Sustainability Report2024

QB Net Holdings Co.,Ltd.

Why
A business that is built at the expense of something else cannot be sustained.
Leaving out unnecessary steps generates reserve strength and creates balance. And it eliminates sacrifices.
By creating a sustainable balance, true abundance can be achieved.
Going from a place where wasted efforts arise to a place where everything is just right.
We want to remain committed to the way we are in order to continue contributing to a sustainable and prosperous society.

Ho w QB ’s U n i q u e C h a r a ct e r Wa s C r e a te d

The birth of QB

7

Instead of adding things, omit things

8

Outlet design that thoroughly eliminates waste and emphasizes efficiency

9

Tangibles can be imitated, but intangibles cannot be imitated

10
12
14
16
18

Becoming able to communicate our techniques in words has made us unique
By taking a serious approach, barbers, hairdressers, and the company experiencea win-win situation
We are trusted, admired, and respected by peers for the very reason that
we take out work seriously
Reform Promotion

25
26

Interesting facts we’ ve achieved together in numbers

20

Our promise to customers and colleagues
Passing on what we learn at QB to the rest of the world and to future
generations

PURPOSE34

Basic Sustainability Policy

Our purpose

35

PeopleMATERIALITY

39

Environment

Important issues which should be resolved

40

Society

VALUE CREATION PROCESS

41

Governance

Challenges in the barbering and hairdressing industry and the goals of QB

42

Awards and recognition

HISTORY

43

Director skills matrix

QB Group Trajectory

27

Message From Our Representative
The starting point of sustainable management is a cycle involving

Sustainable brand development that benefits all three parties

19
21

24

for Co- Cr e a t ion

the kindness of people.

32

Enhancement Measures
Possibilities of the visit-based barbering and hairdressing business

DATA
44

Company Profile・Stock Information

45

Financial Statements

At yours e rv ic e!

This is a line from a song that was sung around 1870 to men who did not cut off their chonmage

Sustainability Management
for Co-Creation

If you tap a cropped head, you’ ll hear the sound of Japan’ s civilization and enlightenment —Future Value Creation Stories

15

Organizational revitalization

23

3

Su st a in a bilit y Ma n a g e me n t

Discover Our Story
How QB’s Unique Character Was Created

52

F u tu re V a lu e C re atio n S to rie s

Table of contents

1

Discov er O u r S t o r y

The idea behind the cover of this report: With our aspirations
Techniques, philosophies, unique character and other elements at the core of what we do, the cover of this report
depicts an image of our company spreading from Japan to the rest of the world in the form of water ripples, using fivebrand colors that each represent the concepts of conscientiousness, sincerity, cleanliness, skill, and teamwork.

QB Net Co., Ltd.
Sustainability ReportT a bl e of co n t e n t s(traditional Japanese topknot) after the restoration of imperial rule and Japan’ s entrance into the Meiji
era (1867), with the idea being that cutting off one’ s topknot was what people who were at the cutting
government, wishing to quickly establish a new era and show its eagerness to do so to the rest of theworld, finally issued a decree that all men were to cut off their topknots, which practically forced men to doso. One hairdresser who would have been active during such a transition of the times was Q-Bay. We
created him as a navigator to help readers of this report better understand what the QB Group is all about.

Q- BayDATAedge of the times did. However, many men still did not cut off their topknot, and in 1871, the new Meiji

Q- Bay i s an Edo- era hai rdresser.
He’l l be your navi gat or t o hel p you get t o know t he QB G roup bet t er.

3Dis c ov er O u r Sto ry:
H ow QB’s Un i que Ch arac t e r Was Cr e a t e d

Can a hairdressing salon be this particular
about the haircuts it provides?

1995-2005
The birth of QB
Breaking away from the norm in the barbering and hairdressing industry,
QB created a new genre of haircut specialty shops.

No hair dyeing, no shaving, no shampooing.

Wasteno time!

Serve
no tea!

ダミーAndno shouldermassages!

Historical tale 1

QB Net Co., Ltd.
Sustainability Report

1995
An outside-in approach and the Creation of Shared Value (CSV)

Table of contents

I ju s t wa nt a hai r c ut t h a t I ca n ’ t d o m y se l f !
“I’ m in a hurry today, so please get it done in thirty minutes.”
Half an hour later, the customer suddenly wonder why the result was the same as always.
“Why does it always take over an hour to get the job done even though the finished product looks

It’s a little
tasteless...

I can wash it
by myself...

nsible

prehe

Incom

Incomprehensible...

the same in either case?”

There is a sense of dissatisfaction that comes with not even needing some of the services that are provided
and, of course, the fact that the fees for such services are tacked on to the overall price of a haircut.
This is all wrong.

le！

nsib

rehe

mp
Inco

I wish I could just get a haircut, but there are no places which offer such a service.
“Then why not create a shop that is dedicated to haircuts by myself?”
Our founder’ s frustration as a user led to the creation of Japan’ s first haircut specialty shop providing 10-minute haircuts for 1000 yen in 1996.

Sustainability Management
for Co-Creation

All I am looking for is a haircut that I can’ t do myself.

Future Value Creation Stories“Why do haircuts come with a shave, a shampoo, and a massage?”

Discover Our Story
How QB’s Unique Character Was CreatedWelcome to an upscale barbershop in the early 1990s.

First, let’ s unpack details on what constitutes QB’ s unique character by look at the characteristics of its outlets.
DATA

2005

6

Instead of adding things, omit things
learning techniques by watching one’ s master still remains.

also not used. As a result, electricity consumption and CO2

There are also not enough oppor tunities for training

shaving, and even tea services, and massages, QB HOUSE

e m i s s io n s a re ex tre m e l y l ow w he n co m pa red to g e ne ra lavailable, which is one of the reasons why people give up on

was created to provide a single service: haircuts. In addition,

hairdressing salons, meaning that the burden we place on

working in the industry. We, however, have a wider variety ofw h i l e m a ny g e n e ra l s a l o n s have o rnate d e co rat io n s a n d

t h e e nv i ro n m e nt i s l o w. I n a d d i t i o n , c h e m i c a l s u s e d fo r

training curriculums ready for all kinds of individuals, fromunique fix tures , Q B HO U S E u ses common unit furniture,

shampooing, coloring, and perms can have adverse effects

those with no haircutting experience before to people withe m p h a s i z i n g t h e w o r k ef f i c i e n c y of o u r s t y l i s t s , a n d i s

o n t h e b o d y, c a u s i n g c o n d i t i o n s s u c h a s ro u g h h a n d s .

c a re e r b re a k a n d n e e d to ret r a i n t h e m s e l ve s . We h a ve

characterized by lean and compact shop design. In addition,

H oweve r, s i n ce we o n l y p rov i d e h a i rc u t s , we a re a b l e toestablished a system to fully support both those who want

Q B HOU S E does not u se a lot of either hot or cold water

reduce the burdens placed on the bodies of our staf f andto return to the barbering and hairdres s ing indu s tr y andbecause we do not provide ser vices such as shampooing,

provide an environment where they can work into the longthose who want to acquire skills.

coloring, and perming. Since hair is not wet ted during theterm with peace of mind. In Japan, the old cus tom of

QB HOUSE

Shampooing, coloring, perming, haircutting

Haircuts only

Drainage of sewage containing chemical effluent

Minimum use of water

Reservations are required and payments are dealt
with at a cash register after the service is provided

Outlets

No reservations are required and payments
are made in advance using a ticket machine

Non-woven towels are used with no need to wash them

Hair dryers are used

No hair dryers used

Ornate decorations and fixtures

Environment

Recyclable unit furniture

No concerns about hands becoming roughIndependent practice & advice from senior associates

Six months of full-time training

Unpaid overtime

Working style

DATA

There are concerns about the hands of staff becoming rough due to chemicals

Sustainability Management
for Co-Creation

Large amounts of cold and hot water are used to rinse off shampoo

Future Value Creation Stories

General hairdressing salons

Discover Our Story
How QB’s Unique Character Was Createdprocess, hair dryers, which consume a lot of electricity, areTable of contents

While most hairdressing salon at the time offered a full listof services, such as shampooing, coloring, perming, cutting,

QB Net Co., Ltd.
Sustainability Report

Historical tale 1 Bringing innovation to the barbering and hairdressing industry with the Blue Ocean Strategy

Overtime paid on a per-minute basis

7

QB Net Co., Ltd.
Sustainability Report

Historical tale 1 Digital transform taking place since inception

Outlet design that thoroughly eliminates waste and emphasizes efficiency

and to be thoroughly concerned with

Used to check for the approximate
waiting time with the color of
the signal at the storefront.
The signal can also be checked Closet
Customers’ jackets
via our website.
and luggage are stored
More than 15 minutes in here.

w h a t i s n e c e s s a r y. U n i t f u r n i t u re , i nparticular, has been uniquely developed
to allow s t ylis t s to reach all of theequipment that they need to provide
their ser v ices with one s ing le s tep,
improving time efficiency and reducing

Developed in-house by absorbing feedback from the field, with special attention being paid to angles.

Terminal

UV sterilizer

When a ticket is scanned,
QB Signal changes color as
it is linked with the system.

Disinfects the tools used
for each customer,
such as combs.

Hair trimmers

Air washer

Used for trimming, etc.

Suctions hair, insteadof shampooing.

Approx. 5 to 10 minutes
Immediately

the workloads dealt with by stylists. We
have developed an air washer that sucks
bits of cut hair, rather than washes themp ro ce s s . We h ave l i n ke d i t to t h e Q B
S i g n a l , w h i c h u s e s a t i c ke t v e n d i n g

Ticket vending
machineFuture Value Creation Stories

away, ensuring a quick and comfortable

Discover Our Story
How QB’s Unique Character Was Created

QB Signal

Table of contents

Unit furniture

QB HOU SE outlet s are designed tothoroughly eliminate unnecessary items

First barbershop in Japanto adopt a system where
payments are made in advance.

machine and a machine called Terminal toprovide QB Signal with information on
the crowd l eve l at the outl et . U n iq u eoutlet location s not found with otherOne for water and
one for disinfectant.

n e a r re s t ro o m s) , h a v e a l s o b e c o m esynonymous with QB HOUSE, which iswell versed when it comes to locations
where people gather.

When it’ s your turn,give your ticket tothe staff.

Suction port for bitsof cut hair
Suctions bits of cut hair fallen
to the floor, which are collectedwith a broom.

Haircuts can be
performed in about
10 minutes thanks toour proprietary
haircut techniqueBroadcasts announcements
to customers and weather forecasts.
Also shows commercial messages.

DATA

Definition of terms found in this document

Outlet monitors

Sprayertrain stations (including on platforms andSustainability Management
for Co-Creationcompanies in the industry, such as inside

Stylists: Individuals certified as barbers or hairdressers who work at the QB Group
Barbers / Hairdressers: Individuals certified as barbers or hairdressers who do notwork at the QB Group8

QB Net Co., Ltd.
Sustainability Report

Historical tale 1 Going from a shrinking Japan to the world

Tangibles can be imitated, but intangibles cannot be imitatedworld, even when including Europe, the birthplace of cosmetic

in the whole wide world, only a few countries, including Japan,

techniques. That ’ s where we have added customer service

overseas in 2002 six years after the opening of our first outlet

have a cer tif ic ation s ys tem for ba rber s a nd ha i rd res s er s .

that is clad in the spirit of hospitality, and are expanding andi n J a p a n . T h ro u g h a p ro c e s s of t r i a l a n d e r ro r, w e h a v e

Asian hair in particular is considered stiff and difficult to cut.

developing QB HOU S E, a Japanese -s t yle haircut ser vice,s te a d i l y i n c re a s e d t h e n u m b e r of c o u n t r i e s i n w h i c h w eJapan’ s hair cut ting techniques are among the best in themainly in cities where time is highly valued.

Hong Kong

United states of america

The first outlet opened in

The first outlet opened in June 2017.

February 2005.

We are currently operating five outlets mainly

We have 61 outlets, mainly in

in Manhattan, New York. The haircut fee is US$30.

Kowloon. The haircut fee is HK$70.

TaiwanThe first outlet opened in April 2002.

The first outlet opened in May 2012.

There are 30 QB HOUSE and QB PREMIUM

There are 30 outlets, mainly in Taipei

outlets throughout the region.

and New Taipei. The haircut fee isHaircut fees are S$14 and S$18, respectively.

NT$350.

On the other hand, we came to realize that we did not haveenough expertise when it came to providing logical teaching.
Wh e n we s t a r te d ove r s ea s ex pa n s io n , Ja pa n e s e t ra i n e r s
Japanese way of doing things among local s taf f. For eventhings that were accepted to a certain extent in Japan, local
staff overseas would ask questions about why each individualin Toronto in summer 2024.
The haircut fee is CA$35.

movement was being per formed. It was through thebecame less uneven, and the number of outlet s witha n s w e r i n g of t h o s e q u e s t i o n s t h a t t a c i t k n o w l e d g e w a s

cu s tomer s lining u p to get their hair cut had d ra matica lly

increasingly converted into explicit knowledge and put into

increased. Tangibles can be imitated, but intangibles cannot

words. Even local staff working abroad who were not positive

be imitated. Armed with that exper tise, we have been

about the training at first, were among the many requesting

ex p a n d i n g o u r g e n u i n e J a p a n e s e - s t y l e h a i rc u t s e r v i ce s

to t a ke t h e co u r s e s we of fe r w h e n t h ey n ot i ce d t h at t h ethroughout the res t of the world. This hard-won overseas

haircutting skills of their colleagues who had undergone theexperience has strongly contributed to the training of thosetraining had improved. Gradually, the overall level of service

in Japan who have no experience cutting hair.

