Sustainability Report

2O24

RAKUS Co., Ltd.
Sustainability Report

CONTENTS

About RAKUS

Foundations Supporting Our Business

Editorial Policy
and improve corporate value by engaging in dialogue with

The purpose of this report is to deepen mutual understanding

RAKUS’ Objective2

Human Capital20

At a glance3

Technology

26

shareholders, investors, and other stakeholders regarding theEnvironment

28

business, financial, and ESG information.

Human Rights

28

Message from the President

4value offered to society by the RAKUS Group, and the Group’s

Websitehttps://www.rakus.co.jp/en/

Value Creation

IR Information

Value Creation Trajectory

8

GovernanceMateriality

9

Organizational Structure and Governance Policy

30

Value Creation and Impact

12

Directors/Audit & Supervisory Board Members

31

Remuneration for Officers

32

Compliance33

Business Strategy

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

ir@rakus.co.jp
Scope of Report
This report covers RAKUS Co., Ltd. and its consolidated
subsidiaries within and outside Japan, as well as some other

Cloud Business14

IT Outsourcing Business

18

affiliates. The report applies to the period from April 2023 to

Data Section

March 2024.

Financial Data

35

Non-financial Data

36

Capital Structure and Dividends

37

Company Outline & Group Structure38* It also includes some information outside that period.

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

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

2

RAKUS’ Objective

Constantly Helping Companies
Grow Their Business by Providing
IT Services

MISSION
Constantly helping
companies growtheir business byproviding IT services.

Significance and Value of the Existence of RAKUS

Our mission at RAKUS is “Constantly helping companies grow their business byproviding IT services” and our vision is to “become a company representing
Japan.” We regard these as goals to be achieved.
Become a Company Representing Japan
A major defining feature of RAKUS is our thinking about achieving goals. We
express that thinking with the phrases: goal-oriented, steady persistence,sincere reasonableness, and eliminating uncertainty. These express
Vision/Mission
Vision/Mission ...etc
RAKUS’ Uniqueness.
for organizations
for services
We aim to achieve the overall mission and vision of RAKUS byestablishing separate missions and visions for organizations andservices based on our Uniqueness, which indicates our thinking, andthe RAKUS Leadership Principles, which are our guiding principles.
RAKUS Leadership Principles
RAKUS has always set high goals, and steadily achieved them.
Guiding Principles which RAKUS Leaders Should Have
We will continue to pursue our business in order to achieve our
mission and vision.
Treat people with sincerity
Take ownership
Aim for overall optimization

VISION❶ Goal-oriented
When a goal is achieved,
a new goal is set

Keep steadily producing results,
and continue growing as
individuals and as a company

UniquenessWays ofsupporting
UniquenessContinue learningand growing

Start small and grow big

Consider the
cost-benefit performance

Do what needs to be done

Accept others’ views

Tolerate failure

Communicate ideas
with words

Focus on results❷ Steady persistence“Eliminating uncertainty” and“Sincere reasonableness” are neededto achieve steady persistence❹ Eliminating
uncertainty❸ Sincerereasonableness

Always define a goal,
and think and act to achieve it❷ Steady persistence
Pursue stable outcomeswhile continually improving❸ Sincere reasonablenessDo not forget to be thoughtful ofothers while emphasizing efficiency

Ways of approaching our vision

Guiding
Principles

Sourcesof growth

Four types of Uniqueness❶ Goal-oriented

Ways of achieving our mission❹ Eliminating uncertainty

Thinking

Eliminate uncertainty toensure steady persistence

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance3

Data Section

At a glance

RAKUS Viewed through Data (Year ended March 2024)
Year founded

2000

8

15

%

Operating profit

5.5

billion yen

38.4

100billion
millionyenyenOrdinary profit

5.6

85

%

4.1

68.4

%

%

896 People

Paper reduction due toservice adoption(Raku Raku Seisan,
Raku Raku Meisai)85

per yearmillion sheets or more

50

ARR

34.1

billion yen

Subscription Sales Ratio

92.9

%

Cumulative Number ofCompanies Using the Service

83‚000companies or more%

Profit attributable to owners of parent

billion yen

100

90.3

IT Outsourcing Business

Ratio of outside directors

59

Percentage of paid leave taken

PeopleCloud
Business

Women

%

2,561

billion yen

Ratio of female managers

Employee male-female ratio

Men

1,519 People

146 People

Office locations

Cloud Business

Men

Cloud BusinessBack-office
Departments

Consolidated net sales

IT Outsourcing
Business

Ratio of childcare leave taken

Number of Employees

Number oflocations

5.5： 31.6
Women%

Monthly average
overtime hours

13.8

Sponsored by the Great Place to Work® Institute Japan“Companies that are the Best Workplaces”
Top 100 ranking

hours

7

th consecutive year

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Message from the President

DX in Japan: The Objective ofGoal-Oriented Organizations
Takanori Nakamura
President and Representative Director

Thinking about businesses we stick with in a era of
tumultuous change
I founded IT Boost Co., Ltd., the forerunner of RAKUS, in November
2000. At that time, Japan remained a central player on the world stage,
still enjoying the afterglow of its status as an economic powerhouse.
On the other, a decreasing birthrate, aging society, and declining
population were regarded as inevitable, and there was talk that Japan’s
position in the world would likely recede. Since that time, people havenoted that Japan must improve its productivity if it is to maintain its
affluence and economic scale. Under such circumstances, we thought
hard about what we could do to boost Japan’s productivity using the
IT that is our forte. This led to the core of our business that continues
today: providing continual support for corporate growth through IT
services. We have continued to focus on how to do more with fewer
people using IT.
As we continue to do business, I feel that population decline isprogressing faster than anticipated. Future population declines will
be even larger, and thus we recognize that we will have a larger roleto play in corporate DX. Labor shortages and hiring problems inparticular have become significant issues in Japan in the last few years.
Working hours are also steadily getting shorter due to factors such as

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

4

restrictions limiting overtime work. In light of these points, we foresee
an even stronger need for labor-saving and automation to improve
productivity.
On the other hand, technology seems to be diffusing more slowly
than expected, and adoption of our services is taking more time than
we thought. If it reaches the point where elderly people will work
longer as a matter of course due to the further advance of societal
aging, harmful effects may arise due to the sudden digitalizationof interfaces and devices. Therefore, I believe we should avoid thepresumption that everything will simply be digitalized across the board.
Instead, we should propose the best approach to optimal digitalization
suited to each customer’s situation.

We start from “What is the goal?”
Our mission at RAKUS is “Constantly helping companies grow theirbusiness by providing IT services.” The services we offer are software
as a service (SaaS) and dispatching of IT engineers. These are not oneoff services for our customers, so we always want to provide services
that are useful to the customers—services they respond positively to—and continue our relationship with them. This aspiration is reflected in
our mission.
As one factor that will impact future society, we are emphasizing theevolution and development of generative AI. We regard generative AI
like electric power or the Internet. Over the next few years, it will bedisseminated throughout society, and be more actively used. Before
long, it will be a given, not even called generative AI, and simply
treated as social infrastructure.
The goals we strive for in our business, and our mission and vision,
will not change, even as the environment changes in this way. The ideal
approach for RAKUS’ business, in any environment, is to take a goal as
the departure point, and then proceed by selecting the optimal policies
and means.

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

We see this “goal-oriented” stance as one element of RAKUS’
Uniqueness. We begin all of our work by first asking: “What is thegoal?” This allows us to see the difference between our target andreality, clarify what we need to do, and determine what is not an issue
and what does not need to be done. It is essential to understandthe goal, so we can concentrate resources on things we should bedoing, and refrain from actions that do not connect with the goal. If
we do not do that, poor outcomes are likely to occur such as means
becoming ends, setting KPI unconnected with the goal, and sticking
with methods that lack cost performance. In goal-oriented thinking,we strive for in-house communication at every opportunity. There
are times when I too feel we have made a mistake by starting from ameans rather than a goal, and we generally move forward while making
corrections whenever things like that happen.
When new technology appears, it is important to take an interest,
learn about it, and explore, but we are careful not to let that turn into
an objective. Technology is just a means. To connect technology withthe goal of solving customer problems, we ask: How can we use it
to offer better IT services? And how can we connect it with our own
company’s growth? I believe it is vital to interact with technology
without losing sight of our goals.

Business Strategy

Foundations Supporting Our BusinessGovernance

we received an extremely large number of new orders and newcustomers doing business with us, and this had a very positive effect.
There are prospects of continuing contracts in the future. To build
continuing, stable relationships with customers, we have also focused
efforts on bolstering the number and skills of employees engaged incustomer success work—a role involving detailed, close support andproblem solving—and this too has borne fruit in the current situation.
On the other hand, the business world’s response to the new legal
requirements ended around December, and customer efforts toward
DX seem to have slowed down somewhat. An important issue will be
the speed we can operate our business at after the tailwind gives out.
The year ended March 2024 was a period corresponding to the5

middle of our Medium-Term Management Targets (year ended March2022 to year ended March 2026). The path to achieving our five year
goal of sales CAGR 31%–32% and net income of 10 billion yen has
come into view to some extent. Going forward, it will be important todetermine how we can maintain the good performance we achieved up
to the previous year, and how much we should invest in which fields.
In April 2024, we completed an absorption-type merger of
RAKUS HR Tech Co., Ltd. We first consolidated that company as
a wholly-owned subsidiary in July 2023, and developed a cloudbased attendance management business, but there were superior
specifications, such as implementation of functions we planned to
introduce in the future in Raku Raku Kintai, a cloud-based attendance

Changes in Net Sales and Medium-Term
Management Targets(Millions of yen)

59,365~61,666

1 Five-year net sales CAGR 31%–32%■
2 Net income for FY2026.3: 10 billion yenor more■
3 Net assets for FY2026.3: 20 billion yen or more■

Medium-Term Management Targets and the
Future Beyond
The environment surrounding RAKUS’ business has changed
dramatically, even in just the last few years. There have been legal
and regulatory changes like the Invoice System that commenced in
October 2023, and the end of the safe harbor period for preserving
data on electronic transactions due to the Electronic Bookkeeping
Law in December 2023. This has led to greater customer needs
for adoption, and acted as tailwind, making the year ended March2024 a dynamic year for our business. In the first half in particular,

Data Section

38,40827,399

4,077

4,932

FY2016.3

FY2017.3

6,408
FY2018.3

8,743
FY2019.3

11,608FY2020.3

15,387

20,629Strengthen investment in growth

FY2021.3

FY2022.3

FY2023.3

FY2024.3

FY2026.3

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

management system we were already developing in-house. Therefore,
we decided that integrating the two would lead to faster growth ofmarket share in the attendance management field.
Going forward, M&A will be an important theme. To ensure ourcustomers can use more and better services, and further pursue DX
in Japan, we will naturally continue steady growth of the services wecurrently offer, but we will also need to keep an eye out for acquiring
new services and deploying them in a speedy fashion. While stacking
up these efforts, one by one, I want to proceed with discussions of ournext medium-term management targets.

