Integrated Report 2023
To inspire the world withentrepreneurship

01

Introduction
Management

MissionWhile leaving the mission unchanged as what the Group will continue
foundation, we have formulated a new vision to realize our mission,
outlining what we aim to become in the medium to long term andthe contribution to society that we want to make.

Reinforcing Our Management Foundation

to strive for and the spirit that has been passed down since its

Business Activities

In October 2022, we revised our Group philosophy.

Human Resources

To inspire the world
with entrepreneurship

Value Creation by the Septeni Group

Septeni Group

Corporate Profile

02

Introduction

Septeni Groupto create aera

It expresses our desire to position the Group as a place where people filledwith a strong sense of ownership and entrepreneurial spirit grow throughbusiness and create a new era.

futureandIt represents our stance to take on challenges in response to social issues
while valuing the distinctive qualities of “Septeni.”

Reinforcing Our Management Foundation

To make a complex world
simple through the power of digital

Business Activities

With creativity and technology, the source of the Group’s business value,
we aim to create a better future, broaden the “door to the future,”pass through the door together with stakeholders, and coexist andprosper together.

Human Resources

To open the door to a “nameraka ”
with creativity and technology

Value Creation by the Septeni GroupTo be a place where people are empowered

Management

VisionCorporate ProfileA New Start for the Septeni GroupManagement
Value Creation by the Septeni Group
Human Resources

Since its founding in 1990, the Septeni Group has continued to grow by shifting its mainstay
business from the recruitment consulting business to the Direct Marketing Business, and to
the Digital Marketing Business.
In 2022, in response to changes in society and the business environment, as well as changes
in the Group’s business structure and scale, the Group’s philosophy was revised. We alsoestablished a new vision for the first time in around 20 years.
This renewal of the management structure is aimed at achieving the vision and the sustainablegrowth of the Group through the handover of management to “a new generation, people whowill create a new era,” as stated in the new vision. By establishing and implementing a newcollective leadership structure led by Representative Director Kouno, the entire Septeni Groupwill work as one to further enhance the Group’s corporate value.

Introduction

Transitioning to a new management structure
to achieve our vision, achieve sustainable growth,and increase corporate value

03

Business Activities

For more information on our value creation process, see p. 16.

Corporate Profile

The Septeni Group’s core value lies in people filled with a strong sense of ownership andentrepreneurial spirit. To harness this core value, we are currently operating two businesssegments, the Digital Marketing Business and the Media Platform Business, while building on
our longstanding commitment to human capital management, and creating value for our
multiple stakeholders through our businesses and activities.
Going forward, while evolving the Group’s unique strengths through “focus” on existing businessareas, we aim to create “synergies” between and within business segments and business areas,
thereby becoming a group with multiple strong businesses and sustainable, discrete growth.

Reinforcing Our Management Foundation

Value creation through the medium-term theme“Focus & Synergy”

04

History of the Septeni GroupManagement

Net sales and operating profit

1990

Operating profit

Value Creation by the Septeni GroupNet sales

Introduction

Since our establishment, we have continued to grow by shifting our mainstay business fromthe recruitment consulting business to the Direct Marketing Business and to the Internet Advertising Business.
While maintaining the “Hinerankai“ (Think outside the box) spirit carried forward since our founding, we will continue to aim for growth through change.

1990
Foundation
Establishment of SUB & LIMINAL CO., LTD.
Mamoru Nanamura,Founder of the Company

2000 Apr.

Launched the Internet Advertising Business2001 Aug.

Listed on JASDAQ

2006 Oct.

Became a holding company under the trade name
SEPTENI HOLDINGS CO., LTD.

Reinforcing Our Management Foundation

Achieved strong growth throughthe launch of the Internet
Advertising BusinessBusiness Activities

2000-2011

Creed
In Kansai dialect, this means “Think outside the box.”

Human Resources

2000

Corporate Profile20102012-201705

Dramatic progress throughfocus on growth areas

Introduction2012 Mar.

Began conducting the Internet Advertising Business outside Japan

2013 Feb.

Established COMICSMART INC. and started the IP Platform Business

Management

2018-2023

Value Creation by the Septeni Group

Toward a new growth phase throughorganic growth and a capital andbusiness alliance with the Dentsu Group2018 Oct.

Entered a capital and business alliance with Dentsu Inc. (currently Dentsu Group Inc.)

2022 Jan.

Became a subsidiary of Dentsu Group Inc.

Human Resources

2024Aiming for further growth undera new management structure
2020

Change of representative director and renewal of management structure
Transfer of shares of COMICSMART INC., which is engaged in
the IP Platform business

169.7 billion yen*For 15 months due to irregularaccounting period2023

of 10X

Corporate Profile

Under the leadership of a newly
appointed Representative
Director, Yuichi Kouno, we aim
to achieve sustainable anddiscontinuous growth bytransitioning to a collective
leadership structure and focusing
on the Digital Marketing Business.

Reinforcing Our Management Foundation

Net sales in FY2023*

Towardthe realization

Business Activities

2024 Mar.

06

The Septeni Group TodayMedia Platform Business

Management

Digital Marketing Business

Introduction

Operating the Digital Marketing Business and the Media Platform Business

Value Creation by the Septeni Group

Marketing Communication Area

Human Resources

Direct Business
Area

Business Activities

Data & Solutions Area

Reinforcing Our Management Foundation
Corporate Profile

Septeni Holdings Co., Ltd. (Holding Company)

Collaboration across the digitalmarketing x sports andentertainment (culture) areas

Business Activities

Launch of partnership activities withscholarship students from Kamiyama
Marugoto College of Design,
Technology, and Entrepreneurship

Human Resources

Commendations received forhuman capital and diversity

Value Creation by the Septeni Group

Topics for the fiscal year ended December 2023

Management

Our Group has been accumulating human resource data for over
20 years and has conducted research on human resource
development for over 10 years. Through various human resource
policies and initiatives, including the use of our extensive humanresource database and technology, we aim to increase corporate
value by providing opportunities for individuals to demonstrate
their abilities according to their personalities.

07

Introduction

Promoting human capital management
to be a place where people are
empowered to create a new era

Reinforcing Our Management Foundation
Corporate Profile

08

Contents
Business Activities

Editorial Policy

A New Start for the Septeni Group

03

History of the Septeni Group04

Full-Year Review of FY2023/12

33

The Septeni Group Today

06

Update on Medium-term Business Policies

34

Digital Marketing Business36

Message from Management

09

Septeni Group x dentsu Japan Dialogue

13

The 5C Model of Integrated
Online/Offline Marketing
Media Platform Business
Creating a “Nameraka” Society through Business—PERF, Inc.

40
41
43

16

Explanation of the Value Creation Process

17

Promotion of Sustainability Management

18

Materiality of the Septeni Group19

Human Resources
Enhancement of Corporate Value by
Empowering People Who Create a New Era

22

Human Resource Development with
Reproducibility Through Digital HR

23

DEI (Diversity, Equity & Inclusion)

25

A Place where a Diverse Range of
Personnel can Play an Active Role

27

Democratization of Entrepreneurship

28

Belonging at Septeni Group30

G

Building an Advanced Governance System
to Support Discontinuous Growth

Response to Climate Change

45

Corporate Governance47

Corporate Profile

52
53

Statements other than historical facts contained in this report are
forward-looking statements that have been prepared on the basisof certain assumptions and the judgments of the Company’s
management derived from currently available information.
Therefore, information such as actual business results announced
in the future may differ depending on various factors, and theCompany is not responsible for any damages resulting from theuse of the information in this report.

Covered inthis report

Septeni Group
Websitehttps://www.septeni-holdings.co.jp/en/

Covered on
our website
Importance to management High

Investor Relations
https://www.septeni-holdings.co.jp/en/ir/

Sustainability Information
https://www.septeni-holdings.co.jp/en/csr/

Storie(s) (Japanese only)

31

https://note.com/septeni_group

Corporate Profile

Human Capital Investments for the Future

Response to Climate Change

Message from an Outside Director

Concept of Human Capital Management

COLUMNE

Forward-Looking Statements

Reinforcing Our Management Foundation

S

Reinforcing Our Management
Foundation

Business Activities

Value Creation Process

Human Resources

Value Creation by the Septeni GroupThe Group aims to help realize a sustainable
society by working to resolve social issues
through its businesses. We publish theIntegrated Report to give our stakeholders
an overall understanding of the Group’s
progress and value creation through its
business activities. This report presents
management policies and business strategies from a medium tolong-term perspective, as well as financial and non-financial
information, using as reference the International Integrated
Reporting Framework issued by the International Integrated
Reporting Council and the Guidance for Integrated Corporate
Disclosure and Company-Investor Dialogue for Collaborative
Value Creation compiled by the Ministry of Economy, Trade andIndustry of Japan. For more detailed IR and sustainability
information, please visit our website.

Importance to stakeholders HighManagement

S

Realization of a “Nameraka” Society
Through Creativity and Technology

Value Creation by the Septeni Group

01

Management

Mission/Vision

Introduction

Introduction

09

Introduction
Management
Value Creation by the Septeni Group
Corporate Profile

Representative Director,
Group President and Chief Executive Officer
SEPTENI HOLDINGS CO., LTD.

Reinforcing Our Management Foundation

Yuichi Kouno

Business Activities

Entering our third
entrepreneurial phase,
we aim to evolve intoa stronger corporate entity
through teamwork
and cohesion.

Human Resources

Message from Management

10

Message from Management

Human Resources
Business Activities
Reinforcing Our Management Foundation
Corporate Profile

I joined Septeni in 2006. At that time, the so-called
Galapagos phones (feature phones) were themainstream, and I was assigned to a team tasked withlaunching an advertising business for feature phones.
The business grew rapidly as the market expanded,
and we also established a group company specializingin this business. This experience laid the foundation for
my career at Septeni, as it taught me how to expand
business into new areas. While we aimed for further
business expansion, the advent of smartphones

Value Creation by the Septeni GroupThe importance of synergies felt
through various new challenges.

Management

I am pleased to announce that I have been appointed
as the Representative Director of SEPTENI HOLDINGS
CO., LTD. This marks the first change in the Company’s
representative director in approximately 15 years, and I
am the fourth individual to assume this role. In July
2023, our group established a Nomination andRemuneration Advisory Committee as a voluntarycommittee of the Board of Directors, chaired by anoutside director and composed of a majority of outside
directors. The Committee discussed the need for agenerational change to ensure sustainable growth in
the future, and as a result, I was selected as theRepresentative Director.
The digital marketing market is one that experiences
rapid changes, and the organizations and talent within
this sector are considerably younger compared toother industries. With the recent change of ourmanagement structure, we aim to swiftly respond tochanges in the business environment and create

dramatically changed the landscape. We tried to shift
to smartphone advertising, but did not succeed. In theend, the Group decided to withdraw from theadvertising business for feature phones and dissolve
the company I belonged to.
While I was contemplating my future career, theformer president, Mr. Sato, approached me with anoffer to start something new, which led to my return toSepteni. To my surprise, I was tasked with smartphone
advertising. Although I thought “why this, right after a
failure?,” I was encouraged to grow the business by
fully utilizing all the assets and resources of the groupcompanies. Embracing this challenge, I was able toonce again launch and succeed in the smartphone
advertising business. During this time, I felt asignificant broadening of my horizons as I worked
passionately with many colleagues. It is also true that
there was a strong tailwind of the growing smartphone
advertising market, but what I learned byexperiencing both failure and success in the same
area taught me the importance of “teamwork,” which
involves people around me to face challenges, andthe importance of utilizing the Group’s assets andresources. This has led to the word “synergy” as set
out in the medium-term theme.
As we reformed our management structure, we also
reviewed our Group Executive Officer structure withan eye towards “generational change.” This time, wehave divided our businesses into multiple areas, andGroup Executive Officers have been appointed tooversee each area. Going forward, we will shift to“area management,” where we set targets not only
for individual companies but also for each area andaim to generate synergies within those areas. This willallow us, for example, to put together a sales structure
for each area, sharing each company’s strengths andassets, and then be able to efficiently demonstrate
our value.

Introduction

Building a collective leadership
structure in line withindustrial changes.
The medium-term theme is“Focus & Synergy.”

opportunities for young talent to thrive as we pursue
our vision. Looking at the industry as a whole, there isa noticeable trend of renewing executive systems andpassing the baton to the younger generation.
Comparing the dawn of the Internet industry with thepresent, the Internet has evolved to a position that
supports various industries. For this reason, I believethat the required management approach is also
shifting from a leadership type that leads the way increating one from zero to an inclusive type thatinvolves collaboration with many people inside andoutside a company.
Considering these internal and external changes, it
can be said that our company is now entering its third
entrepreneurial phase, following the establishment of
the company in 1990 and the launch of the Internet
Advertising Business in 2000. By building andpromoting a collective leadership structure in linewith industrial changes, we will work as a group toachieve sustainable growth and increase corporate
value. As the first three-year medium-term theme
under the new structure, I have adopted the concept“Focus & Synergy.”

11

Message from Management

Business Activities
Reinforcing Our Management Foundation
Corporate Profile

This time, we reorganized our business areas anddivided the Digital Marketing Business into three areas:“Marketing Communication,” “Direct Business,” and“Data & Solutions.” Our mainstay, the internet
advertising agency business, falls under the “Marketing
Communication Area.” The current Internet advertisingmarket is estimated to be around ¥3.3 trillion as of 2023
and is expected to reach the ¥4 trillion level in the next
few years, beginning to enter a mature phase. Looking
ahead to the future, we need to not only focus on
digital marketing, but also expand the scope in which
we can contribute value to our clients. In terms of whatkind of “value,” it has become increasingly important tosupport our clients’ businesses by combining internet
advertising and digital solutions with mass advertising,which we have been advancing through collaboration

Human Resources

In discussing the path towards future business growth, I
must emphasize that our most important capital is ourpeople, our employees. I believe that creating anenvironment where employees can feel the impact of
their contributions and work with high motivation isessential for them to succeed. To achieve this, inaddition to our ongoing efforts in utilizing artificial
intelligence (AI) for recruitment and training, we havealso made investments in human capital in 2023,
including a base salary increase. These initiatives have
led to the establishment of a solid environment, and inrecent years, we have seen a rapid advancement of ouryounger employees into effective roles. Our personnel
evaluation system utilizing 360-degree multi survey has
shown that the level of evaluation that used to beattained by employees in their fourth or fifth year after
joining as new graduates is now being achieved bythose in their second or third year.
To further engage a diverse range of talents, I believe

Reviewing the business areaclassifications and building a systemthat can better respond toclient needs.

Value Creation by the Septeni Group

Further strengthening the humancapital management that
we have been promoting.

it is necessary to increase the variety of attractive
businesses, which are the stages where people canexcel, especially from a long-term perspective. Some
individuals may wish to continue delivering results inexisting businesses, while others may be eager to takeon challenges in new fields. By developing businesses
that attract excellent talent and increasing the numberof people who work with high motivation, we can draw
a diverse group of people from both inside and outside
the company to launch new ventures. If we can further
strengthen our human capital management in this way
and combine it with multiple attractive businesses, we
can create a cycle that will enable our group to growinto a stronger company. I consider this to be the key
element in our third entrepreneurial stage.