DATA

visited sites many times and repeatedly tried to ins till the

The first outlet is scheduled to open

Sustainability Management
for Co-Creation

A realization from our overseas expansion

CanadaFuture Value Creation Stories

Singapore

Discover Our Story
How QB’s Unique Character Was Created

operate, and will begin operations in Canada in 2024. In fact,

Table of contents“This business has no borders and no end.” These are thew o rd s of o u r fo u n d e r. B a s e d o n t h i s i d e a , w e e x p a n d e d92006-2015
Organizational revitalization
With our unique haircut theory and expertise in teaching,
we actively recruit talent who have been away from the industry for some time.

Opportunities for all! Turn challenges into fuel!

smoothly
ring it down
That’s it. B
into it.
g any force
n
i
t
t
u
p
t
u
o
with

Where there’s a will,
there’s a way!

Historical tale 2

QB Net Co., Ltd.
Sustainability Report

2006
Diversity & Inclusion（DE&I）

Table of contents

We a r e sel e c te d e v e n m ore b y ou r cu st om e rs an d co lleag u es !
where we operate directly, our current president, Mr. Kitano, assumed the position of president.
In preparation for the future where Japan will have a smaller population, we envision a concept
wherein we actively hire and train not only those with experience in cutting hair, but also those
without experience in cutting hair. However, the majority of people within the company wereThank youvery much.

opposed to the idea, saying that people would learn our haircutting techniques and then end upof those working in the ﬁeld, in 2012, LogiTh was launched, which was a long-held dream of ours.
Since that time, we have promoted various reforms to enhance customer satisfaction, establisheda management philosophy that incorporates the ideas we all cherish, and have worked to instill

Future Value Creation Stories

quitting right away. After three years of face-to-face discussions and seeking the understanding

Discover Our Story
How QB’s Unique Character Was Created

In 2009, after accumulating expertise in teaching our techniques to people in overseas countries

our philosophy. Certiﬁcates of appreciation are presented on a large stage in honor of longtime
outlets that have produced achievements. We hold haircut contests for all stylists to learn about
the techniques deployed by their colleagues and inspire each other to improve their respective skills. And for managers and employees working
at our head oﬃce, we have provided managerial training to not only increase their individual abilities by one rank, but also to accelerate theSustainability Management
for Co-Creation

employees. The managers of domestic and international outlets are brought together to award

growth of our organization for the future when labor will be in short supply. There are many challenges that we have all taken on together tothese activities. Gradually, the results began to appear, attracting motivated younger employees, especially women, who wanted to join the

2 01 5DATA

ensure the survival of the organization. Our corporate culture of mutual recognition, respect, and appreciation among employees was born out ofcompany. As a byproduct of that, the company became highly regarded by female customers, laying the foundation for later brand development.

11

Becoming able to communicate our techniques in words has made us unique

Hairdressing salonsof the past

2 hours per day x 24 days x 24 months = 1,152 hours

QB HOUSE

8 hours per day x 24 days x 6 months = 1,152 hours
Discover Our Story
How QB’s Unique Character Was CreatedE-learning for review and preparation available at any time

Original training materials full of expertise

unless the gap between this ideal and realit y were too p e n i n g , b e co m e u n iq u e a n d a s o u rce of b u s i n e s s

t h e co u nt r y fo r p e o p l e of 1 8 ye a r s o l d w h o a i m to

be bridged, we opened the LogiTh PROFESSIONAL

c o n t i n u i t y, w i t h n o o t h e r s c h o o l i n t h e i n d u s t r y

become barbers or hairdressers after graduating fromST YLIST SCHOOL (hereinaf ter referred to as

following in a similar style. After graduation, students

h i g h s c h o o l . S u r p r i s i n g l y, s u c h s c h o o l s h a v e f e w“ Lo g i T h” ) i n S h i b u y a , To k yo , i n S e pt e m b e r 2 0 1 2 ,are assigned to an outlet and begin a year of follow-up

classes on haircutting techniques. The industry is one

drawing on exper tise accumulated through ourt r a i n i n g . O n c e a m o n t h , t h e y re t u r n t o Lo g i T h t o

i n w h i c h 8 0 % of yo u n g p e o p l e w i t h a b r i g ht f u t u reover s ea s ex pa n s ion . Today, we have ex pa nded ou r

reunite with old clas smates , but also to learn about

leave the industry three years after starting work, withschool locations to Sendai, Nagoya, Osaka, Hiroshima,

things such as issues which they come to notice in thethe reason being because the workplaces where theyFu k u o k a , H o n g Ko n g , a n d Ta i w a n . It h a s b e co m e afield and s t yles they have dif ficult y with. Feedbackf i n d j o b s a t t h e a g e of 2 0 a re n ot t h o ro u g h a b o u tsustainable educational model that also allows thosefrom the field is also shared with trainers during theteaching skills and do not provide comfortable working

who teach to grow through the gaining of an increased

training, with training sites and operation sites working

environments. That is really a shame. Believing that theawareness of what they are teaching. With more than

together to support the growth of talent.

barbering and hairdressing industry would not develop

650 graduates at all schools, this school has, since its

Work at outlet

I like myself best when I am doing
the work of cutting hair

A mother who had a realization: Your chance isright when you feel like taking on a challenge

Trainee at LogiTh Tokyo School
Joined as a new graduate in April 2020
Hairdresser

Trainee at LogiTh Tokyo School
Joined as a mid-career hire in September 2021
BarberStaff at a QB HOUSE outlet in Osaka Prefecture
Joined as a mid-career hire in August 2017
Hairdresser

https://qb-recruit.com/staﬀ/qb/qb̲interview-6980/

https://qb-recruit.com/staﬀ/qb/qb̲interview-5791/

https://qb-recruit.com/staﬀ/qb/qb̲interview-1447/

DATA

Outletd e b u t！

Why did he get a job as QB immediately
after passing the national exam?

Sustainability Management
for Co-Creation

There are barbering and hairdressing schools around

Future Value Creation Stories

LogiThcut School(6 months)

LogiTgcut TOKYO School

Trainee testimonials
Graduation
exams

Table of contents

2-year training condensed into a 6-month period *Calculated from 24 days of work per month

HiringQB Net Co., Ltd.
Sustainability Report

Historical tale 2 Training system born out of a backcasting process−1

12Outlet manager development training

Those who pass the test after 64 hours of training (2 daysof 8-hour-long training twice a month for 4 months) are
certified as suitable for the position of outlet manager.

Talent development track
Training for LogiTh trainers (instructors only
for individuals with no experience cutting hair)

After one year of practical instruction (on-the-job training)

Interviews to determine the degree
to which one desires to work overseas

technical curriculums, those who have completed two

After a thorough interview with the supervisor tocertiﬁed as suitable for the position of trainer.

the individualʼs life plan, a decision is made based on

which encompasses everything from classroom lectures toweeks of practical training at another LogiThcut school are
Those who pass the test after 64 hours of training (2 daysof 8-hour-long training twice a month for 4 months) are
certiﬁed as suitable for the position of area manager.

Training for trainers (including instructors
for those with experience cutting hair)determine how much overseas work is necessary formutual consultation while making adjustments

which take into account the companyʼs structures.

Implemented as needed
Even if you have no experience cutting hair,
LogiTh provides all you needDon’ t be afraid to take on challenges; the doorsof the world will open for you as a result

Staff at a QB HOUSE outlet in Tokyo
Joined as a mid-career hire in October 2016
Hairdresser

Trainer at LogiTh Osaka School
Joined as a mid-career hire in August 2011
Hairdresser

Staff at QB HOUSE USA
Joined as a mid-career hire in 2007
and moved to the U.S. in 2017
Hairdresser

https://qb-recruit.com/staﬀ/qb/qb̲interview-1428/

https://qb-recruit.com/staﬀ/qb/qb̲interview-4040/

https://qb-recruit.com/column/post-8246/

DATA

Joined QB after working as a freelancer andencountered techniques and colleagues that
I had never encountered before

Sustainability Management
for Co-Creation

Area manager training

Overseas work track

Future Value Creation Stories

Outlet operation track

We believe that nurturing the next generation is essential for a sustainable company.

Discover Our Story
How QB’s Unique Character Was Created

Career development to enhance the career satisfaction of stylists

Table of contents

Takayoshi Eto, Head of Quality Management Headquarters

QB Net Co., Ltd.
Sustainability Report

Follow-up training (1 year)

Work at outlet

At LogiThcut, you can spend 8 hours during the day for 6 months to fully learn the unique hair cutting
techniques that we developed, and many of our trainees are surprised, saying, ``You can teach them sowell!?'' Furthermore, even if the child does not give up within 6 months, the attitude of supporting thestudent thoroughly, including providing mental follow-up, until the student graduates, is of interest toteachers at hairdressing and cosmetology schools. This also leads to on-site cutting classes. In addition,
we have accumulated know-how to teach to the management side, and we have been able to evolve
into a better curriculum.We are here to help those who are interested in the hairdressing industry andjump into the hairdressing industry and not crush their dreams, and we want to tell more people,``Once you join QB, you'll feel at ease.''13

QB Net Co., Ltd.
Sustainability Report

Historical tale 2 Training system born out of a backcasting process−2

Table of contents

By taking a serious appr oach, barbers, hairdressers,
and the company experience a win-win situation
I nter v iews wit h Log iTh t ra i n ees revea l t h e rea l it ies of t h e i n d u s t r y.
Th e g reat n es s of Log iTh co n s i s t s of t h e cros s i n g of d es i res: “wa nt i n g to g row ” a n d “wa nt i n g to p rov id e s u p po r t .”The people who gather at LogiTh range in age from those under
20 to those in their 60s, with a roughly 50/50 split between men and

GenderAgeexperiences. Some trainees have worked actively at barbershops or
hairdressing salons until shortly prior, while others have obtained
national certification as a barber or hairdresser but have neverfemale

53.6%

4.2%

40s

women. People there have had a wide variety of previous job

male

0.5%

11.5

30s

46.4%

10s

50s

%

26.6%

20s

57.1%

worked in a shop or salon. The only thing they have in common is thatwere no training or practice sessions, or that they practiced before orPrevious job

after the opening or closing of the salon with no overtime pay, which

Students at thebarbering andhairdressing school

When we ask them about the gaps between what they imaginedthings were like before joining the company and the reality they

11%

14%

39%

36%

Quit hairdressing
salon and worked
in other industries

17.9%

and working condition aspects were
3 Salary
12.5%
better than expected

4 cutting hair

Training experiencein pervious job

4%

There were no predeterminedtraining or practice sessions

Change in the average number of haircuts per day
during training
0people2nd month

2people12people

3rd month

growth of the trainees is remarkable. A trainee who could not cut hairat all becomes able to cut the hair of twelve people in a day by thea typical barber or hairdresser in a day. By the sixth month after
graduation from LogiTh, he or she is able to do 25 haircuts.

52%

44%

19people

4th month

Training andpractice took place
during working hours

DATA

third month, which is in line with the number of haircuts performed by

Training andpractice took place
before or after
business hours

10.7%

existing between the ﬁeld and LogiTh
5 Gaps5.4%(e.g., very busy due to labor shortages)

1st monthterms of a wide range of aspects through training and experienced
also led to people staying at the company for many years. The

Never worked ina hairdressing salon
but worked in otherindustries

Worked in thebarbering andhairdressing industry

better than expected in many ways, and that they have grown inthe sparking of a desire to contribute to the company. This has in turnis good teamwork and relationships
2 Thereexisting among staff

Sustainability Management
for Co-Creation

discovered after joining the company, they felt that the gaps were

41.1%

Growth was felt in terms of things other thanprovided peace of mind. 56% of the trainees responded that there

is something that would be unthinkable at a general corporation.

training is more solid
1 The
and generous than expected

Future Value Creation Stories

they did not have the opportunity to learn in an environment which

Top 5 gaps between what one expected before joining
the company and what was learned after joining

Discover Our Story
How QB’s Unique Character Was Created

LogiTh trainee attributes

20people

5th month
6th month

25people
0

5

10

15

20

25

14

QB Net Co., Ltd.
Sustainability Report

Historical tale 2 In order to increase engagement

We are trusted, admired, and respected by peers
for the very reason that we take out work seriously
establishment owners or shop managers. At the QB Group,

opportunity to express the philosophy they aspire toward,

we have established a fair evaluation system with elements

serves as an opportunity for further awareness not only forhas become a serious competition and the mos t exciting

such as clear numerical standards and evaluations

the individuals and outlets that receive high evaluations, but

event held at the company. These days, it is difficult to evenconducted by multiple people.

a l s o a s a n o p p o r t u n i t y fo r e a c h i n d i v i d u a l e m p l oye e tomake it through the domestic and international qualif ying

become more aware of what kind of employee they want torounds.