Each employee is a colleague sharing goals
The most important capital for conducting RAKUS’ business is humanresources. We have worked over the last few years to secure humanresources while the business environment has provided a tailwind. We
are increasing our employees by 300 to 500 people a year, including
the aforementioned customer success workers, and in some of ourdepartments, almost all employees have only been with the company

Gathering of employees at “RAKU! Fest 2024”

Business Strategy

Foundations Supporting Our Businessfor one or two years.
This trend of growing the ranks of our personnel, which has been
underway since around 2019, has overlapped with the period of morewidespread work-from-home due to the COVID-19 pandemic. As aresult, there are concerns about weakening of RAKUS culture and lackof uniformity in the thinking of individuals. Even after the pandemic,
there has been almost no interaction between employees at different
locations, and few opportunities for management (including myself)
to really rub elbows with employees, and it has been difficult to geteveryone aligned in areas like our goal-oriented stance.
For this reason, we are currently working hard to strengthen our
inner branding system, and bolstering in-house dissemination of
information. “RAKU! Fest,” an event for all employees we have held
since before the pandemic, had to be held online for the last few years,
but in April 2024 we were able to hold it in real-life for the first time ina long while. Our employees gathered in a venue with 2,000-person
capacity. There, we communicated once again the direction of eachof our businesses, did presentations, and held our “RAKUS Awards”
ceremony for commending employees who have embodied a goaloriented approach. I hope we can impart RAKUS’ Uniqueness andculture to each employee, and improve motivation, by routinely sharing
information on the intranet and holding events like this.
Developing employees and arranging optimal work environments
are also ways to achieve the goals we are aiming for. We consider
approaches while always examining what we can do with limited
resources, and determining where to focus those resources. Amid
rapidly changing social trends and technological progress, we have put
in place a training system over the years to promote employee growth,
but there is still more to do, and we will continue expanding thissystem in the future.
A system for supporting the ease of work of our employees has
also been gradually taking shape since our founding, and measuresand systems for realizing an environment that is easy to work in are

Governance

Data Section

6

being enhanced. For example, we introduced sick leave in 2022.
This provides five days of paid leave per year, separate from annual
paid leave, as a system to deal with personal injury or illness of theindividual or family members. This system is a response to employees
pointing out that, if they use up all their paid leave due to illness, they
are in trouble if an emergency arises. We aimed to make this a systemthat is easy to use, to address the actual situation.
My belief is that it’s impossible to create a company or organizationthat people will always see as good. The direction a company aims forwill change according to social trends, and individuals too are always
changing in their life stages and values. Therefore, I think it is essential
for a company to create a niche that is perceived to be good by acertain person or group, at a certain time, under certain circumstances.
RAKUS will clearly convey its aims as an organization, and where those
aims will be achieved. We will ensure that people committed to those
aims can step into action. If individual employees can thereby see
they are colleagues working together toward a shared goal, then theorganization too will naturally act to realize that vision.
Ensuring sustainability is a precondition for achieving RAKUS’mission, i.e., continually helping companies grow their business byproviding IT services. By stipulating once again, as a materiality, ourposture of aiming to solve social challenges through business, we
can be sure that the materiality will serve as an impetus in our daily
conduct, and as a driver giving rise to operational efficiency and“emotional fulfillment” through business.
Going forward, we will continue to tackle challenges so we canprovide more companies with better services they can use.

RAKUS Sustainability Report 2024

7

Value Creation

Value Creation Trajectory

8

Materiality

9

Value Creation and Impact

12

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

8

Data Section

Value Creation Trajectory

Achieving Dynamic Business Growth throughStrategic Deployment of Services

FY2022.3 to

Rapid growth phase

In order to achieve our mission of “Constantly helping companies grow their business by providing IT services,”

High growth achieved throughrapid expansion of hiring andactive marketing of main service

the RAKUS Group has offered services to make our customers’ operations easier—with Cloud Business and IT
Outsourcing Business as our two mainstays.
FY2016.3 to FY2021.3

Growth phase

Listed on Tokyo Stock Exchange, and growthwith Raku Raku Seisan as main service
FY2007.3 to FY2015.3

Expansion phase
FY2001.3 to FY2006.3

Development and provision of multiple cloud services,
based on ideas derived from our own company’s
operational issues

Business launched as IT engineeringschool, operated as dual business with
Cloud Business

April 2011: Subsidiary established in the US
May 2014: Subsidiary established in Vietnam
January 2015: All shares of US subsidiary were soldFounding phase

November 2000: RAKUS was established
April 2001: IT engineering school business started,
Cloud Business started
May 2002: IT Outsourcing Business started

2001

FY2001.3 FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3

April 2022: Transition to Tokyo Stock
Exchange Prime Market
July 2023: RAKUS HRTech consolidated
as subsidiary

December 2015: Listed on Tokyo Stock Exchange Mothers
February 2018: Blaynmail consolidated as subsidiary
March 2021: Changed to First Section of the Tokyo
Stock Exchange

38,4O82023

27,3992020

2009

2O,62915,387

2008
2007

2024

2013

FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 FY2012.3 FY2013.3 FY2014.3 FY2015.3

4,O77 4,932
FY2016.3

FY2017.3

6,4O8

FY2018.3

8,743

FY2019.3

11,6O8FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3

From FY2025.3

Net sales (Millions of yen)

RAKUS Sustainability Report 2024

Value Creation

About RAKUS

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

9

Materiality[RAKUS’ cherished thought]

Making Life and Work Easier andMore Enjoyable
As the decline of Japan’s working population progresses at the fastest pace in theworld, it will be essential to take steps to raise the labor productivity of each person sothat economic affluence can be maintained. RAKUS’ aim is to make life and work moreenjoyable for people working at companies, by providing services that make operations
more efficient—in other words, easier.
To make this a reality, we have identified key issues to be addressed by RAKUS asfour materialities. These are the departure point for all our business activities, and thedriving force in carrying out our sustainability activities.

Socialchallenges

RAKUS’ approach

Decreasing birthrate anddeclining working
population

Improvement of productivity /Greater operational efficiency

Solving social
challenges
Creating a more relaxed society withleeway in terms of mental pressure
and time, and realizing
an affluent future

RAKUS Materiarity (important issues)
Providing services suited tothe customer

Developing customer-oriented
products

Creating an environment where
employees can continue to work andgrow with confidence

Establishing a solid management base tosupport business continuity and growth
RAKUS

DX

To realize DX and improve labor productivity, we must
deeply understand customer operations, and provide
services tailored to the issues and literacy of eachcustomer. RAKUS contributes to the solution ofoperational issues and improvement of efficiency bysincerely working with the customers of eachcompany.

We develop a deep understanding of customer
operations, incorporate the necessary technology
while staying abreast of the latest technology trends,
and develop products and features which solve
customer challenges. We are also working to bolster
security so we can continue to provide stableproducts to customers.

We work hard to provide an environment where every
employee can exhibit their abilities to the fullest, andcan carry out their duties with a feeling of job
satisfaction. When each employee continues to grow,labor productivity rises, and the total amount of valuethat can be delivered to society increases.

We believe that continuing and growing our businesswill help realize an affluent society. Therefore, RAKUS
is fortifying the management base that supports ourbusiness growth by strengthening corporate
governance and ensuring full commitment tocompliance.

RAKUS Sustainability Report 2024

Value Creation

About RAKUS

Business Strategy

Foundations Supporting Our BusinessGovernance

10

Data Section

Materiality

Process of Identifying Materiality
We relate social challenges and their importance in RAKUS’ business,and then arrange them as materiality

RAKUS emphasizes sustainable business operation so that we can address social challenges, and approachrealization of a better society through business. We have identified issues important for both society and
RAKUS, analyzed risks and opportunities to be addressed by RAKUS, and identified four materialities on thatbasis. The following page provides details on important management resources of RAKUS and the externalA

environment surrounding RAKUS (risks, opportunities).

Identification process

B❶ Identifyingsocial challenges❷ Evaluationof issues

Identify social challenges
and RAKUS business issues
by referring to internationalguidelines, etc.

Evaluate from thestandpoint of social
challenges and importancefor RAKUS’ businessSocial challenges

High❸ Materiality
arrangement
Determine priority ofissues through repeatedin-company interviews
based on importanceassessment❹ Approval by Boardof Directors

Reduction of global
environmental impact through DX

C Strengthening security

Report to Board of
Directors, and obtainapprovalD

Stable supply of products toimprove labor productivity

Arranging work environments
E where employees can grow witha sense of job satisfaction

A

B

Promoting DX suited tothe customer

D
E
C

H
G

F

F

Importance of RAKUS business

Human resource diversity
and respect

G Developing the next generation

High

H

Strengthening compliance andcorporate governance

Providing services
suited to thecustomerDX

Developing
customer-oriented
products

Creating anenvironment where
employees cancontinue to workand grow withconfidence

Establishing a solidmanagement baseto support business
continuity andgrowth

RAKUS

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

11

Materiality

RAKUS’ Management Resources and External Environment
The following lays out RAKUS’ important management resources and the external environment (risks, opportunities) surrounding RAKUS. These are reflected in materiality.