Management

Our group has taken on the challenge of venturing
into new business areas adjacent to our existing
businesses and into entirely new domains, under thetheme of “domain expansion.” Going forward, I
believe it is crucial to deepen our focus on our current
business areas.
Along with the change in our medium-term theme,
we will also alter the way our organization operates.
Previously, we would promote talented individuals andsend them into areas that differ greatly from those that
we had been involved in, relying on their “individual
strength” to pioneer those areas. This approach could
be described as “stand-alone × centrifugal force,”
where placing oneself in challenging environments bydesign generates the energy to create something fromzero. However, from now on, I believe the importanceof “teamwork × cohesion” in growing our existingdomains or in generating new businesses within them.
The word “focus” represents this concept.
Until now, there may have been a perception among

our employees that only a select few were tasked withthe challenge of new business. However, looking
around the company, I feel that there are actually
many people who want to try something new. I believethat lowering the barriers to taking on new initiatives,
not only by creating entirely new businesses fromscratch, but also by changing the approach within our
existing businesses, will lead to a “cohesion” thatdraws people in. Our mission is “To inspire the world
with entrepreneurship.” I see the practice of“teamwork × cohesion” as an opportunity for many,
not some, employees to recognize and demonstrate
their own entrepreneurship.

Introduction“Focusing” on current business areasand involving the entire Group in
new businesses.

12

Message from Management

Digital Marketing Business

Data &
Solutions

DirectBusiness

SEPTENI HOLDINGS CO., LTD. (Holding company)

Coming up are three pivotal years
that lead towards
the realization of “10X.”

Business Activities
Reinforcing Our Management Foundation“10X”—enhancing the value we provide to ourmulti-stakeholders to ten times the current
level—remains our long-term goal, and as we enter ourthird entrepreneurial phase, we aim to become acompany with multiple strong business entities toachieve “10X.” To this end, in the next three years fromthe fiscal year ending December 2024, we will focus
more than ever on our core Digital Marketing Business,leveraging synergies within the Group to grow it into astronger and larger business. In parallel, we willcontinue to create new businesses in the Direct
Business and Data & Solutions areas by utilizing ourexisting assets.
Please look forward to the Septeni Group, which isaiming for new growth as one team.

Human Resources

with the Dentsu Group over the past few years. Today,
there are various media, and the points at which users
contact with media have diversified. What is needed isto design a total user experience across various media.
There is a growing client need for marketing support
with a bird’s-eye view of the entire business rather thanpartial optimization, and we have found that
integrated proposals that combine online and offline
strategies have a higher acceptance rate than
online-only proposals.
In this context, the synergy with the assets of theDentsu Group, particularly mass advertising, are ourstrength. Leveraging this strength will be one of theimportant policies in the Marketing Communication
Area for the 2020s.

Corporate Profile

Moving on to the “Direct Business Area,” since thesubsidiary integration of Dentsu Direct in 2022, ourcompany has been supporting the sale of our clients’products with an orientation towards integrated online
and offline direct marketing. Based on the “know-how
of selling products” gained here, we will now venture
into OEM and D2C businesses, where we create andsell our own products. In marketing support, thebusiness structure of purchasing advertising media andselling them with added value has a limit to how muchprofit margins can be improved. By selling andmarketing our own products, we can significantly
increase profit margins, deepen our knowledge andknow-how, and actively return these benefits to ourclients whom we support with marketing. We aim tocreate a highly profitable business model in this Direct
Business Area.
In the “Data & Solutions Area,” we will strengthen
the business that supports our clients’ solution
development by utilizing the resources of our dataengineers. Our group has a few hundreds of engineers
both domestically and internationally, who have been
involved in solution development both inside andoutside the company. I believe that the technicalexpertise and know-how in talent development andorganizational management cultivated there can beleveraged to support our clients’ solution
development. Expanding this business hinges on
increasing our engineering workforce, but acquiring
in-demand engineering talent from the market can be
costly. Therefore, we are considering expanding our
educational business that trains engineers from scratch

Value Creation by the Septeni Group

Marketing Communication

Media
PlatformBusinessand our personnel dispatch business that involves
dispatching trained personnel to companies seeking
engineers. By supporting companies through solution
development and talent provision, we aim to produce
a large number of engineers.
In addition, in the Media Platform Business, previously
we had been promoting business independently withineach subsidiary, but by creating synergies that transcendbusiness segments, such as utilizing the knowledge andhuman resources of the Digital Marketing Business, I
believe that we can open up new perspectives, lead to
new actions, and accelerate business growth, just as I
used to do in the past.

Management

Looking ahead to new challenges
and business development in“Direct Business” and“Data & Solutions.”

Introduction

Business Areas After Reorganization

13

Septeni Group x dentsu Japan Dialogue
Yuichi Kouno

Takeshi Sano

CEO, dentsu Japan and
Representative Director,
President and CEO,
Dentsu Inc.

Management

Representative Director,
Group President andChief Executive Officer
Septeni Holdings Co., Ltd.

Introduction

Harnessing each other’s
strengths to become
Japan’s No. 1 digitalmarketing partner

Value Creation by the Septeni GroupThe Septeni Group and dentsu Japan have established a
new management structure. Yuichi Kouno, Representative
Director, Group President and Chief Executive Officer of
Septeni Holdings, and Takeshi Sano, CEO of dentsu Japanand Representative Director, President and CEO of
Dentsu Inc., discussed the relationship that has emerged
through the collaboration to date, and the future
prospects for achieving the collaboration’s goals.

Human Resources
Corporate Profile

he has the ability to bring in others around him todeliver success. Overall, he gives the impression of awell-rounded personality, also showing listening skills
and adaptability.
Kouno: I appreciate that.
Looking at our past work history, we share thecommon experience of bringing together salesorganizations over a long period of time, and I think wehave a very similar commitment to contributing to theclient’s business. In terms of the way we lead ourorganizations, I feel that our leadership styles are similarin that we both have long experience in sales and arevery conscious of the process from strategic planning to
execution to ensure that the field is operating properly,
rather than being the type to draw up broad strategies
and leave it to people on the front lines.

Reinforcing Our Management Foundation

Kouno: Mr. Sano assumed his current position in January2024, and our group also renewed its management
structure this year. Although our two companies have
only just established these new structures, I hope that
we can work towards further strengthening ourcollaboration. Since the start of our capital and businessalliance in 2018, we have had ongoing discussions withyou on the topic of how our group and the Dentsu
Group can grow the digital domain together.
Sano: Of the four business regions in which the Dentsu
Group operates globally, dentsu Japan has thefunction of overseeing and supporting the Japanesebusiness, which includes one of the world’s largest

agencies, Dentsu Inc., and also represents theJapanese business brand. With the Septeni Groupjoining the Dentsu Group in January 2022 andbecoming a member of dentsu Japan, we are now
even more closely aligned.
Kouno: We struck up a rapport from our first meetingand have since worked to build the relationship wehave today. Mr. Sano is a very energetic, dynamic andflexible person who combines humor with strong
leadership. I was impressed by the way he inspires theorganization and leads the company while following
things up with a light touch.
Sano: Mr. Kouno has always been active in sports,
which gives him vitality and a proactive attitude. WhenI say “sport,” I don’t mean the type of sport where you
master individual skills; it’s team sports. I believe that

Business Activities

Launch of the new structure andcommonalities in leadership14

Septeni Group x dentsu Japan Dialogue

Human Resources
Business Activities
Reinforcing Our Management Foundation
Corporate Profile

Kouno: More than five years have passed since thestart of our capital and business alliance, which beganwith the exchange of some personnel, and we havesince built up a track record of success. In addition, weare gradually obtaining confirmation that integrated
online/offline proposals are more likely to increase
order rates than digital ad-only proposals. The valuethat can be provided through this alliance matches theneeds of clients, and has been widely recognized,
indicating that the synergy is a result of acomplementary relationship that harnesses thestrengths of both parties.
Sano: We see this synergy as a key initiative inpromoting dentsu Japan’s vision of being an“Integrated Growth Partner (IGP).” We feel that there
are still many clients in the Japanese advertisingmarket who are facing challenges that thiscollaboration could solve. By collaborating with theSepteni Group, our sales capabilities and expertise indigital marketing have become stronger than ever, andwe are building a structure for becoming a presence
that solves our clients’ problems and then exceeds
their expectations.
Kouno: I feel that over the past five years, we havecome to a point where we understand the assets eachgroup company possesses, and are ready to movetoward even stronger organizational collaboration.
Starting with collaboration between some groupcompanies in the advertising domain, we are now
seeing progress in the creative and data & solutions
areas as well, enabling coordination across manygroup companies.
Sano: That’s right. For example, in the data & solutionsarea, which makes use of data and AI, collaboration

Value Creation by the Septeni Group

Sano: I think the business structures of the twocompanies are very well matched, not only in terms of
our individual similarities but also in terms oforganizational units. From my perspective as not only
the CEO of dentsu Japan but also as the President andCEO of Dentsu Inc., sales representatives from Dentsu
Inc. and the Septeni Group work as a team to makeproposals to clients, and I believe this is because theyshare the same client-first approach of acting as

Synergies from earlier collaborations andestablishment of a management structureManagement

A complementary relationship thatleverages strengths to drive
collaboration toward a common goal

partners to support client growth, leveraging theirrespective strengths to enhance the value they offer.
Kouno: The Dentsu Group has a strong client baseand expertise cultivated over many years, particularlyin the domain of mass media advertising. On the other
hand, our group’s strength lies in the knowledge, skills,
and expertise we have built up as a digital agency, as
well as in our diverse group of digital talent. As theneed for integrated online and offline marketing grows
and the services demanded by clients become
increasingly sophisticated and complex, we areconfident in our ability to bring together our
respective strengths in the online and offline domains
and work together as one team.
Sano: In addition to the fact that we are building asolid structure aimed at our common goal of“becoming the No. 1 digital marketing partner inJapan,” we also have differences that complement
each other. The Septeni Group is a relatively newcompany within dentsu Japan, and I like that it has theenergy for new initiatives such as acquiring new
business and developing new markets, and the power
to move forward together as a team.
Kouno: Because we deal with the fast-changing digitalindustry every day, we operate in an environment thatdemands speed and adaptability, and I believe this hascreated a corporate culture that excels at adapting tochange. By contrast, the Dentsu Group’s sense of
responsibility and passion for anticipating market andclient needs and leading the development ofindustry-leading products and services is embedded inits DNA as a core competence.
Sano: I believe that we are prepared not only toperform the work assigned to us, but also to remain
proactive in our role and mission to keep providing
new added value to society and the marketplace.

Introduction

Our company’s values are “Resilient, Caring,
Exciting,” and I feel that our similarities and mutual
strengths lie in our ability to balance these threevalues and use them as appropriate for theenvironment and situation.

15

Septeni Group x dentsu Japan Dialogue

Offline (mass-media advertising)

Online (digital advertising)Solution services market

Delivery and operation

Integrated online/offline
proposals
Creative area
Engineering area

Corporate Profile

Operations infrastructure
Product development

Reinforcing Our Management Foundation

Front

Business Activities

Advertising market

Human Resources

Collaboration with Dentsu Inc. and Dentsu Group Companies in Various Domains

sophisticated and efficient advertising, and which we
anticipate will drive our growth. As mass media
advertising moves to digital, and the market andadvertising itself undergo a digital shift, I believe that
Septeni’s qualities, which have grown as it hasestablished its own unique culture, has brought newenergy to dentsu Japan, and is helping to step up
initiatives like online/offline integrated marketing.
Kouno: Amidst the drastic changes in the businessenvironment, I believe that the considerable
differences in functions, capabilities, human resources,
and cultures between the two groups will bringdiversity to the organization and continue to generatestronger synergies. It is important to develop closer
partnerships with dentsu Japan companies while
honing our own unique Septeni identity, and to ensurethat our young talent continues to show entrepreneurial
spirit and a willingness to take on new challenges. I
believe that it is the unique role of our group tocontinue as a company supporting the growth ofdentsu Japan’s digital domain, working cheerfully andenthusiastically toward a smooth future alongside ourcolleagues in the Dentsu Group.

Value Creation by the Septeni Group

Sano: I myself have just assumed the position of CEO,and I believe that the timing of the change in
representative will generate expectations bothinternally and externally. I hope that Mr. Kouno willlead the Septeni Group with an eye to the next 10

Management

Driving growth in the digital domainfrom a long-term perspective

years and beyond, and drive our growth once more. As
for dentsu Japan, it is my hope that our collaboration
reaches ever new heights.
Kouno: There is always a long-term perspective in myconversations with Mr. Sano. We have had numerous
discussions about what the Septeni Group should look
like 10 to 20 years from now and what we can do overthe long term to strengthen the four business domainsthat the Dentsu Group has identified. Whenconsidering the future and role of our group from thislong-term perspective, I believe that one of the key
points for continuing to expand our collaboration is tomaintain Septeni’s distinctive identity while
participating in the Dentsu Group.
Sano: Of the four business domains, A to DX, theSepteni Group is strongest in AX, the “advertisingtransformation” domain that seeks to deliver more

Introduction

between the Septeni Group, which has engineering
talent, and Dentsu Digital Inc. is already underway. The
Septeni Group, which plays a central role in the digitaldomain within dentsu Japan, and Dentsu Digital Inc.
have established a structure that can cover the entire
digital marketing process from upstream todownstream by combining the strengths and assets ofthe two companies.

16

Value Creation Process to Realize Our Mission
Introduction

MissionVisionOutcomeValue provided through business and activities
Return of profits toshareholders

Empowering people
and industry

Digital Marketing BusinessMedia Platform Businessof a “Nameraka” Society
S Realization
Through Creativity and Technology

Business
activities

of Corporate Value by
S Enhancement
Empowering People Who Create a New Era
Input

Human resource development withreproducibility through digital HR

DEI

Democratization of entrepreneurship

Value creation foundation of the Groupan Advanced Governance System
G Building
to Support Discontinuous Growth

Corporate Profileto
E Response
Climate Change

Reinforcing Our Management Foundation

Core value

People filled with a strong sense of ownershipand entrepreneurial spirit

Business Activities

Our Group’s core value is “people filled with astrong sense of ownership and entrepreneurial
spirit.” We have a value creation foundation to
maximize this human capital, and by conducting
business activities based on this foundation,
we can increase the value we provide to ourstakeholders. We are striving to achieve ourvision and realize our mission.

Improved employee
job satisfaction

Human Resources

Value
Creation by
the Septeni GroupOutputValue Creation by the Septeni Group

10X

Management

To inspire the world with entrepreneurship

17

Explanation of the Value Creation Process

P22

Concept of Human Capital Management

Business Activities

Creating a smooth society
through business

Related page

P43

Creating a “Nameraka” Society
through Business

OutputValue provided to society throughbusiness and activities

Related pages

P21-31Social —Human Resources—

P32-43Social —Business Activities—

P44-51

Reinforcing Our Management Foundation

Corporate Profile

The value we provide through our business operations
is aggregated into the phrase “empowering people
and industry.” This is because we believe that we will
be closer “to inspire the world” set forth in our mission

Reinforcing Our Management Foundation

Our Group, which is focused on the digital industry,
aims to realize a “nameraka” society by having humanresources with entrepreneurship demonstrate creativity
and operate the businesses while utilizing technology.