By doing what other companies in the indu s tr y are notdoing, we have reduced our turnover rate from over 50% in

become and become more aware of their desire to do theirInterpersonal relationships cons titute one of the top 3

2008 to 10.6% by the end of June 2023. Over the past 15

b e s t fo r t h e s a ke of t h e o u t l et w h i c h t h ey w o r k a t . I t ’ s

re a s o n s p e o p l e l e av i n g t h e b a r b e r i n g a n d h a i rd re s s i n gyears, we have had a culture of mutual recognition, trust,because we all take work seriously and work very hard thati n d u s t r y i n J a p a n . We b e l i eve t h at i f we c a n b u i l d g o o dadmiration, and respec t take root, resulting in an

we also end up being able to truly trust, admire, and respect

relationships, we can reduce staff turnover. Furthermore, theorganization with great interpersonal relationships.

t h e g re a t a c h i eve m e nt s of h i g h l y r a te d i n d i v i d u a l s a n drealit y is that the evaluation of general barbers andoutlets. The haircut contest, in which contestants compete

hairdressers is often influenced by the likes and dislikes of▶https://www.youtube.com/watch?v=MFANZepbr7c

Cumulative long-service award recipients

1,045

Number of employees
receiving 20-year
service awards

150

DATA

Number of employees
receiving 10-year
service awards

Sustainability Management
for Co-Creation

An 85-second video of QB Fest, an event
where we recognize and celebrate those
we work alongside.

Future Value Creation Stories

Tears emerged from the eyes of our oldest
stylist, who is 78-year-old.

Discover Our Story
How QB’s Unique Character Was Createdin the areas of reproducibilit y and creativit y as an

Table of contents

We use every possible means to produce visualizations ofand celebrate the ef for t s of individuals and outlet s . ThisThe haircutting contests held both in Japan and abroad seem to be raising the levels of our stylists’ technical skills with each passing contest. The 2023 competition saw a lot of drama, which included elements
such as prize-wins by international competitors and LogiTh graduates and a legendary multiple-time winner returning to the championship after two years. On the same day, an award ceremony was held tohonor and congratulate all those who have made distinguished service achievements with the bestowing of long service awards and outlet awards. These efforts have created a culture of mutual admiration
and respect and serve as a source for the retention of talent.

15

2016Reform Promotion
The catalysts for the development of each brandwere the career paths of our stylists.

Customers come first, and our employees also come first.

I come first,
and you alsocome first!

Historical tale 3

QB Net Co., Ltd.
Sustainability Report

2016
Inside-out approach and customer needs

While business expansion is generally driven by the goal of company growth,
they were born from an entirely diﬀerent perspective: to increase opportunities for stylists.

to cutI want ’s hair!
nwome

The various businesses that we are currently developing embody feedback weʼ ve received

Future Value Creation Stories

from the ﬁeld such as feedback from individuals who want to cut womenʼ s hair,individuals who want to do styling, and individuals who want to cut the hair of
bedridden individuals. In fact, these brands were beneﬁcial not only to the stylists but also
to shareholders and customers.

philosophy, the universal themes that have emerged from it have become
Not withthat sword!

DATA

FUTURE

Mr. Q-Bay!

Sustainability Management
for Co-Creation

And while the trajectory we have taken thus far has evolved into our management

our raison dʼ être.

Discover Our Story
How QB’s Unique Character Was Created

In the course of promoting various reforms, new brands were also created.

Table of contents

F e edba c k fr o m the f ron t l i n e s l e v e ra g e d f or bu s in es s g ro w t h

17

QB Net Co., Ltd.
Sustainability Report

Historical tale 3 Brand expansion

Sustainable brand development that benefits all three parties

A n evolutionar y haircut s pecialt y s hop whichl o o k s a h e a d to t h e Q B H O U S E of t h e f u t u reand creates individualit y together withc u s to m e r s u s i n g g re ate r fo r m s of i n g e n u i t y
a n d d i g i t a l te c h n o l o g y w h i l e l eve r a g i n g t h eexperience of QB HOUSE.

Cut

Cut＆Styling ¥1,800¥1,350A salon specializing in haircuts and styling withs i m p l e , o p e n , a n d c o m fo r t a b l e s p a c e s t h a t
pursue qualit y hairs t yle sugges tion ser ves toh e l p d i s c ove r t h e i n d i v i d u a l i t y of c u s to m e r
re ce i v i n g s e r v i ce, a s we l l a s q u a l i t y s e r v i ce sthat are waste-free.

A h o s p i t a l i t y- d ri ve n s a l o n w h e re e m p l oye e svisit nursing care facilities in a salon car
equipped with all the tools of a real outlet andof fers haircut s, shampoos, face shaves,coloring, perms, and other services to enhance
healthy minds and smiles.

Cut＆Styling ¥2,400*Menu items such as cutting only one’ s bangs and hair

Cut ¥2,200 〜*Depends on the facility and number of people

curling are available● Increased profitability by securing
a customer base that QB HOUSE
cannot capture● Increased profitability by securing customer
segments consisting of women and children● Increased profitability in response toan aging society

Customers● Reasonably priced haircuts● Can visit on their way to somewhere else due
to good outlet locations● Can ensure more time to spare● Can make the most of their time by making
reservations● Hair styling service available that allows
customers to experience a higher quality
feel than that provided by QB HOUSE● Can make the most of their time by making
reservations● Comfortable and accessible for women● Hair styling is also available● Coloring and perms are available● Can feel refreshed● Can feel a real sense of connection
with the general public● Finish within a time frame that is not
too taxing on the body

● Increased experience levels when it comesto cutting hair and improved technical skills● Can expand the scope of operations,such as styling● Improved quality of haircuts● Increased experience levels when it comes
to women’ s hairstyles● Become able to make proposals in a shortamount of time

● Gain bed-based haircut techniques to cut
the hair of someone while they are lying
in bedofbenefits

Stylists

DATA

Shareholders● Increased profitability with quicker speed ofservice● Increased profitability through the
deployment of many outlets● High expectations for the future, including
overseas expansion

Sustainability Management
for Co-Creation

Scope

We provide af fordable and reliable haircut
ser vices in Japan and overseas, focusing onlyo n t h e q u a l i t y of t h e t i m e w h i c h c u s to m e r s
have available. This is something truly neededb y p e o p l e a ro u n d t h e w o r l d a n d s o m e t h i n g
t h a t w e e n s u re b y e l i m i n a t i n g u n n e c e s s a r yhassle and waste.

Future Value Creation Stories

Rates(including tax)

Discover Our Story
How QB’s Unique Character Was CreatedFeatures

Table of contents

QB Visit-based hairdressing services

Career advancement and motivation can be kept high because there are opportunities available within the company, including overseas assignments, so that employees do not need to change jobs to seek such opportunities elsewhere
The peace of mind that comes with full benefits (even if staff gets sick, they can rest assured that various systems and insurance are available to help)
Increased social credibility (enabling staff to obtain mortgages and their own homes)

18

How many haircuts has QB provided since its foundation?

328.88 million

Barbershops

33%

How many haircuts does QB provide in a year?

20 .1 1 m i l lio n

3.6%

Barber24.4%
72%

A human-headed mannequin wig costs 6,000 yen each.
With some donations being provided by vocational schools,
346 units per student will be used over a six-month period.

Wig

1152

Without mandatory retirement age andthanks to shampooing not performed
in a semi-crouching position, which isa cause of back pain, the oldest person
at a directly-managed salon is currently
76 years old. In the past, there have been
individuals who’ ve been active up to
the age of 80.

How much training time is provided to individuals
with no previous experience cutting hair?

hours

8 hours per day over a period of 6 months for a total of
1,152 hours of training provided free of charge.
Of course, a salary is also paid during the training period.

Where can we find QB HOUSE outlets other than at the train station?
Shopping centers

60.1%

Inside train stations &train station buildings Street stores

25.5%

9.1%

General commercial facilities

years old

Although there is a strong image of QB HOUSE
outlets being located in train stations, they are
most often found in large shopping centers.
Aeon Group facilities have the highest numberof outlets.

5.3%

DATA

Hairdresser

76

units

Sustainability Management
for Co-Creation

Double license(both held)346

How old is the oldest stylist
working at your outlets?

Future Value Creation Stories

Most people think that is the case,but more than 70% are hairdressers.
Some that work for us are pros among pros
and are certiﬁed as both barbers and hairdressers.

64%

Hairdressing salons

In FYE June 30, 2023, we had serviced
17 million customers in Japanand 3.11 million customers overseas.

How many wigs are usedduring the training period
for individuals without
experience cutting hair?

The people working
there are barbers, right?

3%

Both establishments

Discover Our Story
How QB’s Unique Character Was CreatedSince the opening of our first outlet in 1996,
the number of customers we have served
reached a level equivalent to the populationof the United States in FYE June 30, 2023.

Table of contents

Most people think of QB HOUSE
as a barbershop.
However, 64% of our outlets
are registered as hairdressing
salons with the health department.

Interesting facts we’ve achieved together in numbers

QB Net Co., Ltd.
Sustainability Report

Is QB HOUSE a barbershop?
Or a hairdressing salon?

Historical tale 3 QB in Numbers

19Our promise to customers and colleagues

Table of contents

The most gratif ying thing for a st ylist is when acustomer thanks them or expres ses how grateful they
were that the stylist was the one who provided them withManagement Philosophy

needed by other s , a nd we i ntend to ma ke ou r outlet s
places where that happens.
The premise of that promise consists of the colleagues
one work s together with. If you don’ t have a good
relationship with your colleagues, you won’ t be able toput smiles on the faces of your customers, and working
w i l l b e co m e p a i nf u l . T h e refo re, i n o rd e r to m a ke o u r

i n t h e w o r l d by pr o v i di n g u n i f or m ,r e l i a bl e , a n d s i m pl e s e r v i ce s th at m ake o u r cu s tom e r s s ay
"thank you.”would like to constantly evolve our customer service andtechniques and sometimes simultaneously incorporate
new mechanisms. To that end, we ourselves all share aphilosophy which entails always making bet ter choices
when it comes to our daily words and actions, our facial
expressions, and mindsets.

W e w a n t t o gr o w i n t o h u ma n bei n g s w h o are t ru s t e d an d re s p e c t e dc u st o mer s a n d co l l ea gu es ,a n d evo l ve da y by da y i n t o a n o r g an iz at io n t h at c an b e f rie n d t h e w o rld
w i t h a w o n der f u l smi l e ( o f gr a t i t u d e ) .

for ward towards the same vec tor. In the nex t chapter,
we’ ll tell you about what we are working on as a team inorder to facilitate our further growth.

T o c h o o se t o get h er , a n d t o be st ro n g ly c h o s e n
by cu s t o mer s a n d co l l ea gu es[W o r ds, a t t i t u de, expr es si o n , a n d t h o u g h t s ]Sustainability Management
for Co-Creation

Through these steps and based on our own efforts, wehave built a strong haircut team that can keep moving

T h e peo pl e w e w o r k w i t h a r e t h e o n e s w h o e n h an c e t h e v alu e o f t im e .

Future Value Creation Stories

customers around the world smile and feel at home, weO u r g o a l i s t o be co m e t h e m o s t s o u gh t- af te r h ai r cu t ch ai n

Discover Our Story
How QB’s Unique Character Was Created

ser vice. It i s ver y rewarding to be appreciated andQB Net Co., Ltd.
Sustainability Report

Historical tale 3 Our management philosophy is comprised of the very trajectory we have taken

DATA

20

QB Net Co., Ltd.
Sustainability Report

Passing on what we learn at QB to the restof the world and to future generations

Got a job at a high-end barbershop at age 18

２０００

Became a manager

DATA

Met Mr. Konishi

implemented, and we had formed a relationship where
we could discuss anything, which gave me the energy to
do my best.
A s t h e COV I D - 1 9 p a n d e m i c s et t l e d d o w n , o u r
structure changed and new managers has been nurtured.
I then began to think about what I should be doing. And
since the company’ s overall business performance wasaided by our overseas business performance, I felt that
we needed to increase our business done overseas when
it came to the balance between domestic and overseas
business. It was around that time when I received theoffer to go to Toronto.
I didn’ t think it would be me going when taking my age
into account. But conversely, I did think that no one myage would give up such a chance, so I asked them to letme take the assignment. I also want to contribute, andsince joining the QB HOUSE, I have learned many thingsfrom experiences such as the training we all worked on
together and opportunities to take on challenges. I
believe that we should communicate what we havelearned through these experiences to the nex t
generation. That’ s what I’ m thinking about most rightnow.

Sustainability Management
for Co-Creation

1990

number of outlets for the sake of social stability. What I
noticed at that time was that the general shops are priced
higher and require more than haircut specialty shops. In
contrast, haircut specialty shops are thanked for doing somuch for so little. That number of words of gratitudereceived are just so many. It feels great to see customers
so pleased. That great feeling was not present when I waswork ing at a general shop, and it changed myperspective.
The most upsetting thing so far was the resignation of
Mr. Konishi, who had been there for me since before I
joined the company. Knowing that a change in leadership,especially in the barbering and hairdressing industry, cangreatly affect cohesiveness in the field, I was anxious tosee what would happen to QB going forward. When Mr.
Kitano was appointed president, he talked to me abouta n oppor tu nit y to t a ke a pos ition on the boa rd of
directors. I told him that I was unable to point my sights
upward (toward management) and rather wanted topoint them downward (toward the field) since it wasthose working at the bottom who create the field in which
we do business and who generate the proceeds for ourbusiness. For that reason, I wanted to look downward
toward the field. After that, he introduced mechanisms
which those working in the field wanted to see

Future Value Creation Stories

Entered a barber school at age 16

Masahiro Tajima, Representative in Toronto, Overseas Business Division
Discover Our Story
How QB’s Unique Character Was Created

I b e c a m e i nte re s te d i n b e co m i n g a h a i rd re s s e r
because I grew up in an environment where my father
was a barber and my mother was a hairdresser. “If you
really want to become a hairdresser, you don’ t have to go
down any paths that will just end up wasting your time.
You should get your credentials as soon as you graduate
from middle school.” That’ s what my father told me, so I
moved to Tokyo to attend a barber school and I wentstraight to work at a high-end barbershop in Aoyama.
It is a place that respects tradition and discipline. It
handled the hairdressing of Emperor Showa. Because of
its location, many company executives and other suchindividuals are customers where. It was there that I met
QB House founder Mr. Konishi. A senior associate of mine
was in charge of providing service to Mr. Konishi. During
their conversation, I remember them having a lively talks
about this and that, such as conversations concerning thefact that customers have recently been saying that theydon’ t need a shave and want only a haircut,
conversations concerning opening a store together thatis dedicated to haircuts, and so on. It was partially thisconnection that led to me providing assistance to QB
while working at that high-end barbershop.
About a year and a half later, I was getting married andthen decided to join QB, which was steadily increasing its

Table of contents

Wh e n t h e co m pa ny wa s fo u n d e d , we l ea rn e d t h at we re ce i ve d m o re wo rd sof g rat it u d e t h a n g e n e ra l h a i rd re s s i n g s a l o n s .
Fro m g e n e ra l m a n a g e r i n J a pa n to a s u cce s s o r i n C a n a d a .

