Engineer Support Company

Annual Report 2024

(Integrated Report)

For the Fiscal Year Ended January 31, 2024

Sumitomo Fudosan Realty and Development Shin-Yokohama Building 5F,
2-5-5 Shin-Yokohama, Kohoku Ward, Yokohama City
https://www.artner.co.jp/

Introduction

Purpose / Company Motto / Management Philosophy

Introduction

PurposeManagement Message

Support the growth andself-actualization of engineers,
who are Japan’s world-class assets.

-- To Achieve Our Purpose -Mission
As an “Engineer Support Company,” we are committed to creating“a new way of life” for engineers.

Value Creation Story

VisionWe will improve the quality of our engineers to become, within 10
years, a group of engineers providing the greatest added value in the

For resource-poor Japan, its engineers are assets, of which we can boast to the world.

industry. The talents developed by Artner will support the world of
manufacturing.

Artner is a platform that supports the growth and self-actualization of engineers.
Artner nurtures engineers not only as assets of Artner,

ValuesGrowth Strategy

but also as shared assets of Japan.

Competent engineers are capable of selecting what they need, andAmid a rapidly changing work environment and mindset,

making every effort to attain happiness for themselves. Artner

attributed to the fluidity of talents and various diversity initiatives, Artner is committed tosupports the career and skill development of each and every engineer

promoting the happiness of working engineers to create “a new way of life” for them.

to offer a wide range of projects that fit with their desires andqualifications.

Sustainability

PursuitofMindsetPursuitofWisdomManagement Philosophy

PursuitofCreativity

Artner Co., Ltd. Annual Report 2024

“Engineer Support Company”—We support our engineers’ dreams—

We aim for the happiness of all the employees
and reflection within the company
by developing talents, fostering technologies,
and contributing to society through our engineers.

Data Section

Whenever you must make a firm
decision on which path to take,always stay calm and make sure to
return to the basics,
no matter what you are faced with.

01

Governance

Company Motto*We put our specific meanings into these words. Happiness represents the idea thatpeople will become happy by acting on their own initiative, rather than waiting forsomething to be offered. Reflection is the idea that, by illuminating and shining oneach other, we will create a culture of promoting reflective prosperity.

Artner Co., Ltd. Annual Report 2024

02

Introduction

Contents / Editorial Policy

Introduction

Introduction

Value Creation Story

Sustainability

Governance

01 Purpose / Company Motto / Management Philosophy

11 Value Creation Process

29 Sustainability Management

41 Corporate Governance03 Contents / Editorial Policy

13 Growth Trajectory

Climate Change (Information Disclosure Basedon TCFD Recommendations)Management Message

33

Human Capital / Health and Productivity
Management / Occupational Health and Safety

07 Message from Our President and CEO

35 Diversity and Inclusion / Talent Development

05 At a Glance

15

Cultivated Strengths /Sources of Value Creation

47 Risk Management / ComplianceManagement Message

31

49 Interview with Outside Directors

17 Materiality (Material Issues)
19 Segment Overview

37 Human Rights / Social Contribution

23 Interview with Our Chief Financial Officer (CFO)

39 Stakeholder Engagement / Outside Evaluation

Value Creation Story

Growth Strategy

53 Executive Team
Growth Strategy

Data Section
55 Financial Statements
59 11-Year Financial Summary
61 Non-financial Data (KPIs, Targets, and Results)

27 Medium-Term Business Plan (FY2023 to FY2025)

63 Company Data

Guidelines Referenced

Artner has been publishing the Annual Report since FY2023 as● IFRS Foundation, “International Integrated Reportinga communication tool to help stakeholders understand ourvalues, business model, and overall value creation story forsustainable enhancement of our enterprise value. This reportcontains financial information about our management strategies

Framework”● Ministry of Economy, Trade and Industry, “Guidance forCollaborative Value Creation 2.0”
● Global Reporting Initiative (GRI) Standards

including how our business is contributing to society and theenvironment. We will make continued efforts to enrich thecontent of this report, aiming to deepen stakeholders’
understanding of our attractiveness, growth potential, andinitiatives to increase the enterprise value in the long term.

03

Artner Co., Ltd. Annual Report 2024

assumptions and forecasts and involve risks and uncertainties.
For this reason, actual financial status, business developments,
and results may differ from the statements herein.

Publication Date
August 2024

Reporting Period

Medium- / long-term plan and targets

This report contains various statements regarding future

Other Disclosure Information● Investor Relations
https://www.artner.co.jp/ir/

February 1, 2023 to January 31, 2024

● Sustainability(Some activities before or after the above period have also been included.)https://www.artner.co.jp/ct-sustainability/index/

Annual Report

AnnualSecurities
ReportSustainability
websiteNon-financial
information

Financialinformation

Non-consolidated
Financial Results, etc.

Data Section

and business activities, as well as non-financial information,

Positioning of the Annual Report

Cautionary Note Regarding
Forward-Looking Statements
prospects. These statements are based on our current

Governance

Editorial Policy

Sustainability

25 Review of the Medium-Term Business Plan to Date

Corporate Governance
Report, etc.
Results

Artner Co., Ltd. Annual Report 2024

04

Introduction

At a Glance

Net Sales

Operating Margin

billion yen

Recruitment of
New Graduates (engineers)yenTransaction History
Roughly

September 18, 1962

9.3％

Other

0.4％

Net Sales by Industry Field
with Clients
Miscellaneous

Information
andcommunications

2.6％

12.3％

Steel, nonferrous
materials andmetals equipment

4.0％

Mechanicalequipment

29.9％

Electronics

26.3％

31.3％

IT Solution

12.6％

Unit Price of Engineers(per person per hour)

4,331

yen

Percentage of Artner’s Former
Employees Who Used the Job
Change Assistance Program

2.3 %GovernanceContracting

companies

Embedded/
Model-Based58

Sustainability

Net Sales by Type ofContract with Clients

1,200(engineers, incl. non-recent and recent
graduates)

171

Engineer Composition

Machinery

Career Hires

Growth Strategy

Founded75.8 %

years old

Value Creation Story(Aprilhires2024 )Payout Ratio

25.3 %

1,192 30.4

Management Message

ROE

98.99

Average AgeIntroduction

15.1%

10.1

Earnings per Share (EPS)

Total Number of Engineers

7.3％

Precisionequipment

Engineer
dispatching

90.2％

05

Artner Co., Ltd. Annual Report 2024

Transportationequipment

Data Section

Electronic
devices

8.3％

28.2％

37.2％

Artner Co., Ltd. Annual Report 2024

06

Management Message

Message from Our President and CEO

January 31, 2025), we have set a goal to increase the

In FY2024, the world made a full-scale entry into thepercentage rose from 8.6% in the previous year to 9.3% and ispost-COVID-19 era. It was a year in which a resumption ofprojected to reach the 10% target by the final year of the plan.

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

semiconductor manufacturing equipment. There was extremely

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

a continued rise in development drive across various industries

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

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

clients and employees alike.

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

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

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

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

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

graduates as of FY2024, compared to our FY2025 target of

considerably greater demand from carbon neutrality-related

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

high added value to these projects, we have secured contract

assigned engineers was 48.3% as of FY2024, just shy of our
FY2025 target of 50.0%. If we can steadily supply talent tounit price of new graduate engineers at their first assignments

meet the strong demand from carbon neutrality-related projects,

increased more than in other years.

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

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

07

Artner Co., Ltd. Annual Report 2024

Future Growth Strategy

in their respective projects. We offer engineers a comprehensive

Clients have speeded up development more than the previous

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

individual skills. We will further strengthen our training programs

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

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

contribute to client satisfaction.

this demand. Labor shortages have become a major social

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

exception.

talent utilization channels. In our Medium-Term Business Plan

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

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

Data Section

President and CEO

with our clients are delivering strong performance and outputs

Governance

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

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

Growth Strategy

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

engineers is the fact that our existing engineers under contract

SEKIGUCHI Sozo

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

normal operations could be felt among our main clients,

Management Message

Business Environment and
FY2024 Financial Results

Introduction

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

08

Management Message

measures or consider strategies for recruiting foreign nationals.

increasing parental leaves.

To increase the share of our contracting business going forward,

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

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

organize our partner companies. In our current fields, we

engineers growing at Artner, graduating from the Company, andwith which they may be placed. Those with whom this resonatedbelieve that we can resolve the quantity challenge by further

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

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

return program” for those who wish to return to Artner afterengineers joining us in April 2024, about 40 more than in the

Artner’s Strengths and Advantages

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

Purpose. Our Management Philosophy and Purpose are truly

target of 100 career hires to meet client demands.

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

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

We have a three-fold strategy for future growth. The first is to

is not an exaggeration to say that we are pioneers in thevariety of measures flexibly. As a result, when engineers moveactively negotiate the unit price of engineers, taking into

engineer dispatching business. We have built a solid position in

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

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

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

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

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

constitutes a value of the Company. Compared to other companies

to employee satisfaction and creates a cycle in which our

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

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

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

main clients, manufacturers in industries related to automobiles

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

and semiconductor manufacturing equipment.

semiconductor manufacturing equipment sectors view Artner

Without underlying policies that value people, people will

Moreover, reflecting on the progress made over the past two

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

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

expanding and deepening the first basic measure of “Promoting

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

employees, whom we call “talent,” and we will advance thestrategies by segment” in our Medium-Term Business Plan, as

and it is our mission to keep meeting this expectation.

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

same industry.

Our basic view on human capital aligns with our Management

employees to familiarize them with our approach to human

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

engineers’ dreams.” Based on the fundamental philosophy

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

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

self-actualization of engineers, who are Japan’s world-classorganizing our partner companies, it will be very important to

A key challenge for the Company is to secure the quality andassets,” we conduct business by continually considering

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

measures to support the growth and dreams of our engineers.

as we do.

demands of our clients could open the door for competitors.

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

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

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

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

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

professional growth, we offer various education and training

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

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

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

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

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

important initiatives outlined in our Medium-Term Business Plan.

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

We are working to establish a working environment and support

added value.

programs for those who have temporarily left their engineer

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

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

approximately 200 to 250 new graduates and 100 to 150 career

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

We extend our deepest sympathies to everyone affected andhires in our current business fields. If more talent is needed, we

foster a corporate culture in which both men and women candisplaced by the Noto Peninsula Earthquake that occurred inwill need to secure the necessary numbers through M&A

freely take childcare leave and will develop a track record in

2024. As part of our support for the people affected by theArtner Co., Ltd. Annual Report 2024

Donations forthe 2024 Noto Peninsula Earthquake

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

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

Data Section

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

regularly recruit, also has a long history of developing precision

Governance

Human Capital Approach and Initiatives

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

Sustainability

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

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

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

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

leaving us and moving on to their second stage.

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

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

Introduction

our plan.

Artner Co., Ltd. Annual Report 2024

10

Value Creation Story

Value Creation Process

Introduction

Ever since a design firm was started by our founder, we have made continual changes
in our mindset to cater to the evolving trends of the times, eventually developing our current
business model as a technical service provider and creating value for engineers.

Inputs
Sources of value creation
Financial capital

Solid and strong financial basesupporting sustainable growthManagement philosophy

Purpose"Engineer Support Company"

Support the growth and self-actualizationof engineers, who are Japan’s world-class assets.

—We support our engineers' dreams—

Intellectual capital

Human capitalSocial and related capital

Long-term partnerships withclients, schools, academic societies,
and organizations

Low birthrate and aging population
Shortage of talents (engineers)
Accelerated digitization

Engineer
dispatching business1

Trust fromour clients basedon ourlong history

2

The businessmodel we havedeveloped overmany years

3

Placement ofengineers totechnical fields
with highmarket needs

4

Job-based
employmentthat allows careerdevelopment within
the Company

P17

Contracting businessElectronics

SoftwareEight materiality topics

MachineryWork
processes ofmanufacturers

Organizational
structureof Artner

R&D

Product
development

Production

High ValueGroup

Wide ValueGroup

Product ValueGroup

This market
segment
requires advanced
technical skills
and design,e.g., advanced
development, R&D.

This market segment
covers a wide range
of design-related
tasks andcorresponds to themajority of design anddevelopment work.

STEP 1

Joining Artner
as a full-time
employee

STEP 2

STEP 3

Education
andtraining

Sales

This market segment
is associated withquality assurance,
assembly andadjustment, and otheraspects of productquality and production.
Manufacturer's
Matching via
full-time employee
representative【Job change assistance program】
Gainingexperience atclient companies

STEP 4

Interviews, etc.
with preferredmanufacturers

STEP 5

Mutualagreement

Develop and securepromising talents

JobchangeStrengthen corporate
governanceMedium-Term Business Plan P27
Basic Policy

Dealing with a "with-COVID"
and "post-COVID" society"Build a foundation for sustainable
and next-generation growth"

Increased uncertainty in global trends"Make Value for 2022 to 2024"●●

Basic Measures
1 Promote strategies by segment
2 Promote diversity and inclusion

Develop strategies for each segment(recruitment - education - assignment - system)
Establish approaches to markets
by segment
Explore and seek new specialist
fields of technology

in talent management
Utilize workers of retirement age,
women, and foreign workers(overseas students) as personnel
Utilize and organize partner companies(set up a contracting system)

For ourshareholders
SustainablegrowthProfitdistribution●●

Achieve our
purpose,company
motto, andmanagement
philosophy
Contributeto theachievement ofa sustainable
society
With carbon
neutrality
as one of thepillars of our
Medium-TermBusiness
Plan, we arecommitted tosolvingsocial issues
through ourbusiness
activities.

*We put our specific meanings into these words.
Happiness represents the idea that people will
become happy by acting on their own initiative,
rather than waiting for something to be offered.
Reflection is the idea that, by illuminating andshining on each other, we will create a cultureof promoting reflective prosperity.

Artner Co., Ltd. Annual Report 2024

Data Section

Diversification of work styles andchanges in employment practices

Artner Co., Ltd. Annual Report 2024

Respect human rights
Promote diversity
and inclusion

For our
employees
Aiming for thehappinessof all the employees
and reflection within
the company(*)
Retention of
employment

Medium- tolong-term goals

Governance

11

Resolve social issues
by creating jobs●

For ourpartners
Co-creationof value

STEP 6

Diversification of values and needs

Advanced sustainability management

Contribute to carbon
neutrality throughbusiness activities

Promote compliancemanagement

Mobility and diversity of talents●

Improve energy
efficiency andreduce energy usage【Services provided for work processes of manufacturers】

Product
planning

For ourclients
Placement ofengineers withhigh added
value

Sustainability

External environment andsocial issues

Our business and technology domains

Valuesprovided

Growth Strategy

Regular employment of engineers withSTEM backgrounds who can be placed in
upstream/midstream work processesof manufacturers

Our strengths P16

Outcomes

Value Creation Story

Practical education and training by training
managers with engineer backgrounds,
based on training curricula alignedwith clients’ work

Management Message

Business Activities

12Value Creation Story

Growth Trajectory
Net sales

Ordinary profit

2018
Stock listing moved
up to the First
Section of the Tokyo
Stock Exchange.

Ordinary margin

1962 – 1985

9,000

Start of the
Mechanical
Design Business

8,000

Business expands steadily
with customers mainly in
the Hanshin Industrial
Region2008
The global
financial crisis of2008 occurs.

14

12
2007
Company stock
listed on
JASDAQ.

1986 – 1997

7,000

2017
Celebrates the 55th
anniversary of its founding.
Stock listing moved to theSecond Section of theTokyo Stock
Exchange.

Artner’s
history

Management Message

10,000Socialtrends16

Introduction

11,0002022
Celebrates the 60th
anniversary of its founding.
Transitioned to the Prime
Market of the Tokyo
Stock Exchange.

Slow period due to delayed
system development

10
Value Creation Story2010

Ordinary profit¥(521) million

6,000

8
5,000

3,000

1986
Worker
Dispatching Act
takes effectin Japan.

6

Growth Strategy

4,000

1998
Changesthe company nameto Artner Co., Ltd.

4

2,000
Sustainability

2
1,000

0
Unit: million yen

0
FY1986

FY1998FY2003 FY2004 FY2005 FY2006 FY2007 FY2008

2013 – 20172018 –First business restructuring

Second businessrestructuring

Revamped the business model totake the company to the next stage
in anticipation of a full recovery fromthe global financial crisis of 2008

Build a foundation for sustainable andnext-generation growth◎ Focused human resources in the Engineer Dispatching Business◎ 2011:◎ 2013:

Reorganized into theFour business divisions established◎ Promote strategies by segment

Engineer Business Division(Hyper Artner Business Division,(Utsunomiya, Yokohama,Engineer Business Division,

Nagoya, and Osaka) ,Engineer Agency Business Division,

Hyper Artner Businessand Human Resources Business

Dept., etc.

Division)◎ 2007: Company stock listed on JASDAQ.
◎ 2008: The global financial crisis of 2008 occurs.

Artner Co., Ltd. Annual Report 2024

Data Section

2009 – 2012

◎ 2000: Artner Five-Year Revitalization Plan

Unit: %
Governance1998 – 2008

◎ 1998: Changes the company name to Artner Co., Ltd.

13

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024◎ Promote diversity and inclusion
in talent management

Artner Co., Ltd. Annual Report 2024

14

Value Creation Story

Cultivated Strengths

Sources of Value Creation

1
Founded in 1962 as a design and development firm, the Company grew byIntroduction

Trust from our clients built on our long history

The Company has grown by staying attuned to societal changes and needs and contributing tosolving social issues. In the course of this, we have accumulated various capital that is the sources ofour current strengths. We will seek to strategically utilize and increase this capital and pursue further
value creation.

winning contract work for design and development from manufacturers in the
Keihanshin region, which drove Japan’s rapid economic growth. In our nearlynies and accumulating a proven track record as a group of engineers with roots
in design and development.