Diversification of sense ofvalues and work styles

Important management resources
Human
Resources

Technology

Risk

Customer baseRisk・Decline in engagement
・Decline in labor productivity

Opportunity
・Secure personnel with diverse
backgrounds

Technological evolution andcommodification

Staying on top of the latest technological trends
and tirelessly incorporating needed technology
leads to sustainable growth. It is important tohave the technological capabilities toprovide services that are stable, lowcost, and secure.

Retaining talented employees and expanding theorganization are essential for achieving sustained growth. Many employees are midcareerhires with diverse experiences and specializations, and continuously increasing thenumber of employees is a sourceof our capability to grow.

Addressing customer needs gives services competitive
advantage, so expanding the customer base is an
important part of our differentiated strategy. We
have a large customer base compared tocompetitors. This enables us to identify
detailed customer needs, which leads
to the enhanced services.

Partners

Finance

System partners and sales agents play a majorrole in accelerating growth. Our partner basecontinues to increase as we grow, as do ouralliances with large companies that havehigh name recognition.

Maintaining and expanding a stable and solid
financial base is key for achieving sustainablegrowth. We have continuously turned a profit
since our second fiscal year in business.
This has grown our equity capital,
enabling us to continue to makelarge investments.

Risk
・Decline in profit opportunities due tocommodification of provided services
・Increased risk from cyber attacks

Opportunity
・Increase in the opportunities to provide
various services by leveraging
cutting-edge technologies

Progress in the declining
birthrate and increasingly aged
population

・Future market contraction
・Competing for personnel who havespecializations

Opportunity
・Increased need for improvement in
operational efficiency and greater
productivity

Increased awareness ofchallenges for the global
environment
Risk
・Listing up companies that are subject tonegative screening in the capital markets
and as potential customers

Opportunity
・Increased opportunities to be selected
due to new evaluation criteria

RAKUS Sustainability Report 2024

Value Creation

About RAKUS

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

12

Value Creation and Impact

Making the Customer’s Work Easier
In processes for conducting business—expense settlement, bill issuance and receipt, sales data management, and management of employee information such as attendance—various tasks and forms of office work must be carriedout, and this consumes a lot of time. RAKUS provides services to boost productivity by making these operations more efficient. Going forward, we will continue to develop and deploy various services so more people can pursue
work they should be doing—work suited to their original aspirations, more people can address their work in a future-oriented manner and more companies can grow.

Cloud Business

IT Outsourcing BusinessIn the Cloud Business, we support improved productivity by providing services that help improve operational efficiency of corporate customers.

In the IT Outsourcing Business, we help to meet the need for IT

We also help reduce customer paper usage by shifting from paper-based operations to cloud services.

personnel, who are in increasing demand, by developing IT engineers,
and we support digitalization of companies by dispatching IT engineers.

Improved efficiency of working hours

Example with 100 employees(per year)
Total

1,233 hours Total 271 hours
Approx.

Paper reduction (yearly)

Example with 500 documents
per month (per year)
Total

150 hours

Total

6 hours

Example of sales management
operations (per year)
Total

improvementin efficiency

Reduction

2,640 hours Total 267.6 hours

96%

80%

47 million sheets

IT engineers are stationed for each projectto make the customer’s work easier.

90%
improvement

improvementin efficiency

in efficiency

IT engineer

38 million sheets

HiringGives commands/orders

Reduction

Education/training
Dispatch contract

Paper-based
expense settlement
Claim filing
Accounting

Raku Raku
SeisanApproval

Sending paper
documents

Raku Raku
Meisai

Sealing envelopes, placing seals,
printing out
System operations

Paper, Excel
Data registration/
postingDocumenting

Raku Raku
Hambai
Handover/sharing
Monthly closing* Calculated based on data as of March 2024
* Reduction calculated based on the following
concepts
Raku Raku Seisan:
1 expense account processed = 1 sheet
Raku Raku Meisai:
1 electronic bill issued = 1 sheet

Customer(Dispatch receiver)

Personnel request

RAKUS Partners(Dispatch sender)

RAKUS Sustainability Report 2024

13

Business Strategy

Cloud Business14

IT Outsourcing Business18

About RAKUS

Business Strategy

Value Creation

Foundations Supporting Our BusinessGovernance

Cloud Business

Investments
for increasing
customersatisfaction

New orders
increase

Business Model and
Performance of CloudBusinessStrengthen
investment
in growth

Our Cloud Business offers subscription services to help companies

14

Data Section

Satisfaction
increase Continuous
improvement ofoperational
efficiency

Cycle to sustainably expand subscription sales

improve operational efficiency through digitalization. The businessmodel enables stable sales growth by accumulating new subscribers.
Maintaining a low churn rate is key in this model, so in order to keep

Net sales
increase

the rate low, we constantly work to improve customer satisfaction, target
segments with low business failure rates, and have established a pricing

Low churnrate

structure that makes it easy to continue using the service.

Changes in Sales, Operating Profit, and Subscription Sales Ratio

91.7%

91.5%

91.7%

91.8%

(Millions of yen)

92.9%
32,466

Net sales
Operating Profit

22,276

Subscription Sales Ratio

16,716
8,952
823
FY2020.3

12,2983,516
FY2021.3

4,979
1,164

1,152

FY2022.3

FY2023.3

Sales by Service
FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3

Raku Raku Seisan

3,935

5,559

7,658

10,343

14,446

Raku Raku Meisai

552

1,177

2,260

3,735

6,840

Raku Raku Hambai

869

1,281

1,867

2,626

3,907

Email distribution services

1,573

1,963

2,367

2,672

3,035

Mail Dealer

1,732

1,979

2,178

2,430

2,841

291

336

384

468

1,394

8,952

12,298

16,71622,27632,466

Others

FY2024.3* Standards for allocating indirect expenses were reviewed from the year ended March 2024. As a result, figures prior to and including the year ended March 2023 were retroactively
adjusted.

(Millions of yen)

Total of Cloud Business

RAKUS Sustainability Report 2024

About RAKUS

Business Strategy

Value Creation

Foundations Supporting Our BusinessGovernance

Data Section

15

Cloud Business

Growth Strategy of Cloud Business

Unique features of RAKUS’ Cloud BusinessWe offer multiple best-of-breed services that improve efficiency ofprofit of services that have reached the “maturity phase” in new

specific operations, with the aim of taking the top share in each service

services, we generate profit and achieve sustainable growth for thearea in the Cloud Business.

business overall.

The biggest feature of our growth strategy is that we simultaneously

We will leverage the expertise we have gained from launching androll out services that are in different growth phases. If a new service

growing a large number of cloud services over many years. Thus, weachieves its product market fit, we invest in SG&A to help it grow big.

will strive to achieve sustainable business growth and expand ourDuring the “high growth phase,” the gross profit margin improves asservice lineup through M&As and others.

sales increase and the service turns a profit. By investing the operating

Growth Cycle of Cloud Business

1

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

2Best-of-breed focused

3

Aims for both profitability and high sales growth bymanaging a portfolio of multiple services

4

Strives for high sustainable sales growth by increasing
the number of services

Service Improvement Cycle
Customer
Reasonfor losing
orders
Needs●

Reasonfor churn
Needs
●

●

●

Improve and increase order and retention rates
Sales

New service development

High growth phase

SupportMaturity phase

Add new services and strengthen investment in growth

Cloud service

Profit

Fe

ed b

a ck

Development

db
F ee

ack

Achieve sustainable growth by increasing services
RAKUS Sustainability Report 2024

About RAKUS

Cloud BusinessBusiness Strategy

Value Creation

Foundations Supporting Our BusinessGovernance

16

Data Section

Main Services

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

Dramatically reduces time and costs in settling expenses!
Raku Raku Seisan
We achieve the flow for
claiming, approving and settling
expenses on a web browser andreduce the paperwork andnumber of management hours.
Operational efficiency isimproved because errors in theclaim details andnon-compliance with the rules
can be prevented by thesystem.

Raku Raku Meisai

File an expense
claim from acomputer or
smartphone

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

Compliant
with
rules

ApplicantNoncompliant
with rules

Approver

Accounting personnel

You can carryout a wide range ofaccounting processes including
making journal entries,
requesting payments, andcreating banktransfer data.

Documentation can be
automatically issued according
to requirements of thereceiving side, just by entering
document data such as bills
and delivery statements. Data
can be automatically issued
through the system, eliminating
mistakes due to manual work.

Issuing side

Downloadfrom thewebsiteUploaddocument data

Raku Raku Denshihozon

Bills delivered through various
issuing methods can becentrally managed. Hand inputof journal entries and payments
for each bill can be automated,
thereby eliminating the troubleof manual input and worries
about errors.

Enables electronic storage andcentral management of
documents such as received
electronic bills. Also supports
requirements of the Act
Concerning Preservation ofElectronic Books (requirements
relating to search, revision,deletion, etc.).

Approve

Automatic
issuance

Proxy postal
mailing

FAX

Central management of all documentation to
support the Electronic Bookkeeping Low!

Raku Raku Seikyu

Automatic conversion
to data and journal entryof payment information

Automates issuanceof a wide range of
documentation

Emailattachment

・Bills・Delivery statements
・Payment statements
・Receipts

Easy, error-free handling of everything from billreceipt to journal entry and payment

Manual/Automatic upload

UploadAutomatically blocks expense claims
non-compliant with the rules!

