Yoichi Wada has a wealth of experience and broad insight as a manager
across different industries and business sectors, and he is capable ofcontinuing to provide advice and recommendations to the Company’s
Board of Directors to ensure objectivity in its decision-making.
Rieko Zamma has a wealth of management experience in different
industries and possesses a high-level academic background, and she
is capable of providing supervision and advice to directors on the­execution of their duties from an objective and neutral standpoint,
particularly in the area of sustainability.
Shintaro Takahashi has a wealth of management experience in different
industries and possesses a high level of academic knowledge, and heis capable of providing supervision and advice to directors on theexecution of their duties from an objective and neutral standpoint,
particularly with respect to group governance.
Hiroaki Rokugawa has a wealth of experience as a lawyer and a highlevel of insight based on his wide range of knowledge, and he iscapable of providing supervision and advice to directors on theexecution of their duties from an objective and neutral standpoint,
particularly with respect to compliance.

Note: All outside directors listed above satisfy the requirements for independent officers stipulated by the
Tokyo Stock Exchange. Therefore, the Company has determined that there is no risk of conflict ofinterest with general shareholders and nominated them as independent officers, leading to their
appointment.

• Appropriate involvement and oversight regarding successor/management development plans
The Nominating Committee and meeting bodies have begun discussing the criteria and process for appointing successors and willcontinue to examine the issue.
• Oversight for the development and operation of the Company’s internal control system and Companywide risk management system
The Company continued to revise the content of its monthly compliance report, as well as the internal audit report and the Sustainability
Committee’s regular report (each published twice a year).
• Improvement of materials sent prior to Board meetings and of meeting operations
The Company introduced an annual agenda schedule for anticipated resolution and opinion exchange meetings. In addition, theCompany changed the order of deliberations and reports on the meeting agenda to ensure sufficient time for deliberations.

Methods and Processes Used in the Fiscal 2023 Assessment and Analysis of the Effectiveness of the Board of Directors
The Company assessed the effectiveness of the Board of Directors using the following process.

• Persons subject to assessment: Directors and Audit & Supervisory Board members (14 in total)• Assessment method: An in-house registered survey was conducted, the results of which were tabulated and analyzed and thenassessed by the Board of Directors.
• Assessment items: 1) Items related to the composition of the Board of Directors; 2) Items concerning the operation of the Board of
Directors; 3) Items concerning the agenda of the Board of Directors; 4) Items related to the support system for the
Board of Directors; 5) Matters concerning nomination and remuneration

Overview of Results

Data

It was recognized that the Board of Directors fulfills its expected roles of supervising management and making decisions on importantmatters and that the Board of Directors has a system in place that enables it to perform an appropriate supervisory function for­management in terms of its size, composition, operational status, and other factors. The Board of Directors was also recognized formaintaining an atmosphere in which all members, including outside directors, can speak freely and engage in lively discussion. This
assessment confirms the overall effectiveness of the Board of Directors.
The Company will implement the following efforts in response to the fiscal 2023 assessment and the various opinions expressed byeach director during the discussions, in continuation of its work to improve the functionality of the Board of Directors.
• The Company will consider providing information on the activities of the Sustainability Committee as appropriate to further enhance
the content of the Company’s regular reports (twice a year) and deepen discussions further.
• The Company will improve operational aspects of the Board of Directors meetings, including the systematic implementation ofdeliberation items, streamlining of routine reporting items, and distribution of materials, and it will enhance discussions at Board
meetings by establishing meetings for outside directors to be held approximately three times a year during which they can share
information and exchange opinions.
• The Nominating Committee and other meeting bodies will continue to review the Company’s internal successor and management
development plan as well as the suitability of its selection and dismissal processes, in light of the importance of human resource
strategies for enhancing corporate value over the medium to long term.

GovernanceOutsideDirector

Tomoko Kawakami has a wealth of experience and a strong academic
background, mainly in the fields of business administration and marketing, and she is capable of providing advice and recommendations froma professional perspective to the Company’s Board of Directors in its
decision-making.

Progress in Addressing Issues Identified in the Assessment of the Effectiveness of the Board of Directors in Fiscal 2022

Sustainability

OutsideDirector

Mari Oshima has a wealth of experience and a strong academic background, mainly in digital technology, cybersecurity, technology, andscience and technology education, and she is capable of providing advice
and recommendations from a professional perspective to the Company’s
Board of Directors in its decision-making.

Strategy

OutsideDirector

Reasons for appointment

The Company conducts an evaluation of the effectiveness of the Board of Directors once every fiscal year,
in order to verify whether the functions expected of the Board of Directors are being properly fulfilled andto find areas for improvement.

Overview

Position

Analysis and Assessment of the Effectiveness of the Board of Directors

Open Up Group Inc.
Integrated Report 2023

63

Corporate GovernanceDirector Remuneration

Policy for Determining Director Remuneration

Strategy

Breakdown of remuneration for executive directors (Fiscal 2023)

Approx.

Approx.

Approx.

45%–55%20%–30%20%–30%

Fixed remuneration

Bonus

Restricted stock
remuneration

GovernanceOutside Directors
Remuneration of outside directors is limited to fixed remuneration to ensure their ­perspective
remains independent of business operations. The amount paid to each director is d
­ eterminedbased on their professional expertise and other factors.