2

Financial
capitalEquity ratio

Net assets

69.9％

4.27

Management Message

Solid and strong financial base supporting
sustainable growth60-year history, we have succeeded in building trust with many client compa-

Cash flows fromoperating activities

billion yen

1.12

billion yen

Even during the global financial crisis of 2008, not many engineers who wereplaced in the upstream work processes of manufacturers (R&D) experienced
contract cancellations. As such, we decided to increase our engineers’
upstream assignment ratio. To help us recruit excellent students who may besuited for upstream assignments, we have introduced internal programs basedon the needs of engineers (e.g., job change assistance program,

Practical education and training bytraining managers with engineer backgrounds,
based on training curricula aligned with clients’ work
Percentage of training
managers withengineer backgrounds

Average hours of annual
training per
employee (engineer)

Average cost of annual
training per
employee (engineer)

100％

73.2

54,000hours

Growth Strategy

performance-based salary system, and limited area system).

Intellectual
capitalValue Creation Story

The business model we have developed
over many years

yen

3
Placement of engineers in technical fields withhigh market needs
automobile, home electronics, industrial equipment, medical device, andinformation and communications sectors, engineers participate in and provide
a variety of technical services for cutting-edge projects, including eco cars

Human capitalsuch as electric vehicles (EVs) and fuel cell vehicles (FCVs), driver assistancetechnologies, racing cars, semiconductor lithography equipment, industrial
robots, and system and application development.

and offer an environment where they can focus on honing their skills as engiproduct development; and production. Correspondingly, we have established threegroups for each area (High Value Group, Wide Value Group, and Product Value
Group). Engineers can move between these groups according to their preferences
and competence and develop their careers within the Company.

15

Artner Co., Ltd. Annual Report 2024

100％

88％

Social andrelated capital

Transaction history

Schools from which we hired (graduate, undergraduate,
junior college, technical, and professional schools)

Roughly

Roughly

1,200
Papers published166

companies

350

Data Section

neers. We classify the work processes of our clients into three categories: R&D;

1,192

Engineers who can beplaced in upstream/
midstream work processesof manufacturers

Long-term partnerships with clients, schools,
academic societies, and organizations

Job-based employment that allows careerdevelopment within the Company
We employ talent with STEM backgrounds as regular employees in technical jobs

Percentage ofengineers withSTEM backgrounds

Governance4

Number of engineers

Sustainability

Our engineers’ business fields are wide-ranging. At major companies in theRegular employment of engineers withSTEM backgrounds who can be placed in
upstream/midstream work processes of manufacturers

schools

Part-time lecturing at universities by
our training managers

15

courses at 8 schools

Artner Co., Ltd. Annual Report 2024

16

Value Creation Story

Materiality (Material Issues)

step

1

Through its business activities, Artner aims to help
resolve social problems, thereby contributing to
the realization of the UN’s Sustainable Development
Goals (SDGs) for the world.

Category

Identify the issues
We analyzed potential materiality topics based on various international
standards, ESG-related external evaluations, and requirements from1

society including stakeholders.

2

Environmental

Prioritize the issues
The identified issues were assessed by conducting internal and external
stakeholder surveys in terms of their expectation and

Item

Improve energy
efficiency andreduce energy
usage

2

Contribute tocarbon neutrality
throughbusiness activities

3

Resolve social
issues by creatingjobs

4

Respect humanrightsrequirement levels for Artner, and then prioritized by two criteria:

Related SDGs

Risk

Opportunity●Declining reputationand technologicalobsolescence if weare slow to respond●Increasing demand for
dispatch of related
engineers due to a
growing need to adapt
to a decarbonized andrecycling society●Increasing risk ofextreme weather andnatural disasters
caused by climatechange●Increasing costs due
to stricter environmental regulations, etc.

Value Creation Story

Thirty-one topics were identified.

step

ID

The Member States of the United Nations adopted the Sustainable
Development Goals (SDGs) in September 2015. The aim of the SDGs
is to achieve 17 goals by 2030 with a view towards ending all formsof poverty, fighting inequalities, and tackling climate change while
ensuring that no one is left behind.

Management Message

Identification Process of Materiality

Related SDGs, Risks, and Opportunities
Introduction

Considering stakeholder interests and social issues, as well as their impact on our business management,
Artner has identified eight materiality topics that should be prioritized. Based on our understanding of theimportance of the materiality topics we have identified, we are committed to engaging in
effective management practices and business activities to resolve these issues.

●Increasing funding
from ESG investors“importance to stakeholders” and “importance to Artner.”3

Selected and prioritized issues were reviewed in the Sustainability Committee
for validation to finalize Artner’s eight materiality topics.

Eightmateriality topics●Declining quality of
talent and laborproductivity

Social❶ Improve energy efficiency and reduce energy usage❷ Contribute to carbon neutrality throughbusiness activities

Promote diversity
and inclusion

6

Develop andsecure promisingtalents

7

Strengthen
corporate
governance8

Promotecompliancemanagement❸ Resolve social issues by creating jobs

●Declining reputation
associated withhuman rights issues●More opportunities toacquire excellent
talent●Innovation creation
through diversity●Higher employee
motivation●Contributing to therealization of asustainable society❹ Respect human rights❺ Promote diversity and inclusion❻ Develop and secure promising talents❼ Strengthen corporate governance

Im

po

rt

an

ce

❽ Promote compliance management

GovernanceImportance to Stakeholders

5

Importance to Artner

High

-

●Loss of social trustand deterioration ofenterprise value due
to violation of laws
and regulations or
corporate behavior
that deviates fromsocial norms●Increasing funding
costs●Establishing a stablebusiness foundation
through moretransparent decision-making andappropriate responses
to changes

Data Section

Governance

Artner Co., Ltd. Annual Report 2024

●Increasing competition and costs in thetalent acquisition
marketSustainability

Eight materiality topics

High

17

Growth Strategy

step

Validate and determine the material issues●Strengthening
relationships withdiverse stakeholders●Increasing funding
from ESG investors

Artner Co., Ltd. Annual Report 2024

18

Value Creation Story

Segment Overview
Your technical partner contributing with technological innovation and promotion in
the core industrial technology fields of software, electronics, and machinery.

Trends in Net Sales by Technology Field

Unit : million yen

Trends in number of engineers

Unit : people

Introduction

Software (Embedded / Model-Based)

200
1,000

FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY20150

FY2014FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016

0100

Software (IT Solution)

Value Creation Story

Design areas include Embedded (software development for control
systems to be embedded in machinery and equipment), IT Solution(software development for network systems to be used with PCs, tablet
devices, and servers), and Model-Based (upstream processes such as
preliminary research based on models as well as requirement definitionand design during the development phase in new development
projects).

300

2,000

Management Message

Software engineers develop software to beembedded in IoT devices and application
software for network systems.

400

FY2015Net Sales Ratio 42.2%

FY2014

Software

3,000

400

3,000

300

2,000

200
1,000

19

Artner Co., Ltd. Annual Report 2024

FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY2015FY2014FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY2014FY2015FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY20150Machinery
400

3,000

300

2,000

200
1,000

FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018100

FY20170Data Section

Design areas include Drive Systems (development of mechanisms forgenerating, converting, storing, and transmitting energy), Mechanisms(development of mechanisms for production facilities and equipment),and Structures and Materials (design of products in various formats,formulation of structures and housings, and development of newmaterials).

0100

FY2016

Mechanical engineers design the mechanismsof machines with moving parts using 2D/3D
CAD tools.

1,000

FY2015Net Sales Ratio 31.5%

200

Governance

Machinery

300

2,000

FY2014

Design areas include Electrical Equipment (electrical design, production facilities, and relevant technologies), Electronic Circuits (electronic
circuit design for printed circuit boards), and Electronic Devices (development of integrated circuits and individual electronic devices, anddesign of peripheral circuits).

400

Sustainability

Electronic engineers design the circuit boards
that form the heart of equipment and devices
and they conduct reliability assessments ofsuch systems.

Electronics
3,000

FY2014

Electronics Net Sales Ratio 26.4%

0Growth Strategy

0

100

0

Artner Co., Ltd. Annual Report 2024

20

Value Creation Story

Artner’s Groups Handling the Work Processes of Manufacturers

Trends in Net Sales by Business

Introduction

Engineer Dispatching

Unit : million yen

Net Sales Ratio 90.2%

Work processes ofmanufacturers

10,000Client company
Hire regular employees

Personnel ratio 15.9%

Personnel ratio 71.9%

Personnel ratio 12.1%

Contracting

Net Sales Ratio 9.3%

FY2024This market segment isassociated with quality
assurance, assembly andadjustment, and other aspects ofproduct quality and production.

0

FY2023This market segment covers
a wide range of design-related
tasks and corresponds to themajority of design anddevelopment work.

Dispatch engineers

FY2022This market segment requires
advanced technical skills
and design, e.g.,advanced development, R&D.

2

FY2021

Product ValueGroup

FY2020Wide Value
Group

5,000

3 Orders/instructions

Value Creation Story

High ValueGroup

Request for engineers

FY2019Organizational
structure of Artner

1

FY2018Artner engineers

FY2017Sales

FY2016

Production

FY2015

Product Development

FY2014

R&D

Management Message

Product planning

1,000
Client company

35.4

36.3

36.3

36.0

36.1

33.1

33.2

35.0

33.7

32.9

33.1

FY2014FY2015FY2016FY2017

Electronic
devices

Transportationequipment

1,500

1,500

0

0

FY2024FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024

Precisionequipment
FY2024FY2021FY2019FY2018FY2017FY2016FY20150

FY2014FY2024FY2023

FY2021

FY2020FY2019FY2018FY2017FY2016FY2015FY20141,500

FY2014FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY2015FY20140

3,000

FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017

3,000

4,500

Data Section

1,000

Information andcommunications

FY2024FY2023

FY2022

FY2021

FY2020

Kinki

Unit : million yen

4,500

5,000
3,000

Artner Co., Ltd. Annual Report 2024

FY2023

FY2024Governance

1,000
FY2019FY2023

5,000

0

21

Net Sales Ratio 0.5%

Trends in Net Sales by Industry Field

1,000

FY2018FY2022

Unit : million yen

3,000

FY201731.8

FY2023

FY20213,000

FY201631.8

FY2022

FY20205,000

FY201535.0

FY2022FY2019Tokai

FY201434.6

30.8

FY2018

7,000

0

34.9

Other

32.2

FY2015

Kanto

32.8

32.9

0

Sustainability

Trends in Net Sales by Region

32.1

FY2014

30.0

32.1
32.7

35.0

32.9
33.9

32.0

33.3

3 Deliver completed work

FY2022

35.1

38.5

33.0

Work
executed under
project leader

FY2021

38.1

FY201632.5

35.1

Growth Strategy

36.0
34.0

36.1

35.3

2

37.4

FY202037.3

38.0

FY201939.4

500

Issues order for work

FY2018

40.0

33.0

1

Artner engineers

FY2017

Hire regular employees

Unit : %FY2016Whole company

FY2015PVWV

FY2014HV

FY2020Gross Margin by Group

1,500

0

Artner Co., Ltd. Annual Report 202422

Growth Strategy

Interview with Our Chief Financial Officer (CFO)

Chief Financial Officer (CFO)

In the fiscal year ended January 31, 2024, growing demand inachieved an ROE of 25.3% in the fiscal year ended January 31,

the aftermath of COVID-19 contributed to record-high financial

2024, surpassing the cost of shareholders’ equity and realizing

results, posting record-high net sales of ¥10,110 million (uphigh capital efficiency.

9.4% year-on-year). Profit in FY2024 also set a new record at

Going forward, we will continue to increase profit, the numerator¥1,051 million (up 17.5% year-on-year). As a result, operatingof ROE. As for equity, the denominator, we intend to return

cash flows and free cash flows increased steadily to ¥1,126

profits as dividends while considering the balance with retained

million and ¥1,121 million, respectively. Additionally, earnings

earnings.

per share (EPS) reached ¥98.99, with a compound annual

Cash Allocation and Shareholder Returns

from the fiscal year ended January 31, 2021.

For sustainable growth, we strive to ensure stable cash flows

The Medium-Term Business Plan’s
Financial and Capital Strategy

and efficient capital allocation. We aim to hold approximately
three months’ worth of monthly net sales as cash on hand andreserve any surplus funds for future growth opportunities.
including personnel expenses until newly graduated engineersof 14.0%; over 1,600 engineers; and a return on equity (ROE) of

are operational, it does not necessitate significant capitalover 20%.

investments. We believe that using surplus funds to financeIn the engineer dispatching business, our main business, thesome of the M&As will help us to adapt swiftly to various

following indicators are used. Net sales: the amount calculatedindustry restructurings and strengthen our competitiveness.

by the number of operative personnel (number of engineers ×

In terms of profit distribution, we comprehensively consider

utilization rate) × unit price of engineers × total work per-future business developments, earnings, the management

son-hours; cost of sales: labor costs for engineers assigned toenvironment, as well as the strengthening of our management

our clients; and selling, general and administrative (SG&A)

foundations, and positions the supply of stable dividends to our

expenses: labor costs for engineers undergoing in-houseshareholders as top-priority management tasks. Accordingly, we

training (standby status) and labor costs for other staffers. Thus,

have agreed to consider a payout ratio based on 50%. In“number of engineers,” “utilization rate,” and “unit price ofaddition, our basic approach is to continue to grow our profit

engineers” constitute our key management indicators.

this year, ensuring that the dividend remains at least at the same

To improve the future gross margin, it is essential to increase theamount as the previous year and continues to increase.

unit price per engineer. We will aim to increase the unit price of

The Total Shareholder Return (TSR) *has been as follows.

As a company listed on the Prime Market of the Tokyo Stockaddition of administrative staff associated with the increase in

Exchange, Artner is committed to managing and disclosing ourengineers and suppressing the increase in the SG&A expense

management indicators appropriately, striving for transparent

ratio.

and trustworthy financial management to earn and maintainWe will continue to work toward realizing our Medium-Termtrust from our stakeholders. To this end, we consider it critical toBusiness Plan targets of increasing the number of engineers tofocus on upgrading our management systems and improving

1,600 and maintaining a high utilization rate, unit price ofbusiness processes, as well as executing proper management

engineers, and total work person-hours. By doing so, we willof our financial figures and contributing to the Board of Direc-

endeavor to grow net sales to ¥11.6 billion, and through appro-

tors’ decision-making.

priate management of the recruitment cost ratio relative to net

We will continue to make efforts to improve our margins andsales, achieve an operating margin of 14.0%.

capital efficiency, always conscious of generating cash, allocating cash, and returning value to our shareholders. Moreover, by

For Improving Capital Efficiency

differentiating ourselves from our competitors in financial
management, we will aspire to achieve sustainable growth andequity ratio, we attach importance to the cost of shareholders’increase our enterprise value.

Comparison index: TOPIX total return index (%)

FY2020

FY2021

FY2022

FY2023

FY2024

91.8
110.2

98.3
121.2

102.7
129.7

123.1
138.8

262.9
183.9

Artner Co., Ltd. Annual Report 2024

Data Section

Given that the Company has no borrowings and has a high

*TSR (Total Shareholder Return) (%)

Governanceimproving administrative efficiency, thereby minimizing the

Sustainability

career support. We will also improve the operating margin by

Highly Transparent andTrustworthy Financial Management

Growth Strategy

While our business model requires some initial investment,

business targets: net sales of ¥11.6 billion; an operating margin

Value Creation Story

In our Medium-Term Business Plan, we have set the following

strengthening our training programs and offering extensive

Artner Co., Ltd. Annual Report 2024

Medium-Term Business Plan ROE target is of over 20%, wegrowth rate (CAGR) of 18.7% over the three-year period starting

engineers by enhancing their added value, such as through23

at approximately 8% in managing our business. Whereas ourManagement Message

HARIGAE Tomonori

equity. We are mindful to keep the cost of shareholders’ equity
Introduction

We will establish
a stable financial base andincrease our enterprisevalue continuously.

Record-high Income in the Fiscal Year Ended
January 31, 202424

Growth Strategy

Review of the Medium-Term Business Plan to Date
Background to the Medium-Term Business Plan

In order to secure outstanding talent in a fiercely competitive environment, it is essential to build abusiness model that will resonate with engineers and students. Better recruitment is the gateway tosuccess in all aspects of our business.

In order to meet the needs of client companies and cater to increasingly diverse business areas inmanufacturing processes, we will organize the Company into three segments so that we can supply
engineers with a high match rate to our clients. We will also expand the contracting business with the aimof actively utilizing workers of retirement age, former female engineers, and foreign workers (including
overseas students), increasing the percentage of such personnel to 10%.

〈Basic Policy〉〈Basic Policy〉

FY2016 – FY2018◎ Establish four business divisions in
February 2013

◎ Improve the skill level of all
engineers

1. Promote strategies by segment

To promote the assignment of our engineers to
upstream business areas where the unit priceof engineers is likely to be higher, we will
create segment-specific educational programsand training curricula for each business field toimprove the skill level of all engineers.

• Develop strategies for each segment(recruitment – education – assignment – system).
• Establish approaches to markets by segment.

2. Promote diversity and inclusion intalent management• Utilize workers of retirement age, women, andforeign workers (overseas students) as personnel.
• Utilize and organize partner companies(set up a contracting system).

Results◎ Raised the recruitment criteria to improve thequality of our engineers.
◎ Shifted the projects in which our engineers participate
at client companies to higher-level stages.