We have positioned “E: Response to Climate Change”
as a prerequisite for sustained business operations, and“G: Building an Advanced Governance System toSupport Discontinuous Growth” as a prerequisite forrealizing discontinuous growth and a “nameraka”
future, which supports the entire value creation
process. “S: Enhancement of Corporate Value by
Empowering People Who Create a New Era” is amateriality related to human capital, and the Group’s
value creation foundation corresponds to its
subcategory. Creativity and technology are the sourceof value for all of the Group’s businesses. By aiming for“S: Realization of a ‘Nameraka’ Society ThroughCreativity and Technology” in each of our businesses,
we will expand the value we provide to people andindustry through our businesses.

Business Activities

In the new value creation process, we aimed to moreclearly express that all of our Group’s activities are
based on people. Our value creation foundation,
including our efforts to develop human resources
through digital HR, will promote the active
participation and growth of our people, our greatest
asset. At the same time, we will firmly establish
entrepreneurship as an organizational culture. Throughthis approach, entrepreneurship is also demonstrated
in our businesses and activities, which leads to anincrease in the value we provide to our stakeholders. It
expresses that such a process leads to the realization of
the mission and the achievement of the vision.

Related page

Human Resources

Human resources supported by
the foundation promote business andincrease the value provided to society

Positioning of Materiality

Aiming to accelerate value creation,achieve our vision, and realize our mission
from the E/S/S/G perspective.

Value Creation by the Septeni GroupWe utilize our extensive human resource database andtechnologies to optimize the development of humanresources individually. Additionally, we are working to bea place where employees can perform their full potential
and play an active role by promoting and supporting
diverse work styles and encouraging each employee todevelop and demonstrate entrepreneurship. We believethat the value creation foundation that supports the
maximization of human capital will enable employees to“create a new era” and lead to the enhancement ofcorporate value.

by supporting the empowerment of all stakeholders andindustry as a whole, including the improvement of QOL
of users who use the services we provide and the mutual
development with our clients and partners. In addition,
the enhancement of corporate value through thepromotion of business activities leads to the return ofprofits to shareholders. Employees gain a sense of
improvement in their job satisfaction through businessactivities, which is then reflected back into our core values.

Management

Input

Value creation foundation to support
the maximization of human capital

Introduction

In line with the establishment of the Sustainability Policy and the review of materiality announced in February 2024, we have updated the value creation process.

18

Promotion of Sustainability Management

Sustainability Policy

Sustainability Committee
Chairperson

MISSION

External advisors
Members

Management Office(CEO Office / Public Relations Department)

Promotion of sustainability activities

Philosophy Penetration Project

S

S

G

Response to
Climate Change

Enhancement ofCorporate Value by
Empowering People WhoCreate a New Era

Realization of
a “Nameraka” Society
Through Creativity andTechnology

Building an Advanced
Governance System toSupport Discontinuous
GrowthThe Subcommittee for
Measures against Discriminationand Harassment

SEPALLY RAINBOW(LGBT)The Gender Equality Subcommittee
ECHO (environment)

Corporate Profile

E

Materiality

Individuals responsible for each materiality
Corporate Design Manager
Employees under 30 years old
Female managers

Reinforcing Our Management Foundation

VISION
To be a place where people are empowered to create a new era
To open the door to a “nameraka” future with creativity and technology
To make a complex world bright and simple through the power of digital

Business Activities

To inspire the world with entrepreneurshipGroup President and Chief Executive Officer

Human Resources

Sustainability Committee Organizational Chart

Value Creation by the Septeni Group

Overview of Sustainability Activities

The Committee includes members such as employees
under the age of 30 representing future generations,
female managers, individuals responsible for eachmateriality, and external advisors, all contributing tovigorous discussions from various perspectives.
Furthermore, subcommittees have been establishedunder the Committee to promote initiatives related tomateriality within the Group, working towards solving
issues and achieving KPIs.

Management

Companies can only operate in a sustainable andhealthy society. A globalized, diversified and complex
society has many challenges, and the various impactsof these challenges cannot be considered separatelyfrom corporate activities. We believe that in order tocontinue our corporate activities and develop
sustainably with our stakeholders, it is imperative that
we actively address these challenges and continue tocontribute to their resolution.

Sustainability promotion structure

Introduction

We believe that contributing to the resolution ofsocial issues through our corporate activities is what isrequired of us by our stakeholders in order to realize
our mission of “To inspire the world withentrepreneurship” and our Group vision, and we arepromoting sustainability activities.
In our sustainability activities, we have set ourGroup’s mission and vision as our basic policy, and weare actively promoting activities with the aim ofachieving sustainable growth of the Group, improving
corporate value, and realizing a sustainable society.

Sustainability policy

19

Materiality of the Septeni Group

Confirmation of priority issues

Collection of opinions at multiple meetings

Based on the draft, we conducted multiple rounds of opinion
collection at the Sustainability Committee, Group Management
Meeting, and Board of Directors.

Identification of Materiality

The collected opinions were compiled, and the final draft was
created at the Sustainability Committee. At the Board of Directors,
we confirmed the connection with the Group’s philosophy, including
the vision, and the validity as an important matter for the Group.

High

Importance to the Group’s Businesses

Very highCorporate Profile

STEP 4

Reinforcing Our Management Foundation

STEP 3

Expectations for the GroupWe comprehensively assessed the identified social issues basedon their importance to the Group’s business and the expectationsof stakeholders towards the Group, categorized them according
to the ESG framework, and created a draft of materiality.

• Creating a fulfilling workplace
Very high

STEP 2• Elimination of gender gap • Improving productivity in Japan

Business Activities

Identified social issues based on SDGs, ISO26000, and otherinternational standards.

Examples of priority issues

In the fiscal year ended December 2023, the second
year of the formation of the Sustainability
Committee, we adopted and established themission and vision as a sustainability policy from theGroup’s philosophy revised in October 2022 withthe aim of promoting more effective activities aimed
at enhancing corporate value.
To date, we have conducted regular inspectionsof the materiality identified in 2016 as a priority
theme in our sustainability activities. We havereviewed the materiality in response to revisions to
the Group’s philosophy, changes in social conditions,and changes in the expectations of our stakeholders
toward the Group. We have set strategic KPI for
each materiality, and by aggressively promoting
activities in each ESG area, we will lead to thesustainable growth of our corporate value. Looking
ahead, we will consider the visualization of value
created through sustainability activities, and aim to
improve the resolution of how our Group
contributes to the realization of a sustainable and“nameraka” society.

Human Resources

Identification of issues

Group Executive Officer

Value Creation by the Septeni Group

STEP 1

Confirmation of Priority Issues

Yoko Miyazaki

Management

Identification Process

Group Executive Officer incharge of sustainability

COMMENT

We have been promoting sustainability activities byregularly reviewing the materiality we identified in2016. However, in response to the revision of ourGroup’s philosophy in October 2022, we have renewed
our materiality.
In identifying the materiality, we extracted social
issues mainly from international guidelines, and madea comprehensive judgment based on two axes:“expectations of stakeholders towards the Septeni
Group” and “importance to the Septeni Group’sbusiness.” We identified 29 issues with particularlyhigh priority, categorized them into four major

categories according to the ESG framework, andcreated a draft.
Based on the draft, we collected opinions several
times at the Sustainability Committee, GroupManagement Meeting, and Board of Directors. The
Sustainability Committee compiled the opinions fromvarious places and created the final draft. At the Boardof Directors, we confirmed the connection with theGroup’s philosophy, including the revised vision, and theappropriateness as an important matter for the Group.
By addressing the four materialities we have identified,
we aim to achieve our Group’s vision and realize our
mission of “To inspire the world with entrepreneurship.”Introduction

Materiality identification process

20

Materiality of the Septeni Group

Materiality

Response to
Climate Change

Climate change is threatening the future of our planet. Given that asustainable and sound Earth and society are prerequisites for business
operations, addressing climate change is of high importance and isalso widely demanded by society and stakeholders. By continuously
taking action against climate change, we aim to achieve a
decarbonized society.

Reduction of GHG emissions
and disclosure of informationin accordance with TCFD
recommendations

Scope 1 & 2
emissions

70% reduction
compared to 2023

2030

Human resource developmentwith reproducibility throughdigital HR

Operation andaccuracy improvementof HR value chain*1

Continuous
implementation

Annually

Ratio of female
managers

30%

2030

Enhancement ofCorporate Value by
Empowering
People Who Createa New Era

As stated in the first clause of our vision, “To be a place where
people are empowered to create a new era,” we at the Septeni
Group believe that our most valuable asset is our people. In ourcommitment to nurturing those who will shape the future, we are
actively pursuing three themes. The first is enhancing the value ofeach individual through reproducible talent acquisition, placement,
and development using HR technology. The second is creating anenvironment where each individual can play an active role in theirown way by promoting Diversity, Equity, and Inclusion (DEI). The
third is democratizing entrepreneurship by nurturing andestablishing the entrepreneurship of each individual. Through these
efforts, we aim to enhance human capital value, empower people
who create a new era, and improve corporate value.
In addition, within DEI efforts, we focus on initiatives related to
women, who represent a majority among minorities, as we believethat addressing gender equity and inclusion leads to the realization ofequity and inclusion for other attributes. Therefore, we aim to close
the gender gap and have set the ratio of female managers as a KPI.

Understanding of
unconscious bias

100%

2030

Number of people
actively participating in
events that nurture
entrepreneurship*2

Year-on-year increase

Annually

Participation rate of
employee stock
ownership plan

Year-on-year increase

Annually

Value creation leading toa “nameraka” society

Providing value andopportunities tosociety throughbusiness and services

Increase in recipients of value

2030

Efforts fordiscontinuous growth

Co-creation of supervisionand execution

Realization of innovation board*32024

Realization of
a “Nameraka” Society
Through Creativity
and Technology

Building an Advanced
Governance System
to Support
Discontinuous Growth

In the second part of our vision, we express our commitment“To open the door to a “nameraka” future with creativity andtechnology.” Our goal is to realize a “nameraka” future byharnessing each employee’s creativity, utilizing technology to create
new value in the form of new businesses, services, and IP, andexpanding opportunities for both industries and individuals.

By promoting both offensive corporate governance to pursue
discontinuous growth and defensive corporate governance topursue risk reduction, we aim to build advanced corporate
governance system to create a new era and become a place torealize a “nameraka” future.

DEI (Diversity, Equity &Inclusion)

Democratization ofentrepreneurship

Efforts for risk reduction

Ensuring and improving
the effectiveness of theboard of directors*1 HR strategy designed as a consistent service from recruitment to onboarding to development, based on a talent database accumulated over more than 20 years*2 “gen-ten,” slogan contests, Group Sharing Meetings, prize essays, Hinerankai Awards, Diversity Month, Diversity Awards, philosophy-related events, cross-functional committees, etc.
*3 Board of Directors in which the supervising directors utilize their individual expertise to co-create value with the executive side in order to achieve discontinuous growth

executive sessions• Continuous implementation ofAnnually

effectiveness evaluations

Continuous implementation

Annually

Corporate Profile

Discussion of
succession planning• Continuous implementation of

Reinforcing Our Management Foundation

TargetBusiness Activities

G

KPI

Human Resources

S

Subcategory of Materiality

Value Creation by the Septeni GroupS

Value Provided to SocietyManagement

E

TargetAchievement
TimingIntroduction

Materiality and KPIs

21

Introduction
Management
Value Creation by the Septeni Group

Enhancement ofCorporate Value by
Empowering People
Who Create a New Era

Human Resources

Social—Human Resources—

Business Activities

Human Resource Development with
Reproducibility Through Digital HR

23

DEI (Diversity, Equity & Inclusion)

25

A Place where a Diverse Range of
Personnel can Play an Active Role

27

Democratization of Entrepreneurship

28

Belonging at Septeni Group30

COLUMN

Human Capital Investments for the Future31

Corporate Profile

22

Reinforcing Our Management Foundation

Concept of Human Capital Management

22

Concept of Human Capital Management

Introduction
Management

As stated in the first clause of our vision, “To be a place where people
are empowered to create a new era,” we at the Septeni Group regard
people filled with a strong sense of ownership and entrepreneurial

Since starting the Digital Marketing Business in 2000, we havecontinued to expand our business along with the development of themarket. However, in growth industries like our business sector, thecompetition for acquiring skilled talent has been extremely fierce.
In such an environment, we believe that how we recruit, develop, andsignificantly influences corporate competitiveness.

Resource Development with Reproducibility Through Digital HR,”
which utilizes individual employee data to implement tailoredinitiatives, “DEI” promotion to create an environment where
Entrepreneurship” to nurture the entrepreneurial spirit in eachindividual. Through these efforts, we aim to sustainably improve
human capital value.
In addition, we are actively involved as a Scholarship Partner of the
Kamiyama Marugoto College of Design, Technology, andEntrepreneurship, a private technical college. By providing long-term
the realization of an innovative and sustainable society, while also
working towards enhancing our corporate value.

Democratization of
Entrepreneurship

Corporate Profile

support and investment to talented students, we aim to contribute to

DEI

Reinforcing Our Management Foundationindividuals can unleash their full potential, and “Democratization of

Human Resource
Development with
Reproducibility
Through Digital HR

Business Activities

For this reason, we have been focusing on three key areas: “Human

Human Resources

retain high-potential human resources is a critical factor that

People filled with a strong sense of ownershipand entrepreneurial spirit

Value Creation by the Septeni Groupspirit as the most valuable asset and focus on their development.

23

Human Resource Development with Reproducibility Through Digital HR

Onboarding

Development

Optimize retention of
employees joining

Providean individuallyoptimized
development planfor each person

Recruiting
Identify and secure
personnel with a highpossibility of succeedingat our company

Efforts towards the appropriate
utilization of human resource data

HR Development Equation

Personality

Environment

Team

Work

+

G = P E( T +W )Digital HR Guidelines
https://www.septeni-holdings.co.jp/dhrp/guideline/index.html(Only available in Japanese)

Corporate Profile

An idea where the environment (E) in the workplace is defined as the team (T) plus the work (W), and it isbelieved that the higher the affinity between these two factors and the individual characteristics of theperson (P), the higher the likelihood that it will lead to significant growth (G).

To ensure that human resource data is used in an
appropriate manner, we have published “Digital HR
Guidelines” containing principles for the utilization ofhuman resource data. In the Group, when using thedata for HR strategies, we operate in accordance withthe principles of the Guidelines.

Reinforcing Our Management Foundation

GrowthHR Value Chain

Business Activities

Leveraging the human resources databases we haveaccumulated over the years, we are building HR
initiatives (an HR value chain) designed as an integrated
service from recruitment to onboarding to development.
The results of HR initiatives implemented are stored in
the same database, and the system is designed tocontinuously improve the accuracy of initiatives andrespond flexibly to changes in the environment
surrounding our company by applying the PDCA cycle
as operations continue.
By leveraging such technology to accumulate andutilize individual talent data and implementing tailoredinitiatives, we strive to realize “efficient and highly

Human Resources

We define the concept of human resources development
not as a matter of “being developed” but rather as oneof “developing through the accumulation of positive
experiences in the workplace.” The idea is that mutualinteraction between the individual characteristics people
are born with and the environments surrounding theminfluences their growth. We express this in the form of
our HR Development Equation (G=P×E). Based on thisconcept, we established the Human Capital Lab within
the Company to use AI and other techniques to researchhuman resources data accumulated over 20 years, andwe are developing and applying science-backed HR
initiatives based on the results of that research.

reproducible human resource development” andmaximize our human capital.