Sustainability

Executive Directors
Remuneration for executive directors (the person serving as representative director, chairman and CEO, the person serving as representative director, president and COO, and theperson serving as director and CFO) consists of fixed remuneration, bonuses, and stock
remuneration (restricted stock remuneration). The combination of these three types of
remuneration is designed to provide incentives for executive directors to contribute to thesustainable growth of the Company and increase corporate value.
Fixed remuneration (monetary remuneration) will be determined for each year of theexecutive director’s term of office and will be paid in monthly installments. The amountfor each director will be determined by their position in consideration of the nature of
the director’s duties and responsibilities, etc., at a level appropriate to the director’s
responsibilities.
Bonuses are short-term performance-linked remuneration intended as short-term­incentives to achieve targets for a single fiscal year. Operating profit is used as the Company’s
indicator of consolidated performance and the common indicator for evaluating all­directors eligible to receive bonuses. A standard bonus amount for each executive director
is determined for each position, taking into consideration the content of each job, role,
responsibility, and remuneration composition ratio. This amount is adjusted according to
the degree to which the Company’s operating profit target is achieved, set at 100% of the­standard amount for reaching the target and fluctuating from 0% to 200% depending on the
degree of achievement.

Overview

Our policy for decisions, procedures, and resolutions regarding the remuneration for­directors is as follows.

The purpose of the restricted stock remuneration is to provide an incentive to improve
the Group’s medium- to long-term performance and corporate value while encouraging ashared interest with the Group’s shareholders. This system is designed to allocate common
stock subject to a 30-year restricted transfer period, with allowances for the Company toacquire restricted stock without charge (it includes a malus clause). The Company recommends that eligible executive directors and others hold a number of shares equal to or
greater in value than one year of fixed remuneration as a general rule. This includes latentshares to be issued upon resignation.
The Remuneration Committee considers the policy for determining the payment ratio of
each type of remuneration so that the payment ratio does not fluctuate significantly fromfiscal year to fiscal year. This ratio is generally 45% to 55% for fixed remuneration, 20% to
30% for bonuses, and 20% to 30% for restricted stock remuneration.

Single-year performance-linked remuneration by percentage of target achieved (standard amount x corresponding coefficient)
Percentage oftarget achieved

80%

Every 2%
lower

94%

96%

98%

100%

102%

104%

106%

Every 2%higher140%

No payment

50%

–5%

85%

90%

95%

100%

105%

110%

115%

+5%

200%

Data

Coefficient

Less than80%Open Up Group Inc.
Integrated Report 2023

64

Corporate Governance

Procedures for Determining Director Remuneration

Strategy

Total
remuneration,etc. (¥ million)

Directors(Outside directors)

Total of each type of remuneration(¥ million)

Number of
eligible officers

Fixed
remuneration

Performancelinked
remuneration

Restricted stock
remuneration

362
(45)

197
(45)

88
(—)

77
(—)

12
(7)

Audit & Supervisory
Board members(Outside members)

25
(22)

25
(22)

—
(—)

—
(—)

5
(4)

Total
(Outside officers)

388
(67)

222
(67)

88
(—)

77
(—)

17
(11)
GovernanceNotes:
1. The table above includes two directors and one Audit & Supervisory Board member who retired at the conclusion of the 18th
Ordinary General Shareholders’ Meeting held on September 27, 2022.
2. Officers eligible for restricted stock remuneration are directors, excluding outside directors. Allotted shares for fiscal 2023 wereawarded with a restriction period of 30 years, as determined by the Board of Directors. The Company has also stipulated
conditions for this restriction period to be lifted upon resignation from the Company, as well as reasons for the Company toreacquire the shares without remuneration.
3. Officers eligible for performance-linked remuneration are directors excluding outside directors. Remuneration paid in fiscal
2023 depends on the extent of achievement in fiscal 2022, the previous fiscal year.
4. In fiscal 2023, there were four Audit & Supervisory Board members, three of whom were outside members.

Sustainability
Data

Resolution on the Amount of Remuneration for Directors
The total sum of remuneration for directors of the Company (excluding directors who aremembers of the Audit & Supervisory Committee) was set at no more than ¥600 million peryear (including no more than ¥100 million per year for outside directors) at the 19th
Ordinary General Meeting of Shareholders held on September 26, 2023.
In addition, the introduction of a restricted stock remuneration system was approved at
the 14th Ordinary General Meeting of Shareholders held on September 21, 2018.
Remuneration under this system is separate from the remuneration limited to ¥600 million
mentioned above and shall be provided as restricted stock remuneration to eligible directors. The total amount of such remuneration provided under the restricted stock remuneration system was set at no more than ¥400 million per year at the 19th Ordinary General
Meeting of Shareholders held on September 26, 2023.
The amount of remuneration for directors who are members of the Audit and Supervisory
Committee was set at no more than ¥100 million per year at the 19th Ordinary General
Meeting of Shareholders held on September 26, 2023.