• Develop strategies for each segment(recruitment – education – assignment – system).
• Establish approaches to markets by segment.
• Explore and seek new specialist fields of technology.

2. Promote diversity and inclusion intalent management• Utilize workers of retirement age, women, andforeign workers (overseas students) as personnel.
• Utilize and organize partner companies(set up a contracting system).

Results◎ Exceeded our target operating margin as a result of
assigning more engineers to upstream business areasand increasing the unit price of engineers.
◎ The turnover rate fell as engineers felt more attracted
to the Company due to the renewal of our businessmodel (establishment of four business divisions).

Results◎ Business performance showed steady growth inboth sales and profit.

◎ Business performance showed steady growth inboth sales and profit.

◎ Because we did not reach the target number ofengineers, insufficient progress was made on our
Basic Policy, “Build a foundation for sustainable andnext-generation growth.”◎ Further improved our operating margin.
Sustainability◎ Improved the unit price of newly graduated engineers
on their first placement. Steadily revised the unit
prices of engineers across the entire company.

1. Promote strategies by segment

Growth Strategy

Results

FY2021 – FY2023

Value Creation Story• Hyper Artner Business Division• Engineer Business Division• Engineer Agency Business Division• Human Resources Business Division

FY2019 – FY2021

Management Message

Build a foundation for sustainable andnext-generation growth

Revamped the business model to take the company
to the next stage in anticipation of a full recovery
from the global financial crisis of 2008
FY2014 – FY2016

Introduction

Background to the Medium-Term Business Plan

◎ The gross profit per engineer recovered to levels prior
to the global financial crisis of 2008 and reached newrecord highs.
(Final year result)(Final year target)(Final year result)

Net sales¥6 billion¥4.7 billion

Operating margin

10%

Number of engineers

800(Final year target)(Final year result)

Net sales¥6 billion¥5.7 billion

9.1%

Operating margin

10%

601

Number of engineers

800

Net sales¥7.5 billion¥7.1 billion

11.8%

Operating margin

12.5%

716

Number of engineers

1,000

For the next Medium-Term Business Plan

If we can increase the scope of work handled by ourengineers at client companies from downstream to
midstream and upstream processes and raise the unit
price of engineers, the Company will be less affected byfluctuations in the economy.
To further improve business performance, we will increase
the overall number of engineers while maintaining thequality of our current engineers.

Since we did not achieve our net sales target mainly due toour failure to reach our target number of engineers, we will
incorporate strategic measures to secure engineers into
the Basic Measures section of the next Medium-TermBusiness Plan.

Artner Co., Ltd. Annual Report 2024

(Final year result)

Net sales¥10 billion¥9.2 billion

12.4%

Operating margin

12.5%

12.9%

971

Number of engineers

1,300

1,157

For the next Medium-Term Business Plan
Data Section

For the next Medium-Term Business Plan

(Final year target)

Governance25(Final year target)◎ Continue the Basic Policy and Basic Measures.
◎ Add “Explore and seek new specialist fields oftechnology” to the implementation measures.

Artner Co., Ltd. Annual Report 202426

Growth Strategy

Medium-Term Business Plan (FY2023 to FY2025)
Direction of our Carbon Neutrality Initiatives

Make Value for 2022 to 2024

Artner´s approach to sustainablegrowth and next-generation growthAs our social environment continues tochange on a global scale, dealing withsocial issues, such as initiatives based on
the recommendations from the Task Forceon Climate-related Financial Disclosures(TCFD), is an important managerial agenda

1. Promote strategies by segment

2. Promote diversity and inclusion
in talent management

Contribute to solving social issues throughour business activities, increasing our corporate
value and returning profits to stakeholders
Build a foundation for sustainable growthand next-generation growth■ Number of Engineers■ Net Sales

130 ⇒ 220

Number ofcareer hires

50 ⇒ 200

Turnover rate

Artner Co., Ltd. Annual Report 2024

1,157 ⇒ 1,600 (up 38.36%)

Utilization
rate(up 300%)

9.6% ⇒ 8.3% (down 1.3 pt)

××

Unit price ofengineers

Total work× person-hours¥ 9.2 billion ⇒ ¥ 11.6 billion (up 26.1%)

20% or more

〈Training details〉
Understanding the principles ofpower systems (inverter systems) for
EVs and FCVs

Experienced workers with skills andexperience in the fields above

Optimization of infrastructure
resources and AI/machine learning forhuman and product transactions
through the introduction of cloudcomputingIn order to recruit more talents thatmatch client needs, we are committed
to changing our recruitment policy,
which is heavily focused on new
graduates.
➡ Balance the numbers of new
graduates and career hires tosecure optimum talents
Share of carbon neutrality recruitment
targets for new graduates and career hires

FY2025(Target)FY2024(Result)

55.0%

46.1%

Placement in carbon neutrality
projects
Contribute to solving social issues
to improve business performance

Increase the unit price of engineers
by approximately 10% compared toother projects➡ Increase net sales andprofit margins

Model design and validation of EV
battery management systems
How to analyze the results of sensor
characterization
Recycling of chemicals and materials

Share of engineers placed in carbon
neutrality projects among all engineers

Meet the ever-increasing needs ofengineers in the software, electrical,
and electronic fields.
➡ Increase trainers

FY2025(Target)FY2024(Result)

50.0%

48.3%

and Key Indicators * □⇒□… (FY2023) ⇒ (FY2025) figures■ Gross Margin(up 69.2%)

Numerical Business Targets ■ ROE
27

Number ofengineers〈Activities〉〈Recruitment targets〉
Students who have graduated fromdepartments in the fields of electricity,
electronics, materials science, energy,
and information technology■ Operating Margin

Share of engineers placed in carbon
neutrality projects among all engineers 46.1% ⇒ 50.0%

Increase the unit price of engineers by approximately
10% compared to other projects

33.3% ⇒ 37.6% (up 4.3 pt)

Recruitmentcost¥ 320 million ⇒ ¥ 660 million

Ratio of recruitment
cost to net sales

3.5% ⇒ 5.7% (up 2.2 pt)

Data Section

Number of new
graduates

Sales

GovernanceMedium-Term Business Plan Correlation Diagram of Earnings and Sales Targets

Training

Sustainability• Utilize workers of retirement age, women,
and foreign workers (overseas students)
as personnel.
• Utilize and organize partner companies(set up a contracting system).

Recruitment

Growth Strategy• Develop strategies for each segment(recruitment – education – assignment– system).
• Establish approaches to markets bysegment.
• Explore and seek new specialist fieldsof technology.

Build an internal system ofrecruitment, training,and sales with carbon
neutrality as a main pillar ofour business activities

Our Recruitment, Training, and Sales Efforts with an Eye to Carbon Neutrality

Value Creation Story

Basic
MeasureAim for further
development
and market
penetration

Management Message

Build a foundation forsustainable andnext-generation growth

Participation by our engineers in development projects
related to electric vehicles (EVs) that do not emit CO2
when driven, fuel cell vehicles (FCVs),
infrastructure (charging infrastructure, hydrogen stations),
automated driving, semiconductors, etc.

For our major
customers in theautomotive
industry, etc.

Introduction

Basic
Policy12.9% ⇒ 14.0% (up 1.1 pt)■ Payout ratio 50% or more
Artner Co., Ltd. Annual Report 2024

28

Sustainability

Sustainability Management
Basic Policy

Governance
Artner sees sustainability issues, including social andevaluating progress toward these targets, deliberating on

well as their impact on our business management, we haveenvironmental issues such as the recent SDGs and ESG, as key

individual measures, and reporting to the Board of Directors.

based on our management philosophy of being an “Engineer

identified eight materiality topics (material issues) that should bemanagement issues, and has established the Sustainability

The Committee, chaired by the President and CEO, is

Support Company that supports our engineers’ dreams,” while

prioritized and are engaging in effective management practices

Committee to serve as a structure to promote sustainability

composed mainly of Directors who are not members of theseeking to maximize enterprise value, contribute to theand business activities to resolve these issues.

management. Under the direct supervision of the Board ofAudit and Supervisory Committee, Directors who are members

resolution of social issues through our business activities, andTo ensure that our sustainability initiatives are accessible to all

Directors, the Committee is responsible for establishingof the Audit and Supervisory Committee, and division heads

build a foundation for sustainable growth and growth for the

stakeholders, we provide information in our Annual Report, on

sustainability policies, targets, and action plans, managing andand managers, and is held four times a year.

next generation. Based on this approach, we have establishedour sustainability website, and through other means.

the following Basic Sustainability Policy as well as a humanManagement Message

addition, considering stakeholder interests and social issues, as

to support the growth and self-actualization of our engineers

Introduction

Artner’s basic approach to promoting sustainability activities is< Structure for Promoting Sustainability >rights policy, procurement policy, and other policies to clarify
the principles and direction of our corporate activities. In

Board of Directors< Basic Sustainability Policy >To foster engineers to support manufacturing industries.

Employee happiness

To provide a workplace environment that makes the work of all employees meaningful andfulfilling.

Corporate governanceTo sustain and develop positive relationships with all stakeholders, while strictly abiding by all
applicable laws and regulations.

Contributing to society

To make a positive contribution to society through business, to help build a better and more
prosperous world.

Basic policy

Environmental

Related SDGs

ReportCompliance andRisk Management Meeting

Sustainability Committee
ReportReportCorporate
Planning and Management
Strategy
Division
Division

Measures
Providing personnel for technical development of eco cars

InquiryEngineerBusiness
Division

Technology
Engineer Agency
Development
Business Division
Division

Growth Strategy

ESG

Inquiry

Value Creation Story

ReportCultivating people

Providing personnel to support technical development of
medical equipment

Strategy

Indicators and Targets

Helping employees to upgrade their skills through training
and education

Considering stakeholder interests and social issues, as well as

We have categorized the eight materiality topics (material

New employee training to support career development

their impact on our business management, we have identified

issues) into three areas (Environment, Social, and Governance),eight materiality topics (material issues) that should be

and set and monitor KPIs and targets for each issue. Theseprioritized. Based on our understanding of the importance of theindicators and targets are deliberated on and evaluated by themateriality topics we have identified, we will engage in effective

Sustainability Committee, then reported to the Board ofmanagement practices and business activities to resolve these

Directors by the President and CEO, who chairs theissues.

Sustainability Committee. We review these materiality topics

Support system for earning qualifications
Mental health care for employees

SocialEmployeehappiness

Diversity and LGBTQ+ initiatives

Artner Co., Ltd. Annual Report 2024

the business environment and awareness of the issues.

In addition to clarifying the system for the overall managementof various risks, we classify and define each business risk by*For materiality (material issues) KPIs, targets, and results, seetype and have the department in charge of each type of risk

“Non-financial Data (KPIs, Targets, and Results)” on pages 61

Ensuring diversity and equal opportunity in employment

monitor and analyze the risk situation. We also have a system inand 62.

Contributing to society

Initiatives to clean public spaces

Corporate
governance

Elimination of anti-social forces and measures to combat
organized crime groups

place for the overall management of various types of risks
through the Compliance and Risk Management Meeting, where
Data Section

29(material issues), indicators, and targets as necessary, based on

Establishing a diversity promotion office

Active hiring of people with disabilities

GovernanceRisk Management

GovernanceImproving the employment environment to promote active
participation of women

Sustainability

Cultivating
peopleProgramming classes for elementary school students

we clarify and monitor the management and countermeasuresfor each type of risk.

Artner Co., Ltd. Annual Report 2024

30

Sustainability

Climate Change (Information Disclosure Based on TCFD Recommendations)
We disclose information in accordance with the recommendations publishedby the Task Force on Climate-related Financial Disclosures(TCFD) of the Financial Stability Board (FSB).

<Our Response to Risks and Opportunities>

Basic Policy<Timeframe> Short-term: Impact is apparent in less than 3 years; Medium-term: Impact is apparent in 3 years to less than 10 years (up to around 2030); Long-term: Impact isapparent in 10 years or later<Evaluation> Based on financial impact - Large: Impact is clearly large; Medium: Degree of impact is unknown; Small: Impact is clearly small; Gray: Assumed to have no impact

made carbon neutrality a pillar of our business activities in our
new Medium-Term Business Plan (FY2023–FY2025). We will
neutrality, such as electric vehicle (EV), fuel cell vehicle (FCV),
automated driving, and semiconductor-related markets, and will
focus on recruitment, education, and sales for these markets.
Moreover, by having our engineers participate in carbon
neutrality-related technology development projects such asthese, we will advance the development of these technologies
and support their widespread use in the market, thereby
we announced our support for the recommendations from the
TCFD. We will disclose information in a manner consistent withthe recommendations published by the TCFD, with the aim ofachieving a sustainable society.

Governance
As we have rated climate change as a high-priority issue, we

initiatives based on the recommendations from the TCFD, is an
important managerial agenda.

Risk Management

Technology

At the Compliance and Risk Management Meeting, we identify
risks that need to be addressed among various risks such as
climate change, set priorities for responding to such risks, andA low-carbon society may be promoted,
which will lead to an increase in the demandfor products using low-carbon technologies.
In such a case, our sales may increase due toan increased demand for the dispatch ofengineers to our existing clients and newclients.

manage progress on an ongoing basis. The topics discussed in
the Meeting are reported and submitted to the Board of
Directors, which then deliberates and makes decisions on such
topics.

Indicators and Targets
We calculate our greenhouse gas (GHG) emissions as shown
below.

Transition(1.5°C and
2℃
scenarios)

AcuteIntensifying
extremeweather
events(typhoons,
torrential
rains,
landslides,
storm surges,
etc.)

If our clients are adversely affected byincreased natural disasters causing operation
downtime, etc., our sales may decrease due
to reduced demand for engineers as a resultof R&D budget cutbacks.
Also, in the event that our offices and training
facilities are affected by such disasters, costs
for recovery and relocation may be incurred.

Our goal for FY2051 is to achieve net zero GHG emissions.
(Reduce CO2 emissions by 22.6t by FY2025, compared withFY2021 levels)

the Board of Directors, and reports and submits the topics it
discusses to the Board, which then deliberates and makes
decisions on them. The content of such discussions will beGreenhouse gas (GHG) emissions (Scope 1 and Scope 2)
TargetDescription

Unit: tCO2

Result

FY2051 FY2025 FY2021 FY2022 FY2023 FY2024

disclosed externally and reflected in the Company’s management policies and various initiatives.
The main members of the Committee consist of Directors who
are not members of the Audit and Supervisory Committee(including the President and CEO), Directors who are Audit andSupervisory Committee members, as well as division heads andmanagers. The Committee is held four times a year. The Com-

Scope 1

26.1

Use of fuel for
rental cars

Scope 2
Use of electricity at
our locations

Net
zero

86.0

18.0

11.4

7.5

82.5

79.3

79.9

91.2

108.6

97.3

91.3

98.7

mittee promotes and manages the status of sustainability issues
and initiatives, including those related to climate change.

Total

Board of Directors. The Board then deliberates and adopts theresolutions on important risks and opportunities related to31

Artner Co., Ltd. Annual Report 2024

Physical
impact(4℃
scenario)*Scope 3 emissions are currently being calculated.

Chronic

Increasedaveragetemperature

Rising average temperatures will increase theuse of air conditioning, which may increase
costs at all our business and training facilities.

−

If rising outdoor temperatures increase theneed for safer and more comfortable indoor
temperatures, the manufacturers’ demand fordeveloping HVAC equipment will increase,which may result in an increased demand forthe dispatching of our engineers andincreased sales.

Disclosed in
Medium-TermBusiness Plan
Participate in
the automotive
industry,etc., our main
customers

Disclosed in
Medium-TermBusiness Plan

Capture demand
for the development of low-carbon products
such as EVs andother low-carbon
vehicles, as wellas energy-saving
and renewableenergy equipment, etc.

Participate in
the automotive
industry,etc., our main
customers

Disclosed in
Medium-TermBusiness Plan
Participate in
the automotive
industry,etc., our main
customers

DisasterPrevention
ManualDisclosed in
Medium-TermBusiness Plan
Participation in
the automotive
industry, etc.,
for major
customers

Contribute to thedevelopment ofcustomers’
low-carbon
products bydispatchingengineers with
low-carbon skills
Acquire new clientsby strengthening
the low-carbon
skillsets of ourengineers
Formulatea BCP inpreparation for the
potential
occurrence of
naturaldisasters−−

Respondto thegrowingdemandfor thedevelopment of air
conditioning
products

Artner Co., Ltd. Annual Report 2024

Data Section

The topics deliberated in the Committee are reported to the

As the entire supply chain of the automotive
industry is making an effort to reduce
emissions, if we become recognized as aleader in addressing climate change issues,
this could lead to increased sales.

L a rg e

climate change. This Committee is established directly under

S ma l lcommittee for discussing sustainability-related issues including

L a rg e

have established the Sustainability Committee as a special

ExamplesExamples ofof ourour activities to
response toachieverisks
opportunities

Governance

Reputation

Change inreputationfromcustomers

The momentum for decarbonization is
growing throughout the supply chain. Clients
may require their suppliers to reduce
emissions and disclose relevant information.
In particular, the automotive industry, which
accounts for a major part of our customer
base, is making much progress in this area
than other industries. If our efforts are deemed
insufficient, there is a risk that our reputation
will be damaged, leading to a decrease insales. In addition, significant costs may berequired to address these issues.