Value Creation by the Septeni GroupAn HR value chain designed as
an integrated service from recruitment
to development

Management

Implementing science-backed
HR Initiatives based on
the HR Development Equation

Introduction

Utilizing a human resource database accumulated over more than 20 years and HR technology,
we have been working on achieving individual optimization in talent development.

24

Human Resource Development with Reproducibility Through Digital HR
Development

Business Activities
Reinforcing Our Management Foundation

We have been implementing company-wide remote
work since February 2020. We will continue flexible work
styles while also focusing on initiatives that are suitablefor employee development in a remote environment.
For employees after joining the Company, we
implement “compatibility placement,” whichquantitatively evaluates the environment that anindividual is likely to adapt to easily, based on
personality data from team members and supervisors,
and use this as reference information for assignments.
In addition, we support the individual growth of each
employee by providing them and their supervisors withinformation regarding their “strengths and weaknesses,
optimal learning styles, and methods of organizational
adaptation.” Furthermore, we continue to conduct
regular surveys and provide career counseling throughour HRBP department, ensuring ongoing monitoringand support for development.
The aforementioned Human Capital Lab creates
these data and development plans, and incollaboration with the HRBP department, promotes
management support in a remote environment by
providing them to employees.

Human Resources

In recruitment activities, we have developed a successprediction model that calculates the potential for
post-hire success based on information such as the“personality” of candidates and “data at the time of
selection.” This model is used as a reference in theselection process. By referring to data, we can makedecisions based on quantitative information rather thanrelying solely on the subjective opinions or instincts of
the hiring staff, which leads to increased accuracy inmatching candidates with our company. Furthermore,
we provide “career feedback” based on the datacollected during the selection process, offering
individual career plans to each candidate. Thisfacilitates communication between the hiring staff andcandidates, helping to deepen their understanding ofcareer formation after joining the Company.
Through the utilization of such data, we have been
conducting recruitment activities that can becompleted in a remote environment since 2017,
without relying on in-person interviews. By
implementing highly reproducible selection processes
online, we are able to form diverse candidate pools
without geographical constraints, enabling us toapproach talented individuals nationwide.

Value Creation by the Septeni Group

Development plan and compatibility
placement based on personality
data analysis

Management

Reproducible selection process anddata utilization to support understandingof career formation after joining

Examples of Development Plan andCompatibility Placement Reports

Introduction

Recruitment

Corporate Profile

25

DEI (Diversity, Equity & Inclusion)

In initiatives toward gender equality, a part of our DEI
promotion, we believe it is necessary to recognize thatwomen potentially face unique career challenges due
to gender-specific life events such as childbirth. We arecommitted to creating an environment where theseobstacles are minimized, and growth and evaluation
are fair beyond gender.
The implementation of measures and theestablishment of systems to empower women, who are
the majority among minorities, and the insights gained

DEI Initiatives

Goals for gender equality
We have been working on various measures with thegoal of “achieving a 25% female manager ratio by
October 2023” among major domestic companies. As
a result, we achieved 26.6% as of October 2023.
Currently, we are promoting activities with a new goalfor gender equality, “achieving a 30% female manager
ratio by December 2030,” expanding the scope of ourtarget to include all domestic Group companies.

We have established thegroup-wide LGBT & Allies
network “SEPALLY RAINBOW”
and are promoting LGBT
initiatives with them.

Raising awareness of
unconscious bias
We conduct mandatory training
for executive officers andmanagers, as well as e-learningand surveys to assess
understanding of unconscious
bias for all employees.

(as of October 1 of each year)
(%)
30

26.6

20

22.5

22.0

22.6

2019

2020

2021

2022

16.7
14.4

10

0

2017

2018

2023

Corporate Profile

21.9

Reinforcing Our Management Foundation

We are promoting initiatives toachieve gender equality
primarily through the Gender
Equality Subcommittee under
the Sustainability Committee.

LGBT initiatives

Business Activities

Ratio of Women in Managerial Positions

Initiatives to achieve
gender equality

Human Resources

At the Septeni Group, we have adopted a DEI policythat “respects all human rights, acknowledges diversity,and realizes a way of working where each individual’s
strengths are demonstrated.” We promote andsupport diverse work styles based on the belief thateach employee of various backgrounds can contributeto the sustainable development of the Group throughautonomous and valuable work.

in the process, we believe, will contribute to therespect for diversity of people with various attributes
and lead to support for their active participation.

Value Creation by the Septeni Group

Policy for gender equality

Management

Septeni Group and DEI

Introduction

We promote and support diverse work styles based on the belief that each employee of various backgrounds
can contribute to the sustainable development of the Group through autonomous and valuable work.

26

DEI (Diversity, Equity & Inclusion)

Early career awareness for early success

Based on DEI Growth Metrics analyses, we havelearned that it is important to reduce situations inwhich employees are unwillingly limited in their work,
such as when they are forced to choose shortened
working hours for childcare reasons. We have been
aiming to achieve a state where everyone is working
autonomously and actively in valuable jobs regardlessof time and place, which means being a globallycompetitive company. Recognizing that achieving thisgoal also contributes to the success of each individual,
we will further support diverse work styles.

For more details about our initiatives, please visit the Sustainability page on our corporate website. https://www.septeni-holdings.co.jp/en/csr/activity/new-era/diversity/gender.html

Reinforcing Our Management Foundation

Senior female employees also took the stage
to reflect on their careers and answer questions
from the participants. The training provided an
opportunity for participants to learn about
diverse career paths, expand their options,and contemplate work-life balance on an
individual level.

Business Activities

At the awareness training for young female
employees conducted in January 2024, thetraining instructor gave a lecture on how todevelop a career taking into account thatwomen potentially face unique challenges
associated with gender-specific life events suchas childbirth.

Human Resources

Awareness training for young female employees

Value Creation by the Septeni Group

From the DEI Growth Metrics, it was observed that
employees, both men and women, who excel early(within four years of joining) tend to be working inhigher positions and this also leads to success after
promotion or returning from parental leave.
Based on these results, we will conduct two training
sessions to promote early success: “awareness training
for young female employees” and “awareness training
for supervisors”

Support for diverse ways of working

Management

In closing the gender gap, we have analyzed HR dataat the Human Capital Lab and derived current issues
from the result: “DEI Growth Metrics.” Based on thecontent of the “DEI Growth Metrics,” we are
implementing measures for improvement.

Initiatives based on DEI Growth Metrics

Introduction

Analysis of the current state for gender
gap improvement: DEI Growth Metrics

Corporate Profile

27

A Place where a Diverse Range of Personnel can Play an Active Role

Personal
development
systemThis program provides subsidies of 70% of
the total amount (up to 70,000 yen) for
attendance at outside seminars, businessschools, etc. The program has been
introduced to create opportunities for skill
development outside the company.

Men

Women

(people)
50–

55

55

40–44

113

110

35–39

215

(%)

159

30–34

338

Percentage of Employees who Responded,“This company treats employees fairly regardlessof age/race/gender/sexual orientation” Averaged
Across Responses for Each Item, by Year

39

45–49

75

100
230

25–29
106
300

200

110

–24
100

0

90

0

(Note) Total: Regular employees and limited regular employees(Note) Both age and gender were calculated on the basis of employees who gave a clear response.

100

89

80
200

300

400

70
0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Corporate Profile

400

12

Reinforcing Our Management Foundation

19*The total number of surveyed Group company employees was more than
60% of the total number of employees. Percentages are calculated basedon responses from a randomly selected subset of employees.

Business Activities

Age Structure of Septeni Group Employees (as of December 31, 2023)

Human Resources

BLP(Business
Leadership
Program)A specialized management development
program in the domain of management,
aimed at cultivating future executive
candidates. Selection is conducted throughan open application process, and chosen
candidates may receive a grant from thecompany to attend an outside businessschool for two years, free of charge.

In 2024, for the 13th consecutive year, the Septeni Groupwas selected in the “Best Workplaces in Japan” rankings,
a survey and analysis conducted by the Great Place To
Work® Institute Japan. The percentage of employees who
responded “Overall, I would say this is a great company
to work for”* averaged over 80% over the past 13 years.
In terms of individual evaluation items, high scores
were recorded for such questions as “Management andsupervisory staff understand that failure is an inevitablepart of the work process” and “In this company, people
who try new methods and improvements are admired,regardless of the consequences,” clearly indicating thatthe spirit of “Hinerankai,” the creed that has been
passed down for more than 30 years since thefounding, is being put into practice.
The average for the respective questions about
being treated fairly regardless of age, race, gender andsexual orientation was 89% in the 2024 survey,
indicating an environment in which employees canthrive regardless of their personal attributes.

Value Creation by the Septeni GroupSee pp. 28–29 for more information on “events nurturing
each person’s entrepreneurship”

Essay
contestEach year, a theme related to the “futureof the company” is chosen, and employees
are invited to submit what they can andshould do in the form of essays, withawards given to the best entries.

Management

In order to adapt to change, the Septeni Group is
working to build an organization in which members of
all generations can play an active role.
The Group’s regular employees consist mainly of
those in their 20s and 30s, and by utilizing the “HR
Development Equation” and “Success Prediction
Model” we are able to quickly develop them into
effective personnel.
We also provide a variety of opportunities to take onchallenges regardless of age, such as the “gen-ten”
new business contest and other “events nurturing each
person’s entrepreneurship,” and many young employees,
including those in their first year with the company,
participate in these events.

Selected as one of Japan’s “BestWorkplaces” for the 13th consecutive year

Introduction

Main Initiatives for Building an Organization inwhich Various Generations can Play an Active Role

Promoting age diversity

28

Democratization of Entrepreneurship(%)
50

Business Activities

Membership Rate of Employee Stock
Ownership Plan
46.7

40

30

30.5

31.8

33.1

20

Highlight of participants at “Diversity Month,” an event nurturing
entrepreneurship

10

2020

2021

2022

(relative to the full-time employees of the target company)

2023

Corporate Profile0

Reinforcing Our Management Foundation

We have introduced an Employee Stock Ownership
Plan (ESOP) with the aim of fostering long-term asset
building and cultivating a sense of ownership among
our employees.
In April 2023, the incentive rate for the ESOP wasraised to 20% from 10% with the aim of strengthening
human capital investment, resulting in a significant
increase in the membership rate. We aim to increase
the Group’s corporate value over the medium to longterm by continuously increasing the participation ratein the ESOP, fostering an awareness of ownershipamong individual employees, and raising theirmotivation for work.

Human Resources

The Septeni Group’s mission is “To inspire the world
with entrepreneurship.”
The term entrepreneurship is generally translated as“entrepreneurial spirit,” but at our company, it isnotable that each individual is encouraged to interpretthe term in their own way, in addition to its generalmeaning. One of the common interpretations within
the Company is to “pursue opportunities beyond
controllable resources.” Human resources with suchqualities and attitudes are the “people who create a
new era,” as described at the beginning of our vision,and are the source of the Septeni Group’s strengths.
That is why entrepreneurship in the Septeni Group is
not limited to managers and leaders. The situation inwhich each person identifies and implements
entrepreneurship in each form on a daily basis andrecognizes its diversity, in other words, “democratizationof entrepreneurship” is our ideal. Through the“democratization of entrepreneurship,” we arepromoting a variety of initiatives that embody “Resilient,
Caring, and Exciting” values, with the aim of becoming
a place where people who will create a new era areempowered and inspiring the world.

Value Creation by the Septeni Group

Employee stock ownership plan

Management

Basic concept

Introduction

We aim for a state where each person identifies and practices entrepreneurship in each form on a daily basis and recognizes its diversity.

29

Democratization of Entrepreneurship• Diversity Month• Group philosophy-related event• Hinerankai Award• Diversity Award• Cross-sectional committee
etc.

500
0

2020

2021

2022

2023

Group philosophy-related event
We hold a variety of events on a regular basis for
employees to deepen understanding and sympathy forour corporate philosophy and to face the philosophy ofthemselves and their colleagues. Awareness of thelinkage of each philosophy provides an opportunity for
employees to become aware of their entrepreneurship,
and also contributes to raising awareness of ownershipin the Septeni Group.

Comments from a gen-ten participant

Huong Nguyen Thi Lan
FLINTERS VIETNAM

Corporate Profile

I work at FLINTERS VIETNAM, where I handle tasks
such as legal, internal tax, labor consulting, andinvestment consulting (support for companies
expanding into Vietnam).
By developing services related to the legal field,
which is the most passionate area in life, I took part ingen-ten with the hope of enhancing the effectivenessof my own and my colleagues’ work and contributing
to the development of Vietnam. After participating in
gen-ten and winning the prize, I am determined towork with a higher viewpoint and a broader
perspective than before and create new value both
inside and outside the company as a professional.

Reinforcing Our Management Foundation• Essay contest

1,082

Business Activities• Group Sharing Meeting

882

1,543

Human Resources• Slogan ideas submission

1,000

1,342

Value Creation by the Septeni Group• New business planning contest “gen-ten”

1,500

Management

Events nurturing entrepreneurship

2,000

COMMENT“To be a place where people are empowered to create
a new era,” we hold events and initiatives that fosterand leverage the entrepreneurship of each individual.
We also continue to measure and evaluate thenumber of participants and satisfaction levels at these
events, and strive to continuously increase the valueof initiatives.
Since 2020, we have measured the number ofparticipants in events that foster entrepreneurship. The
number of participants increased from 2020 to 2022
due to an increase in the number of employees, theactive operation of events, and an improvement in theawareness of the ownership of employees.
We will continue to measure the number and strive
to increase the value of our initiatives and develop theentrepreneurship of each employee.

The gen-ten is an in-house new business planning
contest that has been held annually since 2012. There
are no limitations on the year of joining the Company
or the department to which employees belong, andany Group employee can take on the challenge any
number of times.
Employees who are full of enthusiasm as business
managers and highly appreciated for their businessplans can transfer to Septeni Incubate, Inc., a groupcompany that develop and nurture new businesses, totake on the challenge of realizing a business andestablishing a new company.

Introduction

New business planning contest “gen-ten”

Number of Participants in Events
Nurturing Entrepreneurship

Events nurturing each person’s
entrepreneurship

30

COLUMN Belonging at Septeni Group
Introduction

Survey results
Do you have personal policies
and philosophies?

Do you feel a link between theGroup’s philosophy and that heldby you personally or your company?

No

Yes

12.0%

83.8%

88.0%

No

No

16.8%

Yes

83.2%

Specific actions you are taking to realize
the Group’s philosophy.

Yes*Word cloud created from survey responses

Aya Yokota

Corporate Profile

Strategic Planning Department
Integration Marketing Division
Septeni Japan, Inc.