Remuneration amounts for fiscal 2023

Type of officer

Overview

The Remuneration Committee examines director remuneration (excluding directors who aremembers of the Audit and Supervisory Committee) and submits a report to the Board of
Directors, ensuring the transparency and objectivity of the entire remuneration system,
including remuneration levels and the process for determining remuneration. For thisreason, when determining fixed remuneration, bonuses, and restricted stock remuneration,
the Remuneration Committee first examines and prepares a report for the Board of
Directors regarding remuneration for each director. The Board of Directors then makes aresolution on remuneration based on this report.
Remuneration for directors who are members of the Audit & Supervisory Committee will
be determined through discussions among the directors who are members of the Audit &Supervisory Committee.
In the event that the Board of Directors adopts a resolution to make subsequent adjustments to the financial statements due to material accounting errors or fraud, or if the Boardof Directors determines that a director who is not an Audit & Supervisory Committee
member has materially breached the engagement agreement with the Company during thedirector’s term of office, the Remuneration Committee will deliberate whether to require
forfeiture of all or part of the rights to receive bonuses and restricted stock remuneration(malus) or return of all or part of the bonuses and restricted stock remuneration alreadypaid (clawback) and report the results of such deliberations to the Board of Directors.

Fixed remuneration and bonuses for fiscal 2023, as well as restricted stock remuneration
were determined by the Board of Directors on the same day as the 19th Ordinary General
Shareholders’ Meeting of Shareholders held on September 26, 2023, after prior consideration by the Remuneration Committee.
Payment of performance-linked remuneration for executive directors for fiscal 2023 wasdetermined based on the degree to which targets were achieved. Since operating profit
was ¥12,760 million under International Financial Reporting Standards (IFRS), exceeding
the initial target of ¥11,600 million, a coefficient of 115% was applied according to the­performance target achievement rate set in advance by the Remuneration Committee.
This coefficient will be applied to performance-linked remuneration for fiscal 2024.

Open Up Group Inc.
Integrated Report 2023

Compliance
Basic Stance and Policy

SystemMonthly monitoring and guidance or the full text of Corporate Ethics for Society, Human Rights, and the Environment, please refer to the Corporate Ethics
F
section of the corporate website.

Chairman and representative director, CEO
Corporate officer in charge of compliance

ReportingCompliance meetings (major operating companies)

100

ReportingCompliance check (other Group companies)
Confirmation of facts, measures to improve compliance and/or
prevent recurrence of compliance breaches

Major Themes• Compliance and Group stance • Environment and biodiversity • Antisocial forces • Prevention of bribery and corruption• Human rights • Harassment (including power harassment and sexual harassment) • Appropriate hiring and work environments• Management of confidential information • Protection of privacy • Insider trading • Copyright • In-house helpline

Data

President of major operating company / Managers of business divisions

The Group emphasizes training and education to maintain and promote ­compliance.
Accordingly, the employees working in the Group’s sales, recruiting, planning,%
and administration departments* are given theme-based compliance-related
Implementation rate ofcompliance educationmaterials and take its annual Compliance Confirmation Test. The content of theand training(Fiscal 2023)
test ranges from questions that check understanding of the Group’s Purposeto questions related to corporate ethics, general laws, and regulations.
The implementation rate of compliance education and training for employees in the sales, recruiting,* Including contract employees
and administration departments for fiscal 2023 was 100%.

Governance

ReportingGroup Administration Department

Prevention of Bribery and Corruption

All officers and employees must comply with items related to the prevention of bribery and corruption
within Corporate Ethics for Society, Human Rights, and the Environment.

Compliance Education and Training

Board of Directors

The Company (holding company)

Labor-Related Laws and Regulations

The Company’s main business, human resources services, is regulated by laws and regulations such as
the Labor Standards Act, the Worker Dispatch Act, and the Employment Security Act, and compliancewith these laws and regulations is vital for maintaining valid permits and licenses. Compliance withthese laws and regulations also contributes to respect for human rights, the safety and health of theGroup’s employees, and risk management—all of which underpin the Group’s sustainable operations—while also being integral to realizing the Group’s Purpose, which is to open up individual potential
through rewarding work.
Specifically, the Company promotes various measures, such as management of working hours,­promotion of the use of paid leave, prevention of workplace accidents, review of employment andcontract terms and conditions, prevention of harassment, and health management, in cooperation withrelated departments in operating companies.

Sustainability

Overview of compliance system

The Group operates in multiple countries and makes the fullest efforts to ensure thorough compliancewith the relevant laws and regulations of each country. Any information related to revisions in these laws
and regulations as well as responses to inspections from public institutions and subsequent results areshared among operating companies. The Company also maintains control over relations between operatingcompanies. Furthermore, the Company has entered into advisory agreements with multiple law firms
according to the type of law and the nature of the business in question, creating a system that gives it
constant access to new information and advice.