MarketOngoingefforts

Sustainability

Change indemand forimportantproducts

Our main customers are in the automotive
industry, which requires us to provide
engineers who can develop products related
to low-carbon technologies. If we are slower
than our competitors to respond to thesetechnologies, our engineers’ skills may beconsidered obsolete and the demand for the
dispatch of engineers may shrink, resulting indecreased sales.
If new technologies need to be incorporated,costs for information gathering and training
may increase.

Since the Company’s main customers belong to theautomotive industry, actively attracting engineers
who can deal with the design and development
processes that support the shift to zero-emission
vehicles (ZEVs) may lead to increased demand forthe dispatch of engineers, which could result inhigher sales.
The advancement of low-carbon technologies has
accelerated the speed of development of the
low-carbon business. Enhancing our recruitment andtraining systems as well as our services to meet theincreasing number of requests from clients could
lead to increased sales.
If extreme weather conditions increase, along with arising demand for seasonal products such as air
conditioning products that can deal with higher/lower
outdoor temperatures, this may lead to the
manufacturers’ increased demand for the development of HVAC equipment, resulting in growing
demands for the dispatching of engineers andincreased sales.

Evaluation(opportunities)

Advances in
low-carbon
technologies

Our main customers are in the automotive
industry, which requires us to provide
engineers who can develop products related
to low-carbon technologies. If we are slower
than our competitors to respond to thesetechnologies, our engineers’ skills may beconsidered obsolete and the demand for the
dispatch of engineers may shrink, resulting indecreased sales.
If new technologies need to be incorporated,costs for information gathering and training
may increase.

scale, we believe that dealing with social issues, such as

Consideration: opportunities

Growth Strategy

contributing to the realization of carbon neutrality. In July 2022,

Consideration: risks

Value Creation Story

continue to strategically prioritize markets linked to carbon

Smallcategory

L argeregard addressing climate change as a material issue and have

Mediumcategory

Med i u m

become an important item on the management agenda. We

Large
category

Re s p o n s e

L arg eAs our social environment continues to change on a global

B usiness impact

L arg einitiatives based on the recommendations of the TCFD, has

B usiness impact

Me d i um

Strategy

Evaluation(risks)R isk item

on a global scale, and addressing social issues, such as

Management Message

and supervises the progress of such initiatives.

L argeclimate change, gives instructions on how to deal with them,

Introduction

In recent years, our social environment has continued to change

Artner conducts scenario analysis by identifying key risks and opportunities related to climate change and carrying out qualitative
assessments of their impacts. We included our main business area of engineer dispatching while using two scenarios (4°C scenario andcombined 1.5°C and 2°C scenarios) to examine the impact of climate change in the year 2030. We extracted risks and opportunities, andthe degree of impact on our business activities was evaluated on a three-point scale of large, medium, and small.
Regarding the financial impact of climate change on our business, we consider the risk of climate change to be low, as we are primarily
engaged in engineer dispatching services in Japan and do not need to own production facilities or other equipment.

32

Sustainability

Human Capital

Health and Productivity Management / Occupational Health and Safety

Basic Policy
Artner’s Management Philosophy is “Engineer Support Company:

and Productivity Management Promotion Office to plan, oper-

the promotion of diversity and inclusion, and talent development

Based on Artner’s management philosophy of being an Engi-

We support our engineers’ dreams,” and our Purpose is toate, and promote different initiatives.

and retention.

neer Support Company, we at Artner believe that ensuring the“support the growth and self-actualization of engineers, who are
Japan’s world-class assets.” As they embody, we have promoted
our business as a corporation that exists for the sake of engineers’ growth while always asking ourselves what we can do forthem. We believe that creating value for the engineers themtalent is our greatest business asset, and that talent development and organizational development are key areas essential to
the Company’s growth.

We believe that supporting the growth and self-actualization ofengineers, who are Japan’s world-class assets, and creating
value for the engineers themselves will, in turn, create value for
Artner. We consider our engineers to be not only assets ofArtner, but also shared assets of Japan, and we nurture

mainly of Directors who are not members of the Audit andSupervisory Committee (including the President and CEO),
Directors who are Audit and Supervisory Committee members,
as well as division heads and managers. The Committee is held
four times a year. At each meeting, the members holdand the happiness of all the employees, we declare that we will
employee can work vigorously and in good mental and physicalhealth.

Health and Productivity Management Promotion Office
Management Division(General Affairs and Human Resources Group)

Organization

Amid a rapidly changing work environment and mindset, driven

The Director/Head of the Management Division will serve as thehappiness of working engineers and create a new model for “lifeas an engineer.”
We are also committed to providing a satisfying work
environment and supporting the growth and self-actualization of

employees.”

Health and Safety
Committee

overall supervisor and the Management Division’s General
Affairs and Human Resources Group will function as the Health

KPI

TargetPeriodic health checkup, consultation rate

76.5%

85.2%

85.7%

100.0%

100.0%

100.0%

100.0%

75.0%

−

69.9%

71.1%

100.0%

−

92.3%

92.1%

Average age−

30.2 years old

30.3 years old

30.4 years old

Average years of service−

6.3 years

6.5 years

6.6 years

0.00%

0.68%

1.17%

0.98%

their progress. Risks that may have a significant impact on

health-related initiatives. The Board of Directors oversees

investors’ decisions include the following.

Improving productivity (eliminating presenteeism): Assessment of work-related functionality

Annual paid leave, acquisition rate (engineers)
Improving health literacy (through training), attendance rate
*1

Absenteeism: Absence rate

We hope to resonate with job seekers by highlighting our recruitment method (we hire talent who
meet the requirements of their intended destination, provide them with education and training as
engineers, and only then assign them to projects), as well as the fact that Artner is a job-based
employment company that emphasizes their skills and they will be able to quickly advance theircareers while gaining experience in a variety of projects. By acquiring and training outstanding
talent, we can expect to maintain and strengthen a stable earnings base.

33

according to changes in the external environment and ourPercentage that received health and safety training, attendance rate
Percentage of employees who have received training on diseases unique to womenWork engagement score*2

10

6

0.0%

0.0%

0.0%

0.00 hours

76.00 hours

34.17 hours

52.50 hours

100.0%

100.0%

100.0%

100.0%

100.0%

−

−

87.8%

2.7

−

−

2.6

*1 Measurement method: Wfun (a survey developed by University of Occupational and Environmental Health, Japan to measure the extent of work-related functional impairment
caused by health issues)*2 Measurement method: New Brief Job Stress Questionnaire (work engagement is a state where employees feel vigor, dedication, and absorption toward their work)

Mental Health Care for Employees
To support the mental and physical health of our employees, we
provide them with mental health care from professional counselors, thereby helping in the prevention and early detection ofmental health issues.

the ability of our employees to work in good health and withpeace of mind will result in the well-being of all the employees
and reflection within the company, we promote employee healthmanagement and health promotion initiatives.

Occupational Health and Safety

Risks Related to Potential Hazards
Involved in Labor

By considering the occupational health and safety of our

We strive to prevent accidents and reduce the risk of accidents

The Company has established indicators and targets to evaluate

progress made on human capital measures.

employees, Artner strives to enhance enterprise value andoccurring by providing health and safety education for employ-the effectiveness of human capital initiatives in line with our*For human capital KPIs, targets, and results, see “Non-Finan-create an organization where all the employees can work safely

ees when they join the company and when they are assigned toMedium-Term Business Plan. The targets we set are reviewed

cial Data (KPIs, Targets, and Results)” on pages 61 and 62.

and with peace of mind. In addition, because we believe thatclients.

Artner Co., Ltd. Annual Report 2024

Artner Co., Ltd. Annual Report 2024

Data Section

Indicators and Targets

Downtime due to occupational accidents

3

0.0%

Governance

Securing career
engineers

We consider engineers with work experience to be an
important managerial resource. There is a risk that thecompetition to secure career hires may intensify due to ashortage of engineers who wish to change jobs as aresult of booming design and development activities in
the manufacturing industry, making it significantly moredifficult to hire talented career engineers.

Occupational accident-related fatality rate

None

Sustainability

Number of occupational accidents

Growth Strategy

80.0% or more

Promotion Office to plan, operate, and promote different

We hope to resonate with students by highlighting our recruitment method (we hire talent who
meet the requirements of their intended destination, provide them with education and training as
engineers, and only then assign them to projects), as well as the fact that Artner is a job-based
employment company that emphasizes their skills and they will be able to quickly advance theircareers while gaining experience in a variety of projects. By acquiring and training outstanding
talent, we can expect to maintain and strengthen a stable earnings base.

100.0%
84.9%

identifies human capital risks and Opportunities and monitors

We consider science and engineering graduates to be an
important managerial resource. There is a risk that the
population of science and engineering graduates may
decrease due to the declining birth rate and otherfactors, making it significantly more difficult to hire
talented graduates.

100.0%

82.6%

BMI below 25, ratio

Securing scienceand engineering
graduates

100.0%

85.0%

At Artner, the Compliance and Risk Management Meeting

If engineers’ skills improvement raises client satisfaction and client ratings, the unit price ofengineers may increase and our competitiveness in the industry may elevate, creating
opportunities for corporate growth.

100.0%

78.9%

Group functions as the Health and Productivity Management

Effectiveness ofeducation andtraining

FY202476.5%

Management Division’s General Affairs and Human Resources

There is a risk that the training does not turn out to be aseffective as expected and the unit price of engineers
does not increase due to low client satisfaction, as wellas the risk that we fail to satisfy the requests fromclients, and they start to make complaints.

FY2023

82.8%

Risk Management

Opportunity

FY2022100.0%

Annual paid leave, acquisition rate (overall)Management Division serves as the overall supervisor and the

Risk

Health insurance
societies

80.0% or moreStress check, consultation rate

sustainability matters, including occupational health and safety,

Industrial
physicians

Health Management Results

each and every one of our staff members, as stated in our basic
sustainability policy: “aiming for the happiness of all

Chief Health Officer
Head of the Management Division

work to create a workplace environment where each and every

self-actualization based on our policy on talent development.

discussions to promote and manage the progress of issues andinitiatives related to human capital. The Director/Head of theUnder our mission to promote human resource development

Value Creation Story

the value of our human capital. The Committee is composed

the Sustainability Committee meeting.

reflection within the company.

by talent mobility and diversity, we will strive to promote theArtner has established a Sustainability Committee to maximize

and health insurance societies, and report on the progress at

result in achieving the happiness of all the employees andengineers as a platform to support their growth andGovernancewith the Health and Safety Committee, industrial physicians,

Management Message

selves will, in turn, create value for Artner. We also believe that

In promoting the initiatives, these stakeholders will collaborate

health and peace of mind of employees at work will eventually

Strategy

Introduction

Declaration for Health and Productivity Managementand deliberates on key issues such as respect for human rights,

34

Sustainability

Talent Development

Improving the Employment Environment toPromote Active Participation of Women
active participation of women and permits employees toachieve a better work-life balance, Artner has formulated a
General Employers Action Plan, based on the Act on Promotionof Women’s Participation and Advancement in the Workplace
and the Act on Advancement of Measures to Support Raising

Education and Training Policyby all employees.

Establishing a Diversity Promotion Office
In September 2011, Artner set up a Diversity Promotion Officealso with confidence and practical capabilities.

(now Diversity Team), centered around people with disabilities.

T-shaped Specialist Education System

In addition to promoting the employment of people with disabili-

We are building a “T-shaped specialist education system,” aties, we also aim to create a workplace that enables all employ-

Active Hiring of People with Disabilities

work skills, and the vertical axis represents general education

Artner actively hires people with disabilities. In 2018, Artner was

strive to enable new employees and workers with little or nowhich the horizontal axis represents specialized knowledge andofficially recognized by Osaka Prefecture for its outstanding

giving all employees the opportunity to demonstrate their fullcompany efforts in support of people with disabilities. (Thispotential lead to innovation and value creation. For this purpose,award is part of the prefecture’s initiatives to actively support

we strive to foster an inclusive company culture, throughthe employment of people with disabilities.)

FY2023and communication capabilities. Through this system, we will

Vertical axis
education

Deepen general educationand communication
capabilities

We provide a wide range of training and support programs to help employees improve their skills and develop their careers.

FY2024

Support for Employee Skill Improvement through
Education and Training

3.7%

4.1%

3.7%

Share of female employees (administration)

Increase on an ongoing basis

31.4%

27.6%

33.8%

Share of female employees (engineers) among new employees

Increase on an ongoing basis

3.0%

6.4%

5.2%

ment seminars, career support courses, and manager training.

Share of female employees (administration)
among new employees

Increase on an ongoing basis

66.7%

27.3%

47.1%

New Employee Training to Support Career Development

Appointment of female employees (engineers)
to managerial positions

3 or more

2

2

2

Appointment of female employees to managerial positions

10 or more

6

10

10

Share of female employees in managerial positions

Increase on an ongoing basis

3.7%

3.4%

3.1%

30.0% or more (FY2031)

0.0%

0.0%

0.0%

1

1

1

Additional appointment of females in positions
one rank below managerial positions as executives

1 or more (FY2029)

None

1

3

Wage difference between male and female employees (overall)

Narrow the difference

Male100.0%: Female92.8%

Male100.0%: Female94.5%

Male100.0%: Female89.2%

Wage difference between male and female employees (engineers)

Narrow the difference

Male100.0%: Female99.2%

Male100.0%: Female96.5%

Male100.0%: Female95.8%

Wage difference between male and female employees (administration)

Narrow the difference

Male100.0%: Female71.0%

Male100.0%: Female71.0%

Male100.0%: Female71.9%

Average years of service of male employees (engineers)

Increase on an ongoing basis

5.91 years

6.15 years

6.50 years

Average years of service of male employees (administration)

Increase on an ongoing basis

10.69 years

10.60 years

10.95 years

Average years of service of female employees (engineers)

Increase on an ongoing basis

3.41 years

3.37 years

4.03 years

Average years of service of female employees (administration)

Increase on an ongoing basis

7.56 years

8.34 years

7.12 years

Number of childcare leave days taken by male employees (average)−

44.0 days

79.5 days

42.5 days

30.0% or more (FY2029)

12.5%

30.8%

50.0%

Usage rate of childcare leave (female employees)

80.0% or more (FY2029)

100.0%

100.0%

66.7%

Usage rate of nursing care leave (male and female employees)

15.0% or more (FY2029)

1.2%

7.4%

13.7%

Share of non-Japanese talents

Recruitment on an ongoing basis

1.4%

1.0%

1.4%

Share of elderly employees (60 years of age and older)

Recruitment on an ongoing basis

1.4%

1.4%

1.3%

Employment rate of employees with disabilities

2.30% or more(legally required employment rate)

2.40% (as of June 1, 2021)

2.42% (as of June 1, 2022)

2.67% (as of June 1, 2023)

We help our engineers improve their skills through our qualification acquisition assistance program, under which we pay
employees who possess qualifications we recommend an allow-

Based on the concept of “acquiring practical skills,” we provide

ance in accordance with our rules, and cover all examinationeach engineer with new employee training that enables them tofees for relevant qualifications.

Skill Development Seminars

Career Support Courses

Seminars are held by inviting lecturers fromvarious fields to help engineers acquire a wide
range of knowledge and develop their humanskills, not limited to specific technical areas.

To meet the skill requirements of the manufacturers
to which our engineers are dispatched, courses fordifferent jobs and career levels are offered.

Around 10 times a year, outside lecturers share technical information

Even after being placed into a department, engineers receive bothon various topics for our engineers’ personal growth. The seminars

on-the-job and off-the-job team training concerning technology andespecially help those with practical experience to develop criteria for

products in high demand, conducted by employees actually

making effective use of their experience.

participating in a manufacturer’s project.
Data Section

Usage rate of childcare leave (male employees)

Qualification Acquisition Assistance Program

Governance

1 or more (FY2029)

ing our education and training programs, including skill develop-

practical applications, to support their career development.

Sustainability

Additional appointment of female employees
to managerial or higher positions

To improve our employees’ skills as engineers, we are enhanc-acquire a wide range of technical skills, from the basics toGrowth Strategy

Increase on an ongoing basis

Artner Co., Ltd. Annual Report 2024

Skill

Training and Support Programs

Share of female employees (engineers)

Share of female executive officers

Expertise

Expand expertise andwork skills

Value Creation Story

At Artner, we believe that promoting workplace diversity and

FY2022

Horizontal axis
educationsystem for improving the skills of each and every engineer, innursing leave utilization.

Targetstage and shift their careers to growing industry fields.

provide all employees not only with knowledge and skills but

ees to feel fulfilled by their work.

KPI

experience to participate in cutting-edge projects at an early

The concept of Artner’s education and training programs is tober of female executives and improve the rate of childcare andDiversity and LGBTQ+ Initiatives

35

Policy on Talent Development

Management Message

Next-Generation Children. We also strive to increase the num-

and activities to promote an understanding of gender equality

Introduction

To help establish an employment environment that enables themeasures such as diversity training, LGBTQ+ study meetings,

Communication

Diversity and Inclusion

Personnel Evaluation System
At Artner, we have established grades (ranks) that represent the job level of each engineer and administrative position, and conduct a fairand impartial annual evaluation based on work performance and other factors for each grade, which is reflected in pay raises.

Artner Co., Ltd. Annual Report 2024

36

Sustainability

Human Rights / Social Contribution
Human Rights Policy

2023

Human rights

make appropriate disclosures.

2022

Diversity measures(promoting understanding of
LGBTQ+)(1) Basics of diversity management (diversity and inclusion management)(2) Basics of LGBTQ+(3) Panel discussion (on personal experiences)

If it becomes known that our business activities caused or

2021

Diversity measures(promoting understanding of
LGBTQ+)(1) Basics of diversity management(2) Basics of LGBTQ+ and SOGI(3) What we can do: specific actions by allies

in line with the United Nations’ Guiding Principles on Busi-

Compact, we recognize that respecting human rights is apreventing and mitigating negative impacts on human rights,

social responsibility that a company must fulfill and establish

continuously assess the effectiveness of our efforts, andthis human rights policy.