Integrated withaccounting software

Receiving side

Client A

System integration ofdata received with
Raku Raku Meisai

Upload data not received
with Raku Raku Meisai
Email attachment

Client B

Raku Raku Meisai

Client D

UploadSystemClient C

Raku Raku Meisai

Automatic generationof bank transfer data

RAKUS Sustainability Report 2024

About RAKUS

Cloud BusinessBusiness Strategy

Value Creation

Foundations Supporting Our BusinessGovernance

17

Data Section

Main Services

Standardization and improved efficiency in sales management
and all other management operations
Raku Raku Hambai
We develop systems thatcombine the web database
and workflows for all sales
management operations.
We automate complex amountcalculations and monthly datapreparation work for sales
management, and reduce
errors.

Raku Raku Kintai

Complex sales
management
tasks
・Estimatemanagement
・Ordermanagement
・Billing
management
・Ordering
management
etc.

Makes tedious attendance management easier

Estimate
DB
Sales
Department
Improves
efficiency
with databases
and workflows

Shared use of
master data・Customer master data
・Product master data
・Client master data
etc.
Order DBManagerBill DB
Accounting
Department

Ordering
DB

Provides central managementof attendance information,such as time arriving/leaving,
overtime, and taking of leave.
Data necessary for salarycalculation can be accessed
quickly, and time required fortabulation work and checking is
reduced.

Apply fromPC or
smartphone

Send
attendance
information

Employee

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

Tool for improving efficiency of email marketing

Provides at-a-glance response statusof who has responded to which inquiry
Response teamNot responded
Responded
Not responded

Access frombrowserLabor representative

Raku Raku Kintai

AffiliatedInformation handed over in project units company

Not responded

Download
attendance
management

Centrally manages attendance information,
and automatically creates the datanecessary for salary calculation andattendance management

Improves operational efficiency through central
management of emails
The inquiry situation isvisualized for greater efficiency
when multiple people respondto emails. The system prevents
human error when responding
to emails, such as not
responding, duplicate
responses, and sending errors.

Salarycalculation
is easier

Employee A

Responding person

Hai Hai Mail
We achieve improved efficiency
for attracting customers andsales promotions via email withsimple operations andfunctions as well as generous
support. Able to continuously
improve email marketing byanalyzing results andmeasuring effectiveness.

Calculates email delivery rate,
open rate, click-through rate,and conversion rate after sending emails

Improves
mailing lists

Opened!

Cycle of delivery, measurement, and improvement grows
potential customers and contributes to sales
SenderSend to everyone or by group

Recipient

Email magazine (bulk email)Segmented andscheduled emails

Triggered emails andvisit notifications

Sends out the samecontents in bulk

Sends individualized
contents

Sends an email whenyour website is visited

Employee B

RAKUS Sustainability Report 2024

About RAKUS

Business Strategy

Value Creation

Foundations Supporting Our BusinessGovernance

Data Section

18

IT Outsourcing BusinessBusiness Model and
Performance ofIT Outsourcing Business

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

In our IT Outsourcing Business (RAKUS Partners), we find andrecruit people without engineering experience who show potential
to become engineers from applicants wishing to change careers.
Leveraging the expertise in nurturing engineers gained from the IT
engineering school we operated when founded, we train IT
engineers specializing in each field such as system development,
infrastructure, machine learning and quality assurance anddispatch them ready-to-work at corporate customers.
In addition, we also conduct career support for IT engineers.
By supplying IT engineers in short -supply, we contribute tosolving IT issues at companies.

Hiringinexperienced
personnel

Training

Dispatching●●

Leverage expertise gained from our
IT engineering school business●●

System development
Infrastructure
Machine learning
Quality Assurance, etc.
Learning Center

Sales and Operating Profit(Millions of yen)

Features of RAKUS Partners’ Engineer Dispatching Service

5,942

Net sales
Operating Profit

5,122

STRENGTH

1

3,912
2,655

350

3,O89

381

●

414

503

580

Careful hiringof excellent
personnel

Unlike registration-type
personnel dispatching,personnel hired as
employees of RAKUS
Partners are dispatched.

STRENGTH

2●●

FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3* Standards for allocating indirect expenses were reviewed from the year ended March 2024. As a result, figures prior to and including the year ended March 2023 were retroactively
adjusted.

Nurturing througha total of 480 hoursof fully practicaltraining

We provide three months of
specialized training in specialist
fields such as systemdevelopment, infrastructure,machine learning, and quality
assurance.
We introduce fully practicaltraining on the skills requiredby customers

STRENGTH

3●●

Dispatching
personnel alignedwith the customers’
needs

We select engineers with anunderstanding of thestrengths of each employee
We promptly dispatch theappropriate personnel evenwhen the customer has aneed for more people

RAKUS Sustainability Report 2024

19Foundations Supporting
Our Business
Human Capital

20

Technology

26

Environment

28

Human Rights

28

About RAKUS

Value Creation

Foundations Supporting Our BusinessBusiness Strategy

Governance

20

Data Section

Human Capital

Human Resource Strategy
At RAKUS, our human resource strategy supports achievement ofMedium-Term Management Targets, and we regard this as a key
management strategy leading to attainment of our vision and mission.

Connections between management strategy andhuman resource strategy
MissionManagement
Philosophy

Constantly helping companies growtheir business by providing IT services.

(Mission, Vision)

VisionBecome a Company Representing Japan

Creating an environment where employees cancontinue to work and grow with confidence
At RAKUS, we have been strengthening investment in growth since theyear ended March 2022, the first fiscal year for our Medium-Term
Management Targets. Our aim is to “become a company representing
Japan.” Due to this investment, our business has grown rapidly, andexpansion of our personnel has been tremendous. In the last three
years, 1,331 new employees have joined our company. The market
environment is also going through bewildering changes.
Our human resource strategy emphasizes providing each employee with an“environment where they can work with confidence and continue to grow.”

Key items for humanresource strategy

Precisely because there is an environment where they can work withconfidence and continue to grow, despite major changes in the surrounding
environment, we believe our employees can focus on their regular work,
extend their abilities, perform at their peak, and feel job satisfaction.
By providing an “environment where employees can work withconfidence and continue to grow,” we not only improve employee
motivation and labor productivity; we can also advance our mission of“Constantly helping companies grow their business by providing IT
services” and spark a virtuous cycle that helps us contribute to society.
At RAKUS, this idea is the foundation of our efforts in recruitment,
training, assignment, evaluation, workplace environment, andorganization creation.

Objective

Human resource strategy is adriver of business growth

HiringMedium-Term
Management
Targets

Five-year sales CAGR 31%–32%
Net sales

Net income

Net assets

billion yen
or morebillion yen
or morebillion yen
or more59.3

10Organization
development

20

Workingenvironment

Human
resource
strategy

Making maximal use ofhuman capital to achieve
management targets
and business targets

Human
CapitalManagement

Number of Employees

Training

Human
resource
strategy

38,408Net sales (Millions of yen)

1,044

1,230

1,720

2,197

2,561

27,39920,62915,387

Assignment
11,608

Evaluation

An environment where
employees can continue
to work and growwith confidence
FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

21

Data Section

Human Capital

Six Basic Strategies
At RAKUS, we are working hard to strengthen our human capital throughthe following six basic strategies.
(1) Hiring human resources to be the next generation(2) Development for producing continual results(3) Assignment of human resources to put the right person in the right place(4) Evaluation for producing continual results(5) Creating an environment where employees can continue to workwith confidence(6) Organization development to accelerate business(2) Development for producing continual results
At RAKUS, we conduct evaluations along two axes: “competency
evaluation” to evaluate behavioral characteristics for consistently exhibiting
high performance, and “performance evaluation” to evaluate action aimed
at achieving targets with independence.

■ Training/onboarding program
Strengthening competency

DutiesFinance
Role

Customer

Leaderclass

Operational process
Growth/development

Members

Thinking ability
Expecteddemonstrated
behavior

Understanding duties

NLP (Next Leader Program)Competency
strengthening programs
Competency strengthening
programs for each grade

Training at promotion

Training at promotion
for each grade

Ability to act
Human relations ability
Organization drive ability

Investing human capital in
next-generation leaders
For management candidates in the next fiscal year,
we have a Next Leader Program (NLP) to educate
candidates in stages from before their promotion,
so that at the end of their first year after promotion

New
graduates

Training of new graduate employees (introductory training)they are at a level where they can fulfill their duties
as a manager.
To ensure they master basic skills as managers,
the program provides instruction over four months
in the knowledge and skills needed for vision
formation, tactical planning, goal attainment, anddevelopment of human resources.

By theme
Training within eachbusiness department* RAKUS non-consolidated■ Stipulation of required level ofcompetency for each classrelations, and driving organizations). We also
provide training and other programs for each class
to support competency growth of employees.
At business sites, we have training andonboarding programs suited to each occupation ineach business department, and we are working to
improve practical skills in conjunction with daily on
the job training (OJT).

Developing subordinates,
guiding junior employees

In order to grow our organization, RAKUS is bolstering its human resource
hiring. From new graduates to managers, we hire diverse personnel for avariety of occupations.
We hired 450 people* in the year ended March 2024, and in the year
ending March 2025 too, we plan to hire about the same number as in theprevious fiscal year.
For managers, we are strengthening hiring of human resources who canpromote business and lead organizations, and for members, we are hiring
human resources who can aspire to be in managerial positions over the
medium to long term.
We are working to develop a system that enables maximal personal growthand organizational performance by establishing hiring branding, actively hiring
diverse human resources regardless of gender, age, or other characteristics,
as well as providing opportunities and an environment for employee growth,and promoting self-driven growth of each individual employee.

We offer education and training programs aimed atstrengthening competency—defined as “action for
consistently achieving high performance.” This isbased on the “goal oriented” and “steadypersistence” approach that we adhere to as part ofour Uniqueness.

By strengthening competency, we can build up
performance that needs to be highly reproducible
and consistent. For each class of employees(managers, leaders, members, etc.) competency is
stipulated in terms of duties, roles (finance,
customer, operational process, growth/development), and expected demonstrated
behavior (abilities for thinking, acting, humanOnboarding program(1) Hiring human resources to be the next generation

Training to strengthen competency

Training of new
graduate employees(technical training)

Improving skills for practical thought and action
requires a cycle of learning via education/training
followed by practical implementation in theworkplace, so during education a mentor (veteran
manager) is appointed, and growth of the trainee is
supported through mentoring (soundboarding,communicating perspective, giving advice).