Strategy

The corporate officer in charge of the Group Administration Department is also in charge of Groupwide
compliance, under the supervision and direction of the holding company. Efforts to promote complianceare handled primarily through compliance meetings, which are held at each major operating company
and comprise the company’s president and managers of its business divisions. The Company monitors
the effectiveness of each operating company’s compliance meetings as well as the status of their internal
controls and reports to the Board of Directors every month, after which operating companies areencouraged to make improvements as necessary.
At each major operating company’s monthly compliance meeting, they conduct independent compliance checks related to the Act on Securing the Proper Operation of Worker Dispatching Businesses andProtecting Dispatched Workers (the Worker Dispatch Act) and other labor-related laws and regulations,and to make improvements. Specifically, the meetings aim to share the most up-to-date g­ uidance from theLabor Bureau and Labor Standards Inspection Office and ensure that any issues that need to be addressed,
any required reductions in working hours, and any other efforts related to laws and regulations are properly understood, that the proper instructions are given, and that any initiatives in response are suitably
promoted. In addition, the meetings monitor items related to human rights, the environment, information
management, misconduct, internal whistleblowing, and other matters, and if a serious incident occurs, theoperating company in question works to gain a rapid understanding of the situation and take countermeasures. Furthermore, the company conducts internal audits of business offices engaged in contracting,outsourcing, and other transactions in keeping with the nature of their specific business to confirm that any
commands given to maintain compliance with the law have been implemented and that legally mandated
safety and health standards are being enforced.

Responses to Revisions of Relevant Laws and Regulations and Reviews of Operations

Overview

The Group’s officers and employees must act in accordance with the Group’s action guidelines, titled
Corporate Ethics for Society, Human Rights, and the Environment, which call for rigorous professional
ethics, profound insight, and self-discipline, under the belief that compliance is not limited to laws andregulations but also extends to corporate ethics and social norms.

65

Open Up Group Inc.
Integrated Report 2023

66

Compliance

Whistleblowing System

Overview of internal whistleblowing system
Reporting

The Company (holding company)

Chairman and representative
director, CEOGroup Administration Department

Corporate officer in chargeof compliance

Monthly monitoring and guidance

ReportingPresident of each operating company / Managers of business divisions

ReportingCompliance check (other Group companies)

Whistleblower Protection

Confirmation of facts, measures to improve compliance and/or
prevent recurrence of compliance breaches• Number of whistleblowing reports• Summary of reports• Measures to improve compliance and/or
prevent recurrence of compliance breaches

Internal reporting desks
Internal reporting desk
(general affairs
department of each
operating company)

Audit & Supervisory
Board member
contact point

Whistleblowing reports

External reporting desk
(law firm)Harassment
consultation desk

The Company has established regulations within its whistleblowing system to protect whistleblowers inline with the Whistleblowing Protection Act. These regulations ensure that whistleblowers are not penalized for making reports. The Company has also put in place a system that allows anonymous reportingand ensures confidentiality. Specifically, the Company has stipulated that it will not dismiss, claim compensation from, or penalize those who utilize the whistleblowing system in any other way for their consultation or reporting, including the cancellation of worker dispatch contracts and outsourcing contracts.
In addition, appropriate measures will be taken to ensure that people who utilize the reporting desks
for whistleblowing or consulting purposes do not suffer retaliation in the form of negative work conditions. The Company also stipulates that disciplinary action may be taken in accordance with employment
regulations if a person engages in unfavorable treatment or harassment of someone who utilizes thewhistleblowing system.

Governance

Reporting36

Sustainability

Compliance meetings (operating companies)

As part of our whistleblowing system, we have established reporting
desks that employees and other users can access at any time. Aninternal reporting desk for whistleblowing and consultations as well
as a dedicated desk for harassment consultation have been estabNumber of reports/consultations
made through the internal
lished within the General Affairs Departments of each operating
whistleblowing systemcompany, with each desk staffed by at least one male operator and(Fiscal 2023)
one female operator. Users may choose whether they communicate
with either a man or woman when utilizing either desk. In addition,
the Company has established a contact point with the Audit & Supervisory Committee, which is operated
by the director in charge of internal whistleblowing (an Audit and Supervisory Committee member), andan external reporting desk connected to a law firm. These services are available through a variety ofchannels, including telephone, e-mail, fax, pen and paper, and in-person contact.
These reporting desks are for anyone working for a Group company, as well as those who have retired
or whose contracts have ended within the past year, including officers, employees, part-time workers,
subcontractors, and the Group’s business partners. In addition to providing access to these services to awide range of people, the Company spreads awareness and understanding of this reporting system andhow to use it as part of its compliance education.
In the fiscal year ending June 2023, 36 reports were logged through the whistleblowing system. Noneof these reports was significant enough to lead to serious recommendations that could affect permits or
to lawsuits for large amounts of compensation.

Strategy

Board of Directors

Reporting Desks

Overview

The Group has established a whistleblowing system for the prevention and early detection of andprompt response to any violations of laws and regulations and misconduct that occur as part ofbusiness execution.
Usage history of the system and the content of whistleblowing reports are reported regularly to theGroup Administration Department and the Board of Directors of the Company via reporting from thecompliance meetings held at each major operating company. If an investigation reveals any illegality,
fraud, misconduct, or human rights violation, the corporate officer or manager of the department
involved in the violation will promptly take corrective measures and prevent its recurrence.

Responding

Whistleblower / Consulting party

Data

All Group employees (including
officers, employees, and those whohave retired or whose contracts haveended within the past year)

For more information about compliance, please refer to the Compliance section of the corporate website.