My main role is communication planning, and I handle proposal-related tasks.
I think of the Group’s philosophy as something that I can apply to myself to spark
opportunities to think about my own behavioral indicators and philosophies. From thevision in particular, I feel a warmth and inclusiveness that accepts my desire to enjoy mywork every day, challenge myself by trying new things and even want to make adifference somewhere, if I may be so bold as to say that.
I hope to continue searching for common points between the Group’s philosophy andmy own while displaying entrepreneurship and enjoying my work in a simple andpositive way.

Reinforcing Our Management Foundation

COMMENT

Business Activities

47.9%

Human Resources

Are you taking specific actions distinct to you torealize your own and the Group’s philosophy?

52.1%

Yes

Value Creation by the Septeni Group

No

16.2%

Does the Group’s philosophy
encourage you to display
entrepreneurship in your own
unique way?

Management“Belonging” means feeling a sense of acceptance as apart or member of something. To help every employee
feel a sense of belonging and flourish in a state where
their psychological safety is assured, we place great
importance on connections between individuals andthe Group.
By strengthening the link between the Group’s
philosophy and the values, such as philosophies andpolicies, that individuals hold dear, we aim to help each
person display entrepreneurship in their own way,leading to continuous growth for the Group. We
administered an anonymous in-house survey to find out
whether employees currently felt a sense of belonging to
the Group.
Over 80% of employees responded that they had
personal policies and philosophies, that they felt a link
between the Group’s philosophy and those held by them
personally or by their company, and that they believedthat the Group’s philosophy encouraged them to display
entrepreneurship in their own unique ways.
Furthermore, 47.9% of employees answered “Yes” inresponse to the question, “Are you taking specificactions to realize the Group’s philosophy?” and 40% of
those respondents also provided details of those specificactions. On the other hand, over half of the employees
answered that they were not taking specific actions yet.
Based on these results, we have set “the democratizationof entrepreneurship” as a materiality and are working on
initiatives to that end so that every one of our employees
can take action and display entrepreneurship.

31

Human Capital Investments for the Future

Corporate Profile

Noko Nakaya

I got to see people discussing
issues thoroughly and cooperating
as they worked. That made me
understand that this is a company
that values people, which mademe want to learn more about it.

Reinforcing Our Management Foundation

Soma Tochika

My impression is that thiscompany as a whole really values
people. I can tell that the cultureof treating people well is deeply
rooted in the company.

Business Activities

We held a lightning talk session
where employees gave passionate
three-minute presentations on the
topic, “the best things about the
Septeni Group/the company I workfor.” This was a chance tocommunicate the Group’s attractions
to the scholarship students directly,
while also giving the participating
employees the opportunity toconsider the Group’s merits anew.

Many of the people were extremely
polite and spoke to students likeus like equals. I previously had theimpression that Septeni was a stuffy
place, but seeing the employees
Koyomi Manabe expressing their individuality inways such as their clothingchanged my mind.

Human Resources

They participated in a workshop
where they used LEGO® bricks to
depict “myself in a society where
the Group’s vision has beenrealized.” Learning more about
our philosophy in this way
deepened their understanding of
the Group.

Isshin Nakatani

Everyone at the company was
lively and energized. They
explained their jobs
enthusiastically, and I could reallyfeel their passion.

Value Creation by the Septeni Group

Please check the website below for more details about
the Scholarship Fund.
https://www.septeni-holdings.co.jp/en/news/release/2022/
09013312.html

Under the Scholarship Partner system, scholarship funds
bearing the Group’s company name will be granted tofour students at the Kamiyama Marugoto College of
Design, Technology, and Entrepreneurship every year,
and we will seek to create new businesses and conduct
joint research in collaboration with those students. We
have been working together with the first batch of four
Septeni Group scholarship students since April 2023.
Specifically, we have been using communication tools toshare information with each other and holding regularonline meetings in order to deepen their understandingof the Group. The scholarship students also visited theCompany’s headquarters in November 2023. It was agood opportunity for them to experience the Septeni
Group by touring the offices and interacting directlywith various employees.

Comments from the scholarshipstudents when they visitedthe headquarters

COMMENTThe Kamiyama Marugoto College of Design,
Technology, and Entrepreneurship is a five-year private
technical college that opened in Kamiyama, Tokushima
Prefecture in April 2023. As a Scholarship Partner, in2023 the Group donated ¥1 billion to the Kamiyama
Marugoto Scholarship Fund which was set up to maketuition free for all students enrolling in the college.
With its motto of “Technology x Design x
Entrepreneurial Spirit,” the school’s approach ofcultivating “people who make things happen throughthe power to make things” to open new paths insociety resonates with us, and we believe thatproviding long-term support and investing in talented
young students will contribute to the realization of asustainable and innovative society while also increasing
the corporate value of the Group.
Moreover, the Group has focused on human capitalmanagement since its founding under the belief thatthe source of corporate value is the value of its people
and organization. But, of course, a person cultivates
their value before they come into the workforce. That is
why we feel it is extremely meaningful to support andengage proactively with education businesses thatcultivate human value. Behind this investment is ourdesire to spread these ideas and philosophies of ours
widely beyond corporate lines, thereby increasing thenumber of people they resonate with.

Joint activities with scholarship students

Management

Investments in the Kamiyama Marugoto
Scholarship FundIntroduction

The Group is a Scholarship Partner of the Kamiyama Marugoto College of Design, Technology, and Entrepreneurship, a private technical college.

32

Introduction
Value Creation by the Septeni Group
Human Resources

SocialManagement

Realization of a “Nameraka”
Society Through Creativity
and Technology—Business Activities—

Business Activities

33

Update on Medium-term Business Policies

34

Digital Marketing Business

36

Media Platform Business
Creating a “Nameraka” Society through Business—PERF, Inc.

40
41
43

Corporate Profile

The 5C Model of Integrated Online/
Offline Marketing

Reinforcing Our Management Foundation

Full-Year Review of FY2023/12

33

Full-Year Review of FY2023/12

Non-GAAP operating profit¥

5,091 million¥

4,319 million

¥

20.74

Total dividend

Total amount of share repurchases(unit: ¥mn)
2,000

1,831

1,500

745
971

Year-end dividend per share¥

5.2*15-month period due to irregular accounting.
*Due to partial share transfer of COMICSMART INC., which
operates IP Platform Business, revenue and Non-GAAP operating
profit are presented excluding discontinued operations.

500

0

1,086

436
256

FY2020

FY2021

FY2022

FY2023

Reinforcing Our Management Foundation

1,000

We transferred a portion of the shares of COMICSMART
INC., which operates IP Platform Business, and made it
an equity-method affiliate from April 2024. We aim toachieve sustainable and discontinuous growth in the
future by reforming its management structure andfurther enhancing its focus on the core Digital Marketing
Business. With regard to the IP Platform Business,
fundraising from outside the Group will enable it toinvest and operate businesses more boldly and flexibly
than ever before, which we believe will lead to thesustained growth and the maximization of corporate
value of COMICSMART INC., which in turn will lead tothe enhancement of our corporate value.

Business Activities

Basic earnings per share (EPS)

Share transfer of COMICSMART INC.

Changes in the Total Shareholder Returns

Human Resources

Profit for the period attributable toowners of parent

For our approach to shareholder returns in future capital
allocation, please refer to page 35.

Value Creation by the Septeni Group

34,267 million¥

Management

Revenue

We recognize that returning profits to shareholders is
one of the key management issues. In February andMarch 2023, the Company repurchased 2,200,000
shares of its common shares with the aim of increasing
shareholder return through improved capital efficiency
and implementing flexible capital policies in responseto changes in the business environment.
In November 2023, we changed our Shareholder
Return Policy with the aim of further expanding
shareholder returns. In our Dividend Policy, we raised
the consolidated dividend payout ratio from 15% to

25% and the minimum annual dividend per share from
¥2 to ¥3.
We have also clarified our stance on our Shareholder
Return Policy by clarifying our approach to share
repurchases. We will continuously consider and flexibly
implement share repurchases, comprehensively
considering various indicators such as market
environment and investment opportunities in business.
We will continue to discuss and consider ways tofurther enhance the return of profits to shareholders.

Introduction

Consolidated Earnings Highlights

Share repurchases and update onshareholder return policy

Corporate Profile

34

Update on Medium-term Business Policies

Introduction

Three Focus Points

Reorganization and strengthening of the Digital Marketing BusinessGroup synergies utilizing the Digital Marketing Business assets

Business Activities

Creation of business from within each area

Digital Marketing Business
Please refer to pp.36–40 for more details.

Media Platform Business

Data & Solutions

Direct BusinessCorporate Profile

SEPTENI HOLDINGS CO., LTD. (Holding company)

Please refer to pp.41–43
for more details.

Reinforcing Our Management Foundation

New Area DivisionMarketing Communication

Human Resources

Under the medium-term theme “Focus & Synergy,” wehave three focus points. The Digital Marketing Businessis divided into three areas: the Marketing Communication
Area, the Direct Business Area, and the Data &Solutions Area, and the Group will develop area
management while promoting business reorganizationand strengthening. In addition, we aim to generategroup synergies by utilizing the assets of the DigitalMarketing Business and create new businesses fromwithin each area.

Value Creation by the Septeni Group

Medium-term focus point

Management

Under the new management structure, the Group set the medium-term theme from the fiscal year
ending December 2024 onward as “Focus & Synergy.” Based on the human capital managementthat has been built up to date, we will create synergies among its business segments and within its
business areas while evolving its strengths to become a group with multiple strong businesses,
aiming for sustainable growth and increased corporate value over the medium to long term.

35

Update on Medium-term Business Policies
Capital allocation approach

Revenue
Non-GAAP operating profit
Operating margin (to revenue)(unit: ¥bn)
40
35.0
31.0

27.7

20.0

17.7
15.2

14.5

20
15

20
10
10

FY2024(Estimate)

CY2023(Result)

FY2025(Plan)

8.0

FY2026(Plan)

5

EPS Trends (FY2024 and beyond are assumed images at the present time)
Decrease

Increase due to sharetransfer of
IP Platform Business &business growth(unit: ¥)
40

20.74

20.59

20

Decrease due toshare transfer of
IP Platform Business

11.58

Cash anddeposits
at the endof FY2023

100

Dilution due tothird-party allotment
capital increase
FY2020

FY2021

FY2022

Shareholder
return• Stable payment ofdividend• Continuous consideration
to increase dividend
payout ratio• Implementation of flexible
share repurchases

31.38

30.54

FY2023*

FY2024FY2025

FY2026• Securing appropriate
working capital

Corporate Profile*FY2023 figures are for 15 months.

Cash onhand

Reinforcing Our Management Foundation

Announcement of
the deepening ofDentsu alliance30

Operating
CF duringthe mediumterm plan
periodTotal

Investments
for businessgrowth• Investment for organic
growth and new
business creation• Consider M&A as
appropriate for growthin each area of DigitalMarketing BusinessBusiness Activities

Increase

Capital Allocation0

Human Resources

0

6.2

4.7

4.0

Value Creation by the Septeni Group

30

(%)
25

40.0

For growth investments, we will consider investments fororganic growth and the creation of new businesses, aswell as M&A for growth in each area of the DigitalMarketing Business.
We will also continue to discuss on increasing
dividend payout ratio and implement share repurchases
flexibly while considering the continuity and stability of
dividends.

Management

Centered on the Digital Marketing Business, we aim toincrease revenue and profit and improve operating
profit margin over the next three years. In the fiscal year
ending December 2024, the transfer of a portion ofshares of the IP Platform Business is expected totemporarily boost the profit attributable to owners ofparent, resulting in a significant increase in the EPS.
Thereafter, we expect a rebound from the positiveeffects. However, during the term of this medium-term
management policy, we aim to double EPS results for
FY2021/9 announced at the time of the deepening of
the alliance with the Dentsu Group.

Consolidated Three-Year Plan
(after reclassification of discontinued operations)Introduction

Three-year plan (from FY2024 to FY2026)

36

Digital Marketing Business

Introduction

We engage in businesses that provide comprehensive DX (digital transformation) support, mainly in the marketing area, such as marketing support throughonline-offline integration centered on the sales and operations of digital advertising, and the development and provision of solutions utilizing data and AI.

Management

Business Model
Digital Marketing BusinessDX support

Clients

Providingsolutions• Planning and design of integrated
marketing• Planning and design of commercials
and promotions• Ad operation
etc.

Distribution
and display ofadvertisement

Purchase ofadvertisement

Value Creation by the Septeni Group

Ads

Internetmedia

Data & Solutions• Support for construction andutilization of data infrastructure• Maximization of advertising
effectiveness• Engineer training and dispatch• Offering cloud-based CRM services• Offering AI solution tools
etc.

Information dispatch

Revenue and Non-GAAP Operating Profit
Revenue

25,00032,112
26,066

Dentsu alliance sales

6,203

28,9006,203

15,0005,000
0Sales from the Collaboration with Dentsu Group

Non-GAAP operating profit

19,863

Share in the Digital Marketing Business(unit: ¥bn)
50

25.6

40
8,124
1,736
6,389
CY202225,908

8,527
1,736
6,791

FY2023*7,500

FY2024(Estimate)*15-month period due to irregular accounting.
(Note) The dotted line shows results from October to December 2022.

17.7

30
20
10
0

10.0

35.0

27.8

20

21.8
10

7.9

3.9
2.9

CY2019CY2020CY2021

CY2022

CY20230

Corporate Profile

Please refer to the following for details.
https://www.septeni-holdings.co.jp/en/ir/finance

21.3

(%)
30

Reinforcing Our Management Foundation(unit: ¥mn)
35,000Business Activities

In the fiscal year ended December 2023, despite theeconomic impact, we acquired new clients andexpanded existing businesses. In collaboration with theDentsu Group, both the number of clients and sales
increased steadily.
We also made up-front investments centered onstrengthening investment in human capital in April
2023. Through this, we aim to enhance ourcompetitiveness in the recruitment market andmaximize the value of our human capital. In this way,
we aim to increase our corporate and shareholder
value by enhancing the effectiveness of businessgrowth in the medium-to long-term.

Human Resources

Business overview of FY2023/12

Users

Campaign implementation, operation andeffectiveness measurement

37

Digital Marketing Business

Introduction

Digital marketing business policies and strategies

Market• Progress in the digital conversion of the domestic advertising market• Increasingly complex and sophisticated marketing issues faced by clients

MarketingCommunication Area

Opportunities

Focus• Further enhance the strengths ofdigital×offline media

Direct Business Area

Japan

Over 60%

(%)
60

30

38.5
26.9

47.8
36.2

52.6
39.8

55.8

43.5

Over 50%

30.3

Data & Solutions Area

• Strengthen customer development
support by leveraging the technologicalcapabilities cultivated to date

Synergy
CY2018CY2019CY2020CY2021

CY2022

CY2023

CY2024 CY2025 CY2026(Estimate) (Estimate) (Estimate)*Source: Dentsu Group (Global Ad Spend Forecast, Advertising Expenditures in Japan)• Develop into peripheral areas to further
strengthen the development organization

Corporate Profile

20
0

Focus

45.5

Reinforcing Our Management Foundation• Develop new business in sales of own
products by leveraging the Group’s
know-how

The Digital Share of the Advertising Market

40

SynergyBusiness Activities• Provision of full-funnel marketing support, including utilization ofdata solutions and AI• Creation of new businesses from within each area

Human Resources• Online-offline integrated marketing• Expansion of capabilities through alliance with Dentsu Group

42.8

Synergy• Strengthen development and sales ofsolutions by consolidating functions
within the GroupStrengths

50• Promote the alliance with Dentsu Group• Strengthen integrated marketing

Value Creation by the Septeni Group

Focus

Current Situation

GlobalManagement

As DX in the advertising market progresses, to be able to provide full-funnel services in the marketing area and create
new businesses in adjacent area while enhancing our strengths, we divided the Digital Marketing Business into threeareas and will proceed with organizational restructuring under a new management structure.
In addition, we aim to further strengthen our core Digital Marketing Business through “Focus & Synergy” in each area.