7. Remediation and relief

appropriate measures to remedy them.

• International Bill of Human Rights (Universal Declaration of

If it becomes known that our clients caused or facilitated

Human Rights)

negative impacts on human rights, we will urge the clients to• International Labour Organization (ILO) Declaration ontake remedial actions.

Fundamental Principles and Rights at WorkWe will establish a helpline to receive any reports on compli-• Guiding Principles on Business and Human Rights Unitedance violations related to human rights and any inquiries, andNations Global Compact’s Ten Principles across four areas

take steps for relief and remediation upon investigation.

• Children’s Rights and Business Principles

We will ensure the confidentiality and the protection ofThis policy applies to all officers and employees of Artner.
Furthermore, we request all clients affiliated with our businesses and services to understand and support this policy.

personal information of whistleblowers, and will not treat
them disadvantageously based on their reports.

8. Education and training

We will continuously provide appropriate education andArtner recognizes that human rights initiatives are required not
only by the Company, but also by our supply chain. We havetherefore established a procurement policy and will comply withlaws and regulations and respect basic human rights as a
responsible member of society. We share our approach tohuman rights with our suppliers and strive to identify humanrights risks in the supply chain as part of our procurement
process.

policy is integrated into all business activities and is imple-

In all of our business activities• As a responsible member of society, we will comply with laws

mented effectively. In addition, we will share this policy with• We will respect basic human rights without discrimination

and regulations and respect social justice and basic human

all clients affiliated with our businesses and services, andbased on gender, age, place of origin, nationality, race,

hold dialogues and discussions with them on a continuous

ethnicity, creed, religion, disease, disability, and/or otherfactors.
• We will create a healthy work environment, and will not
engage in harassment (workplace bullying, sexual harassment, pregnancy discrimination, or any other form of
be recognized as inhumane by global standards.

• We will strictly manage information that should be kept confidential.

We will appropriately disclose the progress of our initiatives

As a member of the local community, we are involved in com-

We donate to various organizations to contribute to the achieve-

for respecting human rights through our website and othermunity outreach activities such as supporting the education ofment of the SDGs.

means.

the next generation of manufacturing professionals and beauti-

10. Dialogue and discussion with stakeholders
We will carry out continuous dialogues and discussions withinitiatives under this policy, and strive to improve and en-commodations.

hance our initiatives for respecting human rights.

• We will not require employees to undergo medical examinations that are not reasonably and objectively necessary inthe hiring process.

Initiatives
Artner has established a human rights policy in line with theUnited Nations Global Compact, which prohibits forced labor,• We will adhere to the Minimum Wage Act and pay wages

slavery or labor trafficking, and child labor. In addition, we haveexceeding the minimum wage.

established a mechanism for human rights due diligence in line

• We will prohibit unreasonable treatment in accordance with

with the United Nations’ Guiding Principles on Business andthe principle of equal pay for equal work.

Human Rights, and will identify negative impacts on humanrights and work toward preventing and mitigating them, contin-

Our initiatives under this policy will be regularly reported to anduously assess the effectiveness of our efforts, and make appro-

managed by the Compliance and Risk Management Meeting

priate disclosures.

and the Sustainability Committee. The Board of Directors will

There have been zero consultations about discrimination during

be informed of its details and provide supervision.

the current fiscal year.

Programming classes forelementary school students
We run computer programmingclasses led by Artner employees
for children in grades four to six
at local elementary schools. Like
this, we provide opportunities forchildren to learn how to think likea programmer.

Initiatives to clean public spaces
As part of its community service activities, Artner organizes a cleanupof Esaka Park, located near our learning centers in West Japan, and of
Shin-Yokohama Ekimae Park, located near our Tokyo headquarters
and learning centers in East Japan, inviting the participation of all ofour directors, managers, and employees.

Support for areas affectedby the 2024 Noto Peninsula Earthquake
We made donations to the 2024 Noto Peninsula Earthquake Disaster
Relief Fund through the Central Community Chest of Japan.
Our deepest sympathies go out to everyone in the affected areas, andwe sincerely hope for the swiftest possible recovery.

Support for Akai Hane Central
Community Chest of Japan (donations)
We support the Central Community Chest of Japan, an organization
engaged in support and assistance for local social welfare issues
around Japan (e.g., child poverty, hikikomori, elderly support, disabled
support).

Support for the United Nations
World Food Programme (WFP) (donations)
Data Section

rights to withhold such participation.
• We will prohibit forced labor and child labor.

fying the environment.

Governance• We will respect the rights of employees to form and join

Artner Co., Ltd. Annual Report 2024

ment.
• We will strive to use environmentally friendly products.

Donations and Support

relevant internal and external stakeholders regarding our

5. Governancevalue in all aspects of price, quality, safety, and the environ-Regional Contribution

religious practices and document the details of such ac-peaceful assembly of their own volition, as well as theirin our customers’ shoes.
• We will meet customer needs by providing products that offer

basis.

9. Information disclosure• We will make reasonable accommodations for employees’labor unions, to bargain collectively, and to participate in• We will conduct fair transactions and act by putting ourselves

Sustainability

harassment by any name) or any other treatment that would

procure the best and most appropriate resources.

Growth Strategy

Procurement Policy

our business activities

rights.
• We will establish equal and fair business relationships and• We will strive to properly manage documents and information.

training to all officers and employees to ensure that this

4. Initiatives to ensure human rights are respected in

37

Supply Chain Management

Value Creation Story

facilitated negative impacts on human rights, we will takerights norms:(4) Human rights risks(5) Human rights fields that companies should respect(6) Main impacts of adequate/inadequate human rights efforts(7) Artner's human rights policy

Management Message

We support and respect the following international human

3. Scope

Description(1) What are human rights?
(2) Increasing attention on how companies are
addressing human rights(3) Subjects (rights holders) whom companies
should respect

ness and Human Rights. We will identify and work toward

complies with

Training theme

We will establish a mechanism for human rights due diligence

As a company that supports the United Nations Global

2. Key international human rights norms that this policy< Human Rights Training >Introduction

1. Basic view on human rights

6. Human rights due diligence

Artner endorses and donates to support the activities of the United
Nations World Food Programme (WFP), which delivers food support in
83 countries and school meal support in more than 30 countries
around the world, to save children in poverty from starvation and tohelp children grow up in good health. The UNWFP also works topromote school attendance and expand educational opportunities forchildren.

Artner Co., Ltd. Annual Report 2024

38

Sustainability

Stakeholder Engagement

Outside Evaluation

Stakeholder Engagement

Participation in Initiatives

To ensure that our company runs sustainably, it is important that we hold dialogues with stakeholders and integrate their expectations andstakeholder perspectives into our corporate management.

United Nations Global Compact
Artner signed the “United Nations Global Compact”(hereinafter UNGC) proposed by the United Nations andClients

was registered as a business participant on January 16,

Partners

2024. In addition, Artner joined the “Global Compact
Network Japan,” which comprises Japanese UNGC

Artnerdate.

Employees

highly motivated engineers that live up to

Clients

the trust of our clients and grow together,building on dialogues with clients indiverse industries as their trusted technicalpartner.

ed Financial Disclosures (TCFD), and has rated climatechange as a high-priority issue. With an aim to achievea more sustainable society, we are committed to taking
necessary actions and initiatives based on the environmental activity policy.

Shareholders

Approach

We will become a group of ambitious andrecommendations from the Task Force on Climate-relat-

Engagement

Frequency

Values provided

Regularly
Any time●Placement ofengineers withhigh added
value●Information provision through our Annual
Report, IR Reports, and official website●Dialogues and hearings with clients●Talent education and training●Job change assistance program

Value Creation Story

Stakeholder

In July 2022, Artner announced its support for theManagement Message

signatory companies and organizations, on the same

The Task Force on Climate-related
Financial Disclosures (TCFD)

Introduction

demands into our business strategy and activities. While creating more opportunities for communication, we will strive to further reflect

External Evaluation
CDP

S&P/JPX Carbon Efficient Index

Artner received a “B-” score, the fourth highest score

Artner has been selected as a constituent of the S&P/

among eight scores (A, A-, B, B-, C, C-, D, D-), based

JPX Carbon Efficient Index.
Growth Strategy

on data reported through CDP’s Climate Change 2023
Questionnaire.
●Information provision through our Annual

CDP is an international environmental NGO established

Report, IR Reports, and official website

Partners

We will aim to build good partnerships●Dialogues using online conferencing tools

based on mutual trust through equitable●Improve energy efficiency and reduceand fair transactions.

energy usage

in 2000 in the United Kingdom. It runs the global discloRegularly
Any time●Co-creation ofvalue

sure system for investors, companies, states, regions,and cities to manage their environmental impacts, andassesses companies’ actions toward making a positive●Contribute to carbon neutrality throughenvironmental impact. Artner received a “B-” score,business activities

environmental management. It exceeds the average “C”
score received by companies in Asia and companies in●Provision of skill development
opportunities through training andWe will aim for the happiness of all
employees and reflection within the

Employees

company, believing that talent is ourgreatest business asset, and that talentdevelopment and organizational
Company's growth.

●Employee Stock Ownership Association●Health and productivity management●Mental health care
●Labor union●Social gatherings

Regularly
Any time●Happiness of
all the employees andreflection within the company●Retention of
employment●A range of salary systems●Limited area system●Internal recruitment program

Artner was recognized for the second consecutive year
as one of the Certified Health and Productivity Management Outstanding Organizations (2024, large enterprise
category) under the Certified Health and Productivity
Management Outstanding Organizations Recognition
Program, operated by the Ministry of Economy, Tradeand Industry and the Nippon Kenko Kaigi.
The recognition program recognizes corporations,

Governancedevelopment are key areas essential to thethe IT and software development sector.

seminars

Sustainability

which indicates that the Company demonstrates

Certified Health and Productivity
Management Outstanding Organizations

including large companies and small- and medium-sized enterprises, that practice particularly excellent
health and productivity management, based on their●Job change assistance program

efforts to address local health issues and cooperatewith the health initiatives conducted by Nippon Kenko

Artner's No.1 business challenge is
steadily improving shareholder value overbusiness and ensuring profitability, we will
aim to build trustful relationships throughfaithful and fair information disclosuresand active communication.

39

Artner Co., Ltd. Annual Report 2024

Kaigi.

●Briefing for analysts and institutional
investors●Briefing for individual investors●Information provision through our Annual
Report, IR Reports, and official website●One-on-one meetings

Regularly
Any time●Sustainablegrowth●Profit
distribution

Artner has been promoting health and productivity
management based on its declaration, and its efforts

Data Section

Shareholders

the long term. In addition to expanding our●General Meeting of Shareholders

have been recognized by external organizations.

●Inquiry form and telephone

Artner Co., Ltd. Annual Report 202440

GovernanceCorporate Governance
Basic Views

Overview of the Current Corporate Governance System
The Company has in place the Audit and Supervisory Committee, and has five Directors who are not members of the Audit andensuring profitability, we want to grow as a “technical partner” together with our client companies in various industries, as a collective ofSupervisory Committee and three Directors who are members of it.

Introduction

Artner’s No.1 business challenge is steadily improving shareholder value over the long term. So in addition to expanding our business andengineers focused on developing more and more advanced levels of technical expertise. At the same time, with a constant awareness of whatsociety needs most, and a desire to create a demand for it, we strive for business efficiency and soundness to help in the sustainable
development of the Company.

regulations, we strive to sustain and develop favorable relationships with shareholders, with our local community, with all of our clientcompanies, and with all employees.

Audit and Supervisory Committee

The Board of Directors is comprised of eight Directors,

The Audit and Supervisory Committee is comprised offive of whom are not members of the Audit and Supervisory Committee and three who are members of theCommittee.

We are committed to further strengthening our internal control and risk management efforts through the application of business

The Board meets twice a month: at a mid-month

management systems (including internal control systems) to enable flexible adaptation to changes in the business environment. In thisbusiness report board meeting, the members

way, we will constantly improve our business management. Artner also will promptly disclose relevant information both inside and outside

deliberate on the Company’s monthly business

the Company and enhance business transparency.

performance; and at a regular month-end board

Directors who are members of the Committee also
attend board meetings and other important internal
meetings. The Committee provides impartial andindependent oversight of the Company’s corporate
management, based on the audit standards as wellas the audit policy and plans established by theCommittee.

Value Creation Story

meeting, they deliberate and decide on matters

three Outside Directors and meets twice a month.

Management Message

At Artner, we are highly conscious of our social responsibility as a company, so in addition to strictly observing all applicable laws andBoard of Directors

relating to the Company’s management plan, as
well as significant matters relating to day-do-day

Company Organization and Internal Control Systembusiness operations.

Compliance andRisk Management Meeting

General Meeting of Shareholders

Appointment /Dismissal

Audit /
Supervision

Inquiry

ReportInquiry

ReportInquiry

President and CEO

ReportCompliance andRisk Management
Meeting

Corporate Planning
andStrategy Division

Nomination
andRemuneration
Committee
ReportReportManagement
Division

Engineer Business
Divisionment Meetings once a month, attended by the President

sory Committee who are Outside Directors, and will be

and CEO and other Directors who are not members ofheld at least four times a year.

Collaboration

Engineer Agency
Divisionactions to ensure that all officers and employees of
Articles of Incorporation, and draw up the Risk
Management Guidelines.

Accounts
Audit
Collaboration

Internal Audit

Technology
Development
DivisonIn these meetings, members discuss policies andthe Company abide by laws and the Company’s

Directions /Commands

Internal Audit
OfficeInstructions

Audit andSupervisory
Committee

department heads.

External
Accounting
AuditorConsultation

Consultation /Advicereport to the Board of Directors on the appointment/dismissal and remuneration of Directors inorder to enhance the fairness and objectivity of thedecision-making process of nominating anddetermining the remuneration of Directors as wellas enhancing corporate governance.

Sustainability Committee

External Accounting Auditor

The Company convenes the Sustainability Committee

The Company employs KPMG AZSA LLC as its ac-

four times a year, attended by the President and CEO
and other Directors who are not members of the Audit
and Supervisory Committee, Directors who are mem-

Legal Advisors

The Nomination and Remuneration Committee willbers of the Committee, and division and department
heads.
The members hold discussions to promote andcounting auditor.

Governance

ReportSustainability
Committee

and CEO and three members of the Audit and Supervi-

Sustainability

Reportis composed of four members including the President

The Company convenes Compliance and Risk Manage-

are members of the Committee, and division and
Selection /Discharge

by a member of the Audit and Supervisory Committee,

the Audit and Supervisory Committee, Directors who

Board of Directors
Audit

The Nomination and Remuneration Committee, chaired

Growth Strategy

Appointment /Dismissal

Appointment / Dismissal

Nomination andRemuneration Committee

The Company has no conflict of interest with theaccounting firm or with the firm’s managing partners who conduct accounting audits of the Company.

manage the progress of issues and initiatives

41

Artner Co., Ltd. Annual Report 2024

Data Section

related to sustainability.

Artner Co., Ltd. Annual Report 2024

42

Governance

Activities of the Board of Directors and Committees (FY2024)

Policy and Process for Appointment or Removal of Director Candidates Who Are Not
Members of the Audit and Supervisory Committee
Introduction

The Nomination and Remuneration Committee deliberates and reports to the Board of Directors on director candidates who are< Attendance >not members of the Audit and Supervisory Committee after an extensive scrutiny of their knowledge, experience, and ability
Board of Directors

Compliance andRisk Management
Meeting

Sustainability
Committee

Nomination andRemuneration
Committee

Audit and Supervisory
Committee

SEKIGUCHI
Sozo

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate)

Director

HARIGAE
Tomonori

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate)

Director

OKUSAKA
Kazuya30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate)

Director

SATO
So

29 out of 30 meetings(97% attendance rate)

Director

EGAMI
Yoji

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate)

Outside Director andstanding member of the
Audit and Supervisory
Committee

NOMURA
Ryuichiro

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings
26 out of 26 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate)

Outside Director andmember of the Audit andSupervisory Committee

TERAMURA
Yasuhiko

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings
26 out of 26 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate)

Outside Director andmember of the Audit andSupervisory Committee

MORII
Shinichiro

30 out of 30 meetings
12 out of 12 meetings
4 out of 4 meetings
26 out of 26 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate) (100% attendance rate)

4 out of 4 meetings(100% attendance rate)

12 out of 12 meetings
4 out of 4 meetings(100% attendance rate) (100% attendance rate)

director candidates.

Policy and Process for Appointment or Removal of Director Candidates Who Are
Members of the Audit and Supervisory Committee
The Nomination and Remuneration Committee deliberates and reports to the Board of Directors on director candidates who aremembers of the Audit and Supervisory Committee after an extensive scrutiny of their experience, expertise in corporate financing
and accounting, practical knowledge on the Company´s businesses, and general knowledge on corporate management necessary to audit and oversee the performance of duties by directors who are not members of the Audit and Supervisory Committee.
The Board of Directors then nominates the director candidates.

Appointment or Removal of the President and CEO
The Board of Directors, which includes three Outside Directors who are members of the Audit and Supervisory Committee,
deliberates on the appointment or removal of the President and CEO from office when such need arises, based on the businessperformance of the Company as well as the job performance of the President and CEO.
Regarding future CEO appointments and dismissals, the Nomination and Remuneration Committee, a voluntary advisory board
composed of a majority of Independent Directors, shall deliberate and report to the Board of Directors, thereby establishing a
structure with high fairness, transparency, and objectivity under appropriate supervision from the Board of Directors.