Open Up Group Inc.
Integrated Report 2023

Risk Management
Basic Stance and Policy

Confirm and update risks(verification)

Validate risk catalog

Annual cycle
Countermeasures

Board of Directors
Reporting
Sustainability Committee

ReportingInternal Control Committee
ReportingInternal Audit Committee

Conducting internal audits

Promotion and improvement activities in each department of the Company and in each Group company
Compliance meetings (monthly compliance checks)

Major items are discussed andresolved by the Board of
Directors and theManagement Meeting

Internal Control Committee
Sustainability Committee

Data

Risk andopportunity
management

Risk management process

GovernanceRisk management system

Sustainability

The Group takes a two-pronged approach to risk management. First, the holding company identifies
risks, including medium- to long-term risks, on an annual, top-down basis; second, operating companies
identify risks on a constant, bottom-up basis.
The first approach is implemented by the Company’s Sustainability Committee and Internal
Controls Committee, and the results of their investigations and assessments are reported to the Boardof Directors. Both of these committees are chaired by the person serving as representative director,
chairman and CEO, and comprise the person serving as representative director, president and COO,
the CFO, full-time directors, and Group executives and employees designated by the chair.
The Sustainability Committee manages risks through general management and the deliberationof opportunities and risks related to the realization of a sustainable society, taking into consideration
human rights, environmental issues, and coexistence with society. The Internal Control Committee
receives reports on the implementation of internal audits of overall business activities for each operatingcompany, and it uses a general risk catalog to assess the impact and possibility of changes in theexternal environment and identify risks.
For the second approach, which is conducted at an operating company level, operating companies
identify potential risks at their respective monthly compliance meetings, and implement and monitor
individualized response measures on a continual basis. Investigations and assessments resulting fromthese meetings must be reported to or approved by the Company based on the Group Company
Management Regulations and the Reporting Regulations. Through this process, the Company gains anunderstanding of matters that may pose a risk to the Group, issues suitable instructions as appropriate,
and promotes risk management.

Strategy

SystemRisk Identification and Management

The Group has developed a risk catalog which serves as a fundamental database for identifying risks.
The catalog is a comprehensive list of 207 specific risks derived from the full range of factors that could
affect the Group, including internal and external conditions. Every year the risk catalog for internal control
is reviewed and business risks are identified. Important matters that require countermeasures are­discussed and resolved by the Management Meeting and by the Board of Directors of the Company.
The first step when identifying risks is to review Group companies covered by the Group’s risk­management system and apply a dual approach based on the Basic Procedures for Internal Control overFinancial Reporting. The first involves selecting consolidated Group companies and affiliates that cover
95% of consolidated sales; the second involves selecting important consolidated Group companies thatcover two thirds of consolidated sales. Next, a risk assessment is conducted, looking at each of the 207
specific risks in terms of the likelihood of occurrence and financial impact and classifying the risks into
three levels: high, medium, and low.
Following the risk assessment conducted for fiscal 2023, it was determined that the following items
require further optimization: 1) Compliance with laws and regulations, 2) Client information management and personal information management, and 3) Prevention of workplace accidents. Based on theseresults, risk owners in each department of the Company have taken the lead in considering and­promoting measures to address risks.

Overview

The Company recognizes the increasingly important role of risk management amid the growing uncertainty in the business environment due to factors that include changes among client companies stemming from compromised economic security and diversifying work patterns and values in the wake of
the COVID-19 pandemic. In addition to addressing risks that affect the business itself, the Company
addresses risks related to environmental, social, and governance (ESG) factors. To do this more effectively, the Company has systematized the flow of management in line with the Group’s organization and­business, enabling appropriate monitoring and decision-making via the Management Meeting, theSustainability Committee, the Internal Controls Committee, and the Board of Directors.

67

Open Up Group Inc.
Integrated Report 2023

68

Risk Management

Major risks and the status of countermeasures

Climate change and natural disasters

 uspension of business activities in some areas due to natural disasters including earthquakes, tsunamis, andS
typhoons
Negative impact on work capacity caused by damage to client companies
Requests from client companies that their business partners adopt carbon neutrality initiatives

Major countermeasures and implementation status
 onduct risk assessments related to climate change and natural disasters led by the Sustainability CommitteeCand systematize the flow of investigations into changes in risk situations and responses to them.
Establish a resilient system and IT infrastructure capable of maintaining operations via other regional sites evenafter a certain level of impact.
Use environmental performance of products and promotional materials as selection criteria and promote
initiatives to reduce CO2 emissions, such as reducing the number of company vehicles and reusing materials.

Overview

Major risks and description

Legal restrictions

Implement reviews and checks in the workflow to prevent violations from occurring, carry out regular­monitoring, and implement prevention efforts through compliance meetings.

Strategy iolation of laws and regulations* related to temporary staffing and job placement services
VStricter guidance policies from supervisory authorities and Group initiatives not adequately reflected in theclient companies
Decline in demand as client companies re-evaluate their use of temporary staffing and outsourced contractors
in light of revisions to related laws and regulations and stricter guidance principles from supervisory authorities* In Japan, these include the Labor Standards Act, the Act on Securing the Proper Operation of Worker Dispatching Businesses andProtecting Dispatched Workers, and the Employment Security Act.