38

Digital Marketing Business

Introduction

Message from the Executive Officer supervising the businessBusiness Activities
Reinforcing Our Management Foundation
Corporate Profile

Going forward, we estimate that the digital advertisingmarket will continue to grow, but that the growth rate
will gradually moderate as the digital ratio in the overall
advertising market increases. That is why we believe
that, in order to continue to resolve clients’ issues andmeet the expectations of the Group, it is essential toexpand the areas where the Group can provide value,
focusing on digital marketing as the main axis while
taking a broader and more comprehensive view ofoverall marketing than ever before.
In the Domestic Marketing Communication Area,
which drives the Group’s growth, we will promotecollaboration with the Dentsu Group at an even faster
pace, guided by “Focus & Synergy” set as a theme inour medium-term business policies. By doing so, wewill enhance online/offline integrated proposals andcreate best practices of digital-based integrated
marketing with our clients. As a result of exploring how

Human Resources

Against the backdrop of the advancement ofdigitalization in society, the domestic Internet
advertising market in 2023 saw a steady growth of
108% compared to the previous year, expanding its
share to 45.5% of Japan’s total advertisingexpenditures of 7.3 trillion yen. This shows that theimportance of digital in the advertising market isincreasing year by year. With such market changes, inthe fiscal year ended December 2023, alongside theexpansion of digital marketing aimed at sales
promotion, which has been a longstanding strength of
the Group, there was an increase in the need fordeveloping integrated online/offline marketingstrategies, as well as for providing services across theentire funnel from awareness to acquisition. This led toa further increase in opportunities for offering
integrated marketing, which is one of the key
strategies for the Group.

Value Creation by the Septeni Group

Yusuke Shimizu
Director, Group Executive Vice President and Executive Officer
President and Representative Director, SEPTENI CO., LTD.
President and Representative Director, Septeni Japan, Inc.

Management

Aiming to create a best practicefor integrated marketingstarting from digital

we can combine our capabilities with the assets heldby the Dentsu Group over the past few years,
integrated marketing that supports clients bycombining digital advertising and digital solutions withmass advertising has been established as a strength.
We feel that the relationship of trust created throughour collaboration to date has become the foundation,and that we can generate many achievements throughthe synergy of our client, the Dentsu Group and theGroup, and our partner companies.
Integrated marketing through collaboration with theDentsu Group is not just a joint effort to develop
simple online and offline advertising. Going forward,
we aim to initiate innovative initiatives that transformthe creative production process itself, such as
combining virtual production with our AI solutions. We
will also continue to realize initiatives to respond toclient needs more extensively and effectively than everbefore by promoting collaboration and cooperation invarious fields.
In addition, we will promote the provision of full
funnel marketing by strengthening collaboration
among group companies with the aim of resolving
increasingly complex client issues while focusing on
advertising. We will accelerate synergies within theGroup while focusing on utilizing the generative AI anddeveloping CX solutions.
As a group with digital-centric capabilities, we aim
to expand client-oriented solutions beyond
advertising, enhancing the effectiveness and executionof integrated marketing through synergy with theaforementioned Dentsu Group, thereby driving further
growth for the Group.

39

Digital Marketing Business

Overseas Marketing Communication Area

Aiming to strengthen integrated marketing in direct
marketing and creating new revenue opportunities

Kazunari Kondo

Septeni Group Senior Executive Officer
CEO, Septeni Global G.K.

Septeni Group Senior Executive Officer
President, Dentsu Direct Inc.

Reinforcing Our Management Foundation
Corporate Profile

In the Data & Solutions Area, we aim to use ourtechnological capabilities as a foundation to strongly
support the growth of the Digital Marketing Business andcreate new revenue opportunities. In order to overcome
competition in the Marketing Communication Area, weare leveraging the large amount of distribution record
data accumulated across various clients and industries andour collaboration with the Dentsu Group to continuallydevelop and provide unique marketing solutions that noother company has.
In addition, we will develop solutions that meet market
needs by leveraging the technological capabilities andexperiences possessed by our several hundred engineers.
In DX market, which is expected to grow further in the
future, we will pursue more aggressive businessdevelopment than ever to create growth opportunities.
Previously, each area and group companies had been
aiming for revenue growth respectively while leveraging
their centrifugal force. However, the Data & Solutions Area
has a wealth of human resources with diverse skills andexperiences both domestically and overseas. By bringing
together the strengths and experiences of these humanresources, we will provide DX solutions that are even morevaluable to our clients, which will lead to stronggroupwide growth.

Business Activities

In the Direct Business Area, we aim to support thegrowth of the Digital Marketing Business and create newrevenue opportunities based on online/offline integrated
direct marketing.
First, in order to further strengthen integrated
marketing in direct marketing, the foundation of this area,
we aim to improve our competitiveness by leveraging
expertise in the business to strengthen our services andlinking digital and offline media more seamlessly, while
focusing on our clients’ needs. Second, we plan to launcha sales guarantee business, OEM, and D2C business in thefiscal year ending December 2024 to create a revenue
model that does not rely on traditional advertisingmodels. By utilizing and strengthening the knowledge ofthe Group, we believe we can grow into a core business inthe future. With these two as the cornerstones of ourstrategy, we will invest in creating an environment andfostering a culture conducive to nurturing talented andmotivated individuals, driving client success, and fosteringbusiness growth, and be committed to fulfilling our
responsibilities to society while maintaining a strong senseof ethics and sustainability.
We will first aim to become industry leaders and strive
to be a unique presence that creates vitality for both ourclients and society. By doing so, we will contribute to theoverall growth of the Group.

Masayuki Takano
Septeni Group Senior Executive Officer
Representative Director and CEO,
Septeni Data Solutions, Inc.

Human Resources

In the Overseas Marketing Communication Area, we aredeveloping global business in three regions: the UnitedStates, China, and Southeast Asia. In the U.S. and China,
we provide marketing support to world-class app
developers, as well as support for both the expansion ofoverseas companies into the Japanese market (out-in
strategy) and the overseas expansion of Japanesecompanies (in-out strategy).
In Southeast Asia, a multi-lingual, multi-cultural society,
we are developing our business with a focus on B2C digitalmarketing support for multinational corporations. Currently,
we are mainly operating in Malaysia, Singapore, andIndonesia, and focusing on strengthening our approach toadvertisers throughout the region and in each country.
In all regions, we are promoting business expansion
centered on digital marketing support for large-scaleclients while promoting on-off integration that leverages
the Group’s sales resources. We will leverage ourintra-group resources, such as engineers and data
analytics, to the fullest extent, and develop comprehensive
services as partners that address customer issues.
In addition, while emphasizing human capital to support
the growth of our overseas business, we will aim to expand
our market share and improve customer satisfaction.

Developing solutions that support clients’ DX byleveraging the technological capabilities andknow-how we have cultivated

Value Creation by the Septeni Group

Daisuke SuefujiData & Solutions Area

Management

Developing comprehensive services tailored toclient issues in the three regions of the United States,
China, and Southeast Asia

Direct Business Area

Introduction

Messages from the Executive Officers in charge of each area

40

Digital Marketing Business

Introduction

The 5C Model of Integrated Online/Offline Marketing

05

Core

Co Creation

Communication

Cost Control

Connect

Link strategy,
distribution andindicators

An organized
online/offline
co-creation system

Integrated
communication
designOptimizethe online/offline
budgetary allocation

Online/offline
data integration

Example:Expansion toconnected TV ads

Example: Effective digital measures in line with the airing of TV commercials

There are many clients that would like to carry out integrated
online/offline marketing as a matter of course, but there aremany hurdles when it comes to actually doing it and many
processes that are not systemized, so they don’t know whereto start from, and I’ve seen a number of cases where a topic
that was highly important was treated as if it were low priority.
By using the 5C Model, we are able to make systematic
proposals to clients while having a shared awareness within
the team of what needs to be done next to achieve
online/offline integration. We are also developing andproposing solutions that suit different needs and situations
and enhance the creation of case studies that can earn us
trust. We are working hard every day to create a situation
where Septeni is the first name in everyone’s mind when it
comes to integrated marketing.

Example: Integration of online/offline purchasing data

As users’ behavioral patterns and contact points with media
become increasingly diverse, there is growing demand for
integration between TV commercials and digital advertisements.
In such an environment, the fact that we have systemized the
5C Model and can discuss online/offline integration in termsof stages gave some clients the expectation that the Group
has the structure to achieve integrated online/offline
marketing, and that it could be utilized in their own marketing.
The model is also really useful not only when dealing withclients but also as we work on our collaboration with theDentsu Group, because we are able to work with a sharedacknowledgement of our current position and the next point
we should aim for.

Corporate Profile

marketing are categorized into 5 Cs. Since the 5C state
to be achieved at each phase differs, we needstrategies for the 5 Cs at each of the three phases.
Then, to connect the actions needed in each phase, wecreate a 5C Model Checklist that links the 5Cs to theactions, and endeavor to have the same indicators as
our clients based on that checklist.
As demand for integrated online/offline marketing
steadily increases, creating a model that is easy forclients to understand will make it possible for theGroup to maximaize the value it provides throughcollaboration with the Dentsu Group.

Head of Integrated Planning Department
Integration Marketing Division
Septeni Japan, Inc.

Reinforcing Our Management Foundation

The 5C Model is a framework for realizing
online/offline integration in stages. It is made up of
three points, namely:(1) Break it down into three phases(2) Divide the elements that are needed for integration
into 5 Cs, and(3) Establish the actions necessary for the 5 Cs at eachof the phases.
The phrases are divided into three—channel
integration, mass digital coordination, and online/offline
integration—according to the status of client initiatives.
Furthermore, the elements needed for integrated

COMMENT

Mizuki Matsuura

Business Activities

Phase.3
Online/offline
integration

04

Human Resources

Phase.2
Mass digitalcoordination

03

Value Creation by the Septeni Group

Channelintegration

02

Head of Integrated Communication &Creative Department
Integration Marketing Division
Septeni Japan, Inc.

Management

Phase.1

01

COMMENT

Marin Kamikura

41Media Platform Business

Activity support

Corporation/GroupOn-boarding support• Employment Platform Business• Social Contribution Platform BusinessSupport action on
the Internet• Childcare Platform Business

Sales ofchildcare goods• Management of a specialized
matchmaking service for dating
and marriage. Planning andsales of cosmetics

Revenue

Registration of
information(unit: ¥mn)
2,500

Users

(unit: ¥mn)
500
300

1,958
-107
-135
FY2022-77-29

FY2023*2

100

10

0

FY2024 (Estimate)*1 The amounts for continuing operations, excluding discontinued
operations, are shown following the partial transfer of shares in
COMICSMART INC., which handles the IP Platform Business.
*2 For 15 months due to irregular accounting period. The dotted line shows
results from October to December 2022.

The head of business of each Group company will provide an overview of their businesses for the fiscal year ended December 2023, and their future policies.

KeisukeShimogakiManagement of the Childcare
Platform Business

YosukeMarutani

Strong performance in both existing and new domains,
creating many social contribution initiatives“photto,” a product to convey the feelings ofsenders of baby gifts, developed and put on sale2023, the 10-year anniversary of ViViViT, which directly connects
designers and companies, saw an increase in the number of users
and clients, as well as record profits. In addition to the newgraduates domain, which has been a target since release, utilizationof the platform in the mid-career domain has been increasing, andthe offline conference for mid-career designers that we hosted,“Dezanare,” was a great success with over 2,000 reservations.
Going forward, we will also work on creating new businesses in thedesign domain by harnessing the ViViViT database.

With respect to our main business domain of promoting
donations to NPOs, the number of friends of the official LINE
account has greatly expanded, surpassing 650,000. We wereable to provide information on social contributions to many
people via LINE and generate a large number of donations.
Meanwhile, the new domain of bequests (the free transfer ofpart or all of a deceased person’s estate through their will) has
been steadily growing, and we will continue working to provide
a variety of avenues for social contribution.

We have developed “photto,” a product that can be attached
to a baby gift to express a message of “no need to pay us back,just take it easy,” along with some rooibos tea, and have begun
selling it on amanoppo, an e-commerce site for children’s goods
that we operate. “photto gifts” are a new type of gift that allows
the recipient of a baby gift to take a break and relax over a cupof tea, and then return the gift with a photo or a message ofgratitude once things have calmed down.

Corporate Profile

Steady growth in ViViViT users and clients,
and record profits

Reinforcing Our Management Foundation

DaichiKomiyaManagement of the Social Contribution
Platform BusinessBusiness Activities

Please refer to the following for details about the results.
https://www.septeni-holdings.co.jp/en/ir/finance/• HR Technology Business

Management of the Employment
Platform Business

2,300

428

1,799

500
0

• Planning, development andoperation of content IP business
utilizing the blockchainMedia Platform Business Topics

2,386

1,500

Provision ofa dating service
Sales of cosmetics

Non-GAAP operating profit

Human Resources

Support for
utilization ofblockchain technology

Media Platform Business

Revenue and Non-GAAP Operating Profit*1

Value Creation by the Septeni Group

Provision of
information on
job seekers

Management

Business Model

Introduction

The Media Platform Business develops platform-type businesses related to “employment,” “social contribution” and “childcare,” and businesses thatutilize the Group assets in industries other than the Internet industry, focusing on areas of potential growth in the near future and social issues.

42Media Platform Business

Introduction

Koki Kaku

Opened HERO Marriage, a marriage agency for men

Tatsuya
ShindoExpanding the provision of “HaKaSe Onboard,”
a DX service that supports employee onboarding
HaKaSe Onboard, an onboarding service launched in 2021 thatuses scientific data to help optimize the assignment of new
employees and promote retention after assignment, performed
well, with 50 companies adopting the service and a 90%
retention rate (as of December 31, 2023), resulting in increased
revenue. Going forward, we will continue working to acquire
new clients.

*Communities where fans develop and manage their own rules and budgets

Planning, Development and Operation ofContent IP Business Utilizing the Blockchain

Issei Ukai

Established a new company to provide a frameworkfor delivering Japanese IP to the world, focusing on
the IP content business domain
The first official NFT project for the anime IP “Ghost in the
Shell” was rolled out globally, leveraging the open nature of theblockchain to deliver the IP to 85 countries. We will continue
working to create systems to deliver content IP from Japan to
the world and take on the challenge of transforming thestructure of the industry.

Corporate Profile

Drawing on the expertise we have gained through “Photojoy,”
our on-site photography service specializing in profile photos fordating and marriage matchmaking, which has now reached acumulative total of over 30,000 users, we provide total support
from meeting to matchmaking, leading to successful marriages.
We ensure our customers can use the service with peace ofmind by offering photography at no extra charge, a variety ofcourses, and a system that allows consultations at any time. We
have received many applications for membership since launch,
resulting in a number of successful marriages.