Growth Strategy

President and CEO

necessary to manage the Company´s business divisions and day-to-day operations. The Board of Directors then nominates theValue Creation Story

Name

Management Message

Position

Succession Plan
The Company recognizes that it is critically important to have in place a succession plan for the President and CEO and other< Discussion and Resolution Themes >Discussions and Resolutions

Discussions

Compliance andRisk Management Meeting

Nomination andRemuneration
Committee

43

Artner Co., Ltd. Annual Report 2024

Policies and goals related to sustainability, including social and environmental issues such as the SDGs and ESG /Formulation of an action plan / Management and evaluation of progress toward goals / Individual measures, etc.

Regarding future nominations of successors to the President and CEO, and other members of the Executive Team, the voluntarily
established Nomination and Remuneration Committee, composed of a majority of Independent Directors, shall deliberate andmake recommendations to the Board of Directors, thereby establishing a structure with high fairness, transparency andobjectivity under appropriate supervision from the Board of Directors.

Appointment or Removal of Executive Team Members
The Board of Directors makes a decision upon deliberation of the job performance of the member and other factors.

Status of Outside Directors
The Company has three outside directors, all of whom hold shares of the Company. Apart from this shareholding position, none

Discussionsof the three outside directors have any vested interests in the Company, including personal, capital, or business relationships.

Audit policy, audit plan, audit methods, assignment of audit duties, etc. / Appointment and dismissal of Accounting Auditor(s) /Appointment, dismissal, and remuneration of directors who are not members of the Audit and Supervisory Committee, etc.

viewpoint, and we believe that the current system satisfactorily fulfills its management monitoring and advisory func-

Discussions
Appointment and dismissal of directors / Selection and discharge of the President and CEO / Selection and discharge of representative directors / Remuneration, etc., of directors who are not members of the Audit and Supervisory Committee / Remuneration
limits for directors and directors who are members of the Audit and Supervisory Committee / Succession planning (including
successor development), etc.

Each outside director plays a role in ensuring that highly effective audits are conducted, from an objective and neutral
tions. The three outside directors are designated as independent directors as defined by the Tokyo Stock Exchange andData Section

Audit andSupervisory
Committee

Discussions

administrative functions that support the Company´s engineer placement business.

Governance

Sustainability
Committee

Performance trends in the manufacturing industry / Competition with other companies in the industry / Effectiveness of educationand training / Securing suitable clients for our dispatching business / Regulations on total work person-hours / Securing scienceand engineering graduates / Securing career engineers / Information management / Laws, regulations, licenses, and permits /Disasters, accidents, etc. / Climate change / M&A / Medium-Term Business Plan, etc.

qualified candidates after an extensive scrutiny of their experience, knowledge, and expertise in recruiting, training, sales, andSustainability

Board ofDirectors

General Meeting of Shareholders / Policy for the Mid-Term Business Plan / Corporate planning and strategy / Department policies
and business plan for the fiscal year ending January 31, 2025 / Financial results, finances, and dividends / Revisions to the forecastof financial results / Nomination of director candidates and remuneration of directors / Internal controls / Organizational changes
and personnel transfers / Rule revisions / Reappointment of the Accounting Auditor(s) / Joining the UN Global Compact / Donations
to support organizations / Compliance with "Handling of Transition Measures and Other Matters Relating to the Continued ListingCriteria" / Updating and disclosing ESG data / COVID-19 measures, etc.

members of the Executive Team. The Board of Directors is responsible for nominating successors to these members from among

they are registered with the exchange.
Although the Company does not have any specific standards or policies regarding independence for the appointment ofoutside directors, when making such appointments we not only meet the regulatory requirements established by theCompanies Act, but also take into account the Tokyo Stock Exchange´s criteria for ensuring the independence of independent directors.

Artner Co., Ltd. Annual Report 2024

44

Governance

Policies for Determining the Remuneration of Directors andCalculation Methods for the Fiscal Year Ended January 31, 2024
Policy for Determining the Percentage of
the Amount of Remuneration for Each Individual

The remuneration of directors consists of a basic

This policy shall be decided based on the reports that

remuneration and a performance-linked bonus. The
upper limits of the remuneration established by resolution

are deliberated by the Nomination and Remuneration
Committee, comprehensively taking into account theUnder its Corporate Governance Code, Artner Co., Ltd. (“the Company”) periodically analyzes and evaluates the effectiveness of its Board of Directors in order to make it work better. On this occasion, we
carried out analysis and evaluation for the fiscal year ended January 31, 2024, and hereby notify thesummary of the findings.

Management Message

at the General Meeting of Shareholders held on April 27,

Introduction

Remuneration of Directors

Analysis and Evaluation of the Effectiveness of the Board of Directorsrole and contribution status of each director as well as

2017, are ¥200 million per year for five directors who
are not members of the Audit and Supervisory Committee

business performance.

and ¥30 million per year for three directors who are

Basic Remuneration

members of the Committee.

The basic remuneration is determined based on the

Board of Directors and the Audit andSupervisory Committee

amount established for each director position, with theCompany´s business performance, relative weight

Summary of Analysis and Evaluation Results

A questionnaire survey to evaluate effectiveness for the

The Company has found from the most recent survey

fiscal year ended January 31, 2024, was distributed toresults that the effectiveness of its Board of Directors

all eight directors. Based on the responses collected,

has been maintained. The Nomination and Remunera-

the Board of Directors discussed its issues and actions

tion Committee discussed and reported to the Board of

to address them.

Directors the succession plans for the President and

The Board of Directors and the Audit and Supervisoryagainst employee salaries, and remuneration levels at

Committee have authority over the remuneration ofother companies taken into consideration. However, if it

directors. This authority extends to deliberating andis not appropriate to pay a remuneration calculated indetermining the amount of a basic remuneration and asuch a manner due to a significant decline in the Company´sperformance-linked bonus for each director.

business performance or other factors, theThe remuneration of directors who are not members ofCompany reserves the right to reduce the amount of

the Audit and Supervisory Committee is determinedbasic remuneration.

giving comments and grading on a point scale. The

Metrics for Performance-Linked Bonusesa. The composition of the Board of Directors;

determined by deliberation among the members of theusing a formula based on the Company´s annual
profit, as this is judged to be the most reasonable way

Determining the Policy for Determining
the Remuneration for Each Individual

to measure the performance of directors.

The method of determining this policy is set forth in theadministrating board meetings;
c. Matters selected for deliberation at board meetings;
d. Administrative assistance provided toe. Relationships with shareholders.

ability Committee needs to conduct an ongoing review
of non-financial disclosure efforts in order to add
disclosure items on ESG data and enhance human capital disclosures. It was confirmed that important agenda
items for the Board of Directors, such as the Medium-Term Business Plan and risk management efforts,
require discussion on medium- and long-term strategies, including the formulation of a new Medium-TermBusiness Plan, and appropriate supervision of the
progress of each measure.

Way Forward
The Board of Directors will take the necessary actions
to address some remaining issues identified from theWe have omitted providing information here as no

survey to continue to enhance its effectiveness.

directors were paid remuneration of ¥100 million or

Board of Directors

b. Planning, convening, andous discussion. It was also confirmed that the Sustain-

Sustainabilityby the Board of Directors.

survey to evaluate effectiveness. The survey asked

the Board of Directors; andTotal Amount of Remuneration for
Each Director Paid

rules concerning the remuneration of directors, resolved

The Company conducted a 31-item questionnaire

survey focused on the following five areas:

The metrics for performance-linked bonuses are calculated

Committee.

Evaluation Items

Growth Strategy

of Audit and Supervisory Committee members is

CEO and Directors, and confirmed the need for continu-

members of the Board to make a self-evaluation bysolely by the Board of Directors, whereas the remuneration

Value Creation Story

Evaluation Method and Process

more.

The Board of Directors receives reports that are deliberated
by the Nomination and Remuneration Committee
based on the policy for determining the remuneration

Incentive Policies for Directors
Performance-linked remuneration may be paid toand within the range of the total amount resolved by theGovernanceDirectors out of up to 2% of annual profits.

General Meeting of Shareholders, so the Board of
Directors deems that the content of the report is in linewith the said policy.

Total Amount of Remuneration of Directors (FY2024)

45

Total amount of
remuneration(in thousands of yen)Amount by type of remuneration(in thousands of yen)Basicremuneration

Performance-linked bonus

Number ofcorresponding directors

Directors who are not members of
the Audit and Supervisory Committee oroutside directors

115,185

95,45019,735

5Outside directors

25,154

23,4001,754

3Artner Co., Ltd. Annual Report 2024

Data Section

Type of director

Artner Co., Ltd. Annual Report 2024

46

GovernanceRisk Management
Summary of Major Risks and Countermeasures

Development of the Internal Control System

Artner has defined a clear system for managing different risks in which we classify and define management
risks, and each responsible division identifies and analyzes the risk situation for each type of risk. Under thissystem, the various kinds of risks are managed through the Compliance and Risk Management Meeting.
Management and countermeasures for each type of risk are clarified and managed in the Meeting.

The Company has developed an internal control system in accordance with the basic framework of
the internal control system established by the Board of Directors.

Competition
with othercompanies in
the industry

There is a risk that competition with other companies may intensify due
to market contraction or new entrants in the engineer staffing industry,where we operate our business, and this may result in a fierce pricecompetition.

We will facilitate the improvement of all engineers’ skill levels througheducational programs and training curricula segmented by businessfield, with the aim of promoting the assignment of engineers to upstream
business areas where the unit price of engineers is likely to be higher.

Effectiveness ofeducation andtraining

There is a risk that the training does not turn out to be as effective as
expected and the unit price of engineers does not increase due to low
customer satisfaction, as well as the risk that we fail to satisfy therequests from clients, and they start to make complaints.

We will support our engineers in improving their skills by providing
general, external, basic, customized, and/or career training based on our
long-accumulated experience.
We will strive to improve the technical and human skills of our staff byholding skill development seminars for all employees and humandevelopment training for managers.

Securing
suitable clientsfor our dispatching businessAlthough we always strive to secure and expand our clients for our
engineer dispatching business, there is a risk that we may be unable tofind suitable clients that match our engineers and cannot maintain or
improve the unit price of engineers and/or utilization rates.

We will secure and expand our business partners by strengthening our
new business development and sales capabilities, utilizing online
conferencing tools, and making proposals for the selection of engineers,
team dispatching, and organization of contracting services in response
to client needs.

Regulations on
total work
person-hours

The total work person-hours of our engineers are determined based on
the business conditions of the client company. There is a risk that therevisions to relevant laws and regulations generate a larger pressure
against long working hours, which may result in a significant decrease in
the total work person-hours of engineers.

To compensate for a decrease in the total work person-hours, we will
facilitate the improvement of all engineers’ skill levels through educational
programs and training curricula segmented by business field, with the aim ofpromoting the assignment of engineers to upstream business areas where
the unit price of engineers is likely to be higher.

Securing
science andengineering
graduates

We consider science and engineering graduates to be an importantmanagerial resource, and there is a risk that the population of scienceand engineering graduates may decrease due to the declining birth rate
and other factors, making it significantly more difficult to hire talented
graduates.

We will attract students by offering a variety of options, including aperformance-based salary system, a limited area system, an internal
recruitment program, and a job change assistance program.

Securing career
engineers

We consider engineers with work experience to be an importantmanagerial resource, and there is a risk that the competition to securecareer hires may intensify due to a shortage of engineers who wish tochange jobs as a result of booming design and development activities in
the manufacturing industry, making it significantly more difficult to hire
talented career engineers.

We will attract prospective employees by offering a variety of options,
including a performance-based salary system, a limited area system,
an internal recruitment program, and a job change assistance program.

Information
management

There is a risk that information may be leaked to outside parties forsome reason, and our social credibility will be damaged.
There is a risk that system failures and other problems may be causedby computer viruses, unauthorized access, natural disasters, or other
unforeseen events.

We will acquire the “PrivacyMark” and introduce other such measures toproperly manage personal information, confidential information, and allother information obtained in the course of business operations.
We will take appropriate cybersecurity measures to ensure the stablesupply of our services.

Laws, regulations, licenses,
and permits

There is a risk that we may violate the Worker Dispatching Act and otherrelevant laws and regulations, which would hinder the continuity of ourbusiness.
There is a risk that revisions to relevant laws and regulations may bemade that are significantly unfavorable to our business.

We consider compliance with the Worker Dispatching Act and otherrelevant laws and regulations to be one of our highest priorities, and wewill maintain a legal compliance system by monitoring compliance withlaws and regulations via internal audits and by regularly confirming
compliance with laws and regulations at different meetings. We will takeappropriate measures whenever relevant laws and regulations are revised.

Disasters,
accidents, etc.

There is a risk that natural disasters, man-made disasters, and otherdisasters and accidents that significantly exceed our predictions may
take place.
There is a risk that our business activities may be hindered as a result of
the spread of COVID-19 and other infectious diseases.

We will establish a Business Continuity Plan (BCP) and manual to deal
with such disasters and accidents in an effort to mitigate the damage.

Climate change

There is a risk that our business activities may be halted or stagnated as a result of
our facilities being damaged by natural disasters due to climate change.
If a carbon tax is introduced or environmental regulations are tightened as part of
the government’s efforts to transition to a decarbonized society, there is a risk that
we may be unable to offer personnel that meet our clients’ demands for engineerscommitted to carbon neutrality initiatives.

We have announced our support for the recommendations from the Task
Force on Climate-related Financial Disclosures (TCFD) and have rated
climate change as a high-priority issue. We will commit to taking actions
and initiatives based on our environmental activity policy with the aim ofachieving a more sustainable society.

Mergers andacquisitions

There are risks of significant capital demands and amortization of
goodwill, etc.
Such M&As may not necessarily generate synergies as expected, andthere is a risk that business performance may not progress as expected
due to major changes in the business environment or businessconditions.

Our M&As are implemented after thorough consideration of the risks
involved by conducting preliminary research through detailed due
diligence on market trends and client needs, as well as the financial
status and contractual relationships of the target company.

Medium-TermBusiness Plan

There is a risk that the market environment or economic conditions maychange dramatically beyond expectations, and the business environment may not develop as predicted.

We will promote the Medium-Term Business Plan with carbon neutrality
as the pillar of our business activities and establish internal systems forrecruitment, training, and sales activities.

Artner Co., Ltd. Annual Report 2024

applicable laws and regulations and the Articles of Incorporation, and also ensuring such compliance.
We have set up an internal whistleblowing system, under which Directors, employees, and other

Internal
Whistleblowing
Systempeople engaged in work for the Company can report corruption or wrongdoing to the Whistleblowing Committee, which has a duty of confidentiality. It is prohibited to subject persons who
submit whistleblower reports using the system to any disadvantageous treatment as a result ofsuch reporting. The system is designed to ensure the effectiveness of whistleblowing to preventor quickly detect violations of applicable laws and regulations.

Internal Audits
by the Internal Audit
OfficeThe Internal Audit Office, operating independently of other divisions that execute businesspractices, conducts internal audits. Through such audits, it verifies the appropriateness andeffectiveness of the internal management system of each division, and by promoting the improvement of the systems, it ensures that all employees lawfully execute their duties.

Anti-corruption Policy
1. Basic view on preventing corruption

ment Meeting and the Sustainability Committee. The

We establish this anti-corruption policy in accordance

Board of Directors will be informed of its details andwith the spirit of the United Nations Global Compact.

provide supervision.

2. Scope

5. Whistleblowing system

This policy applies to all officers and employees of

We will establish a helpline to receive any reports on

Artner. Furthermore, we request all clients affiliated withcompliance violations related to anti-corruption and any

our businesses and services to understand and support

inquiries, and take steps for relief and remediation uponthis policy.

investigation. We will ensure the confidentiality and theprotection of personal information of whistleblowers,

3. Initiatives to prevent corruption in
our business activities●Prohibition of bribery●Prohibition of facilitation payments

and will not treat them disadvantageously based on
their reports.

6. Education and training●Prohibition of illegal political contributions

We will continuously provide appropriate education and●Prohibition of money laundering

training to all officers and employees to ensure that this●Prohibition of insider trading

policy is integrated into all business activities and is●Prohibition of conflict-of-interest transactions

implemented effectively.

4. Governance

Data Section

We will strengthen measures such as sector rotation and new businessdevelopment and sales in order to build a client base that is capable of
ensuring stable earnings that are not dependent on specific sectors or
influenced by specific corporate trends.

GovernanceOur major clients belong to the manufacturing industry, and we dispatch
engineers primarily to their design and development departments. There is arisk that these major clients may reduce their capital investments, R&D costs,
and the use of external engineers due to economic recession and other factors
in the countries or regions in which they operate.
There is a risk that significant changes in the business environment may take place
for automobile-related manufacturers, which account for a large share of our sales.