Information leaks and unauthorized use of confidential information of the client companies

Personal information management

Information leaks and unauthorized use of private information

 rovide all employees in the sales, recruiting, planning, and administration departments with guidance andP­education on the handling of confidential information when they join the Group and on a regular basis.
Monitor and inspect the status of information management through operational audits and compliance
meetings.
Restrict access to IT devices that process client information and implement measures to prevent data leaks.
 roperly manage personal information, establish related rules and regulations, acquire the PrivacyMark, andP
conduct employee education when employees join the Group and on a regular basis.
Monitor and inspect the status of information management through operational audits and compliance
meetings.
Restrict access to IT devices that process personal information and implement measures to prevent data leaks.
 revent workplace accidents by conducting safety and health education and training in cooperation with clientP
companies at the time of assignment and on other occasions.

Business contracting (contracted services, etc.)Investigate and prepare in advance for risks that may arise from contract work that differs from temporary
staffing in that the Company gives instructions for business execution and is responsible for the management
and supervision of tasks.

Serious workplace accidents that have life-changing impacts on people and suspend business transactions

 ermination of a contract with a client company or a claim for compensation for damages due to poor quality,Tlate delivery, defects in deliverables, etc., in the provision of services based on a contract agreement

Acquisitions, business alliances, etc.

Negative impact on performance due to an acquisition or business alliance failing to produce expected resultsData ollow procedures for careful and multifaceted verification and assessment of confirmation items at investment
Freview meetings when considering M&As and other transactions.
Focus on post-merger integration (PMI), confirming sufficient resources for PMI and discussing post-merger
management methods, starting from initial considerations into a possible M&A.
Continue to measure and assess the effectiveness of an investment post M&A.

Governance

Workplace accidents

Sustainability

Client information management

Information Security Management in IT
Basic Stance and Policy

System and Internal Audit Committee

Overview of confidential information

The general manager of the Group Administration Department is the person responsible for managing
the protection of personal information. This person implements initiatives to protect personal informationin collaboration with those responsible for information systems, education and training, document
management, and the managers of the Personal Information Protection Division and the complaint andconsultation desk. These initiatives are audited by the general manager of the Internal Audit Committee.

Overview of the personal information management system
President and representative director

Person in charge of auditing the­protection of personal information

Person in charge of managing theprotection of personal information

General manager of the Internal
Audit Department

General manager of the Group
Administration Department

Information
systems manager

Initiatives

Education andtraining manager

Manager of the
Personal Information
Protection Division

Note: Administrators, managers, and their
executive departments may beoutsourced to other companies
within the Group to handle­management duties.

Manager of thecomplaint and­consultation desk

Document
management
manager

Operating companies comply with domestic and overseas laws and regulations pertaining to the­protection of personal information and, in principle, manage and enforce their own rules pertaining topersonal information, which are on par with the PrivacyMark system and other accreditation systems.
Specific initiatives include efforts to enhance information security measures, prevent unauthorizedaccess to, leakage of, loss of, or damage to personal information; control access in and out of ouroffices; supervise contractors; and ensure safe management of information. If any concerns arise,
they will be reported as monitoring items at the company’s monthly compliance meeting.
Regular internal audits are conducted to continuously maintain and improve the management systemfor personal information. In addition, offices that have acquired PrivacyMark or similar certifications aremonitored regularly according to a PDCA cycle. Any causes for concern revealed by these audits or as aresult of monitoring are reported to the Board of Directors and the Audit & Supervisory Committee.

Data or details about the Group Information Systems Policy, please refer to the Information Security
F
Management in IT section of the corporate website.

SystemGovernance0

Number of serious
information leaks(Fiscal 2023)

In keeping with the Group Information Systems Policy, the Group strives
to ensure data security by implementing controls in six areas: compliance, development and modification, operation, security, IT audits, andmanagement. In addition, ongoing education and training on confidential information management is provided to all officers and employees.
It also conducts semi-annual targeted attack e-mail training for employees
who have frequent contact with confidential information, followed by
security training based on the results of the attack e-mail training.

As a human resource service provider that relies on recruitment and employment, the Group takes
responsibility for and places the utmost importance on the management and protection of personal
information. The Group has therefore set clear guidelines for protecting personal information in its
Corporate Ethics for Society, Human Rights, and the Environment and has established its Personal
Information Protection Policy. To promote understanding of these policies and ensure compliance,
the Group provides training on the protection of personal information to employees when they join
its companies, as well as ongoing training for officers and employees.

Sustainability

Initiatives

Basic Stance and Policy

Strategy

The Group has established the DX Planning
management system
Department and the IT Infrastructure Management
Information systems supervisor
Department within the DX Promotion Division, which is(corporate officer in charge of DX)
under direct control of an corporate officer of theCompany, in order to promote digital transformation
IT Infrastructure Management Department(DX) aimed at management and overall optimizationof Group business. In addition, an information systemmanager has been appointed at each operating
Operating companies
company, who works with the Company’s DX
Information systems manager
Promotion Division to control information security
management.
Moreover, the information systems of major Group
companies are audited as part of internal control
assessments. These efforts to gain a comprehensive understanding of the Group’s IT environment and to
identify and evaluate risks are aimed at the early detection and resolution of any problems that may
occur. The Internal Audit Department evaluates the development and operational status of securityrelated controls as part of its internal control evaluations, and any concerns that become apparent arereported to the Board of Directors and the Audit & Supervisory Committee.