Proposals for Utilizing an AI Matching
System and Supporting Design ofRecruitment and Training Systems

We have pre-launched a fan community service with our partnercompanies that authorizes IP use by fans to create “autonomous
economic zones.*” We offer solutions that make it easy forfandoms to generate content, including support ads. We arecontinuing to develop and validate several solutions, including
advertising products in the entertainment domain, as well as
D2C and event IP.

Reinforcing Our Management Foundation

Jun
KagamiAs a result of the positive reception given to the activities of“SEPTENI RAPTURES,” which has visited several schools in
Kochi Prefecture and conducted workshops, etc. for elementary,junior high and high school students, a partnership agreement
was signed to promote street dance in the prefecture. We
promote various initiatives to revitalize communities andpromote education by performing at events, judging dancecontests, holding workshops, and more.

Pre-launch of fan community service, and development
and validation of multiple solutions in progress

Business Activities

Management of a Specialized Matchmaking
Service for Dating and Marriage, andPlanning and Sales of Cosmetics

Partnership agreement signed with Kochi Prefecture
to contribute to sports promotion, regional
revitalization, and the realization of a sustainable,
harmonious society through dance

Kazuyoshi
Maeda

Human Resources

Having co-created brand identities for more than 100
companies with a focus on helping them formulate theirphilosophies and purposes, SIGNCOSIGN has deepened its
partnerships with outside branding firms, which has led to anincrease in projects such as logo design, visuals, and website
development. In addition, the “co-creation of personalphilosophies,” which we have been promoting for several years,
has begun to function as a solution to meet the demand forinner branding, and we are steadily growing as a partner that
can assist in the entire process to achieve sustainable branding.

DX Support in the Entertainment Industry
Yuki Yanagi

Value Creation by the Septeni Group

Expanding our capabilities as a partner that can
support sustainable branding

Participation in the Professional
Dance League “D.LEAGUE,”Team Management and Development

Management

Co-Creation Support for
Corporate Design

43Media Platform Business

Developing the dance industry by
involving non-dancers

Dance and regional revitalization

Corporate Profile

A workshop held in Kochi Prefecture

Reinforcing Our Management Foundation

In addition to the D.LEAGUE, we are also actively
engaged in activities to popularize dance. As part ofthese efforts, in February 2023, we concluded apartnership agreement with Kochi Prefecture with theaim of contributing to the development of sports,
regional revitalization, the realization of a sustainable,
harmonious society, and the promotion of education
through dance.
Kochi Prefecture faces various challenges inpromoting sports, such as the fact that 93% of theprefecture’s land area is mountainous, with few venues
for sports activities close by, and a declining
population, which makes it difficult to conduct teamsports. In response, street dance has attracted
attention as a “life-long sport” because it can beenjoyed regardless of geographical conditions andbecause people of all ages and genders canparticipate together. SEPTENI RAPTURES was selected
as a partner to promote the initiative, and has visitedseveral schools to hold workshops and events forelementary, junior high, and high school students.

Business Activities

PERF formed the professional dance team “SEPTENIRAPTURES” with dance, a fusion of “sports,” “culture
and art,” and “entertainment” as its business domain.
It participates in the D.LEAGUE, a Japanese
professional dance league.
It is said that there are over 6 million* people inJapan who participate in street dance, a number thatrivals that of major sports such as baseball and soccer.
At many of the dance events I attended before PERF
was established, the majority of the people present
were dancers and other people involved, and I had
the strong impression that “people who go to see
dancing = people who dance.”
Conversely, with the D.LEAGUE, you will find acertain number of people who go just to watch (and
don’t themselves dance). I believe that in developing
the dance industry, our mission is to increase thenumber of “people who dance,” “people who watch,”*Reported by the Street Dance Association

Human Resources

Representative Director
PERF, Inc.

Dance is a sport where all sorts of videos that canbe used as teaching materials and a huge amount ofmusic to inspire dancers are available online, and they
spend a great deal of time watching these images andstudying how their bodies move and how they hearsound. As such, it is perfect for creating sports
opportunities in a region like Kochi Prefecture, whichfaces various challenges in this regard, and I realizedthat urban sports, including dance, can help solve
local issues.
We started out with the mission of “solving issues
through digital transformation of the sports area.”
However, in addition to this mission, we believe that
the Group’s role in the sports business should be to“solve issues in the corporate and public sectors
through sports” while pursuing investment returns forsponsoring companies.

Value Creation by the Septeni Group

Yuki Yanagi“people who talk about dance,” and “people who get
involved” in a more intensive manner, and through the
D.LEAGUE, I would like to make conscious efforts indomains where our company can contribute.

Management

By applying the expertise we have cultivated in Internet-related businesses to other industries, the Group is developing businesses
that harness the recent waves of the digital shift and DX to realize a smooth society through the power of technology.
In this regard, we will introduce the efforts of PERF, Inc. which is engaged in dance in the “Sports and Entertainment” area.

Introduction

Creating a “Nameraka” Society through Business — PERF, Inc.

44

Introduction
Human Resources

Environment

Value Creation by the Septeni Group

Building an Advanced Governance System
to Support Discontinuous GrowthManagement

Response to Climate Change—Reinforcing Our
Management Foundation—

Business Activities
Reinforcing Our Management Foundation

45

Corporate Governance

47

Message from an Outside Director

Governance52

Corporate Profile

Response to Climate Change

45

Response to Climate Change

Costs arising from carbon taxes, etc.

MediumShort tomedium term

Technology

Increased costs due to delays in adapting to
low-carbon technologies

Small

Medium tolong termMarketIncreased costs due to rising electricity prices

Small

Short tolong term

Reputation

Loss of trust from clients, investors, and employees
and decrease in corporate value due to delays inclimate change measures

MediumMedium tolong term

Operational stoppage of services and impact oninternal infrastructure due to intensification ofabnormal weather and frequent natural disasters

LargeLong term

Self-restraint/reduction in advertising due to disasters

LargeLong term

Chronic

Increased costs for air conditioning, etc. due tochanges in weather patterns

Small

Medium tolong term

Products/Services

Acquisition of new business opportunities due tomajor changes in industry and society

Small

Medium tolong termMarketIncrease in advertising due to expanding demand forenvironmentally friendly products/services

Small

Medium tolong term

Resilience

Changes in work styles due to dispersion of residences
accompanying changes in weather patterns

MediumShort tolong term

AcutePhysical Risks

Group Risk Management
Committee
Coordinate

Request for
adviceAdviseSustainability Committee(Note) The image is an excerpt from the governance structure diagram.
Please refer to the full diagram below.
https://www.septeni-holdings.co.jp/en/company/governance.html

Opportunities*Short-term: to 2025

Mid-term: 2025 to 2030

Long-term: 2030 to 2050

Corporate Profile

Policy/Regulation

Reinforcing Our Management Foundation

Occurrence
Time*

Business Activities

ImpactLevel

Human Resources

Transition Risks

Assumed Main Risks and Opportunities

Value Creation by the Septeni GroupClassification of Risks andOpportunities based on
TCFD Recommendations

Governance Structure Regarding Climate Change
Board of Directors*In scenario analysis, we refer to reports from the Intergovernmental Panelon Climate Change (IPCC) and the International Energy Agency (IEA), etc.

Results of Scenario Analysis

1. Governance
As an advisory body to the Board of Directors, theSustainability Committee, chaired by the Group CEO,discusses and examines sustainability activities andclimate-related issues. The committee’s activities are
regularly reported to the Board of Directors, andresolutions are sought at the Board of Directors forparticularly important themes.

opportunities that could potentially impact our business.
Based on this scenario, we aim to enhance resilience by
mitigating risks and expanding opportunities.

Management

Given that a sustainable and sound Earth and society are
prerequisites for business operations, we have identified
the response to climate change as a materiality.
Against this backdrop, we endorsed the Task Forceon Climate-related Financial Disclosures (TCFD)
recommendations in October 2023 and will disclose
information related to the response to climate change
based on the TCFD framework.

We recognize the risks, measures, and opportunities
brought about by climate change as follows at thepresent time. In scenario analysis, we assumed a world
with a temperature rise of 2˚C and 4˚C*, and evaluatedthe importance of climate-related risks andIntroduction

2. Strategy

Disclosure of information based on
TCFD recommendations

46

Response to Climate Change

FY2021

FY2022

FY2023*2

Ratio
(%)

Emissions(t-CO2)

Ratio(%)

Emissions(t-CO2)

Ratio(%)

Emissions(t-CO2)

Ratio(%)

Scope 1

5.5

0.1

6.9

0.1

7.3

0.1

7.0

0.1

Scope 2

768.5

15.9

719.6

14.8

817.0

12.8

940.6

9.1

Scope 3*1

4,071.1

84.0

4,138.1

85.1

5,548.6

87.1

9,386.9

90.8

Total

4,845.1

4,864.6

6,372.9

10,334.5*1 Category 1 (Purchased goods & services), Category 2 (Capital goods), Category 3 (Fuel & energy-related activities), Category 6 (Business travel), Category 7(Employee commuting), Category 8 (Leased assets (upstream))*2 Due to the irregular fiscal year, the figures cover a period of 15 months.

Please refer to the link at right for more details.

https://www.septeni-holdings.co.jp/en/ir/esg.html

Please refer to the link below for more details.
https://note.com/septeni_group/n/n6ce1c7430296(Only available in Japanese)

Corporate Profile

Emissions(t-CO2)

Reinforcing Our Management Foundation

FY2020We participated in the community activity “OneDay for Change,” which the Dentsu Group is
engaged in globally, and conducted office areaclean-up activities in Tokyo, Sapporo, andMiyazaki. Approximately 60 participants took partin the Tokyo location, fostering interaction within
the Group and providing an opportunity to learn
about social issues.

Business Activities

Change in GHG Emissions• Participation in “One Day for Change”

Human Resources

We have set a goal to reduce the GHG emissions of
Scope 1+2 by 70% by fiscal year 2030 compared tofiscal year 2023.
The actual GHG emissions are as follows. In thefiscal year ended December 2023, the GHG emissionsof the relevant department increased due to theincrease in business trips and commuting resulting
from the implementation of a hybrid work style thatleveraged the benefits of both remote work and office
work, as well as the opening of a new location. Goingforward, we will continue to explore initiatives toreduce emissions.

Our Environmental Policy advocates “reduction of
printing paper,” “proactive green purchasing,”and “implementation of resource and energy
saving measures and promotion of recycling.” AGroup-wide volunteer project, “ECHO by Septeni
Group,” plays a central role in our environmental
initiatives, working to raise environmental
awareness within the Group by sharing
information through email magazines for
employees and by organizing in-house events
such as online seminars on renewable energy.

Value Creation by the Septeni Group

4. Metrics and targets

Other Environmental Activities

Management

throughout the Group to achieve sustainable growth.
We are also working on promoting risk management incollaboration with the Group Risk Management
Committee and the Sustainability Committee in orderto manage risks related to climate change in an
integrated manner with other risks of the Group.

Introduction

3. Risk management
The Sustainability Promotion Department, which serves
as the secretariat for the Sustainability Committee,
evaluates and determines the importance of risks andopportunities related to climate change based on theirimpact on our businesses. In the evaluation, we
conduct hearings with related group companies anddepartments as necessary.
We have established the “Group Risk Management
Rules” in order to recognize significant events that
affect our business management, identifies, analyzes,
and evaluates risks that hinder the development andgrowth of our business, and implement measures suchas risk avoidance, reduction, and transfer. Furthermore,
under the common policy of our Group, we haveestablished the Group Risk Management Committee as
an institution to oversee and manage risk management
activities in an integrated and effective manner. We arebuilding a PDCA cycle of risk management activities
and working on promoting risk management

47

Corporate Governance
We have been appointing female executives since 2013 and outside directors since 2014.
Directors/auditors

2014

2015

2017

2018

2021

2022

2023

11

11

12

10

11

9

11

12

Of which
2 females

Of which
1 femaleCompositionof the Boardof Directors
Of which
1 female

Of which
2 females(Note) At the end of the General Meetings of Shareholders in each year. Only years where there were changes in the composition of the Board of Directors are listed.

• Systematization of governance for greater
effectiveness• Introduction of Performance-Linked Share
Compensation Plan for Directors and Officers• Establishment of the Financial Results andDisclosures Committee• Outside directors become the majority of the Boardof Directors• Introduction of effectiveness evaluation to enhance
the functioning of the Board of Directors• Abolition of anti-takeover measures• Creation of Corporate Governance Guidelines• Establishment of Sustainability Committee andformulation of sustainability policy• Establishment of Nomination and Remuneration
Advisory Committee

Corporate Profile• Establishment of Group Risk Management
Committee• Separation of execution and monitoring through theintroduction of an entrustment-type executive system

Reinforcing Our Management Foundation

Measures Implemented from 2015 Onwards to Improve GovernanceBusiness Activities

Compositionof the Boardof Company
Auditors

Human Resources

2013

Value Creation by the Septeni Group

Number of
directors/
auditors

Outside directors/auditors

Management

We have identified the efforts in corporate governanceas a materiality, recognizing the need for an advanced
governance structure to fulfill our obligations as a listedcompany and to aim for the pursuit of discontinuous
growth and the realization of a “nameraka” future.
Since around 2015, we have been advancing
governance reforms, positioning the first three years as
a promotion phase, where we implemented various
measures to improve governance and introduced new
systems. Since 2018, we have been striving to establish
an effective governance structure that goes beyond
mere formality and focusing on improving theapplication and operation of the introduced systems.
In the fiscal year ended December 2023, we madeprogress in formulating our sustainability policy within
the Sustainability Committee. Additionally, as anadvisory body to the Board of Directors, weestablished a Nomination and Remuneration Advisory
Committee. In the committee, which is chaired by anoutside director and consists of a majority of outside
directors, we ensure independence, objectivity, andaccountability in the deliberation process, and discuss
topics such as succession plans and the selection of thenext generation of management.