２０１０

COVID-19 pandemic

２０２０Joined QB
Haircut contest started
Moved to Toronto
21
Click here for the full version of the interview ▶https://www.youtube.com/watch?v=̲AJ3Uh1SX4w

F uture Val ue Creati o n S t or i e s

Don't you think that the growth ofeach individual leads to the growth of the company?

QB Net Co., Ltd.
Sustainability Report

PURPOSE

Table of contents

LESS IS MORE

Discover Our Story
How QB’s Unique Character Was CreatedThis is a sense of values that if we take away things that lead to excess and waste and concentrate on truly necessary quality, that effort will connect us to richness.
The space and freedom are created by the powers of labor-saving, effort-saving, time-saving and resource-saving, which are based on this sense of values.
This brings people and Earth genuine richness. We believe that it is our raison d’être to pursue that richness and keep on with the pursuit.

4 kinds of power of saving we have defined for ourselves

Resource-saving
The power ofLabor-saving

The power ofEffort-saving

Produce more results in less timeon one’ s area of responsibility

by curtailing unneeded effort

The power ofTime-saving

Use time efficiently by curtailing
waste and undertaking co-creation
with customers to create a enriched time

The power ofResource-saving

Business model that involves
the curtailing of waste and conservationof limited natural resources

Specifically...

Specifically...

Specifically...

Specifically...

・Service that does not require a reservation
・Introduction of ticket vending machines
・No system for selecting preferred staff member
・QB Signal to indicate the crowd levels

・Only haircut service is available
・No shampoos
・Short time・Original haircutting techniques

・Open outlets in areas where people go
about their daily lives
・LogiTh system that allows someone to become
a stylist in 6 months

・Only haircut service is available, with no use of water・No use of hairdryer, generating no CO₂ emissions
・Continued affordability achieved by means of
curbing electricity costs

Lead to the establishment of
a secure management foundation

Achieving that will

Make our business constituteindispensable social infrastructure
and a place for people to work

Achieving that will

Achieving that will

DATA

Achieving that will

Sustainability Management
for Co-Creation

Eliminate waste and concentrate

We believe that the powers of labor-saving and effort-saving will inevitably lead to the power ofresource-saving, and that combining these with the power of time-saving, which further increases thevalue of time, will serve as the power of QB. With this in mind, we are committed to solving further
problems, continuing our business, and growing into a sustainable company.

Future Value Creation Stories（ Labor-saving＋Effort-saving ）× Time-saving ＝ Power of QB

Promote the development of
Increase the value of one’ s timesustainable hairdressing salonsthrough effective use of timethat take environmental pollution
into consideration

23

I want to doeven better things

I want to be more efficientassociates, they end up doing independent practice late into the night to hone theiraddition, the barbering and hairdressing industry, which does not have an
established evaluation system and where raises and promotions are determined by
the likes and dislikes of the owner or manager, cannot be said to provide a secure
working environment. In fact, barbershops are in decline due to a lack of successors

・Finding a hair salon isa hassle
・I don’ t want toconverse
・Making schedule
adjustments withpreferred hairstylist
and reservations
themselves are hassles

・No need for shampooing
・No need for shaving
・I want to keep
my favorite hairstyle

・I don’ t want to spend
a lot of time gettinga haircut
・I would like to havean outlet where I go
about my daily life
instead of going out
to get a haircut on
a day off・I like to use
environmentallyfriendly outlets
when I canimportant issues that need to be resolved, and our company promotes taking onchallenges for resolving them.

I want to have more leeway in the course of my work

On the incline

Measures ofgeneralcorporations

Strengthen
Utilization ofrecruitm
machines
ent of foreignand AI
nationals

Barberingandhairdressing
occupations

Only Japanese Technicalnationals arework thatlegally
only people
allowed to work
can doTechnical
No qualification
work thatsystem exists
only people
and anyone
can docan work

ImportantissuesThere are few customers andfew workers, and if this situation
continues, no future potential
can be expected

Need to increase the numberof highly skilled employees
for promising future prospects

Strengthen
recruitmentof talentUtilization ofmachinesand AI・It is time consuming
to answer phone calls
for reservations
・There are many
miscellaneous tasks
to be done,such as reservation
management and sales
promotion activities
・I want to concentrate
only on haircut services

Solve throughthe power oflabor-saving

・Unless you learn tocolor, perm, etc.,
there are few
opportunities for
success, and it isdifficult to get salary
increase

Solve throughthe power ofeffort-saving

・Long working hours
due to haircut practice
taking place after theoutlet closes for theday, resulting in poor
health and causing staff
to resign・It takes 2 to 3 years to
become a full-fledged
professional due to thelack of a mentors

Solve throughthe power oftime-saving

・Rough hands due
to contact withcolorants and perm
solutions and theincreased numberof instances whereshampoo is used asa result of those
items
・Utility costs pile up

Solve throughthe power ofresource-saving

Outlets located in areas where people commute to work, school or otherwise go about their daily business,no reservations being required and haircuts that take little time enable cost performance and time
performance. Since outlets use little or no water or electricity, they can contribute to the creation of anenvironmentally friendly society.

DATA

Since water and chemicals are not used, there is no worry about the hands of staff becoming rough,meaning that they can continue working with us into the long term with peace of mind and a healthy body.
Learning original cutting techniques at LogiTh improves skill over a short period of time without any detours.

Sustainability Management
for Co-Creation

Solving problems
for barbers andhairdressers

Put benefits and systems in place
to create environments where
staff are able to continue working
over the long term with peace ofmind.

Set up LogiTh schools in the
countries where we are
expanding to quickly makelocally-hired employees
ready to contribute, thus
expanding outlets.

Solving problems
for customers

Solving problems
for market

Solutions and options
for our company

Hire people with no previous
experience cutting hair or people
with career break, and train themat LogiThcut.

・Lower back pain due
to shampooing ina semi-crouchingposition

Future Value Creation Stories

Overseas markets

On the decline

Important issues
for barbers and hairdressers

Important issues for markets

Domestic market
Population

Discover Our Story
How QB’s Unique Character Was Created

and are, as the situation stands right now, hardly sustainable. There are many other

Table of contents

skills, meaning they end up working long hours and doing unpaid overtime. In

Important issues
for customers

When workers have to learn their skills by watching the work of their senior

QB Net Co., Ltd.
Sustainability Report

MATERIALITY

24
Generate prosperity for customers, workers, and the Earth

Become a sustainable company which can expect to see stable growth

QB Net Co., Ltd.
Sustainability Report

VALUE CREATION PROCESS

A haircut chain shop that people need

Our raison d’être

Philosophy which derives abundancefrom the elimination of unneeded elements

For details, see page 23

MATERIALITYINPUT

STRATEGY

Important issues

6 kinds of management capitalStrengths

Important issues
for customers

Human capital

Important issues
for barbers andhairdressers

Make barbers and hair
dressers realize their desire
to work more healthily andcomfortably

Important issues
for markets

Important Issues
for the barberingand hairdressing
industry

For details, see page 23

Manufacturing
capitalTrademarks: 101
Designs: 5

Improve human resource
development through LogiTh

Expertisein outlet
operation

Natural capital

Resource-saving
derived from unique
Domestic andbusiness models
international expansion
575 outlets in Japan
126 outlets overseas

Utilities asa percentage
of sales: 1.3%

Social/relationshipcapital *Financial capital
Brand awareness
77.7% male
67.4% female

25.1% of males and 9.1% offemales are existing customers●The industry’The only company
in the barbering andhairdressing industry
that is publicly tradedon the Prime Market

Further improvebusiness models(DX promotion)●Ticket machine innovations●App development●Development of haircut records

Medium-term Management Plan

Sales: 22.7 billion yen
Domestic sales: 18.6 billion yen
Overseas sales: 4.2 billion yen
Operating profit: 2.1 billion yen
Operating profit ratio: 9.3%
Number of employees: 2,700(consolidated)

Securing stylists andpromoting long-term
employment
employees: 7.6%.
●Percentage of male employees

who take childcare leave: 60.7%●Return rate of female employees

Improvethe motivationof workers●Stable human resource acquisition●Improvement of

the customer experience●Overseas expansion

Targets for
FYE June 30, 2027

OUTCOME●Rate of salary raises for regular

Improvecustomersatisfactionlevels「Rebone for 2027」

Sales: 30 billion yen
Domestic sales: 24.5 billion yen
Overseas sales: 5.5 billion yen
Operating profit: 3 billion yen
Operating profit ratio: 10%
ROIC: 9.0% or more

who go on maternity leave: 68.5%●LogiTh graduates: 650+ (cumulative)●Active recruitment of alumni,

referrals, and dormant barbers
and hairdressers

DATA

Build an environment where
everyone can continue towork with peace of mind
for a long termIntellectual
propertyIntellectual capital・Affordable prices
・No reservations required
・Short time・Ticket vending machine(prepayment) support
・Highly convenient・No system for selecting
preferred staff member
・Haircuts only
・No use of watertechniquess first dedicated training
instructor & dedicated teacher system●E-learning for review and preparation
available at any time
●9 locations in Japan and abroad(including satellite schools)●Follow-up training that continues for
one year after official assignment

Number of employees: 2,700 (201 mid-career hires)(consolidated)

Unique business model●Increase the power to develop people●Deepen our proprietary haircutting

Sustainability Management
for Co-Creation

Establish a foundation forgrowth that responds toboth domestic population
declines and overseas
population growth

LogiThcut School…650 graduates (cumulative) *as of January 2024

Actual results for
FYE June 30, 2023

Future Value Creation Stories

Making customers realize
their desire to spend time
more efficiently throughhaircuts

OUTPUT

Discover Our Story
How QB’s Unique Character Was Created

LESS IS MORE

Table of contents

IDEAL

PURPOSE●Discrimination-free employment,

including LGBTQ and gender*The results of an Internet survey conducted by Macromill,Inc. with 20,000 men and women aged 15-79 living in the
Kanto and Kansai regions*Figures are current as of June 2023 unless otherwise noted.

25

2011

The total number ofcustomers exceeded

100 million

200 million

300 million

2017

QB HOUSE was established in November 1996 as Japan’s first haircut specialty shop.
The co-creation business, in which customers shampoo their own hair,
We will continue to evolve to provide our customers with a more fulfilling
experience by ensuring comfortable visits while maintaining our focus

2012

Expansion into the U.S.

Expansion into Taiwan
LogiThcut Tokyo School opened

Great East Japan Earthquake 2011

on one thing: haircuts.

Full-scale start of visit-based barbering and hairdressing business

2018

2020

1st QB PREMIUM outlet opened

Listing on the stock market

1st FaSS outlet opened

COVID-19 Pandemic

20,000the U.S.

TaiwanHong Kong

2003

Singapore

Opened the first outlet on a train station platform

売上高

2008

15,0002005（売上高/億円）
200

Financial Crisis of 2008

Discover Our Story
How QB’s Unique Character Was Created2020-

Units: Thousands of people

Table of contents

has gained the sympathy and support of many people, including those overseas.

2022

The total number ofcustomers exceeded

QB Net Co., Ltd.
Sustainability Report

HISTORY2017

The total number ofcustomers exceeded

Expansion into Hong Kong

Japan

2002

Expansion into Singapore

100

1996
5,000

1st QB HOUSE outlet opened

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0

Sustainability Management
for Co-Creation

50

0

Future Value Creation Stories

150

10,000Fiscal year (total for FYE June 30)

Quick Beauty

Haircut fee \1,000
Value Creation Story

The birth of QB

Quick Business\1,080Organizational revitalization

Quality Business\1,200DATA

What QB stands for Quick Barber\1,350

Reform Promotion*The total number of customers includes customers in overseas outlets.

26

Message From Our Representative

The starting point of sustainable management isa cycle involving the kindness of people.