69

Overview

The Group has established a comprehensive Group Information Systems Policy that aims to ensurebusiness continuity and protect the information assets of the Group as well as the information ofclients, applicants, employees, and other stakeholders through the proper handling and security of
information systems.

Protection of Personal Information

Open Up Group Inc.
Integrated Report 2023

Open Up Group Inc.
Integrated Report 2023

Financial Highlights
Major Items of Consolidated Statements of Financial Position
IFRS(¥ million)

Major Items of Consolidated Statements of Cash Flows(¥ million)

Current assets

36,60943,338Cash flows from operating activities

15,501

15,598Non-current assets

59,91258,152

Cash flows from investing activities(2,161)

611

Current liabilities

27,79331,596

Cash flows from financing activities(22,046)(12,667)

Non-current liabilities

5,382

4,878

Cash and cash equivalents at end of period

12,404

16,077

Total equity attributable to owners of parent

63,30964,956

Total equity

63,34565,016

Major Financial Indicators

Total assets

96,521

101,491

IFRS

IFRS

(¥ million)

Year ended June 30, 2022 Year ended June 30, 2023

Year ended June 30, 2022 Year ended June 30, 2023

Year ended June 30, 2022 Year ended June 30, 2023
6.8%

7.9%

SG&A cost ratio

16.7%

16.6%

Net income margin

4.7%

5.9%

Return on equity attributable to owners of parent
(ROE)

10.9%

14.9%

Return on total assets (ROA)

10.1%

13.2%

65.6%

64.0%

148,573

161,689

Cost of sales

114,141

122,889

Gross profit

34,43238,800

Selling, general and administrative expenses

24,876

26,786

Ratio of equity attributable to owners of parent tototal assets

Operating profit

10,103

12,760Debt-to-equity ratio (net of goodwill)0.10 times

0.08 times

Profit before tax

10,238

13,103

Price earnings ratio (PER)

19.14 times

19.22 times

Net income

7,046

9,544

¥716.32¥750.50

Profit attributable to owners of parent

6,975

9,533

Equity attributable to owners of parent per share(BPS)
Basic earnings per share (EPS)¥78.30¥109.13¥45¥50

Dividend per share

Governance

Revenue

Sustainability

Operating profit margin

Strategy

As of June 30, 2023

Overview

As of June 30, 2022

Major Items of Consolidated Statements of Income

IFRS

70

Data

Open Up Group Inc.
Integrated Report 2023

Non-Financial Highlights
Distribution of Human Resources(%)

Governance

Item

Item

Year ended June 30, 2023

Engineers and technicians: 91.6

Year ended June 30, 2022 Year ended June 30, 2023

Engineers and technicians: 92.3

Ratio of female directors(% as of the end of September)

1030

Ratio of outside directors(% as of the end of September)

50

50

Ratio of foreign directors (%)

00Internal managers: 1.1
Internal general employees: 6.6

Aged 29 and younger: 45.3

Aged 29 and younger: 49.5

Aged 30 to 39: 29.1

Aged 30 to 39: 26.7

Number of meetings of outside directors

3

1

Aged 40 to 49: 14.0

Aged 40 to 49: 12.3

Ratio of mid-career managers (domestic) (%)

83.2

94.1

Aged 50 to 59: 9.1

Aged 50 to 59: 8.7

Ratio of female managers (domestic) (%)

10.5

10.9

Aged 60 and older: 2.6

Aged 60 and older: 2.8

Ratio by age

Ratio of female employees

25.6

26.9

Ratio of foreign nationals

3.5

2.7

Ratio of employees aged 60 and over

2.6

2.2

Ratio of employees with disabilities

2.32

2.3

Item

Year ended June 30, 2022 Year ended June 30, 2023
842,769

1,246,611

Total number of trainees

22,40634,025

Total investment in education and training (¥ million)

1,419

2,131

Total number of job transfers to client companies

319

350

Voluntary resignation rate (%)

98

99.2

71.76

Ratio of employees taking paid leave (%)

0

0

0

Number of major information leaks

00Compliance training and education implementation
rate (%)

93

100

Implementation rate for education on personal­information management, etc. (%)

82

93

Expenditure related to political contribution and­lobbying (¥)

00

Environmental Protection and Social Contribution Activities
Item

Year ended June 30, 2022 Year ended June 30, 2023

Expenditure related to regional and social­contributions (¥ thousand)

38,51339,093

75.4

Amount of paper purchased (weight equivalent)

23.1 t22.4 t3.83 t

9.8 t

5 t-CO2

2 t-CO2727 t-CO2

858 t-CO2

225

240

Male employees

1918Greenhouse gas emissions (Scope 1)

Number of serious workplace accidents(accidents that require four or more days leave or
result in physical impairments post-accident)

30

37

Number of uses of helpline and internal consultation, etc.

45

36

(Number of serious whistleblowing cases: Serious
cases are those that could lead to serious permitrelated sanctions or lawsuits for large amounts ofcompensation, etc.)00Greenhouse gas emissions (Scope 2): market-based

For more details of the Group’s non-financial data, please refer to the Non-Financial Information sectionof the corporate website.