Changes in Composition of Directors/Auditors

Introduction

Progress of governance reforms

48

Corporate Governance5

Directors/Auditors

General Meetings of Shareholders

FemaleDirectors

Appoint and dismiss

Appoint and dismiss

2

Audit
operations

Board of Directors

Board ofDirectors’Meetings Held:

Auditors:

4*

Average AttendanceRate of Directors

Attendance
19 Average
99 %Rate of Auditors

OutsideAuditors

Board ofAuditors’Meetings Held:
Average
AttendanceRate of Auditors:

17
98 %

ReportRequest forinvestigation

Whistleblower
hotlineCoordinate

Requestfor advice

Sustainability Committee
AdviseAppoint and supervise

Notify and report

Coordinate

AdviseRequestfor advice

Coordinate

Nomination andRemuneration Advisory
Committee

ReportGroup President and Chief Executive Officer
Report andconsult

ReportFinancial Results andDisclosures Committee

Coordinate
ReportInternal Auditing
OfficeGroup Executive Officer (Group Management Meeting)Group companies and departments

Please refer to the link below for an overview of the corporate governance system.
https://www.septeni-holdings.co.jp/en/company/governance.html

Accounting
Auditors

Internal audit

Audit accounting

Corporate Profile3*As of March 2024

100 %Board of Auditors

Reinforcing Our Management Foundation

Group Risk
Management Committee

Appoint and dismiss

Business Activities

OutsideDirectors

Human Resources

8

Outside Directors/Auditors*

Value Creation by the Septeni Group

Corporate Governance System (as of April 2024)

Governance Highlights (FY2023/12)
Directors:

The Group is managed under a holding company
structure in which the Company is a holding company
and its group companies are operating companies. By
separating the function of administering its overallbusiness from executing its individual businesses, theGroup has been working to facilitate the delegation of
authority and strengthen the Company’s function ofmonitoring the Group’s businesses.
The Board of Directors shall consist of a majority, at
the minimum, of highly independent Outside Directors.
The Board consists of eight Directors, five of whom areManagement

The corporate governance of the Company is based on
the development and operation of a system to ensurethat actions are based on the company’s corporate
philosophy and decisions are made in a transparent,
fair, and efficient manner, and compliance with laws andregulations and appropriate supervision (monitoring) ofcorporate performance are carried out under the
mission of “To inspire the world with entrepreneurship.”Outside Directors, as of March 2024. It determines
matters prescribed by laws and regulations and the
Articles of Incorporation and matters concerning theexecution of important business and oversees theexecution of business. Furthermore, as part ofstrengthening of its corporate governance system, theCompany introduced an executive officer system inJanuary 2017. Under this system, the authority formaking decisions and executing business operation isdelegated to Executive Officers to the extent
permitted by relevant laws and regulations, in order for
the Board of Directors to mainly focus on the oversight(monitoring) of the Group Executive Officers who areresponsible for the execution of business (monitoringmodel-oriented).

The outline ofcorporate governance structure

Introduction

Basic approach to corporate governance49

Corporate Governance• Revision of officer compensation system

Meetings attended only by the Outside Directors(Executive Session) are held once a month in principle,• M&A

Yuichi Kouno• Partial amendment of insider trading
prevention regulations
Executive
Session• Formulation of sustainability policy• Share repurchase, etc.
• Disclosure of human capital• Transition to an Innovation Board

Yusuke Shimizu• Revision of materiality

Etsuko Okajima• Restructuring of the Nomination andRemuneration Advisory Committee

Yoshiki Ishikawa• Renewal of core systems• Change in dividend policy

Mio Takaoka• Transfer of shares of JNJ INTERACTIVE INC.

Makoto Shiono
Tadashi Kitahara• Overseas advertising business• Transfer of shares of COMICSMART INC.

Corporate Profile

Akie Iriyama

Reinforcing Our Management Foundation

The Company has established a Group Risk Management
Committee that supervises risk management of theGroup, a Sustainability Committee that promotes• Revision of share issuance regulations

Composition of Committees, etc.
Nomination
andSustainability
Remuneration
Committee
Advisory
Committee• Consideration of IR measures

Business Activities

Committees

FY2023/12 (from October 2022 to December 2023)(excluding regularly scheduled agenda items)

Executive Sessions

Board of Auditors
The Company has adopted a company auditor system.
Under the system, there are currently four Company
Auditors including three highly independent Outside
Auditors. Each Company Auditor audits the execution ofbusiness by the Directors, in accordance with theauditing policy, audit plans and so forth determined by
the Board of Company Auditors.

Major agenda items at the Board of
Directors meetings

Human ResourcesGroup Management Meeting has been established, as asystem regarding decision-making on the execution ofbusiness, with the functions of supporting
decision-making by the Group President and Chief
Executive Officer and of considering importantmanagerial matters of the Group.

thereby securing a place for information exchange andshared awareness from objective standpoints. Outside
Auditors, external accounting auditors and otherindependent outside persons may attend suchmeetings, thereby providing a place for promoting
cooperation among independent outside persons.

Value Creation by the Septeni Group

Group Management Meetings

sustainability activities to enhance the corporate value,
and a Financial Results and Disclosures Committee that
reviews and evaluates financial results information. In
doing so, the Company has put in place a system thatclarifies authority and responsibilities and enables
prompt and appropriate decision-making. On the other
hand, Nomination and Remuneration Advisory
Committee, the majority of which consists of Outside
Directors, has been established as an optional
committee of the Board of Directors to handle
personnel matters regarding the Group’s management
team (appointment, removal etc. of Directors of theCompany, Group Executive Officers and others), in
order to ensure the independence, objectivity andaccountability of the deliberation process.

Management

The Group Executive Officers are responsible for the
execution of business of the Company, that of thebusiness companies in its group or that across several
business companies. The Board of Directors appoints
Group Executive Officers in charge of respective areas ofbusiness operation, and the Group President and Chief
Executive Officer who concurrently serves as
Representative Director oversees the execution ofbusiness operations by the Group Executive Officers.
Moreover, matters to be resolved by meetings of theBoard of Directors, those regarding which authority is tobe delegated to the Group Executive Officers and thoseto be reported by the Group Executive Officers to theCompany’s Board of Directors are clearly stipulated in
the regulations of the Board of Directors.

Introduction

Board of Directors

50

Corporate GovernanceRisk management

BIP Trust

Total amount of remuneration, etc. by type
Number ofpayeesTotal amount of officers’
remuneration, etc.

Basic remuneration

Performance-linked
remuneration, etc.
Non-monetary
remuneration, etc.

6(5)261,066 thousand yen(90,000 thousand yen)

254,670 thousand yen(90,000 thousand yen)

6,396 thousand yen(–)

Company Auditors(of whom Outside Auditors)

3(3)

30,000 thousand yen(30,000 thousand yen)

30,000 thousand yen(30,000 thousand yen)–(–)

The risk of harm to officers and employees and impact
on operations resulting from natural disasters, etc.

Corporate Profile

Please refer to the link below for supplementary information on remuneration of Directors and Auditors.
https://www.septeni-holdings.co.jp/en/company/governance.html#directors-compensation

The risk of inadequate supervision of external contractors,
including the handling of information

Reinforcing Our Management Foundation

Directors(of whom Outside Directors)

Priority Risks

Business Activities

Category

Human Resources

Director and Auditor Remuneration (FY2023/12)

Value Creation by the Septeni Group

This is a performance-linked share compensation planthat aims to establish a clearer relationship between
remuneration for Directors, etc. and the value of theGroup’s share. The Company’s shares are purchasedfrom the market as officer compensation, kept in a trust
account and delivered in accordance with therecipient’s position and degree of achievement of theperformance targets in the Midterm Business Policies.

In order to recognize significant events that may affect
the Group’s business management, to identify, analyze
and assess risks that may harm the growth anddevelopment of the business and to make responses tothe risks such as aversion, mitigation, transfer andothers, the Group shall establish the “Group Risk
Management Regulations.” In addition, it set up the“Group Risk Management Committee” as a body tooversee and manage such risks in an integrated andeffective manner under the common policy as theGroup. It constructs the PDCA cycle of risk management
operations and promotes risk management in the Group
as a whole to achieve sustainable development.
“In the fiscal year ended December 2023,
considering social trends, the Company selected thefollowing risks as priority risks among those that arecommon across the Group, and has been actively
addressing them.”

Management

In the fiscal year ended September 2017, the Group
introduced a new compensation plan (a board
incentive plan (BIP) trust) to more clearly define therelationship between the remuneration of theCompany’s directors (excluding outside directors andnon-residents of Japan) and executive officers(excluding non-residents of Japan; collectively,“Directors, etc.”) and the Group’s business results inthe medium-to-long term as well as the Company’s
shareholder value, while creating a sound incentive toenhance business results and corporate value in themedium-to-long term. As a result, remuneration for

directors of the Company consists of monthly
compensation and share compensation, andremuneration for outside directors who are
independent from business execution consists ofmonthly compensation only.

Introduction

Officer compensation plan

51

Corporate Governance• One director and one auditor (part-time auditor)
will be appointed by Dentsu Group Inc.
• Even after the capital and business alliance, themajority of our directors shall be independent
outside directors, and our representative director
shall be a director who is not an outside director
and who is not appointed by Dentsu Group Inc.

Cooperation in Management Autonomy
and Maintaining Listing• Dentsu Group Inc. will not acquire any additional
shares of ours without obtaining our priorwritten approval.

Reinforcing Our Management Foundation

Handling of SharesBusiness Activities• Even after the execution of various transactions
associated with the capital and business alliance,
the Dentsu Group Inc. shall respect our autonomy,
act in such a manner as not to violate the delisting
standards to maintain our listing, and cooperatewith us to a reasonable extent.

Human Resources
Corporate Profile

The Company’s parent company is Dentsu Group Inc.
One of the Company’s directors concurrently serves as
an executive officer of Dentsu Japan Network of theDentsu Group Inc. and an executive officer of Dentsu
Inc., a subsidiary of Dentsu Group Inc. However, thisdirector is in a position to supervise the execution ofbusiness in order to enhance its corporate value as a
non-executive director of the Company. In addition, withrespect to transactions with the parent company,
management support fees are determined byagreements between the parties taking into account thecontent of operations, and interest rates on fundtransactions are determined in the same manner as ingeneral transactions with reference to market interest
rates. Through these various measures, the Company
believes that its business operations are sufficiently
independent from the parent company, etc. As a publicly
traded company with the parent company, the Company
has agreed to maintain its autonomy and independence
in the relationship with the parent company under anagreement between the parties. In addition, the majorityof the Company’s Board of Directors is independent
outside directors, and decisions concerning its
management are made through discussions based on
the viewpoint of protecting minority shareholders. As aresult, the Company does not anticipate any harm to theinterests of itself or its minority shareholders.

Appointment of Directors andMember Structure

Value Creation by the Septeni Group

Policy on measures to protect minority
shareholders in conducting transactions
with controlling shareholder

Governance since the Capital andBusiness Alliance with the Dentsu Group Inc.

Management

With the aim of enhancing the function of the Board of
Directors, the Company conducts analysis, evaluationand follow-up examinations of issues on the effectivenessof the Board of Directors once a year in principle. The
Company also conducts large-scale and detailed surveys
by external third-party institutions once every 3 years.
With an external third-party survey conducted in thefiscal year ended September 2022, the Company
confirmed that the Board of Directors completed thetransition to a monitoring board type, enablingadvanced and lively discussions. In addition, in terms ofoperation, practical measures such as devising theagenda of the Board of Directors, providing materials in
advance, creating opportunities for discussions throughcamps, and strengthening cooperation among outside
directors through executive sessions had already been
sufficiently carried out, and that effectiveness has been
confirmed. On the other hand, it was also confirmed thatwith the substantial reform of the Board of Directors, acommon awareness of issues has emerged, such as how
to think of the innovation board, which lies ahead of themonitoring board, how to realize the “co-creation ofvalue between supervision and execution,” and how tothink of the succession of the Board of Directors.
In response to this, in the fiscal year ended
December 2023, the transition to the innovation board
was discussed at the Board of Directors and the officer
camp on an ongoing basis, and as part of measures toco-create value between supervision and execution,
the Company revised organizational and divisional
structures and regulations. Also, in response to someadvice by the Nomination and Remuneration Advisory
Committee, which has been discussing succession
plans to realize sustainable growth, the Company

resolved to reform its management structure. Bybuilding and promoting a new collective leadershipsystem, the Company aims to further increase its
corporate value, and will continue initiatives toenhance the effectiveness of the Board of Directors.

Introduction

Evaluation of the effectiveness of
the Board of Directors

Message from an Outside Director

Reinforcing Our Management Foundation

strengths and experience in collaborative
management. These selections envisage a division ofrole in which Mr. Kouno, as President, will be
responsible for external communications withshareholders and other stakeholders, while Mr. Shimizu,
as Executive Vice President, will be responsible forinternal communications, including improving theengagement of employees, who are extremely
important human capital for the Company.
We have high expectations that Mr. Kouno and Mr.
Shimizu will provide strong leadership to achieve thediscrete growth represented by “10X,” and we will doour utmost to support the new executive structure. The
Committee believes that this renewal of the
management structure is a very positive way to pass on
the baton.

Business Activities
Corporate Profile

made to reform the management structure byestablishing a collective leadership structure, based on
the concept of replacing the current generation with a
new generation that will “create a new era,” as statedin the Group vision, and the Committee has beenleading the selection process.
Specifically, the Committee created a pool ofcandidates and, through a dialogue process that
included numerous interviews and presentations,selected Yuichi Kouno as Representative Director,
Group President and Chief Executive Officer andYusuke Shimizu as Director, Group Executive Vice
President and Executive Officer, based on acomprehensive assessment of the clarity of theirstrategy to realize “10X” and their leadership toaccelerate digital marketing, the core of our Group.
Mr. Kouno and Mr. Shimizu have complementary

Human Resources

The Group is continuously working to strengthen its
governance to maximize corporate value. As part ofthis process, the Nomination and Remuneration
Advisory Committee (hereinafter referred to as “theCommittee”), which was established in July 2023 andconsists of outside directors and the Group President
and CEO, received a request from former CEO Satoto resign after completing his term, and for theCommittee to appoint a new management team.
Mr. Sato led the Group as a whole for some 15 years,
showing strong leadership to enhance our corporate
value. Given his excellent managerial skills, hispresence will be hard to replace, and the Committee
has been discussing whether this is the optimal timing
for the succession with respect to our stakeholders.
As a result, in order to respond ahead of time tofuture changes in the environment, the decision was

Value Creation by the Septeni Group

Etsuko Okajima

Chair of the Nomination andRemuneration Advisory Committee
Outside Director

Management

High expectations for the leadership ofthe new management team in realizing “10X”

Introduction

Message52

53

Corporate Profile

Please visit the following websites for the latest status of our stock,our shareholder return policy, and other information.

• Company Overview• Stock Price Information• Business Segments & Group Companies• General Stock Information

https://www.septeni-holdings.co.jp/en/company/overview.html

https://www.septeni-holdings.co.jp/en/business/• Executives

https://www.septeni-holdings.co.jp/en/company/boardmembers/

https://www.septeni-holdings.co.jp/en/ir/stock/price.html

https://www.septeni-holdings.co.jp/en/ir/stock/information.html• Shareholder Return

https://www.septeni-holdings.co.jp/en/ir/stock/dividend.html• General Meetings of Shareholders

Please visit the following websites for our financial and performance highlights and
ESG data.

https://www.septeni-holdings.co.jp/en/ir/finance/highlights.html

https://www.septeni-holdings.co.jp/en/ir/finance/review.html• ESG Information

https://www.septeni-holdings.co.jp/en/ir/esg.html

https://www.septeni-holdings.co.jp/en/ir/stock/analyst.html

Reinforcing Our Management Foundation• Review of Full-Year Financial Results• Analyst Coverage

Business Activities• Consolidated Performance Highlights

https://www.septeni-holdings.co.jp/en/ir/stock/shareholders/index.html

Human Resources

Consolidated Financial & Non-Financial Information

Value Creation by the Septeni Group

Please visit the following websites for information about our businesses andGroup companies.

Management

Stock Information

Introduction

Company Overview

Corporate Profile

SEPTENI HOLDINGS CO., LTD.
https://www.septeni-holdings.co.jp/en/
Company names and services in this report are trademarks orregistered trademarks of the respective companies.