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our Business

Human Capital

When employees join the company, we determine their aptitude,
and assign the appropriate human resources.
We periodically hold career interviews with all employees where
superiors and members compare and reconcile their views on the
career the member is aiming for in the future, and we implement
job rotation taking into account both business growth and thecareer outlook of the invidual. We have an in-house recruitment
system through which departments wanting to utilize humanresources seek employees wishing to transfer in-house, andemployees apply.
After assignment, we support employee growth andachievement of results through 1-on-1 support, target
management interviews, and competency interviews. We also
support career building by administering career questionnaires
and having each employee state their career aspirations.

VOICE

Director, Head of Business
Administration Headquarters

Data Section22(4) Evaluation for producing continual results(3) Assignment of human resources to put
the right person in the right place

Takahiro Miyauchi

GovernanceRealizing the career visions of employees

RAKUS ranked sixth in the 2024 ranking of “Companies that are the Best Workplaces” (large company
category) by the Great Place to Work® Institute Japan. This indicates a high evaluation of factors likework-life balance and ease of work.
On the other hand, one issue raised was the somewhat low number of employees who responded they“want to continue working for a long time.” While there are many employees who have not been at thecompany long, we hope to provide opportunities for them to realize their career visions. We will do this byfostering a sense of medium/long-term career paths, while employees experience job satisfaction andgrowth, and by further bolstering programs tailored to employee careers such as in-house recruitment forcareer fulfillment, job rotation, and so on.

As indicated above, at RAKUS we evaluate employees along two axes:“competency evaluation” to evaluate behavioral characteristics forconsistently exhibiting high performance, and “performance evaluation” toevaluate action aimed at achieving targets with independence.
Using these two axes, we can mitigate large effects on evaluation due tochanges in the external environment, etc., while at the same timeevaluating processes and behaviors that lead not just to results but tocontinuous creation of good outcomes. This helps ensure an environment
where employees can work with confidence. This is based on the ideas of“steady persistence” and “eliminating uncertainty” that are part of ourUniqueness.
After targets are set, about 90% of all employees participate in monthly“target management interviews,” where superiors and subordinates
regularly check progress and issues relating to those targets. In this andother ways, we support the goal achievement and growth of employees
through 1-on-1 consultation and other forms of assistance.

Target setting

Activities

Review・ Target management
interviews
・ 1-on-1

Evaluation
Competency evaluation

Performance evaluation

Based on the expected demonstrated
behavior for each grade, we evaluate“behavior for producing results”
demonstrated during the evaluation
periodOutcomes produced during theevaluation period are evaluatedbased on criteria like targets
set at the beginning of theperiodRAKUS Sustainability Report 2024

About RAKUS

Value Creation

Foundations Supporting Our BusinessBusiness Strategy

Governance

Data Section

23

Human Capital(5) Creating an environment where employees can continue to work with confidence
An environment where employees can continue working with confidence is needed if employees are to concentrate on their regular work, exhibit their abilities to the fullest, and carry out their duties with a sense of job satisfaction.
RAKUS is committed to providing an environment where employees can continue working with confidence.
We ranked sixth in the 2024 ranking of “Companies that are the Best Workplaces” by the Great Place to Work® Institute Japan, and since the 2018 ranking, we have been selected as a “Best Company” for seven consecutive years.
We were also selected in the women’s ranking of “Companies that are the Best Workplaces,” and ranked fourth in the large company category (1,000 employees or more).

Promotion of diverse work styles■ Strategic office work
RAKUS has a policy called strategic office work. This is because we believethat absorption of company culture and personal growth can be accelerated
through OJT based on close face-to-face communication, and work in anenvironment where it is easy to ask questions. In terms of results, this isthought to promote higher productivity.
To achieve high growth targets, we welcome many midcareer hires every
month. For new employees, thorough education and onboarding are required,and day-to-day work issues must also be resolved at high speed. For thatreason, we feel that timely, speedy communication within organizations andteams, while sharing time and place, is crucial. Many of our members havenot been at the company for long, and to foster—within our organizations—the
corporate DNA that has
supported RAKUS’
growth thus far, we
believe that
face-to-facecommunication,
whether formal orinformal, is vital.

Child-rearing support■ Wednesday work-from-home day
On Wednesdays, we have introduced an optional work-from-home system.
We employ both office work with lively communication and work from home,where employees can work at their own pace in a quiet environment, toimprove productivity through a varied range of work styles.

■ Monthly shift / Timely shift system
We have a system for staggered working hours that allows employees to selecttheir time to start work in monthly units. The aim is to ensure flexibility in work
styles. Starting times can be selected in 30 minute units from 8:00 a.m. to
10:00 a.m., and employees can choose a time to suit their lifestyle.

■ Sick leave
A system for taking leave for personal injury or illness of the individual orfamily members residing in the same household. Five days per year separate
from annual paid leave.

■ Promoting taking of paid leave
We set company-widetargets for taking paid leave,and visualize the situation
using a plan management
table. The percentage of paid
leave taken has exceeded
90% since the year ended
March 2023.

Percentage of paid leave taken (%)
100
80
60

85.6

91.5

90.3

FY2023.3

FY2024.3

40

We have multiple programs that allow child-rearing employees to workwith confidence.

■ RAKU Smile System
The Raku Smile System is a selective-type work system for thechild-rearing generation. The system offers flexible work styles for thechild-rearing generation, and responds to their diverse needs, so
employees can select their own work style by combining “work hours”
and “evaluation style.”■ Babysitter System
This system provides assistance with costs for one eligible child when an
employee hires a babysitter. Children covered by the system include
infants, toddlers, and elementary school children up to their third year,
or up to their sixth year if they require other care for sound development.

■ Company-led childcare facilities
We have signed corporate contracts with company-led childcare facilities,
and we provide support so employees can return to work early.

■ Provision of family allowance according to number ofchildren
The allowance is provided according to the number of children classified as
employee dependents, up to age 18.

200

FY2022.3

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

24

Human Capital(6) Organization development to accelerate business
A system to support employee activities is needed if employees are to concentrate on their regular work, exhibit their abilities to the fullest, and carry out their duties with a sense of satisfaction.
The approach of the organization to which each employee belongs is vital, and we believe that managers are the key element in organization development.
At RAKUS, we are working to improve the management skills of managers to build an organization that accelerates our business.

Strengthening management capabilities

Manager onboarding

We conduct interviews with management
members twice in the first half-year after
joining the company to enable them toexperience RAKUS culture/management andquickly demonstrate their capabilities.

･ Training for newly appointed
managers
All managers are provided with opportunities
to learn about the attitude required of a
RAKUS manager, points to watch out for,and the human resources system.

･ Providing various types of training･ Survey of RAKUS Leadership
Principles (RLP) practice

We offer diverse types of training to improve
the skills needed by managers. These include:
evaluator training for learning the skills
needed to properly conduct evaluations anddevelop human resources; training to improve
the ability to drive an organization and develop
competency, where trainees masterknowledge and skills for motivating members;
training to support career building, wheretrainees learn to think together with members
about their careers; and training to strengthen
decision-making ability, where trainees masterthe essentials of decision-making needed bymanagers.
Strengthening competency

Understanding
dutiesTraining to strengthen
decision-making abilities
Manager･ Manager onboarding support
interviews

Organization drive ability/
Training to improve theability to develop
competency
Training to support forcareer building

We conduct regular reviews to ascertain if
RLP, the RAKUS code of conduct for
management and leaders, is adhered toin practice in everyday operations toencourage the fostering of the corporate
culture.

･ Management review
We visualize the state of management bymanagers and encourage initiatives tobuild better management and workplaceenvironment.

By theme
Manager onboarding training

Training
for newly
appointed
managers

Monitoring, review

Workshop to promote
understanding of RAKUS
Leadership Principles･ Evaluation satisfaction
questionnaire

Organizationthat
accelerates
business

We administer a questionnaire to gauge
satisfaction of evaluated employees withevaluations by managers.
Striving for appropriate communication
between managers and members
improves satisfaction, and also helps toprevent turnover.

Evaluator training

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance25

Data Section

Human Capital

Implementation ofEngagement Surveys
To provide an environment where employees can continue to workwith confidence, we conduct an engagement survey twice a year togauge the views of employees regarding the company andorganization, and identify and mitigate organizational issues andpersonal problems. Engagement surveys take measurements along
two axes: long-term willingness to work and eNPS (whether theemployee wants to recommend RAKUS to friends and acquaintances
as a good workplace). The response rate to the engagement survey is ahigh 99%, and we take action on both the company-wide andindividual level to address employee views.
As an example of this kind of “PDCA cycle for promoting humanresource strategy,” it was found, through a factor analysis of anengagement survey conducted in December 2023, that the degree ofcareer fulfillment has a substantial effect on improving engagement,
and we are steadily implementing career measures such as careerinterviews and training for managers to improve interview skills. Goingforward, we will continue to examine systems for simultaneously
realizing the desired direction for our company and the career
fulfillment of employees, such as in-house recruitment and job
rotation, and we will leverage these to achieve further improvement ofcorporate value.

Engagement survey steps

Approach to improving engagement from both the micro andmacro perspective
Strengthening engagement❶ Job satisfaction survey[Long-term willingness to work + eNPS]❷ Identify issues

Items for improvement

Determine approach for dealing❸ with issues❹ Implementation of measures

CHECK!!