Sustainability

Performancetrends in the
manufacturingindustry

President and CEO, as part of a system aimed at thoroughly educating employees regarding all

Growth Strategy

Countermeasure

Value Creation Story

Definition

At Artner, we have implemented the Compliance and Risk Management Meeting, chaired by theManagement Message

Risk

Compliance and Risk
Management Meeting

Introduction

47

Compliance

Our initiatives under this policy will be regularly reported
to and managed by the Compliance and Risk Manage-

Artner Co., Ltd. Annual Report 2024

48

GovernanceInterview with Outside Directors(center)

NOMURA Ryuichiro(left)TERAMURA YasuhikoDirector and member of the
Audit and Supervisory Committee(right)MORII Shinichiro

experience, which differs from that of Inside Directors.
Teramura: Me too. I hope that opinions from different points ofview lead to new insights internally and help us to improve

Audit and Supervisory Committee in 2022, and I have

our work and establish Management Policies. In addition,

served as a standing Audit and Supervisory Committee

since there are internal circumstances that I am not familiar

member since 2023. As for my previous work experience,

with, I conduct investigations sufficiently in advance andafter working in banking for 30 years, I was involved in

strive for effective communication when conducting

management at a real estate company for eight years andinterviews with managers at each business office. In

served as the representative of a REIT company under aparticular, I strive to proactively take opportunities to talkgeneral trading company after that. I have experience with

with the Internal Audit Office and the Corporate Planningand Strategy Division to gather information.
Morii: Judgments made solely based on the executive side ofin charge of money and FX market transactions. In particular,

our work tend to get carried away by company-specificthe many years I spent working with loans have proved

ethics and practices. I also strive to provide objective advice

helpful in looking over Artner’s finances and accounts. Also,and supervision from an independent perspective that

due to my experience serving as the head of a securities

leverages my experience and knowledge.

a shareholder’s perspective on various matters, such as IR
departments, stock-related matters, and general meetings

What do you applaud in terms of theeffectiveness of the Board of Directors?
What issues are there, if any?
Nomura: Regarding the two separately held board meetings, I
greatly applaud how our business performance is reported

served as a part-time Audit and Supervisory Committee

in detail at the business report board meeting and how

member since 2023. During my 29 years working in banking,management strategies are also discussed at the regular

I was involved in various matters, such as business transactions,board meeting, with an eye to increasing enterprise value

overseas branches, and fund management departments. In

over the medium to long term. Going forward, I hope thatparticular, my experience in finance and accounting, especiallythey become places that allow for more proactive exchanges

in a funds and securities department, helps in discussionsof opinions on the direction we should take with respect toconcerning Artner’s management strategies, as well as

client trends and the state of other companies in the samefinancial strategies. After that, I was seconded to a global

industry.

logistics company, where I was involved in management for

Teramura: I feel that regular board meetings allow for expert-level

13.5 years, taking part in transactions in the automobile anddiscussions on governance and other topics, and that theymachinery industries, as well as in M&A transactions.

are helpful for avoiding aspects that tend to end up being

Morii: I have served as a member of the Company’s Audit andabout daily performance management. However, since
many agenda items are previous concerns that are still

I engaged in area management as a branch president for a

ongoing, discussions are rarely exciting, which I feel is an

manufacturer and was involved for a long time in intra-area

issue. On this point, it is also key that we Outside Directors

marketing and sales in general, as well as coordination withraise concerns from a perspective that is different frommedium-term area strategies. At Artner, I hope to contribute

before.
Morii: I applaud how Compliance and Risk Management Meetings

to consultations regarding new business development andare held regularly to eliminate risks related to maintaining or

sales with respect to our clients.

improving our enterprise value before they become apparent.
Also, I feel that the sharing of directions and challenges by
the Directors in charge of each department is done well.

Nomura: Based on my prior experience and knowledge, outside

What is your assessment of Artner’s
governance and internal control systems?

directors are expected to offer advice from different points

Nomura: The Management Division, which is the main divisionof view to help their company grow. I strive for appropriate

in charge of governance, as well as other departments, has

Artner Co., Ltd. Annual Report 2024

Data Section

In particular, what do you keep in mind or
attach importance to when performing yourduties as Outside Directors?

GovernanceSupervisory Committee since 2021. In my previous position,

Sustainability

Audit and Supervisory Committee in 2021, and I havethe production and development departments and

Growth Strategy

of shareholders.
Teramura: I was appointed a standing member of the Company’s

Value Creation Story

well as experience at the New York Branch and in a department

agency department, I am proud to say that I can think from

Artner Co., Ltd. Annual Report 2024

from a neutral, objective standpoint and by leveraging my

Nomura: I was appointed a part-time member of the Company’stransactions between banks and business corporations, as

49

management by voicing my opinions at board meetings

Management Message

Director and member of the
Audit and Supervisory Committee

What experience do you have that contributes
to your roles as Outside Directors and Audit
and Supervisory Committee members?

Introduction

Director and standing member of the
Audit and Supervisory Committee

50

GovernanceRisk Management Meetings. I also greatly applaud how

employees regardless of their age or years of service, I

feel that the business management system at Artner has ainformation exchanges and meetings with Audit andbelieve that we can tear down the barriers between

strong framework. I applaud the fact that the InternalSupervisory Committee members, accounting firms, anddepartments and improve our business performance. It is

Control System, which responds to risks that may harm thethe Internal Audit Office are held on a regular basis.

important that we also change our human resources system

Company, is also being discussed appropriately. On the

Teramura: I actually feel that governance is being managed well

Teramura: I believe that the development of next-generationin terms of work sites. Talents having expert-level skills are

Nomura: I believe that fulfilling our role in society and growing

management talents is imperative for the Company. As

administrative duties, we must continue improving.

increasing the size of the Company will, in turn, allow us toManagement Message

such as the promotion of IT applications for sales andincrease the number of administrative talents and make iteasier to reform our human resources system.

discussed by the Nomination and Remuneration Committee,

to increase our value to society. I think that providing

while we have many expert talents, I feel that there is a

educational opportunities for employees to improve theirshortage of talents who understand the various functions ofskills and striving to enhance their technical and human

the Company and can be entrusted with handlingcapabilities will also lead to contributions to society. By

management for the future. It is necessary that we makeappropriately operating the Company into the future based

systematic efforts to develop such management talents.

on our Management Philosophy and continuing the Company,

Morii: While the Company’s immediate task was to satisfy the

I believe that we will sufficiently demonstrate ourcriterion for tradable share market capitalization, which issignificance to society, even amid the engineer shortages

part of the listing maintenance criteria for the Prime Market,of the present day.

we were able to achieve that. While we still face challenges
such as making progress toward diversity and inclusion in

the norm for major companies. When I heard from a person

talent management and addressing the aging of Directors,

who provides employment support for undergraduate

they are being considered along with the strengthening ofstudents that there are engineering students who give up on

our system for career hires.

dream company, I introduced Artner to that person. After

Nomura: We were able to satisfy the listing maintenance criteria

brushing up their skills at Artner for several years as

for the Prime Market. However, we believe the real battle

dispatched engineers, many employees shift to employment

lies ahead. The Company must aim to achieve sustainedwith a manufacturer through our “job change assistance

growth and increase its enterprise value, and fulfill its

program.” It can be said that our value to society lies in the

obligations to society in cooperation with shareholders andfact that we provide opportunities for our employees toother stakeholders. I hope that Artner’s Directors andgrow as engineers. Even among manufacturers, there are

employees will work together to achieve our shared targets.

more and more companies that utilize a certain number ofAs an Outside Director, I will also strive to contribute to thedevelopment of the Company, even if only a little.

and technological innovations. With regard to these points

Teramura: For the past two years, satisfying the listing maintenanceas well, I feel that we provide sufficient value to society.

criteria for the Prime Market was a high-priority issue, but

Morii: We conclude regular employee contracts with engineers

we were able to achieve those criteria last fiscal year witheveryone’s cooperation. Going forward, I would like all of

our own education system. As a result, we are able toArtner’s Directors and employees to continue sharing theirassigned and placed even in the Internal Audit Office, andcompensate for our clients’ engineer shortages and achieve

wisdom with each other and aim for further growth.

its collaboration with the Board of Directors and the Audit

substantial savings for our clients in terms of costs and time

Morii: In an industry with a market size that exceeds one trillion

and Supervisory Committee is also good. Previously, somerelated to employment as a group that provides the greatest

yen, our market share is still low with much room for increases.

departments had shortages in staff to support and manage

added value in the industry, and I think that is our value.

I believe that all of us at Artner must not forget our efforts

in place, I believe Artner’s governance and internal control

Nomura: One critical challenge for the Company is thethe number of staff significantly last fiscal year.
Morii: With committees such as the Audit and Supervisorysystems are being appropriately managed through thedevelopment of next-generation management talents by

Board of Directors, the Sustainability Committee, theproactively promoting young employees. By presenting

Information Disclosure Committee, and Compliance andchallenges and granting authority to incredibly capable

Artner Co., Ltd. Annual Report 2024

last fiscal year to satisfy the listing maintenance criteria for
the Prime Market and must continue those efforts with thesame sense of urgency so that we do not betray our stake-

Data Section

Committee and the Nomination and Remuneration Committee

What are some of the management
challenges facing Artner? What are yourexpectations for Artner in the future?

Governanceand offer in-house training in stages on an ongoing basis via

dispatched engineers at business sites, but we increased

Sustainability

engineering because they are unable to get a job at their

Lastly, please leave us with a message fromyour respective standpoints.

Growth Strategy

Teramura: In Japan, simultaneous recruiting of new graduates is

Value Creation Story

stably over the long term by supporting engineers will help

dispatched engineers due to fluctuations in the economy

51

and the way we evaluate business performance. I think that

With worker and engineer shortages
projected to become increasingly serious
going forward, what are your thoughts on
Artner’s value and significance to society?

other hand, with respect to work efficiency optimization,

Introduction

a high level of awareness with respect to governance, and I

holders’ expectations.

Artner Co., Ltd. Annual Report 2024

52

Governance

Executive Team
Directors Who Are Not Members of the Audit and Supervisory Committee

SEKIGUCHI Sozo

February 2010
February 2011
April 2011
February 2013
February 2016

Appointed Managing Director; Head of theTechnology Development Division
Appointed Managing Director; Head of theBusiness Promotion Division
Appointed Managing Director; Head of theEngineer Business Division
Appointed Director; Head of the Engineer Business Division
Appointed Director; Head of the Human Resources
Business Division
Appointed Director; Head of the Engineer Business
Division (current)

April 2015

February 2016
February 2022

Appointed Director; Head of the Corporate
Planning and Strategy Division; Head of theEngineer Agency Business Division
Appointed Director; Head of the Corporate
Planning and Strategy Division
Appointed Director; Head of the Corporate
Planning and Strategy Division; Head of theEngineer Agency Business Division (current)

Head of the Technology Development Division

Born November 22, 1955
April 1978
Joined The Bank of Yokohama, Ltd.
December 1997 Appointed New York Branch Manager
April 2003
Appointed Executive Officer; Head of the 		
Financial Markets Dept.
April 2006
Appointed Managing Executive Officer
June 2006
Joined Kyodo Shiryo Co., Ltd.
(now Feed One Co., Ltd.) as Part-time Auditor
November 2007 Joined Mabuchi Corporation as Managing Director

February 2013
February 2016
February 2022

Appointed Director; Head of the Human
Resources Business Division
Appointed Director; Head of the Engineer
Business Division
Appointed Director; Head of the Human
Resources Business Division
Appointed Director; Head of the Technology
Development Division (current)

MORII Shinichiro

Skill Matrix of Executives
Name

November 2008 Appointed Senior Managing Director
June 2011
Joined Sagami Transportation & Warehouse Co., Ltd.
as Outside Director
November 2018 Joined Multitrans, Ltd. as CEO
April 2021
Joined Artner Co., Ltd. as Director and standing
member of the Audit and Supervisory Committee
April 2023
Joined Artner Co., Ltd. as Director and member ofthe Audit and Supervisory Committee (current)

Director and member ofthe Audit and Supervisory Committee

Born November 28, 1953
March 1976
Joined Takara Standard Co., Ltd.
May 2006
Appointed Kansai Direct Demand BranchPresident
April 2011
Appointed Executive Officer; Kansai Direct
Demand Branch President
April 2013
Appointed Managing Executive Officer;

Outside Director /Independent Director

Outside Director /Independent Director
Kansai Direct Demand Branch President
Appointed Managing Executive Officer;
Kansai Direct Demand Branch Manager andChubu Direct Demand Branch Manager
Appointed Advisor
Joined Artner Co., Ltd. as Director and member ofthe Audit and Supervisory Committee (current)

April 2019

June 2020
April 2021

Note: The table below does not represent all the experience and expertise possessed by each Director.

Positions and areas of responsibility

Corporate
management

SEKIGUCHI Sozo

President and CEO●

HARIGAE Tomonori

Director and Head of the Management Division●

OKUSAKA Kazuya

Director and Head of the Engineer Business Division●

SATO So

Director, Head of the Corporate Planning and Strategy Division, and Head of theEngineer Agency Business Division●

EGAMI Yoji

Director and Head of the Technology Development Division●

NOMURA Ryuichiro

Outside Director and standing member of the Audit and Supervisory Committee●

TERAMURA YasuhikoOutside Director and member of the Audit and Supervisory Committee●

MORII Shinichiro

Outside Director and member of the Audit and Supervisory Committee

SkillsBusinessstrategy●●●●

Recruitment
anddevelopment

●

Sales

●

●

●

●

●

●
●

FinanceandGovernanceaccounting

●
●

●
●
●
●

●

●

●

●
●

< Definition of Each Skill >Corporate management : Competence and experience engaging in corporate management and important decision-making.
Skills : Possesses a high level of expertise in the Company’s business fields, and has competence and experience promoting the growth andself-actualization of engineers.
Business strategy : Competence and experience discerning medium- and long-term societal changes and guiding the Company’s strategy accordingly.
Recruitment and development : Competence and experience maintaining and creating the Company’s unique “high value-added engineering group” even as the competition for
talent intensifies.
Sales : Competence and experience conducting appropriate sales from the client’s perspective based on their diversifying needs.
Finance and accounting : Possesses adequate knowledge in finance and accounting, and has competence and experience working on financial strategies for enhancing
enterprise value.
Governance : Adequate knowledge and experience needed to establish a corporate governance framework.

Artner Co., Ltd. Annual Report 2024

Data Section

February 2011

Director and member ofthe Audit and Supervisory Committee

Governance

Artner Co., Ltd. Annual Report 2024

March 2009

Head of the Corporate Planning and Strategy Division;
Head of the Engineer Agency Business Division

Born September 26, 1958
April 1981
Joined Osaka Technology Center Co., Ltd.
(previous name of the Company)
February 2007 Appointed Head of the Technology Development
Dept. of the Human Resources Division
April 2007
Appointed Director; Head of the
Human Resources Division
February 2010 Appointed Director; Head of the Business
Promotion Division

53

May 2008

Appointed Managing Director;
Head of the Management Division
Appointed Director; Head of the Management
Division (current)

Joined Mizuho Realty Co., Ltd. as Senior
Managing Executive Officer
September 2016 Joined Taiyo House Co., Ltd. as Vice President
March 2020
Joined Nihon Unist Inc. as Advisor
August 2020
Joined Marubeni Private Reit Inc. as Executive Officer
July 2022
Joined Artner Co., Ltd. as Director and memberof the Audit and Supervisory Committee
April 2023
Joined Artner Co., Ltd. as Director and standing
member of the Audit and Supervisory Committee (current)

Sustainability

Director

February 2007

Head of the Engineer Business Division

Born August 14, 1973
April 1998
Joined Nihon Bayer Agrochem(now Bayer Crop Science)
June 2004
Joined Aon Affinity
April 2007
Joined Artner Co., Ltd.; Appointed Head of the
Corporate Planning and Strategy Division
February 2013 Appointed Head of the Corporate Planning andStrategy Division; Head of the Engineer Agency
Business Division

EGAMI Yoji

TERAMURA Yasuhiko

April 2008

Growth Strategy

Director

Born February 18, 1956
April 1978
Joined Yasuda Trust & Banking Co., Ltd.
(now Mizuho Trust & Banking Co., Ltd.)May 1999
Appointed Kinshicho Branch Manager
April 2002
Appointed Hiroshima Branch Manager
April 2004
Appointed Head of the Securities Agency Sales Dept.
October 2005
Appointed Head of the Solution Sales Dept.
April 2007
Appointed Executive Officer; Head of the
Solution Sales Dept.

Head of the Management Division

Born September 3, 1955
April 1978
Joined Osaka Technology Center Co., Ltd.
(previous name of the Company)
October 1993
Appointed Head of the No.3 Business Dept.
February 2002 Appointed Standing Auditor
April 2004
Appointed Managing Director; Head of the
Human Resources Dept.
February 2007 Appointed Managing Director; Head of the
Human Resources Division
April 2007
Appointed Managing Director; Head of theBusiness Management Division

SATO So

Appointed President and CEO (current)
Appointed Head of the Hyper Artner
Business Division

Outside Director /Independent Director

Value Creation Story

Director

February 2002
February 2012

Director and standing member ofthe Audit and Supervisory Committee

Management Message

Director

Born May 24, 1954
April 1978
Joined Toyobo Interior Co., Ltd.
March 1982
Joined Osaka Technology Center Co., Ltd.
(previous name of the Company)
March 1990
Appointed Head of the Kanto Business Dept.
March 1991
Appointed Director
March 1993
Appointed Managing Director; Head of theGeneral Affairs Dept.