QB Net Holdings Co., Ltd.
Yasuo Kitano, President CEO

QB Net Co., Ltd.
Sustainability Report

Message From Our Representative
As luck would have it, I ended up being invited by the founder tojoin the company and did so in 2005. After the bursting of the

At the time of our establishment, the Japanese barbering and

we arrived at the idea of offering consumers the simple value of abubble economy, the number of outlets grew rapidly with ourhairdressing industry was where everyone had been doing what

10-minute personal grooming service. Initially, the fee of 1,000 yen

10-minute personal grooming business model, partly due to theeveryone else was doing when it came to business hours, holidays,

attracted a lot of attention, with some people saying that the service

tailwind of increasing frugality in the market. While that was the case,and prices. Shops only had full-service set menus which they would

was so cheap that they were worried about the quality of it.

my feel i ng wa s that the orga nization - bu i ld i ng a nd t a lent

pack with this service and that service, with no freedom for the

However, those who supported the service increased, especiallydevelopment which served to support that expansion had not kept

consumer to choose this or that. Our business model was born out

busy businessmen, who said that it was just the right service to use

pace. Each individual was pushing forward with his or her ownof the frustration of our founder, who was not a barber orwhile traveling. Thus we have brought to the market new value in theindividual power to deal with the difficulties that stood before them,

hairdresser. He was frustrated as a consumer who felt that generalform of a haircut specialty shop together with our trusted stylists,

and the accumulation of partial optimizations had manifested as abarbershops and hairdressing salons offered too many unnecessary

who are particular about their haircutting techniques.

distortion of the entirety. In particular, the overall optimization of
haircutting techniques and service quality improvement was notgoing very well. The barbering and hairdressing industry comes with

From “business model” to “people-oriented”

Strategic Group Map for QB HOUSE

My own first encounter with QB HOUSE goes back my previous

Luxury-oriented

place of employment. There happened to be a QB House near theoffice I worked, where I was in charge of sales. I had a little time tospare before my next appointment, so I got a haircut there. In just 10
minutes, I had my hair done the way I wanted it, in a way which wascompletely comparable to haircuts I’ ve had done for several
haircutting
specialty
marketthousand yen in the past which took at least an hour each time. I was
deeply impressed. For businesspeople who find it a hassle to makean appointment and take time to get a haircut, it’ s a wonderfulservice that one can easily use when they have a bit of time to spare

Single service

before their next engagement. I still remember deciding in my own
Service lineup

Full service

heart that I would continue to visit QB HOUSE from then on.

associates and that one’ s competence should be enhanced throughindependent practice. Even after paying high tuition fees to attend a
vocational school, passing a national exam, and finding a job, theroad to mastering skills and debuting as a stylist ends up being long
and arduous due to the inadequate educational system andenvironment of a company that one has joined. When I joined QB
HOUSE, we were in a similar situation, and the disparities seen interms of approaches to outlet operations, talent development, andservice quality was beginning to grow. We felt a sense of crisis in that
if this situation were to continue, consumers would soon give up on
us and our business would come to a standstill.

DATA

Low price-oriented

industry that one should learn techniques by watching their senior

Sustainability Management
for Co-Creation

Targetcustomersegment

Hairdressing
marketwhat one would call the artisan spirit. It’ s a common sense in thisFuture Value Creation Stories

services, which he felt was waste of time.

BarberingmarketDiscover Our Story
How QB’s Unique Character Was Created

As a result of our pursuit of what services consumers really need
and what values consumers seek regardless of the changing times,

Table of contents

Rapid expansion based on the business model ofmoving from “being wasteful” to “being just enough”

28

QB Net Co., Ltd.
Sustainability Report

Message From Our Representative

comfortable lifestyle, trainees will not be able to concentrate.

our stylists working in the field. At the same time, we increased

other relevant areas. Training managers which were sent abroad from

Therefore, I suggested that we also provide them with salary andopportunities to listen to the opinions and impressions of users

Japan had great difficulty explaining their own sensitivities in an

overtime pay. At first, there were objections within the company.

through ques tionnaires and other means , s tar ting from aunderstandable manner through interpreters who were not technicalSome thought that trainees would end up quitting as soon as theyreassessment of the facts. I then was committed to working

experts in the field. The local stylists also worked hard to understandlearned the techniques, or that there would be no way that a trainee

sincerely through each contradiction and gap which became clear,

the intentions of the training managers and worked together tocould grow into full-fledged professionals in such a short period ofand became convinced that we could evolve into a stronger brandfacilitate understanding of what training managers were trying totime. However, we persistently explained that this was an upfront

that is needed by society if we could connect together the kindness

convey. This led to an effort to translate the haircutting process into

investment into the future of QB HOUSE and eventually gained

which is found in the hearts of all people. In addition, I decided thatwords, the establishment of an unprecedented talent development

their understanding. In fact, in the beginning, the curriculum and thewe would shift from management approach that was businesscurriculum, and the overall optimization of the improvement of ourtraining system were not sufficient, and many trainees quit in themodel-oriented to a new approach with additional principle of being

service as stylists who took this curriculum began to gain confidence

middle of the curriculum. Each time a trainee would quit, there was apeople-oriented.

in their skills. This collection of experiences in training stylists

growing sense of unease about this approach, but we continued tooverseas who did not have national certifications became prototype

discuss the issue at length with those involved in accepting trainees

for the LogiTh school which was later launched in Japan.

and put in place measures to improve the situation. In the beginning,

2012 after we brought the training curriculum established overseas

we continued, the age range expanded to include trainees in their

The first efforts of management based on the principle of being

back to Japan. We hire LogiTh trainees as regular employees.

50s and 60s. As the trainers who were training them experienced

people-oriented were made overseas. Although QB HOUSE wasAmong them are people who have no experience cutting hair but

rapid growth of their own skills while dealing daily with trainees ofalready operating in Asia, it was all franchise-based management, so

who have acquired the national qualification after graduating fromdifferent generations and trainees with different values, the number

we did not have a good grasp of the truth of what was happening in

vocational school, as well as individuals who need to retrainof trainees who would quit the curriculum midway through thethe field, the issues being dealt with, and stylists’ concerns. Then,themselves after having been away from the barbering andprogram decreased dramatically.Experienced stylists in the field

after some contract-related troubles at our overseas outlets, we

hairdressing industry for an extended period of time due to raisingwere amazed at how much the skills of trainees had improved overopened our first directly-managed salon overseas in Singapore,children or other circumstances. We have established a curriculum

the 6-month period. Some even said that they would like to have a

directly employing the stylists working onsite. Since Asian countries

that allows these trainees to make their debuts as a stylists in as little

go at learning some techniques through the curriculum. LogiTh is

do not have technical schools or national examinations as is the caseas six months, instead of the two years or more it is said to take in thecurrently operated at 6 locations in Japan and 2 locations overseas.

in Japan,it became necessary to convert tacit knowledge into moreindustry.The environment is designed so that trainees can devote

The cumulative total of graduates exceeds 650 (as of January

detailed explicit knowledge in order to pass on Japanese haircutting

the whole day to training, allowing them to acquire skills in a short2024).

DATA

the majority of trainees were in their late 20s and early 30s, but as

Sustainability Management
for Co-Creation

Our in-house LogiTh school opened to bring back toJapan the successful experiences of those overseas

LogiTh, an in-house training institute, was established in Tokyo in

Future Value Creation Stories

period of time. On the other hand, even during training, without

to hold scissors and combs to knowledge on customer service andDiscover Our Story
How QB’s Unique Character Was Createdtechniques and sensibilities to local stylists, from knowledge on how

Table of contents

Upon my assuming the position of president in 2009, we
increased opportunities to listen to the opinions and concerns of29chance to contact with. It also serves an opportunity to inspire andOf course, learning is not the end of the story; the hairstyles that

motivate each other.
In addition, in order to meet the diverse needs of our customers

having to cut a customer’ s hair in 10 minutes, it is also necessary toand provide new career paths for stylists at the same time, we haveincorporate new haircut techniques. Hairstyles which are highly

launched the FaSS brand, which is dedicated to haircuts and stylingversatile and frequently requested at our outlets are incorporated

for both men and women, as well as QB PREMIUM, a brand that

into the LogiTh curriculum. This approach is also used to improveallows customers to make reservations via a smartphone app andthe overall skills of existing employees by allowing them to relearn

provides styling services. We are steadily increasing the number of

those styles.

outlets for those brands. Furthermore, in 2020, the 25th anniversaryof the opening of our first outlet, we rebranded ourselves with a new

Developing environments that sustain
the company’s growth ambitions,such as the deployment of new brands

To do so...
The improvement ofservices, including
haircutting techniques,is required to gaincustomers’ understanding

In addition to preparing
outlet properties,
it is essential tohire barbers
and hairdressers

To do so...

waste and focus only on what is truly important. Our strength, to use
one expression, consists of our foundational strength. We believe

abilities and maintain their desire to grow while engaging in friendly

support to our stylists to help them master the craft; this embodies

c o m p et i t i o n w i t h t h e i r p e e r s . T h e refo re, w e h o l d a b i g ,the basic stance for QB Group’ s people-oriented management,

company-wide haircut contest once a year to provide stylists withwhich is builds on techniques.In a service industry where people arean opportunity to demonstrate their technical skills each other andeverything, the growth of each and every employee is directly linked

to experience the tremendous potential of fellow colleagues

to the growth of the company. We will never forget this thought andworking at QB HOUSE.This is an event where stylists who have won

will continue to do our best to support the growth of our stylists as

the regional qualifying competitions, including those from overseas,

professionals and as people.

LogiThcut

・Great benefits packages
・Salary increases
・Fair evaluation system
・Engagement measures
・Good interpersonal
relationships

All of these are already in place

Go through PDCA cycles

DATA

up for their declines in physical strength to some extent. Provide

Sustainability Management
for Co-Creation

be thoroughly built up, people can grow regardless of age and makecreate an environment in which they can easily demonstrate their

There is a needto develop
a comfortable
work environment=

employees in improving their abilities, but it is equally important to

There is a needto create
an environmentthat facilitates learning=that if the groundwork consisting of this foundational strength can

categories of haircutting techniques.This is an opportunity to see

the number
or Increaseof customers

Raise haircut fees

and their lives will be richer if they eliminate unnecessary things andFor people-oriented management, it is important to support

gather for a national competition, where they compete in three

To increase sales at QB...

Future Value Creation Stories

raison d’ être : LESS IS MORE. This expresses the idea that people

×Number of customers = Sales

Spending per customer

Discover Our Story
How QB’s Unique Character Was Createdcustomers seek change with the times. With the time constraint of

Sustainable QB HOUSE business model

Table of contents

the high-level skills of colleagues whom we normally have much

QB Net Co., Ltd.
Sustainability Report

Message From Our Representative30

QB Net Co., Ltd.
Sustainability Report

Message From Our Representative

Table of contents

I think that the starting point of sustainable management is atheir 80s. Everyone works together and cooperates with each other,which I believe allows them to experience a refinement in terms ofthe diversity of their values and in terms of social sensitivity. It also
allows them to grow as people.

We contribute to the development of a more affluent
and comfortable society through kindness whichtakes the form of labor-saving, effort-saving,time-saving and resource-saving
Energy prices are currently rising on a global scale, but the QB

same organization or community should become connected withage of one hundred. As such, we will continue to focus on creatingGroup, which uses very little water and electricity, has a group-wide

one another through the form of compassion known as kindness,an environment in which people can become masters of their craft

utility bill of 300 million yen in contrast with its 22.7 billion yen sales,and sincerely face the question of what is better for the organization

and remain active members of the team over the long term. Every

only 1.3% of sales. This shows how kind we are to the Earth. In

or community. I believe that career satisfaction and one’ s purpose inmonth, people join the QB Group with diverse aspirations: some

addition, not using colorants and perm solutions and not washinglife are born from such connections. There is no great difference inwish to fulfill a dream they have had since childhood, some wish tohair with shampoo leads to kindness in the sense that we are

human ability, and we must recognize our individual strengths andreturn to the industry for a second life after raising their children,

reducing the physical burden placed on stylists, such as skinmutually leverage them. In doing so, we need to continue creatingsome wish to remain in service to society until the age of 70, and so

irritation and back pain. This kindness gives us the leeway to focus

opportunities for growth by deepening our self-understanding in

on. Moreover, some stylists at the QB Group were still active evensolely on the haircut services that our customers expect. We will

the midst of opportunities to take on challenges. I also believe that it

after having reached the age of 80. How long a person continues tocontinue to further improve the quality of our actions based on theis the role and responsibility of the president to circulate thework depends largely on his or her own values in terms of how theyfour values of labor-saving, effort-saving, time-saving andkindness that has grown within such people forward to society andwant to live their lives. We would like to continue to provide a placeresource-saving, and contribute to the development of a moreto the Earth through the activities of the company.

where people who can work hard with a smile and with a strong

affluent and comfortable society, thereby achieving sustainable

Furthermore, becoming a stylist and working toward becoming

desire to live independently for the res t of their lives can

growth and increasing our corporate value over the medium to longan outlet manager is a great challenge. If you can support someone

demonstrate their abilities. However, this also depends on the ability

term.

grow, you can grow a lot yourself. After that, one can become aof those gathered within the QB Group when it comes to circulating

leader of an area or block, train new employees as a trainer, test

feelings of kindness involving deep feelings of empathy towards thetheir own abilities overseas, or work on visit-based barbering andwishes of their fellow colleagues.
DATA

hairdressing. As team members change, the way that people

Sustainability Management
for Co-Creation

We are entering an era where it is said that people will be living to the

Future Value Creation Stories

cycle of human kindness, and that those who work and live in the

Discover Our Story
How QB’s Unique Character Was Created

Promoting sustainable management as we transform
into an organization where people can play an activerole over the long terminteract with others changes as well. The QB Group has a diverse
group of people working for it, ranging from those in their 20s to

31

QB Net Co., Ltd.
Sustainability Report

Enhancement Measures

Possibilities of the visit-based barbering and hairdressing business: Toward the future

However, getting up and sitting down on a chair when getting your hair cut, moving by means of one’ s own feet right then and