Sense of career fulfillment and growth

Communication with others

Environments that make work easier

Macro perspective

Micro perspective

Provision of systems, programs●❺ Monitoring

Trust in the company

Individual response

Optimization of human resources
system and policy●

Manager development●

Measures to promote lively communication

Ratio of female managers

The ratio of female managers at RAKUS has been flat for the last three years. Potential ways toimprove the ratio of female managers include hiring from the outside market, anddevelopment/promotion of human resources internally. We will continue our strong efforts in
hiring. Regarding the development/promotion of human resources from inside the company,
we have found that female employees tend to have lower aspirations toward management
roles than male employees. Going forward, we will examine and promote measures to boost
the management aspirations of female employees.

●

Interview and individual response bymanagers or human resources

8
7
6
5
4
3

4.7%
4.5%

5.7%

5.5%

4.9%

4.9%
= Consolidated

2= Non-consolidated

1
0

2022

2023

2024

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

26

Technology
VOICE

Development Strategy
The RAKUS development strategy is focused on “customer
orientation.” Since our initial founding, we have employed thebest-of-breed strategy. We develop a deep understanding of ourcustomers operations, ascertain which functions are truly necessary,and then conduct development on that basis. That process is firmly
established as RAKUS culture. To commit ourselves to customer
orientation and continue to be a company needed by society, it isessential to constantly improve our technical capabilities, and engage
in development that is one step ahead of the pack. As the need for IT
human resources rises all over the world, RAKUS is working to develop
human resources in Japan and overseas, and we are building a global
development system.

Development Headquarters indicators
RAKUS’ Development Headquarters has its own Mission and Vision.
These stipulate ideals for RAKUS engineers, and are indicators forengaging in development work.

MISSION◉ Creating SaaS that is incredibly easy touse, and leads customers to customer
success◉ Becoming a team of SaaS development
engineers representing JapanVISION●●

Recognized by engineers throughout Japan as leaders in
SaaS development.
Work with conﬁdence and pride as the No. 1 group ofengineers.

Customer orientation is the foundation of ourdevelopment strategy
Since the year ended March 2022, when we commenced our current
Medium-Term Management Targets, we have further strengthened
hiring of human resources, regarding this as a period for strengthening
investment in growth. Our development organization is expanding,in line with the rapid growth of our business. As the number ofdevelopment staff increases, we are making efforts to ensure acrossthe-board commitment to “customer orientation,” an objectiveemphasized by RAKUS’ Development Division. This involves deepening
understanding of customer operations in collaboration with otherdivisions, while building up a system to bolster information sharing.
Ensuring commitment to customer orientation means pursuing thevalue we provide, and offering products that customers consistently opt
for. It also helps achieve our mission of “Constantly helping companies
grow their business by providing IT services.” This is based on the“goal oriented,” “steady persistence,” and “sincere reasonableness”
approach that we adhere to as part of our Uniqueness.

Utilizing new technology and building an optimal
development structure
RAKUS was founded in 2000, and we have provided IT services sincethen. We have achieved transformation while always staying abreastof new technology, although cloud development was not mainstream
at the time of our founding. Neverthless, we still have some legacy
systems. We will work on refactoring, while striking a balance withservice development, in order to rid ourselves of these legacy systems.
We are also channeling effort into development of new featuresusing LLMs (Large Language Models) and AI. First, we plan to establish
a dedicated team for Raku Raku Seisan, which will examine featuresthat can reduce the operation burden of customers, and then release
those features as they are completed.

Strengthening
our global
development
structure
Masashi Kude

Corporate Officer
Head of Development Headquarters andHead of Technology Headquarters

Due to increasing demand for IT human resources, it has become
increasingly difficult to hire engineers in Japan in recent years.
The decreasing birthrate, aging society, and hiring competition
are intensifying, so hiring appropriate human resources is an
important issue for companies.
To address this issue, RAKUS is working to strengthen
its global development structure. By bolstering hiring andexpanding our office in Vietnam, and bringing its technical levelup to that of Japan by placing greater focus on education, weare aiming to be capable of completing product development
at the Vietnam location alone.
We will also proceed with establishment of a third development
location, flexibly allocate development resources to new
regions, and put in place a structure enabling efficient, effective
development. We will strive to provide high-quality software by
ensuring customer orientation at all of RAKUS’ development
locations, and hiring appropriate human resources.

We are also setting up an environment to facilitate development byengineers, including extensive use of generative AI development tools
like GitHub Copilot, and we are working to enable speedier delivery ofadded value to customers by improving DevEX (developer experience)and boosting productivity.
Going forward, we will continue pursuing various initiatives with theaim of ensuring our technical abilities are at the top level of the SaaS
industry.
RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

27

Technology

Information Security
TOPICS
Insourcing of AI-OCR
Raku Raku Seisan uses opticalcharacter recognition/readers(OCR) to read and display
characters when a receipt is
photographed. This OCR wasdeveloped independently by
RAKUS, and has been used in
Raku Raku Seisan since July
2023. By insourcing OCR, we
are expected to reduce costs byapproximately 670 million yen
over three years.

Adoption of GitHub Copilot
GitHub Copilot was adopted throughout our entire
Development Headquarters in June 2023. It is used by manyof our engineers, primarily back-end engineers, and a survey
has found it has reduced operation by one hour per day perperson. Simple, repetitive work is greatly reduced, allowing
employees to focus efforts on more creative work.

To maintain and improve the information security level of the entire RAKUS Group, we are developing and implementing the necessary rules andmanagement structure in cooperation with business departments and management departments, and developing the optimal security structure for
the RAKUS Group.

Maintenance and improvement of information
asset management system
In order to maintain and improve our information asset management
system, we have built and currently operate an information security
management system (ISMS) and a personal information protection
management system (PMS). We have acquired and continue tomaintain each certification*.
By operating these management systems with a PDCA cycle, we
maintain a structure for protecting the confidentiality, integrity, andavailability of information, and for properly handling personal
information.
* Regarding the registered scope of our ISMS certification, we have acquired certification
for design, development, and operation of cloud services (RAKUS Headquarters, RAKUS
Light Cloud). PrivacyMark certification has been acquired for RAKUS Headquarters,
RAKUS Light Cloud, and RAKUS Partners.

Monitoring
We carry out security surveys of the SaaS products of the RAKUS
Group, such as Raku Raku Seisan and Raku Raku Meisai. Adopting athird-person standpoint, we investigate the development andinfrastructure divisions for each product based on interviews, report
the results separately to the management team, and issue
improvement instructions to workers in the field. In this way, we
discover and handle various system risks.

Prevention of information leak incidents andreduction of information leak risks
As one part of improving information security literacy of employees, we
carry out targeted attack drills on the RAKUS Group. If, in one of thesedrills, an employee mistakenly clicks on an attachment file of the
training email, or on a URL in the email body, then they must undergo
separate e-learning. This provides an opportunity to learn about thedangers of suspicious email.
In the year ended March 2024, we provided e-learning on the themeof email sending errors to all employees, and we are working to reducerisks by raising employee awareness of information security.

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Foundations Supporting Our BusinessBusiness Strategy

Governance

Data Section

Environment

Human Rights

Environment Policy

Human Rights Policy

The RAKUS Group has contributed to reducing environmental impact through the provision of IT services. The RAKUS Group established anenvironment policy in December 2022, which once again stipulated the approach to preservation of the environment through business activities.
We deal appropriately with environmental issues based on this policy.

The RAKUS Group understands that its business activities could havea direct or indirect impacton human rights and has prescribed the“RAKUS Human Rights Policy” to ensure the respect ofthe humanrights of all peoples involved in the business, and strives for initiatives
that respecthuman rights. In addition, we adhere to the “United
Nations Guiding Principles on Business and Human Rights” andrespect international standards relating to human rights including the“International Bill of Human Rights” (International Declaration of
Human Rights and International Covenants on Human Rights), andthe “International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work.”
This “RAKUS Human Rights Policy” applies to all employees andofficers of the RAKUS Group. In addition, we also expect all business
partners involved with the Company to understand and support thispolicy.
To ensure consistent respect for human rights in all aspects of ourbusiness activities, we engage in constant dialogue with relevantinternal and external stakeholders to improve and enhance ourinitiatives.

Environment Policy
The RAKUS Group contributes to solving global environmental
issues such as by providing support to achieve paperless operations
and promoting digitalization in society through business activities
with the provision of IT services.

Disclosure of environmental data
The RAKUS Group has a policy to appropriately disclose businessactivity-related environmental data that we can obtain ourselves.
We strive for deeper understanding of our initiatives throughconstructive dialogue with stakeholders.

Details of initiatives･ Preservation of the environment through the development andprovision of services

We provide support for mitigating the impact of climate change andrealizing the construction of a low carbon society through thedevelopment and provision of services that contribute to solving
customers’ issues.
･ Promoting environmental education

We aim to increase employee awareness of the environment andwork on initiatives to conserve resources and energy.
･ Compliance with environmental laws and regulations

We comply with all types of environmental laws and regulations andtake appropriate action.
･ Information disclosure and dialogue

We contribute to the realization of a sustainable society by disclosing
information about our own environment-related initiatives andthrough dialogue with internal and external stakeholders.

Unit

FY2022.3

FY2023.3

FY2024.3

Electricity(total energy consumption)

GJ

4,213

5,662

6,535

Paper

kg

4,562

5,141

9,049

INPUT

OUTPUT
Scope 2CO² emissions Scope 3*
Scope 2+3CO2 emissions per
net sales

t-CO²

499

667

767

t-CO²

429

705

872

t-CO²

928

1,372

1,640

t-CO²/ 100 million yen

6.03

5.01

4.27

28

Education on human rights
Internally, we periodically provide education and training. In theunlikely event of concerns about our business activities negatively
impacting human rights, or potentially contributing to theinfringement of human rights, we shall take appropriate remedialaction, and work to correct the situation.