Data

Total number of employees taking childcare leaveand nursing care leave

Amount of paper collected (weight equivalent of
paper recycled within the Group)

GovernanceTotal number of training hours

0

Sustainability

Investment in Human Resources and Well-Being

Number of serious permit-related sanctions
Number of bribery charges, criminal charges, andlarge compensation lawsuits

StrategyInternal managers: 1.3
Internal general employees: 7.1

Overview

Composition ratio of humanresources

Year ended June 30, 2022

71

Open Up Group Inc.
Integrated Report 2023

About this Report
The Creation of Integrated Report 2023 

Information Disclosure for Open Up Group For more information regarding Open Up Group,
please refer to the corporate website.

In June 2023, the Group became a participant in the UN Global

Compact. We support the 10 principles of the UN Global Compact inStrategy

Endorsed Initiatives UN Global Compact

Overview

the four areas of human rights, labor, environment, and anti-corruption,
and will continue to conduct sustainable activities with the goal of
realizing a sustainable society and achieving Group growth.

External Awards and Recognition 
BeNEXT Technologies Inc. and YUMESHIN Co., Ltd.

Open Up Group Inc.

Recognized as a Certified Health & Productivity Management
Outstanding Organization in 2023

Certified under the Digital Transformation (DX) Certified Companies
initiative of the Ministry of Economy, Trade and Industry

Sustainability

The publication of Integrated Report 2023 coincides with the midpoint of BY25,
our medium-term management plan, which covers the four-year period from fiscal
2022, the fiscal year ended June 30, 2022, through fiscal 2025.
Revenue and profit growth are ways to indicate progress under this plan; we havecreated this report to give readers an understanding of the efforts and ideas thatdrive this growth.
Over the past two years, we have discussed the value creation process and material
issues, made efforts to enhance our governance system that include transitioning toa Company with an Audit & Supervisory Committee, and established the Open Up
Purpose Index, as series of material issues-based KPIs that align with the time frameof BY25. These are just a few examples of our continued efforts to fulfill our Purposeof opening up individual potential through rewarding work. I also believe that thisreport effectively describes the businesses the Group operates, the economic andsocial value they create, and how this economic and social value increases corporate value in turn. The latest non-financial information and other information notincluded in this report can be found on our corporate website, which is updated
as necessary.
We intend to use this report to stimulate constructive dialogue with all of our
stakeholders and utilize it as a tool for future management.

72

Noriyuki Murai

Senior Executive Officer

Governance

BeNEXT Partners Inc.

Listed on the FTSE Blossom Japan Sector Relative Index

Recognized as an Excellent Dispatch Company
by the Ministry of Health, Labour and Welfare

Open Up With Inc.
Data

Monisu certification,
provided by the Ministry of
Health, Labour and Welfare

Kanagawa SDGs Partner

Sagamihara SDGs Partner

Eruboshi certification markOpen Up Group Inc.
Integrated Report 2023

Company Overview / Shareholder Data

Basic Information and Status of Shares (As of June 30, 2023)

Name

Open Up Group Inc.

Securities code

2154

Representative
directors

Yutaka Nishida, Chairman and Representative Director, CEO
Daio Sato, President and Representative Director, COO

Stock listing

Prime Market, Tokyo Stock Exchange

Authorized shares

360,000,000

Established

August 1997

Shares outstanding

91,575,411

Capital¥4,695 million (As of June 30, 2023)

Share trading unit

100 shares

Head office

2-14-1 Higashi-Shimbashi, Minato-ku, Tokyo 105-0021, Japan

Number of shareholders

17,613140

Strategy

Share price development

Equity shareholdings by type of shareholder
Individuals and others

36.2%

Other corporations

16.2%

Overseas investors

Financial institutions

21.7%

19.4%

Securities companies Treasury stock
holdings
1.4%

120

5.2%

Major Shareholders

110

Shareholding ratio (%)

2022/6 2022/7 2022/8 2022/9 2022/10 2022/11 2022/12 2023/1 2023/2 2023/3 2023/4 2023/5

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

9,177,000

10.0

Hayao Nakayama

8,378,000

9.1Open Up Group Inc. share
TOPIX
Note: The graph displays the relative value of the stock price at the end of each month, taking the closing value at the end of the
fiscal year ended June 30, 2022, as one hundred.

Custody Bank of Japan, Ltd. (Trust Account)

7,336,805

8.0

Amuse Capital, Inc.

7,240,000

7.9

Kokoro Co., Ltd.

5,785,256

6.3

Disclaimer
Statements in this integrated report, such as forecasts and estimates, are judgments basedon the information available at the time of issuance and the complete accuracy of suchstatements cannot be guaranteed. Furthermore, they are subject to change without warning
going forward. While every effort has been made to use the latest information in the­formulation and issuance of this report, the Company and information providers will not
be held liable in the unlikely event that said information causes loss or damage.

Yoshiko Sato

4,809,054

5.3

Open Up Group Inc.

4,770,276

5.2

STATE STREET LONDON CARE OF STATE STREETBANK AND TRUST

3,421,000

3.7

Daio Sato

2,730,678

3.0

Amuse Capital Investment Inc.

1,240,000

1.4

Data

Shares held

GovernanceName of shareholder

100

Sustainability

130

90

Overview

Company Overview

73