The raison d’être of barbers and hairdressers
which is reaffirmed through real-life experience
One day, I received a phone call from my father, a nursing home

performed while the customer is lying in bed and essentially maintaining the same posture, which are performed in cases whereresident. He told me that he couldn’ t walk by himself anymore, so

someone has difficulty maintaining the same posture, require skill in terms of cutting hair quickly while maintaining a position that
does not place a burden on the body. QB’ s visit-based barbering and hairdressing services make use of the short-time cutting
techniques we have been pursuing. Our experienced staff conduct in-house training for bed-based haircuts, creating anenvironment in which facility residents and residents’ families can feel comfortable entrusting us with the provision of services.
Japan is an aging society. Although healthy life expectancy is increasing along with the rise in average life expectancy, the gap

he needed me to take him to a barbershop. Although the facility
had planned fun events and opportunities for socializing, my father,
who loved to go out with his friends to the mountains, rivers, andthe sea, had a hard time getting along in the community, and goingto a barbershop near the facility to get his hair cut was the only
thing he looked forward to doing. The week after I received the call,
I loaded a wheelchair with an oxygen cylinder and headed to theservices is expected to increase in the future. We believe that there will be even more opportunities in the future to put thebarbershop, which was very crowded because it was Sunday. I

techniques we have developed to good use.

waited for about an hour. Just as a young barber was about to take

Future market based on average life expectancy
and healthy life expectancy
（Age）
90

84.93

Gap of 12.35 years

Life
expectancy(male)

80.98

80 78.07

Gap of 8.84 years

75

Life
expectancy(female)

72.65

74.79

Healthy life
expectancy(male)
Healthy life
expectancy(male)

69.40
2001

2
3

All staff members receive training at the head office
to gain knowledge about nursing care and related skills.
We are also flexible for providing a picking up anddropping off service using wheelchairs,
which is a request we often receive from facilities.
In addition to national licenses for barbers and hairdressers,
on-site managers have basic caregiver certifications andcan respond to unforeseen circumstances
Bed-based haircuts are available for bedridden residents,
which allows a customer to receive a haircut while lying in bed

2007

2010

2013

2016

2019 （Year）

Source: Ministry of Health, Labour and Welfare website(the experienced-looking barber) would take care of us. He told us
to wait just a little longer. My father did not have a lot of hair on his
head, but the experienced barber cut my father’ s hair with greatcare. For the first time in a really long time, my father broke into asmile. I am sure that the experienced barber thought to himself that
this might be the last time this customer visits and thus took morecare than usual in cutting my father’ s hair. At that moment I felt very
deeply that the work of barbers and hairdressers was truly amazing.
That work can brighten the inner life of someone who is debilitated,even if only for a moment. It was an event that convinced me
firsthand that the work of a barber or hairdresser is an eternal job.

Providing a safe and secure environment
for facility residents and residents’ families
2004

someone’ s hair in front of me said to the younger barber that he

DATA

72.14

70

60

1

care of us, an experienced-looking barber who was cutting

Sustainability Management
for Co-Creation

85

87.14

Three characteristics of QB’s visit-based
barbering and hairdressing services

Future Value Creation Stories

between the two has remained almost unchanged, and the number of people who need visit-based barbering and hairdressing

Discover Our Story
How QB’s Unique Character Was Createdthere, and sitting in the same position for a certain period of time can be very physically demanding. In addition, haircuts

Table of contents

QB’ s visit-based barbering and hairdressing business began in 2012. With general visit-based barbering and hairdressing
services provided at homes and facilities, customers are often asked to get up and sit down on their own during the haircut.

Yasuo Kitano, President CEO
32

Sus tainabi l i ty Man agem e n t f or Co- Cr e a t i on

Is it true that QB is not only friendly to people,
but also to our Earth?

The axis of management has shifted from being focused on business models to being focused on people.
As well as toward co-creation with the rest of society.

The Big P ic t ur e o f Sus t a ina bilit ywhich was born out of the founder’ ssolution to a problem, also constituted
the birth of services friendly for both
dedicated only to haircuts, somethingwhich customers cannot do bythemselves, doesn’ t just come with thebenefit s of bringing comfort tocustomers by allowing them to makethe most of their free time and bringing
to workers freedom from having theirPeople ▶For details, see page 35
We respect not only each and every employee of the QB Group,
but also all of our stakeholders,and are committed to building a society in which everyone can find peaceof mind and a sense of fulfillment, thereby leading to comfortable lives.

Environment ▶For details, see page 39
In order to go about passing on this bountiful Earth we live on to future generations,
we are working together with other members of society to promote activities
that serve to foster the value of barbering and hairdressing which leadto resource-saving that is centered on water conservation.

Society ▶For details, see page 40

chemicals; it also helps preserve theThrough our network cultivated through the opening and operationof outlets in Japan and overseas, we will contribute to the developmentof local communities by revitalizing them and facilitating the circulationof their economies by having our business serve as social infrastructure.

global environment since the service
uses little water, and brings us a huger i c h n e s s of re a l izi n g a s u s t a i n a b l esociety. Since our founding, we havebeen sincerely committed to solving

In order to continue to be a company that is trusted by society,
we are committed to compliance with laws, regulations, and other requirements,
and to implementing ethical and highly transparent management practices.

focus on people. We will continue topursue true abundance by increasing
the number of people who share andare involved in the co-creation of our

Bas ic kno wle dge o f t he ba r be r ing a nd ha ir dr e s s ing indus t r yfriendly services.

The Japanese barbering and hairdressing industry offers more various choices to consumers, going from the previously predominant option of general salons to the

Sustainability Management
for Co-Creation

environmental and social issues with aGovernance ▶For details, see page 41

Future Value Creation Stories

hands become rough due to the use of

Discover Our Story
How QB’s Unique Character Was Createdpeople and the environment. A service

Table of contents

A s e r v i ce d e d i c ate d to h a i rc u t s ,QB Net Co., Ltd.
Sustainability Report

B a s i c S u s t a i n a bi lit y P olic yemergence of service-specific specialty businesses, such as haircut specialty shops and hair coloring specialty shops. On the other hand, an increasing number ofprofessionals. In addition, approximately 60% of nationally certified barbers and hairdressers have left the industry for some reasons. And under the current Barbers Act andDATA

privately-run outlets has been closing down, particularly in rural areas where the declining birthrate and aging population make it difficult to secure the next generation of
Cosmetologists Act, foreign stylists with haircutting experience must graduate from a Japanese barbering and hairdressing school (minimum 2 years) and pass a national
certification exam in Japanese before they can obtain a work visa and move to Japan to work at an outlet. Against this backdrop, the barbering and hairdressing industry iscurrently experiencing a chronic shortage of talent.

34

QB Net Co., Ltd.
Sustainability Report

PeopleTo ensure that people are healthy and prosperous in mind and body

Established the industry’s one
and only in-house haircut school

Strengths of outlet deployment
We rank first in the number of outlets in Japan among haircut
specialty shops, with 534 stores. This is twice the market shareuses no chemicals and provides no shampooing service, thus

school, the Tokyo school (with a satellite school in Yokohama), theof the second largest brand, which has 261 outlets. In contrast to

having a benefit of eliminating the use of excess water andNagoya school, the Osaka school, the Hiroshima school, the Fukuoka

other com pa nies i n the s a me i nd u s tr y, which have ma ny

electricity. For customers, it is beneficial as they can spend theirschool, the Hong Kong school, and the Taiwan school. Employees

f r a n c h i s e d o u t l et s , Q B G ro u p o p e r ate s m a i n l y t h ro u g hdays without damaging their hair. For workers, it relieves them

have felt a sense of appeal in relation to the peace of mind withdirectly-managed salons in order to facilitate the thoroughfrom worrying about rough hands caused by chemicals and fromworking eight hours in a day in a concentrated environment withtraining of talent and ensure uniformity of the services weback pain caused by shampooing and performing other tasks intrainers nearby, as well as in terms of the sense of satisfaction thatprovide. In addition to new graduates with no haircut tinga semi-crouching position. As a result, it creates a workplacecomes with being able to be taught haircut techniques in a logicalexperience at all, LogiTh also suppor t s profes sional

where people can work into the long term with peace of mind.

manner. As such, the number of employees who joined our company

independence for qualified barbers and hairdressers who have

We have al so developed a unique haircut technique that

via LogiTh in the fiscal year ended June 2023 was 73 in Japan (146%been out of the industry due to childbirth or childcare for aincorporates trimmer techniques which minimizes the burden on

over the previous year) and 95 overseas (271% over the previous

while, who are called “dormant barbers and hairdressers,” andthe hands and arms, such as tendonitis, to the greatest extentyear), with 39.8% of the stylists working for us in Japan being LogiThpeople who join us after having worked in other industries.

possible, and we actively pass this expertise on, making it a

graduates. At the end of January 2024, the cumulative number ofAnother advantage of operating many directly-managed salonsshared asset for all of our stylists.

graduates to date exceeded 650. This is the only in-house cuttingis that we are able to differentiate ourselves from competitors.

school in the industry, where we can continuously accumulate
expertise in teaching techniques by actively hiring people with noFuture Value Creation Stories

LogiTh, our in-house cutting school that started in Tok yo in
September 2012, has seen expansion. We now have the Sendai

Discover Our Story
How QB’s Unique Character Was Created

The business model of offering services that are dedicated tohaircuts, which has remained unchanged since our inception,

Table of contents

Freedom from health risks

haircutting experience.

39.8％

Approximately 40%
of new hires join
the company
through LogiTh

Japan

Overseas

Direct management

534

126

Franchise

36

0

DATA

＝
Joined the company
with no haircutting
experience

QB Group outlet types

Sustainability Management
for Co-Creation

Percentage of new hires for FYE June 30, 2023

(FYE June 2023)

35

QB Net Co., Ltd.
Sustainability Report

PeopleCareer support
for self-driven success

Creating a comfortable work environment
The QB Group does not have a system where customers canselect preferred staf f member. This enables staf f to takemaintain good interpersonal relationships, the QB Group has amanager training, area manager training, training for trainers,

Saturdays and Sundays off, which is rare in the barbering andcompany culture characterized by mutual recognition. For

and so on. Thus, all employees are fairly and equally given the

hairdressing industry. Also staff can choose the number of days

example, there is no age-based discrimination. There are people

right to take on challenges. In addition, we have a system inoff per month according to their age and physical condition.

from 20 years to nearly 80 years of age who are ac tively

place where raises and promotions are achieved by passing

Including these benefit s, we of fer a comfortable working

working. The younger employees learn skills from the veterans,

examinations held on the final date of a training program. In oure nv i ro n m e nt . A s fo r m ate rn it y o r c h i l d c a re l eave, s o m e

and the veterans realize the beginner’ s spirit and gain sources ofculture, hard workers are rewarded, and raises and promotions

employees return to work after taking these leaves. However,vitality from the younger employees. Thus, we have established

are achieved in a self-directed manner. By building such career

the childcare leave utilization rate for men and women is 60.7%

a grou p where ever yone involved a re treated to win -winpaths, we have created an environment in which everyone canand 68.5% respectively (both for FYE June 30, 2023). We will

relationships.

perform their duties with a high level of awareness, regardless ofcontinue to improve this situation by increasing the number of

their position.

staff. In addition, with regard to evaluation systems, we areseriously working on a fair and equal evaluation system forst ylist s by means such as standardizing the viewpoint s oftechnicians and managers and setting measurable evaluation
points.

60ｓ

7.5%

24.6%

0.9%

Percentage of male employees who take childcare leave

8.3%

FYE June 2023

60.71％

27.1%

30ｓ

FYE June 2022

30.00％40ｓ

FYE June 2021

20.83％

20ｓ

31.6%

DATA

50ｓ

70ｓ

Sustainability Management
for Co-Creation

Stylist age ratio(FYE June 2023)

Future Value Creation Stories

For existing stylists, we provide hairstyle-based technicaltraining as well as training specific to job functions, such as

Discover Our Story
How QB’s Unique Character Was CreatedInterpersonal relationships are one of the top three reasons
why barbers and hairdressers end up leaving their jobs. To

Table of contents

A company culture of mutual recognition

36

QB Net Co., Ltd.
Sustainability Report

PeopleService improvement and improvementof working conditions

Promoting employment in overseas
countries where we operate
Most overseas QB outlets are in countries that do not have anational certification system like in Japan. In such countries,

who wish to work , while encouraging them to find joy andhave worked to improve our working environments while shifting

Japanese trainers are stationed to provide an environment

satisfaction in their work. The partnership involves initiatives

the employment system from use of outsourcing to directwhere employees can thoroughly learn about techniques of thewherein people with di s abilities who are employed by u s

employment. As a result, we were able to reduce our turnoversame quality as in Japan and fully support the acquisition ofhydroponically grow vegetables, such as mesclun greens andrate from 30% in FYE June 30, 2010 to 6.6% in FYE June 30,

skills by local talent. In Asian countries, we particularly want tomini tomatoes, without using agricultural chemicals.

2020. Although the turnover rate temporarily increased at theco nt ri b u te to t h e i m p rove m e nt of t h e s o c i a l s t at u s a n d

Fu r t h e r m o re, h a r ve s te d ve g et a b l e s a re w h o l e s a l e d a s

end of FYE June 30, 2023 due to a forgoing of a base wage

independence of young people and women.

pesticide-free vegetables to restaurants near the farm. The

increase and provision of year-end benefits as a result of thevegetables are appreciated for their quality, cleanliness, anddecrease in customers experienced during the pandemic, thebeauty. We would like to continue to employ those who wish toturnover rate decreased again following an average 9.8%

work and provide them with a place where they can lead stable,

improvement in salary and benefits during the period fromindependent, vibrant and shining lives.