* Only Categories 6 (Business travel) and 7 (Employee commuting)

RAKUS Sustainability Report 2024

29

Governance

Organizational Structure and Governance Policy

30

Directors/Audit & Supervisory Board Members

31

Remuneration for Officers

32

Compliance33

About RAKUS

Value Creation

Business Strategy

GovernanceFoundations Supporting Our Business

30

Data Section

Organizational Structure and Governance Policy

Corporate GovernanceIn the RAKUS Group, we are working to strengthen corporate
governance to respond to changes in the social and economic
environment, and to maintain an organizational structure enabling
accurate decision-making.
We believe that decision-making based on efficiency, impartiality,transparency, fairness, and speed will provide reasonable profits toshareholders, business partners, employees, and other stakeholders.

Overview of Corporate Governance System
RAKUS has determined that the optimal governance structure has two
sides: auditing and oversight by Outside Directors, and auditing andoversight by the Audit & Supervisory Board Members, and the Audit &Supervisory Board. Therefore, we have opted to be a company with an
Audit & Supervisory Board.
The Board of Directors is chaired by President and Representative
Director Takanori Nakamura. It holds meetings at least once permonth as a rule, where it formulates corporate management policies
and plans, confirms the status of executive tasks, deliberates anddecides legal matters and important corporate management-related
matters, and monitors the performance of each Director’s duties.
The Audit & Supervisory Board Members attend important
meetings such as the Board of Directors meetings, and monitor
decision-making processes and the performance of executive tasks
from an independent standpoint.
The Internal Audit Division conducts internal audits of our divisions
and subsidiaries on matters such as legal compliance and operational
efficiency, and offers concrete advice and suggestions on making
improvements.
To ensure our corporate governance system is always optimal, we
review it as needed in response to the organizational situation, andchanges in the social and legal environment.

Nomination and Compensation Committee

Corporate Governance Structure

We have established a Nomination and Compensation Committee forthe purpose of strengthening fairness, transparency, and objectivity inprocedures relating to nomination and compensation, etc. of Directors
and Audit & Supervisory Board Members and further enhancing thecorporate governance.
The Nomination and Compensation Committee is composed of threeor more officers (Directors and Audit & Supervisory Board Members)
appointed by the Board of Directors, with at least half of them being
Independent Officers (Outside Directors and Audit & Supervisory Board
Members notified to the Tokyo Stock Exchange). A Chairman shall beselected from among committee members who are Independent
Outside Directors, by the resolution of the Board of Directors.

Percentage of Outside
Directors

Percentage of Outside
Audit & Supervisory
Board Members

3
6

2
3

General Meeting of Shareholders

Appoint

66%

Dismiss

Board ofDirectors

Outside Directors)

ReportInstruct

Appoint

Dismiss

Audit &
Audit Supervisory
Board

SelectRemove Reportoversee

Representative
Director

Independent
from Management
Organization

ReportNomination andCompensation
Six Directors(three of whom are
Committee
Consult

Report50%

Management
Organization

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

Internal Audit
Division

OverseeControl Internal
audit

Business Execution Division

Collaborate

Appoint

Dismiss

Accounting
Auditor

Audit
Advise/guide

Attorneys, etc.

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

31

Directors/Audit & Supervisory Board Members

Officers (As of June 21, 2024)
Directors
Takanori Nakamura

Shinichiro Motomatsu

Takahiro Miyauchi

President and Representative Director

Director

Director
Head of Business Administration Headquarters●

Shares held: 61,435,800●

Shares held: 8,814,300

Shares held: 52,700

November 2000: Established RAKUS;
President and Representative Director (current position)[Important concurrent positions]
Chairman, RAKUS Vietnam Co., Ltd.
Director, RAKUS Light Cloud Co., Ltd.
Director, RAKUS Partners Co., Ltd.
Director, RAKUS Mirai Co., Ltd.

April 2001: Joined RAKUS
April 2024: Director (current position)●

Kenji Ogita

Yukihiko Kunimoto

Reika Saito

Outside Director

Outside Director

Outside Director●

Shares held: 64,000

February 2015: Outside Director, RAKUS (current position)
August 2020: Representative Partner,
Antelope LLC (current position)●

Shares held: -March 2013: Joined RAKUS
June 2023: Director, Head of Business Administration Headquarters(current position)●

Shares held: -January 2006: Independents Co., Ltd.
(Currently Kips Co., Ltd.); Representative Director(current position)
June 2020: Outside Director, RAKUS (current position)

June 2022: Outside Director, RAKUS (current position)[Important concurrent positions]
Outside Audit & Supervisory Board Member, Grooves Inc.
Director, Forum on Future Vision
Outside Director, MAYA TECHNOLOGIES, Inc.

Toshihiro Nojima

Koji Matsuoka

Natsuro Abe

Full-time Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Audit & Supervisory Board Members●

Shares held: 1,600,000

November 2000: Established RAKUS; Director
June 2011: Audit & Supervisory Board Member (current position)[Important concurrent positions]Auditor, RAKUS Vietnam Co., Ltd.
Audit & Supervisory Board Member, RAKUS Partners Co., Ltd.
Audit & Supervisory Board Member, mj Capital Inc.
Audit & Supervisory Board Member, RAKUS Mirai Co., Ltd.

●

Shares held: 509,000

November 2000: Audit & Supervisory Board Member,
RAKUS (current position)
March 2005: Representative, Matsuoka CPA Office (current position)[Important concurrent positions]
Outside Director, ROCKWAVE Co., Ltd.
Outside Audit & Supervisory Board Member, Asahi Life Science Co., Ltd.
Outside Audit & Supervisory Board Member, Aisawa Construction Ltd.
Outside Audit & Supervisory Board Member, Adachi Co., Ltd.
Outside Audit & Supervisory Board Member, Dream Factory Inc.
Outside Director and Audit & Supervisory Committee Member,HouseFreedom Co., Ltd.

●

Shares held: 64,000

April 2009: Representative Director, Y’s and partners Co., Ltd.
(currently PLATFORM HOLDINGS Co., Ltd.) (current position)
June 2014: Audit & Supervisory Board Member, RAKUS (current position)
April 2024: Director, ANDB Co., Ltd. (current position)
April 2024: Director, RESpa Co., Ltd. (currently SOEL Co., Ltd.)(current position)

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

GovernanceFoundations Supporting Our Business

32

Data Section

Directors/Audit & Supervisory Board Members

Remuneration for Officers

Officer Skill Matrix / Attendance at Meetings

Remuneration Decisionmaking Process for Officers

The Board of Directors as a whole is comprised of officers with consideration given to the balance of their knowledge and experience in company
management, business strategy, risk management, finance and accounting, personnel training and technology, needed to verify and prepare the mid- andlong-term management strategy. (As of June 21, 2024)

Director

OutsideDirector

Corporate
Management &Management
Strategy

Business
Strategy &Marketing

Legal & Risk
Management

Takanori
Nakamura●●●

Shinichiro
Motomatsu●●

Takahiro
Miyauchi●Kenji Ogita●

Yukihiko
Kunimoto●

Qualifications

Attendance at each committee meeting
Nomination and
Audit &
Board of Directors Supervisory Board Compensation Committee●●

26/26 meetings●●

26/26 meetings

4/4 meetings

4/4 meetings

Adoption of share-based remuneration systemwith restrictions on transfer●

26/26 meetings

4/4 meetings●

26/26 meetings

The share-based remuneration system with restrictions on transfer was adopted to giveour company’s directors, excluding outside directors, an incentive to improve ourcorporate value in a sustained way, and to promote greater alignment of values withshareholders. The intention is for directors to share the profits and risks of stock pricefluctuation with all of our shareholders, and thereby raise their awareness ofcontributing to the improvement of medium- to long-term performance and corporate
value, and ensure they work toward sustainable improvement.

●●

Attorneyat law●

26/26 meetings
Category

Audit &
Supervisory Toshihiro
Board
NojimaMemberOutsideAudit &
Supervisory
Board
NatsuroMemberAbe

Human
DigitalResources &Transformation &Human Resource
Technology
Development

20/20 meetings*●

Reika Saito

Koji
Matsuoka

Finance &Accounting

RAKUS prioritizes aligning the interests of shareholders and investors and those of the
top management. The current top management team, not including outside officers,
hold a certain number of the Company shares. Thanks to the growth of our businesses,
the continuous increase of dividend income and the improvement of corporate value
have led to an increase in the value of shares held. This means that the responsibility
and results of management are linked to assets held. At the same time, also from theperspective of protecting minority shareholders, we established the “Nomination andCompensation Committee” as an advisory panel to the Board of Directors, and theCompany is ensuring greater fairness, transparency, and objectivity in the remuneration
decision-making process. In addition, monetary remuneration of officers is set at within
the scope of about 3.5 times the average annual wage of employees, which serves toboost motivation to improve corporate value while at the same time maintaining a levelthat does not produce too wide of a gap with employees.

●

●

●

●

●

26/26 meetings●

Total remuneration by type (millions of yen)Total
remuneration(millions of yen)

Fixed
Compensation

65

61

−

Performancelinked Non-monetary
Compensation
remuneration, etc.

No. of eligible
officers(Persons)

3

4

13/13 meetings

Director

Certified Public
Accountant,
26/26 meetings
Certified Tax
Accountant

13/13 meetings

Audit &
Supervisory
Board Member

4

4

−

−

1

26/26 meetings

13/13 meetings

Outside Officers

9

9

−

−

5

(Excluding Outside
Directors)

4/4 meetings* For Takahiro Miyauchi, this indicates the number of times meetings have been held since the Annual General Meeting of Shareholders held on June 23, 2023 when he was appointed.

(Excluding Outside
Audit & Supervisory
Board Members)

The details of the total “non-monetary remuneration, etc.” by type of remuneration, etc. takes account of the provisionofcompany housing within a commutable distance to the office where work is executed, with the amount after
deducting a levyfor use of the company housing based on the Company’s designated criteria from the rent for suchcompany housing taken tobe the amount of non-monetary remuneration.