August to October 2023. We will continue to improve working

Future Value Creation Stories

Believing that reducing employee turnover is the mostimportant factor in stably improving the quality of services, weconditions, aiming to improve our turnover rate to the 7% level
during FYE June 30, 2024.

（%）
2.5

1.88％

2.0
1.5
1.0

2.33％

Change in turnover rate of regular employees in Japan(yearly results)
（%）
30
20

6.6％

10

0.5
0.0

0
As of June 1, 2022

As of June 1, 2023

As of March 1, 2024

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
(FYE June)

Number of
locally hired
employees

Number ofJapanese
employees
includingrepresentatives

Local
employmentrate1

99.2 ％

2212

99.1 ％

Taiwan156

298.7 ％

the U.S.

35

2Singapore

127

Hong Kong

DATA

0.78％

10.6％

Percentage of local talent employed in overseas countries
where we operate

Sustainability Management
for Co-Creation

Rate of statutory employment for persons with disabilities

Discover Our Story
How QB’s Unique Character Was CreatedSince June 2022, the QB Group has partnered with a farm
which supports the independence of people with disabilities

Table of contents

Initiatives in terms of employmentof persons with disabilities

94.3 ％(FYE June 2023)

37

QB Net Co., Ltd.
Sustainability Report

People[mobilization of human resources (1)]『Strengthen the recruitment of dormant
barbers and hairdressers

Stylists who meet legal standards[mobilization of human resources (2)]Japan is one of only a few countries in the world that require
national certification to work in the barbering and hairdressing

addition to general applications, QB Group has a dedicatedindustries, would give up applying for jobs in the barbering andindustry. Only those who have graduated from a high school

contact point on its recruiting page to lower the hurdles for

hairdressing industry because of their thinking that it will takewith a specialized course in barbering and hairdressing or from aapplicants, such as those with no haircutting experience, former

too much time to regain the feeling of holding scissors or that

two-year vocational school for barbering and hairdressing after

QB Group employees (alumni hiring), and those who apply

there is no chance at getting hired as someone who cannot

graduating from high school, and who have passed the national

through employee referrals (referral hiring). The website won theperform a haircut. We see LogiTh as an advantage in recruiting

examination, are allowed to work in a barbering and hairdressing

Grand Prix at the Owned Media Recruiting Award 2021 hosted

as it caters to such people. On the other hand, there are thoseestablishment. In addition, the QB Group does not employ any

by IndeedJapan. In addition, we are taking ever y possible

who readily apply because they believe the hurdles to hiring arechild labor and hire talent only after confirming the original

measure to secure talent, such as by providing clas ses at

low due to service fees. The overall average hiring rate, including

certificate of qualification of a barber or hairdresser with theirbarbering and hairdres sing schools and making contac t s

for part-time employees, is about 30%. People are everything in

date of bir th . Fur thermore, we do not have a ma ndator ythrough various social networking services.

the barbering and hairdressing industry. We hire people with aretirement age because we would like to see our employees tostrong focus on their character and consider people with abe active for as long as they have the physical strength to do so.

strong sense of humanity who also have strong technical and

The target number of employees to be hired for FYE June 30,

customer service skills to be excellent human resources.

2024 is 222, a 121% increase over the previous fiscal year.

alumniApplied Hired

Application and hiring situationreferralHiringrate

Regularemployees

LogiThcut

Part-time
employees

Total

Hiringrate

Applied

335

166

132

633

Hired

110

73

25

208

Hiringrate

32.8%

44.0 %

18.9 %

32.9 %

14

58.3 %

25

19

76.0 %FYE June 2022

24

833.3 %

38

33

86.8 %FYE June 2021

19526.3 %

35

22

62.9 %(FYE June 2023)

Graduate from a high schoolwith a barbering andhairdressing course

Graduate from a barberingand hairdressing school
after high school

Pass the national examinationand obtain the national certification

DATA

Applied Hired24

FYE June 2023

The paths to becoming a general barber or hairdresser

Sustainability Management
for Co-Creation

Changes in alumni and referral hiring

Future Value Creation Stories

People called dormant barbers and hairdressers who havefinished raising their children or who have moved to other

Discover Our Story
How QB’s Unique Character Was Created

For the barbering and hairdressing industry, which cannot rely
on machines for haircuts, securing talent is a top priority. In

Table of contents

Increase the number of job application channels
to lower the hurdles

Professional work

38

No wasting of limited resources

Increasing the number of RE100 actions

5-minute shampoo at a typical hairdressing salon requires the

23 street-facing outlets in Japan where the electricity provider

use of about 60 liters of water. In addition, if a professional haircan be selected freely, QB Group uses electricity produced

dryer is used for 10 minutes each time, it would generate 40.56

through the “RE100 Plan (100% renewable energy plan)” of

kg of CO2 per year. Our company’ s business model, which has

U PDATER I nc . (M i n na D en r yo k u). The a n n ua l elec tricit ybrought innovation to the industry, allows us to curb water andconsumption of the 23 outlets under contract amounts to about

electricity use as much as possible, with utilities accounting for

320,000 kWh, which is equivalent to the CO2 absorption of

only 1.3% of our 22.7 billion yen sales for FYE June 30, 2023. It

about 11,600 cedar trees. In addition, outlets in AEON Groupcan be said that our service has been environmentally friendly

facilities, which account for half of our outlet locations, aresince our inception. We will continue to work on in accordance

gradually switching to electricity of “100% Locally Producedwith the TCFD framework.

Renewable Energy for Local Consumption,” which the AEON

(bathtub in a one-person apartment)

barbering and hairdressing schools. They are used for practice

to improve techniques and are utilized eﬀectively by repeatedly
reusing them until they get completely shaven. In addition, we
have switched to a practice of cleaning and disinfecting combs,
which we had previously been giving to our customers, andreusing them starting in May 2021, thereby reducing annual CO₂*RE100 Plan: A plan in which electricity sourced fromrenewable energy sources is combined with theenvironmental value of non-fossil certificates withrenewable energy designations to provide electricity that is
100% renewable energy.

1.3 billion liters

DATA*Estimated at 2.5 L per day and 912.5 L per year. Prepared by QB Net Co.,Ltd. basedon “Let’s Drink Water for Good Health” (Ministry of Health, Labour and Welfare).

provided free of charge after they have been used in classes atemissions by 690 tons*.

Approximate annual
required water
intake for 1.42 million people*

The cooperation of all our customers resultsin the saving of more than 1.3 billion liters of water per year.

wigs (human-head mannequins) used for haircut practice are*The average number of combs used for the three fiscal
years from FYE June 30, 2018 to FYE June 30, 2020, wascalculated based on the Ministry of the Environment’s“Annual Report on the Environment, the Sound
Material-Cycle Society and Biodiversity in Japan 2011” (CO2emissions generated during the production and incinerationof polypropylene)

Water savings(annual)Approx.

surface veneers. Thus we seek to reuse the furniture. In addition,

Sustainability Management
for Co-Creation

Equivalent toapproximately 7.2 baths

furniture found at closed outlets by polishing or replacing

Group has been promoting.

720 liters of water is saved per year justby getting a haircut at QB HOUSE once a month

720 liters

For our self- developed unit furniture, we simplif y the

structures of furniture as much as possible and remake the unit

Future Value Creation Stories

For the electricity required for outlet operations, we choose
environmentally-friendly electricity with zero CO2 emissions. At

Discover Our Story
How QB’s Unique Character Was Created

Water is a precious resource. It is said that by 2050, 40% of
the world’ s population will face serious water shortages. A

Thoroughly effective useof resources

Table of contents

Our business model
itself is Earth-friendly

Water savings(per person/year)

QB Net Co., Ltd.
Sustainability Report

Environment

Namie Power Station
Biomass Power Station Daito,(solar power generation)
Tatsuma Station(biomass power generation)
みんな電力「顔の見える発電所」

39

QB Net Co., Ltd.
Sustainability ReportSociety

Enriching society with our techniques

Classes for future barbers
and hairdressers

One of the options for the future
through a hands-on haircut experience

A work experience program is designed mainly for junior high

A volunteer haircut program, which began with us inviting

school s tudent s as an oppor tunit y to teach them thechildren from children’ s homes to an outlet in Tokyo, provides an

cut hair. With these activities serving as the catalyst, the content

importance of being involved in the barbering and hairdressing

opportunity not only for children to receive haircuts but also toand qualit y of our ef for t s have been highly evaluated bybusines s, the value of time, and the impor tance of being

get hands-on experience with the appeal of haircutting throughorganizations such as local health, labor and welfare ministries.

grateful and being appreciated. It also serves to foster social

work experience (trimmer experience), and to encourage them

Since 2015, we have also been the official stylist sponsor of Hair

independence by learning about the richness of emotion or

to consider, as one of their career options, becoming a barber orfor Hope*1, one of the largest charity events in Japan to support

spirit that comes from it.

a hairdresser.

children with cancer. For about four months starting in April each

Events held in the past

year, about five QB stylists cut the hair of 20 to 300 participants
at more than a dozen locations in Singapore, including schools,

Numberof
eventsheld

元画像ございますか?

hospitals, and community centers. At the main event taking
around 1,717 participants*2 over two days with trimmers. The
more than 4 million Singapore dollars (about 440 million▶https://sites.google.com/view/qbsyokuba

2018

2

14

10

2019

8

46

41

2020

2

10

7

*The event was suspended in the spring of 2020 due to the pandemic,
but resumed in the summer of 2023.

Japanese yen) raised during this period are used to pay for thetreatment of children fighting cancer and to operate educational
facilities for children who are unable to attend school due to thedisease. This leads to the promotion of understanding ofchildren who are devoting themselves to their treatment.

As part of our efforts to engage with local communities, weBringing the joy and depth of haircutting
to future barbers and hairdressers

also try to familiarize people with the barbering and hairdressing

We regularly provide haircut specialt ybu s i nes s th roug h event s s uch a s the “ H a nd s- on H a i rcut

shop’ s trimmer training sessions as on-site

Experience” and lectures on “Haircuts for Children in the Home.”c l a s s e s to b a r b e r i n g a n d h a i rd re s s i n gschools . Many of the s tudent s at the

One of the largest charity eventsin Singapole

a trimmer before they graduated. We havereceived great feedback, with some saying

DATA▶https://www.youtube.com/watch?v=nCkVCdTmagA

vocational schools had never even touched

Sustainability Management
for Co-Creation

childhood cancer and to fostering of the hope and courage ofBringing haircut specialty shops closer
to the community

Future Value Creation Stories

place at the end of July, about 40 QB stylists cut the hair of

NumberNumberofofstylists
participants participating

Discover Our Story
How QB’s Unique Character Was Created

A rou nd 20 0 6 , s eve ra l Q B s t y l i s t s i n S i ng a po re beg a n
volunteering to go to senior citizen facilities on their days off toTable of contents

Raising awareness of childhood cancer
through haircutting techniquesthat it was refreshing and fun, some saying*1 Sponsored by Children’s Cancer Foundation*2 Hair for Hope 2023 resultsthat cutting with trimmers was fun, and soon.

40

QB Net Co., Ltd.
Sustainability Report

Governance

Always fair and impartial

The Board of Directors meets once a month in principle to

Two workplace environment hotlines or response manuals will

make decisions on important business matters and to supervise

be in place for direct consultation, one internal and one external,

warm support. In the post-bubble period, also known as the “lostthe directors’ execution of their duties, with extraordinary

to allow anyone at any time to consult on the following matters

20 years” or the “lost 30 years,” the working environment andmeetings also being held as necessary. The state of attendance

that are difficult to discuss or resolve within the workplace. In

the global environment have changed dramatically. The wayof individual Directors during FYE June 30, 2023 was as follows.

addition, we also make it k nown on our por tal site, which
employees can access at any time, as well as in the offices andsociet y thinks and perceives it self has been transformed,
resulting in the development and revision of numerous laws. As
we have done in the past, we will continue to respond swiftly to

PositionNamec h a n g e s i n s o c i et y a n d l a w s , a n d p ro m ote c o m p l i a n c emanagement that is always in step with the times.

Chairperson
andPresident CEO

Yasuo Kitano

15/15（100％）

Executive
Managing
Director

Yusuke Iriyama

15/15（100％）

Director

Makoto Miyazaki

15/15（100％）

Our company is committed to sound management that can
respond quickly to changes in society. For more information, see(http://www.qbnet.jp/ir/management/governance/).

S e x u a l h a r a s s m e n t / Po w e r h a r a s s m e n t / C u s to m e r
harassment / Non-compliance / Emergency responses andother such responses in relation to incidents, accidents, crimes,
and other such occurrences.

Responses to natural disasters
In the event of natural disasters such as torrential downpours,
typhoons, heavy snowfall, and earthquakes, which are believed
to be caused by global warming, advance measures and quick,

Director

Osamu Matsumoto

15/15（100％）

flexible decision-making are essential. We are working to ensuret h e s afet y of o u r e m p l oye e s a n d c u s to m e r s by p o s t i n g

Outside Director(Audit and Supervisory
Committee Member)

Tatsushi Omiya

15/15（100％）

information on our reporting, communication, and consultation
flow, the sharing of emergency contact information in advance,and how to deal with work shifts in the event of a disaster in theOutside Director

Disclosure Policy(Audit and Supervisory
Committee Member)

Outside Director

appropriate disclosure in accordance with laws and regulations(Audit and Supervisory
Committee Member)

15/15（100％）

employees and customers are fully aware of these procedures.
Toshikazu Saito

15/15（100％）

Intellectual property management

and timely disclosure rules.
(http://www.qbnet.jp/ir/policy/index.php)

Outside Director(Audit and Supervisory
Committee Member)of f i ce s a n d b a c k ro o m s of o u r o u t l et s to e n s u re t h at a l l

Keiko Toda

15/15

（100％）DATA

We have es tabli shed a Di sclosure Polic y to ensure

Tadao Kikuchi

Sustainability Management
for Co-Creation

the Corporate Governance page.

backrooms of our outlets.

Future Value Creation Stories

Corporate GovernanceAttendance at Boardof Directors meetings(attendance rate)

Discover Our Story
How QB’s Unique Character Was Created

S i n ce t h e o p e n i n g of o u r f i r s t o u t l et i n 1 9 9 6 , we h ave
successfully celebrated a quarter of a century thanks to your

Table of contents

Establishment of a workplace hotline

Board of Directors

A s part of our risk management, we have 101 registeredtrademarks and 5 registered designs in Japan and abroad.

41

QB Net Co., Ltd.
Sustainability ReportAwards and recognition

・1998 New Business Best Performance Award

・New Business Conference Chairman’ s Award

We received three awards in an awards program called the
New Business Awards in recognition of our creation of a new
genre of haircut specialty shops offering 10-minute haircuts
for 1,000 yen and our launch of a franchise chain.

The award was given in recognition of the company's
efforts to improve the working environment and enhancecustomer service, such as eliminating the custom of notproviding technical guidance for junior staff, strengthening
training, and introducing an attendance management systemusing vein authentication to improve poor working conditions
that included unpaid overtime work.

February 2019Awarded the KAIKA Grand Prizeat the KAIKA Awards 2018
This award aims to increase attractive management andorganizations and revitalize the industrial world. QB House
received the top award for our management that continuallytries to connect with society and create value, and for ourorganizational and human resource development.
▶https://www.youtube.com/watch?v=dczM2b6iv4Y▶https://hr-souken.jp/challenge̲award2016/

June 2020

October 2006

Like our business model, the QB Shell, a capsule-typeo u t l e t f o r o v e r s e a s m a r ke t s t h a t p u r s u e s m a x i m u mcost-effectiveness to reduce the cost s of opening andclosing outlets and time for construction, was awarded theGood Design Award.
▶https://www.g-mark.org/gallery/winners/9d53eaa5-803d-11ed-862b-0242ac130002

Ranked first in the life-related services sector of2015 JCSI (Japanese Customer Satisfaction Index)▶https://www.service-js.jp/modules/contents/?ACTION=content&content̲id=783

Named after the American business academic Michael
Por ter, the award is presented to companies that haveachieved high profitability through innovation. This time it
wa s g iven i n recog nition of the fac t that hi s theor y ofcompetitive strategy is the ver y business model of QB
House.
▶https://www.porterprize.org/pastwinner/2017/12/05170653.html

We received the Excellent Welfare Corporation CategoryAward (Understanding the Current Situation) in recognitionof our particularly high score in the field of “Understanding
the Current System” based on the following five criteria:
response to management issues, understanding of thecurrent system, enhancement of the system, operation
status, and penetration of our management philosophy.
▶https://fukurikosei-hyosyo.com/award-companies/

December 2021
June 2018
Received the JETRO Chairman’ s Awardat the 2nd Nihon Service Award
The award came with high praise from JETRO (Japan
External Trade Organization), because although there are
numerous examples of Japanese manufacturers and foodand beverage companies thriving overseas, hardly any
Japanese service companies have successfully opened
multiple stores overseas before.
▶https://service-award.jp/result̲case02/jetro.html#ttllink

Received the Grand Prix
at the Owned Media Recruiting AWARD 2021
As the shortage of human resources becomes an issue,
com panies pay more at tention to the im por tance andeffectiveness of communicating their message throughrecruitment websites and various SNS. We received the top
G ra nd Pri x awa rd s po n s o red by I nd eed . fo r bei ng thecompany implementing the most advanced initiatives.

DATA

In the results of the Service Productivity & Innovation for
Growth’ s third JCSI (Japanese Customer Satisfaction Index)
survey conducted in 2015, we ranked first in three of the six
c r i te r i a i n t h e l i fe re l a te d s e r v i c e s s e c to r : c u s to m e r
satisfaction, perceived value, and loyalty.

Received the 17th Porter Prize in 2017

Received the Excellent Welfare Corporation
Category Award at Hataraku Yell 2020

Sustainability Management
for Co-Creation

September 2015

October 2017

Future Value Creation Stories

QB Shell, a capsule-type outlet for overseas
markets, won the 2006 Good Design Award

Discover Our Story
How QB’s Unique Character Was Created・Minister of International Trade and Industry Award

April 2016
Received the Encouragement Awardat the 5th Japan HR Challenge Grand Prize

Table of contents

February 1999
Received:▶https://jp.indeed.com/press/releases/20211201

42

QB Net Co., Ltd.
Sustainability Report

Director skills matrix

Name

Brief profile

Yusuke Iriyama

Joined QB Net Co.,Ltd. in 2003.
Managing Director of the Company since 2016.

Kabeya Masayoshi

Joined QB Net Co.,Ltd. in 2009.
Director and General Manager of Administration
Department of the Company since 2023.

Osamu Matsumoto

Joined QB Net Co.,Ltd. in 2004.
Director of the Company since 2016.

Tadao Kikuchi

Chairman of Royal Holdings, Co. Ltd.
Professor, Graduate School of Management,
Kyoto University

Keiko Toda

Full-time Professor, Graduate School of Global Business,
Meiji University Professional Graduate School
Visiting Fellow, European Institute of Japanese Studies,
Stockholm School of Economics

Naok Harima

Representative of Naoko Harima CPA Firm

GlobalFinanceandaccounting

Legal
and
compliance

Chairperson
andPresident CEO
Executive
Managing
Director
DirectorandCHead ofManagement
Headquarters

Director

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)M&A
andnew business

DATA

Representative Partner at Lex Law Office

Sales
and
marketing

Sustainability Management
for Co-Creation

Tatsushi Omiya

Human resource
development
and ESG

Future Value Creation Stories

Joined QB Net Co.,Ltd. in 2005.
President CEO of the Company since 2016.

Corporate
management

Discover Our Story
How QB’s Unique Character Was CreatedYasuo Kitano

Position

Table of contents

The Company’ s executive structure and the knowledge and experience possessed by its Directors are as follows.

*The above list does not represent all of the knowledge and experience possessed by each Director. The areas marked with symbols denote areas where the individual in question possesses skills which are particularly expected to benefit the Company.

43

QB Net Co., Ltd.
Sustainability Report

DATA
Sto c k I n f or m at i on

C o m p any P r o f i l e

Number of shareholders as of the end of the current fiscal year

FoundedDecember 1995

Established

October 2014

Number of employees

2,700 [consolidated] (as of June 30, 2023)

Location: Head Office

Head Office: 4F, Shibuya First Place, 8-16 Shinsen-cho, Shibuya-ku, Tokyo

Business

As a holding company, formulate, promote, and manage management strategies
for the entire Group

18.36

Custody Bank of Japan, Ltd. (trust account)

1,987,800

15.24

The Master Trust Bank of Japan, Ltd. (trust account)

1,843,100

14.13

Integral Corporation

592,300

4.54

Yasuo Kitano

392,000

3.00

GOLDMAN SACHS INTERNATIONAL

293,846

2.25

Established February 2012

GOVERNMENT OF NORWAY

272,300

2.09#04-00 lam Ann Building, Singapore 238974

QB HOUSE USA INC.

J.P. Morgan Japan

250,911

1.92

Supervision of overseas subsidiaries

CapitalEstablished September 2016

J.P. MORGAN BANK LUXEMBOURG S.A. 381572

227,700

1.75

QB HOUSE CANADA INC.

Nomura Securities Co.,Ltd.

222,500

1.71

10 million yen
4F, Shibuya First Place,
8-16 Shinsen-cho, Shibuya-ku, Tokyo
Domestic haircut business

QB NET INTERNATIONAL PTE. LTD.
CapitalSGD 2 million

Established December 2002

QB House（Hong Kong）Ltd.
CapitalHKD 14 million

Established February 2005

QB NET INTERNATIONAL HOLDINGS PTE. LTD.
CapitalSGD 6 million

Established October 2010
Location

Business

30 Mohamed Sultan Road,QB HOUSE (TAIWAN) Ltd.
CapitalCapitalTWD 39 million

500,000 USD

DATA

2,395,300

Sustainability Management
for Co-Creation

NORTHERN TRUST CO.（AVFC）RE USL NON-TREATY
CLIENTS ACCOUNT

Shareholder name

Future Value Creation Stories

Shareholding
ratio (%)

Established July 2016

Business

Top 10 Shareholders (as of June 30, 2023)
Number ofshares held
(shares)

QB Net Co., Ltd.

Location

5,360

Discover Our Story
How QB’s Unique Character Was Created

CapitalCapital13,045,100

Total number of shares issued

1,326 million yen

Table of contents

48,000,000

Total number of authorized shares

QB Net Holdings Co., Ltd.

300,000 CAD

Established April 2023年（Note: Shareholding ratios are rounded up or down to the third decimal place, excluding 123 shares of treasury stock.

44

QB Net Co., Ltd.
Sustainability Report

F i n anci al S tate ments

Consolidated Statement of Financial Position(Unit: million yen)

Table of contents

Consolidated Statement of Profit or Loss
(Unit: million yen)

Cash flows from operating activities(Unit: million yen)FYE June 2023
Results

Cost of sales

Gross proﬁt
Other operating income
Selling, general andadministrative expenses
Other operating expenses

20,564

ChangeYear on year

100.0%

2,182

110.6%△ 923

105.6%
131.3%△ 17,460
5,285

23.2%

65

1,259
△91

△3,121

△ 499

△ 91

71

119.1%FYE June 2023

Total current assets

ChangeCash and cash equivalents

4,432

708

Proﬁt before tax

1,990

740

972

56

Depreciation and amortization

3,284

116

Inventories

237

145

△41

88

Other

Total non-current assets

158

△ 23

25,308485

18

5138.0%

Right-of-use assets

5,605

488

Financial costs

△ 165

△4

102.9%

Goodwill

15,430-Proﬁt before tax

1,990

740

159.2%

Other ﬁnancial assets

2,004

67

138.9%

Deferred tax assets

822

168.5%

Other

233

Total assets

31,108

1,372

Total liabilities

18,233△ 114

Income tax expense

Registered proﬁts

8.8%

△ 546
1,444

△ 153
6.3%

587

Interest paid

△ 128

18

51

△ 55

Proceeds from subsidy income

-

△29

△710

△637

247

△ 252

△ 484

74

Income taxes refund
Income taxes paid
Other

Cash ﬂows from investing activities

73

Purchase of property, plant and equipment

△ 390

56

3

Purchase of intangible assets

△ 48

△ 14

△ 45

32

4,210

62

Other

Free cash ﬂows
Cash ﬂows from ﬁnancing activities△ 3,597

1,648

△ 22

1,998

261

26

Interest-bearing debt

9,407

△739

Lease obligations

5,464

267

Repayments of long-term borrowings

△700

-

Other

3,100

332

Dividends paid

△ 130

△ 130

Total equity

12,874

1,487

Repayments of lease obligations△ 2,835△ 130

Total liabilities and equity

31,108

1,372

Other

Trade and other payables

Net increase (decrease)in short-term borrowings

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period

91

△88

95

△ 125

708

1,585

4,432

708

DATA

Exchange diﬀerences of cash and cash equivalents

Sustainability Management
for Co-Creation△ 147

Decrease (increase) in tradeand other receivables

Future Value Creation Stories

1,213

Financial income△ 11

Trade and other receivables

Property, plant and equipment

9.4%

4,694

Cash ﬂows from operating activities

887

52.9%

2,138

Change5,800

740Operating proﬁt

FYE June 2023

Discover Our Story
How QB’s Unique Character Was Created

Revenue

Sales ratio

45
QB Net Co., Ltd.
Sustainability Report

Table of contents

Discover Our Story
How QB’s Unique Character Was Created

Future Value Creation Stories

Sustainability Management
for Co-Creation

DATA

Toward the development of a sustainable and better society
Our job is to turn the discomfort customer experience into comfort through our haircut services
and to give workers the peace of mind that comes with being able to remain healthy by specializing in haircut services
that address worry of rough hands caused by shampoos and chemicals.
And we will reduce environmental impacts by curbing wasteful consumption of natural resources without using water or hair dryers,thus bringing about contributions aimed at a sustainable society that is friendly toward the global environment.

Three kinds of abundance (MORE) created by saving (LESS)①To contribute to a diverse society in which all people can exercise their abilities, we respect human rights and provide a safe working
environment and a place for growth in which each individual can shine in his or her own way.
②To contribute to the Earth on which we live, we will realize sustainable business by reducing our environmental impact and protect
the wealth and comfort of the people who live there.
③ We will realize harmonious development by connecting the power of haircuts to the joy of living and be connecting the joy of fixing
one’s hair to the enrichment of daily life.

Many thanks
for reading
to the end of
this document!

Editorial Policy
This publication has been prepared to provide a deeper understandingof the past and future of the QB Group, including stories about theindustry as a whole. Although there may be some insufficient areas, wewill continue to promote our efforts, considering FY2024 to be the firstyear of our sustainability initiatives.