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our BusinessGovernance

Data Section

33

Compliance

Compliance Promotion Structure
The RAKUS Group recognizes that compliance by all employees andofficers with laws and rules such as internal regulations, and social
norms goes without saying, and that the thorough implementation of
appropriate activities based on the high standards of ethics thatsociety expects of us is the foundation of company management.
To promote an understanding of the code of ethics and complianceregulations, etc. we regularly conduct education, training andenlightenment activities, and we have developed a system to enable
constant self checks by creating a “compliance self-check sheet.”
Our Internal Audit Division periodically conducts surveys andevaluations of internal controls for compliance—from the standpoint ofeffectiveness of design and appropriateness of use—and makessuggestions and proposals to improve operations based on the results.

Whistleblowing System
We have established a whistleblowing system to enable consultation
and reporting when organizational and individual breaches of laws,
regulations or other rules are uncovered. A whistleblowing contact
desk, established based on the whistleblowing system, receives
consultations or reports of legal or regulatory violations, infringementsof human rights including harassment, and any other matters that may
be misconduct.
The whistleblowing contact desk can receive reports anonymously,
provided there is no legal request. This is to ensure that whistleblowers
are not subjected to retaliation. All received information is held in
confidence.
While abiding by the obligation of confidentiality, the content of the

Whistleblowing
contact desk

Whistleblower
Consultation
or report●●

All officers
All employees

Compliance Division
Consultation
or report

Report●●Reporting can be done
anonymously
Information is kept
strictly confidential

Report●●Checking content of theconsultation or report
Survey implementation

consultation or report is checked in each case, and if a complianceviolation is confirmed, appropriate corrective action is taken such asadministering guidance or disciplinary punishment to the person
involved.
There were 19 consultations/reports in the year ended March 2024,
and corrective action was promptly taken.

Prevention of bribery and misconduct
To prevent the risk of bribery, misconduct, and similar issues, anddevelop a sustainable business environment, RAKUS has established“Basic Rules on Entertainment,” and by ensuring widespreadawareness of these rules, we are working to prevent bribery and othermisconduct, and ensure fair trade practices. These rules prohibit
conduct like dining with or presenting gifts to people such as public
servants, or executives or staff who provide services of a highly public
nature or which are strongly connected with public interests.

Elimination of dealings with anti-social forces
To eliminate all dealings with anti-social forces, RAKUS has adopted abasic policy of not allowing any relations with such forces. This isachieved by establishing a rule that “employees shall engage in no
dealings with anti-social forces or groups” in the “Code of Ethics” thatserves as a guideline all our executives and staff must abide by.
We periodically conduct screening of all business partners, new andexisting. To deal with the unlikely situation where it is determined after
commencing business with a partner that the partner is involved with
anti-social forces, we take steps such as including provisions excludingorganized crime syndicates in our transaction contracts and the termsof services for our cloud service products.
RAKUS Sustainability Report 2024

34

Data Section

Financial Data

35

Non-financial Data

36

Capital Structure and Dividends

37

Company Outline & Group Structure38

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our Business

35

Data Section

Governance

Financial Data
Net sales(Millions of yen)

Gross profit

38,408

11,608FY2020.3

FY2021.3

10,3577,662

FY2023.3

EBITDAFY2024.3(Millions of yen)

1,174

FY2020.3

FY2021.3

FY2022.3

FY2023.3

Profit attributable to owners of parent

FY2021.3

2,158

2,263

FY2022.3

FY2023.3

799

FY2024.3(Millions of yen)

Total assets
Net assets

21,234

11,7008,617
7,842

11,471
5,192

FY2020.3

14,073

13,3479,548

FY2021.3

1,656

FY2022.3

FY2023.3

FY2024.3

EPS (Earnings per share)(Millions of yen)

(Yen)

23.10

2,936

Total assets/Net assets

7,039

FY2024.3

1,578

4,185

4,346

FY2020.3

3,898

14,030

6,480

1,561

5,559

18,777

20,629FY2022.3(Millions of yen)

27,61927,39915,387

Operating profit(Millions of yen)

FY2020.3

FY2021.3

16.20

1,078

1,274

FY2022.3

FY2023.3

4.41

FY2024.3

FY2020.3

FY2021.3

5.95

7.03

FY2022.3

FY2023.3

FY2024.3

Cash FlowsNet cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities(Millions of yen)

5,288

4,271
2,170

939
(481) (195)(432) (303)(11)(877) (295)579(699) (348)(4,860)

FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3

FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our Business

36

Data Section

GovernanceNon-financial Data
HR-related data (Consolidated)
Unit

Number of Employees

PeopleHR-related data (Non-consolidated)

Category

FY2022.3

FY2023.3

FY2024.3

Overall

1,720

2,197

2,561

Men

1,224

1,556

1,751

Women

496

641

810

Unit

Number of Employees

PeopleFY2022.3

FY2023.3

FY2024.3

Overall

956

1,253

1,532

Men

673

874

1,022

Women

283

379

510

4.5

4.9

4.9

Overall

2.7

2.7

2.8

Men

2.8

2.8

2.9

Ratio of female managers

%

4.7

5.7

5.5

Ratio of employeeswith disabilities

%

2.12

2.36

2.37

Overall

2.7

2.7

3.0

Men

2.8

2.9

3.2

Women

2.5

2.4

2.4

Women

2.5

2.4

2.7

Overall

32.3

32.3

32.3

Overall

30.9

30.9

33.7

Men

33.3

33.1

33.3

Men

31.6

31.5

34.2

Women

30.0

30.3

30.4

Women

29.3

29.5

32.6

Turnover rate

%

9.6

13.0

11.6

%

87.6

93.1

90.0

hours

19.9

19.8

18.2

Average number of yearsof continuous service

Average age

Years

Age

Ratio of female managers

Category

Average number of yearsof continuous service

Average age

Wage difference between
men and women*

%

77.8

82.2

79.7

Percentage of paid leave taken

Turnover rate

%

10.0

13.1

13.4

Monthly average overtime
working hours

Percentage of paid leave taken

%

85.6

91.5

90.3

hours

15.2

14.6

13.8

Overall

42.7

56.6

69.2

Men

30.9

43.7

59.0

Women

100

100

100

Overall

100

100

98.1

Men

100

100

100

Women

100

100

83.3

Monthly average overtime
working hours

Ratio of childcare leave taken

Ratio of persons who
return to work after taking
childcare leave

%

%

%

Years

Age

External assessment
Ranking of Companies that are
the Best Workplaces by Great
Place to Work® Institute.

“Best Company”
Japan (large companies)
2024 (7th consecutive year)

Selected for the first time in 2024
for the “Women’s Ranking”
category in Japan(large companies)

Selected for the first timein 2024 for the “Young Employees
Ranking” category in Japan(large companies)* Ratio of female wages to male wages

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our Business

37

Data Section

GovernanceCapital Structure and Dividends
Capital Structure

Top Ten Major Shareholders(As of March 31, 2024)

OthersShareholder Name

2.05%
Financial organizations

12.43%

Foreign companies, etc.

15.35%(As of March 31, 2024)

Officers, etc.

44.90%

Individuals and others

25.27%

No. of Shares Held

Shareholding Ratio

Takanori Nakamura

61,435,800

33.90%The Master Trust Bank of Japan, Ltd. (Trust Account)

14,864,100

8.20%

Yoshifumi Matsushima

9,340,500

5.15%

Shinichiro Motomatsu

8,814,300

4.86%

Hideyuki Inoue

8,739,400

4.82%

Fumihiko Asano

7,600,000

4.19%

Custody Bank of Japan, Ltd. (Trust Account)

5,679,400

3.13%

Masashi Kude

2,230,200

1.23%

Noritsugu Ogawa

2,170,000

1.20%

SSBTC CLIENT OMNIBUS ACCOUNT (Standing proxy: Tokyo Branch,
Hongkong and Shanghai Banking Corporation Limited)

2,150,088

1.19%* Shareholding ratio is calculated after deducting treasury shares (1,966 shares).

Dividend
Dividend Policy
RAKUS recognizes that providing returns to shareholders is the mostimportant issue for management and has established a basic policy of
paying continuous and stable dividends while maintaining internal
reserves required for conducting business and strengthening themanagement base in order to achieve profitable growth. We will
implement dividends of surplus aiming to provide a consolidated
dividend payout ratio exceeding 10% based on appropriate
distribution of profit according to the expansion of performance. We
also set the lower limit of annual dividends per share at the previous
year’s level in principle to continually increase dividends withconsideration for continuity and stability of dividends.

Changes in Dividends (Yen)
2.35
1.60

1.75

1.90

1.95

FY2022.3

FY2023.3

1.10

0.15

0.153

0.218

FY2013.3

FY2014.3

FY2015.3

0.30
FY2016.3

0.487

FY2017.3

0.725

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2024.3

Note: Figures after retroactively adjusting to reflect stock split

RAKUS Sustainability Report 2024

About RAKUS

Value Creation

Business Strategy

Foundations Supporting Our Business

Data Section

Governance

38

Company Outline & Group Structure
Office Locations
Company Name

RAKUS Co., Ltd.

President and Representative Director

Takanori Nakamura

Foundation

November 1, 2000
Sapporo Sales Office

Capital378,378,000 yen

Fiscal Year

From April 1 of each year to March 31 of the following year
Consolidated: 2,561

Number of Employees
As of March 31, 2024

Nagoya Sales OfficeNon-consolidated: 1,532

Stock Listing

Tokyo Stock Exchange Prime Market

Securities Code

3923

Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation

Auditing Firm

KPMG AZSA LLC

Group Companies

RAKUS Light Cloud Co., Ltd.

Niigata Sales OfficeBusiness

Cloud-based software service provider
IT engineer dispatching

RAKUS Partners Co., Ltd.

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

Osaka Head Office
Fukuoka Sales Office

Hiroshima Sales Office

Shareholding Ratio

100%

100%

IT engineer career change support
RAKUS Mirai Co., Ltd.

Production and sales of food products and operation of restaurants

100%

RAKUS Vietnam Co., Ltd.

Cloud service development

100%

RAKUS Vietnam Co., Ltd.

RAKUS Sustainability Report 2024