OKUSAKA Kazuya

NOMURA Ryuichiro

President and CEO

Born December 31, 1964
June 1983
Joined MEITEC CORPORATION(now MEITEC Group Holdings Inc.)
April 1988
Joined Osaka Technology Center Co., Ltd.
(previous name of the Company)
March 1993
Appointed Director;
Head of the Business Planning OfficeFebruary 1998 Appointed Director; Vice President

HARIGAE Tomonori

Directors Who Are Members of the Audit and Supervisory Committee

As of April 25, 2024

Introduction

As of April 25, 2024

54

Data Section

Financial Statements(Thousands of yen)

As ofJanuary 31, 2023

As ofJanuary 31, 2023

As ofJanuary 31, 2024

Liabilities

Current liabilities

4,277,610

Accounts payable - other279,675

272,523

Accounts receivable - trade

1,129,522

1,240,516

Accrued expenses

82,07495,003Work in process

4,099

5,357

Income taxes payable

179,813

343,469

Raw materials and supplies

3,689

3,455

Accrued consumption taxes

221,798

210,039

Prepaid expenses

30,78845,848Deposits received

17,70020,245365

573

Unearned revenue

37

-

Other

23,61034,292

Provision for bonuses

165,195

188,499

Allowance for doubtful accounts(6,700)(7,400)

Other

7,290

21,491

5,161,256

5,600,255

Total current liabilities

953,585

1,151,271

Provision for retirement benefits

671,645

691,661

Total non-current liabilities

671,645

691,661

1,625,230

1,842,933

238,284

238,284

Accounts receivable - otherTotal current assets

Non-current assets
Property, plant and equipment
Buildings

Non-current liabilities

109,981

92,265

Accumulated depreciation(72,934)(59,506)

Buildings, net

37,04632,758

1,172-(1,172)-

Share capital

0-

Capital surplus

Tools, furniture and fixtures

51,18848,178Legal capital surplus

168,323

168,323

Accumulated depreciation(33,494)(36,818)

Total capital surplus

168,323

168,323

Tools, furniture and fixtures, net

17,693

11,360Land

25,68525,685

Legal retained earnings

10,46010,460Total property, plant and equipment

80,42469,803

Other retained earnings
40,00040,0003,585,798

3,814,139

3,636,258

3,864,599

(739)

(869)

4,042,126

4,270,337

Valuation difference on available-for-sale securities

5,832

815

Total valuation and translation adjustments

5,832

815

4,047,958

4,271,153

Structures
Accumulated depreciation
Structures, net

23,324

Telephone subscription right

1,654

1,654

Total intangible assets

27,37024,979Total retained earnings
Treasury shares

10,0991,570

Investments in capital

1,250

1,200

563

671

Deferred tax assets

296,162

319,608

Leasehold and guarantee deposits

94,876

94,786

Other

1,185

1,211

404,137

419,048

511,932

513,831

5,673,188

Valuation and translation adjustments

Total net assets

Total liabilities and net assets

5,673,188

6,114,087

Data Section

Investment securities

Artner Co., Ltd. Annual Report 2024

Retained earnings brought forward

Total shareholders´ equity

Investments and other assets

Total assets

Retained earnings

Governance

25,715

Total non-current assets

Shareholders´ equity

Sustainability

SoftwareTotal investments and other assets

Net assets

General reserve

Intangible assets

Long-term prepaid expenses

Total liabilities

Growth Strategy

3,975,881

Value Creation Story

Cash and deposits

Management Message

Current assets

55(Thousands of yen)

As ofJanuary 31, 2024

AssetsIntroduction

Balance Sheet

6,114,087

Artner Co., Ltd. Annual Report 2024

56

Data Section

Cash Flow Statement(Thousands of yen)

Fiscal year ended
January 31, 2023

(Thousands of yen)

Fiscal year ended
January 31, 2024

Fiscal year ended
January 31, 2023

9,242,360

10,110,524

Cost of sales

6,168,503

6,571,185

Profit before income taxes

Gross profit

3,073,856

3,539,339

Depreciation

Selling, general and administrative expenses

1,879,747

2,016,489

Increase (decrease) in allowance for doubtful accounts

Operating profit

1,194,108

1,522,849

Cash flows from operating activities
1,527,357

25,922

24,717700

700

Increase (decrease) in provision for bonuses

23,74523,304

Increase (decrease) in provision for retirement benefits

92,111

20,016

Interest and dividend income

(285)

(181)

130

98

Dividend income

284

179

Interest expenses

Commission income

574

574

Loss on retirement of non-current assets

013,197

Sales income of training materials

593

518

Loss (gain) on sale of investment securities-(7,938)

Rental income from land and buildings

408

302

Decrease (increase) in accounts receivable – other

970

(207)

6,870

7,297

(118,368)(110,993)

594

783

Decrease (increase) in inventories(3,200)(1,025)

Other

1,130

1,263

Increase (decrease) in accrued consumption taxes

18,531(11,759)

Total non-operating income

10,457

10,920

Increase (decrease) in accounts payable – other

24,139(8,116)

Other, net

4,945(5,343)

Subtotal

1,272,396

1,463,826Interest and dividends received

285

181

Interest paid

(130)

(98)

Income taxes paid

(399,953)(337,660)

Net cash provided by (used in) operating activities

872,598

1,126,248

Subsidy income

Non-operating expenses
Interest expenses

130

98

Cancellation penalty

1,330

1,020

49

35

1,511

1,153

1,203,054

1,532,616

Other
Total non-operating expenses
Ordinary profit

Decrease (increase) in trade receivables

Cash flows from investing activities

Extraordinary income
-

7,938

Purchase of property, plant and equipment(7,042)(2,398)

Total extraordinary income

-

7,938

Purchase of intangible assets(7,099)(12,922)

Payments of leasehold and guarantee deposits(10,154)

(54)

238

144

-

9,231

(26)

23

(24,085)(5,975)-(129)

Dividends paid

(426,831)(818,414)

Net cash provided by (used in) financing activities(426,831)(818,414)

Net increase (decrease) in cash and cash equivalents

421,681

301,7293,554,199

3,975,881

Extraordinary losses
Loss on retirement of non-current assets

013,197

Proceeds from refund of leasehold and guarantee deposits

Total extraordinary losses

013,197

Proceeds from sale of investment securities

Profit before income taxes

1,203,054

1,527,357

Income taxes - current

348,034

496,775

Income taxes - deferred(40,127)(21,235)

Total income taxes

307,906

475,540

1,051,817

Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Artner Co., Ltd. Annual Report 2024

3,975,881

Data Section

895,148

Other, net

GovernanceGain on sale of investment securities

ProfitSustainability

1

Growth Strategy

1

Value Creation Story

1,203,054

Interest income

Dividend income of insurance

57

Fiscal year ended
January 31, 2024
Management Message

Net sales

Non-operating income

Introduction

Profit and Loss Statement

4,277,610

Artner Co., Ltd. Annual Report 2024

58

Data Section

11-Year financial Summary

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023Introduction

FY2014FY2024■ Operating Results (million yen)
4,761

5,153

5,765

6,331

7,002

7,174

8,102

9,242

10,110Gross profit

1,238

1,418

1,580

1,802

2,039

2,298

2,540

2,731

2,800

3,073

3,539

Operating profit

188

336

431

553

681

785

886

887

1,010

1,194

1,522

Ordinary profit

193

341

432

564

690

794

893

910

1,032

1,203

1,532

Profit before income taxes

192

338

427

564

690

792

893

913

1,057

1,203

1,527

Profit

118

210

276

363

480

540

613

628

728

895

1,051

Cash flows from operating activities

77

512

307

192

471

612

591

899

770

872

1,126

Cash flows from investing activities

8

(15)

(3)

(15)

(25)

(75)

(42)

(30)

33

(24)

(5)

Cash flows from financing activities

(233)

(123)

(79)

(105)

(134)

(169)

(215)

(232)

(270)

(426)

(818)

85

497

304

177

446

537

549

869

803

848

1,121

Total assets

1,385

1,830

2,102

2,289

2,763

3,264

3,801

4,432

5,088

5,673

6,114

Net assets

995

1,153

1,357

1,616

1,963

2,333

2,728

3,123

3,582

4,047

4,271

Earnings per share

11.20

19.83

26.02

34.22

45.27

50.91

57.73

59.16

68.59

84.24

98.99

Net assets per share

93.67

108.51127.78152.10184.81

219.59256.77293.93337.14380.96401.97

Dividend per share

5.00

6.25

8.75

11.25

15.00

18.00

20.50

23.00

34.50

60.00

75.00

Free cash flows

Growth Strategy

4,287

Value Creation Story

3,856Management Message

Net sales■ Financial Position (million yen)

Sustainability■ Per Share Data (yen)Governance* Earnings per share and net assets per share were retroactively revised to factor in the impact of stock splits conducted as follows.
•February 1, 2017 (2-for-1 stock split)•April 1, 2018 (2-for-1 stock split)■ Management Indicators (%)
71.8

63.0

64.6

70.6

71.1

71.5

71.8

70.5

70.4

71.4

69.9

Return on equity (ROE)

12.1

19.6

22.0

24.4

26.9

25.2

24.2

21.5

21.7

23.5

25.3

Return on assets (ROA)

13.2

21.2

22.0

25.7

27.3

26.3

25.3

22.1

21.7

22.4

26.0

Gross margin

32.1

33.1

33.2

35.0

35.4

36.3

36.3

38.1

34.6

33.3

35.0

Operating margin

4.9

7.9

9.1

10.7

11.8

12.4

12.7

12.4

12.5

12.9

15.1

Artner Co., Ltd. Annual Report 2024

Artner Co., Ltd. Annual Report 2024

Data Section

59

Equity ratio

60Data Section

Non-financial Data (KPIs, Targets, and Results)
Category

ID

Item

KPI
Greenhouse gas (GHG) emissions (Scope 1 and Scope 2)

Improve energy efficiency and reduceenergy usage

Energy consumption (crude oil equivalent)
Energy consumption (crude oil equivalent) per unit of net sales
Reduction rate of copy paper used

FY2024

Net zero (FY2051)

97.3 tCO2 (FY2022)

91.3 tCO2 (FY2023)

98.7 tCO2 (FY2024)-

0.0120 (tCO2 / million yen) (FY2022)

0.0101 (tCO2 / million yen) (FY2023)

0.0097 (tCO2 / million yen) (FY2024)

Reduction on an ongoing basis

48.7 (kl/year) (FY2022)

49.9 (kl/year) (FY2023)

48.2 (kl/year) (FY2024)-

0.0060 (kl / million yen) (FY2022)

0.0054 (kl / million yen) (FY2023)

0.0048 (kl / million yen) (FY2024)

Reduction on an ongoing basis

14.5% reduction (FY2022)

5.9% reduction (FY2023)

6.2% reduction (FY2024)

Share of engineers placed in carbon neutrality projects among all engineers

50.0% (FY2025)

41.3% (FY2022)

46.1% (FY2023)

48.3% (FY2024)

3

Resolve social issues by creating jobs

Share of carbon neutrality recruitment targets for new graduates and career hires

55.0% (FY2025)

40.1% (FY2022)

50.0% (FY2023)

46.1% (FY2024)

None

None (FY2022)

None (FY2023)

None (FY2024)

4

Respect human rights

Number of serious human rights issues
Number of discrimination incidents

None

None (FY2022)

None (FY2023)

None (FY2024)

Percentage of employees who have received harassment training

100.0%

100.0% (FY2022)

100.0% (FY2023)

100.0% (FY2024)

None (FY2023)

1 (FY2024)

0.8% (FY2022)

1.7% (FY2023)

2.3% (FY2024)

5

6

Promote diversity andinclusion

Share of regular employees hired mid-career-

2.0% (FY2022)

4.8% (FY2023)

7.7% (FY2024)

Number of employees-

1,180 (as of January 31, 2022)

1,276 (as of January 31, 2023)

1,321 (as of January 31, 2024)

Number of temporary employees (average)-

10 (FY2022)

16 (FY2023)

24 (FY2024)

Average hours of annual training per employee (engineer)

Same level each year

163.9 hours (FY2022)

81.2 hours (FY2023)

73.2 hours (FY2024)

Average cost of annual training per employee (engineer)

Same level each year

63,000 yen (FY2022)

62,000 yen (FY2023)

54,000 yen (FY2024)

Develop and securepromising talents

Percentage of employees who have received talent development training

Same level each year

89.1% (FY2022)

84.8% (FY2023)

87.4% (FY2024)

Turnover rate (engineers) *Excluding retirement and turnover via the Company´sassistance program to change jobs

7.1% (FY2025)

10.3% (FY2022)

7.7% (FY2023)

8.3% (FY2024)

Turnover rate (engineers)

8.8% (FY2025)

11.3% (FY2022)

9.6% (FY2023)

10.9% (FY2024)-

2,000,000 yen (FY2022)

2,000,000 yen (FY2023)

2,000,000 yen (FY2024)

One-third or more

37.5% (as of January 31, 2022)

37.5% (as of January 31, 2023)

37.5% (as of January 31, 2024)

Payment related to regional and social contribution
Appointment ratio of Independent Directors
Number of Outside Directors
Ratio of Outside Directors in the Nomination and Remuneration Committee-

22,000,000 yen (FY2022)

24,000,000 yen (FY2023)

25,000,000 yen (FY2024)-

8 (as of January 31, 2022)

8 (as of January 31, 2023)

8 (as of January 31, 2024)

Number of meetings held-

30 times (FY2022)

31 times (FY2023)

30 times (FY2024)

Attendance rate-

99.2% (FY2022)

98.8% (FY2023)

99.6% (FY2024)

Attendance rate of Independent Directors-

97.8% (FY2022)

96.8% (FY2023)

100.0% (FY2024)

Number of meetings held-

12 times (FY2022)

12 times (FY2023)

12 times (FY2024)

Attendance rate-

96.9% (FY2022)

99.0% (FY2023)

100.0% (FY2024)

Attendance rate of Independent Directors-

91.7% (FY2022)

97.3% (FY2023)

100.0% (FY2024)

Number of meetings held-

4 times (FY2022)

4 times (FY2023)

4 times (FY2024)

Attendance rate-

93.8% (FY2022)

100.0% (FY2023)

100.0% (FY2024)

Compliance andRisk Management Meeting

Governance-

83.4% (FY2022)

100.0% (FY2023)

100.0% (FY2024)-

25 times (FY2022)

26 times (FY2023)

26 times (FY2024)

Attendance rate-

100.0% (FY2022)

100.0% (FY2023)

100.0% (FY2024)-

100.0% (FY2022)

100.0% (FY2023)

100.0% (FY2024)--

4 times (FY2023)

4 times (FY2024)

Attendance rate--

100.0% (FY2023)

100.0% (FY2024)

Attendance rate of Independent Directors--

100.0% (FY2023)

100.0% (FY2024)

Evaluation of the effectiveness of the Board of Directors

Once

Once

Once

Once

Percentage of employees who have received compliance training

100.0%

100.0% (FY2022)

100.0% (FY2023)

100.0% (FY2024)

Percentage of employees who have received information security training

100.0%

100.0% (FY2022)

100.0% (FY2023)

100.0% (FY2024)

Number of major compliance violations

None

None (FY2022)

None (FY2023)

None (FY2024)

Number of major information security incidents

None

None (FY2022)

None (FY2023)

None (FY2024)

Number of inquiries to whistleblowing helpline

Appropriate response to inquiries

None (FY2022)

None (FY2023)

None (FY2024)

Number of major dispositions related to corruption

None

None (FY2022)

None (FY2023)

None (FY2024)

Number of instances where employees were fined for corruption, etc.

None

None (FY2022)

None (FY2023)

None (FY2024)

Artner Co., Ltd. Annual Report 2024

Data Section

Attendance rate of Independent Directors
Number of meetings held

Nomination andRemuneration Committee

Artner Co., Ltd. Annual Report 2024

Attendance rate of Independent Directors
Number of meetings held

Governance

Audit and Supervisory Committee

Promote compliancemanagement

3 (as of January 31, 2024)
75.0% (as of January 31, 2024)

Number of Directors

Sustainability Committee8

3 (as of January 31, 2023)
75.0% (as of January 31, 2023)

Sustainability

7

3 (as of January 31, 2022)
75.0% (as of January 31, 2022)

Remuneration of Outside Directors

Board of Directors

Strengthen corporate
governance

Majority

Growth Strategy

None (FY2022)

1.7% (FY2025)

Value Creation Story

Appropriate response to inquiries

Management Message

Contribute to carbon neutrality throughbusiness activities

Number of inquiries to harassment helpline

61

FY20232

Percentage of the Company´s former employees who used job change assistance program

SocialFY2022Introduction

Environmental

1

Greenhouse gas (GHG) emissions (Scope 1 and Scope 2) per unit of net sales

Target62

Data Section

Company Data
As of January 31, 2024

Stock Data
January 31

Ordinary General
Meeting of
Shareholders

April

Total number ofauthorized shares

Number of shares issued 10,627,920 shares

Record dates for
January 31 and July 31
dividends of surplus (when interim dividends are provided)
Number of shares
per share unit

100 shares

74,145 units

Number of shareholders

15,051

Shareholder registryadministrator

Mitsubishi UFJ Trust and Banking Corporation
4-5 Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-8212, Japan

Company Overview As of January 31, 2024

Major Shareholders
Number of
Shares Held Ratio (%)*

Name
Sekiguchi Kogyo Co., Ltd.

Financial instruments
business operators

4.31

Treasury shares

0.02

4.87

Share
Distribution
by Owner
Category(%)

Individuals
and other

26.36

20.00

Artner Employee Stock Ownership Association

808,148

7.60

Osaka Small and Medium Business Investment andConsultation Co., Ltd.

480,000

4.51

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

285,900

2.69

BBH FOR FIDELITY LOW-PRICED STOCK FUND (PRINCIPAL ALL
SECTOR SUBPORTFOLIO) (Standing Proxy: MUFG Bank, Ltd.)

243,439

2.29

JPMorgan Securities Japan Co., Ltd.

203,547

1.91

STATE STREET BANK AND TRUST CLIENT OMNIBUS ACCOUNT OM02 505002(Standing Proxy: Settlement and Clearing Services Division, Mizuho Bank, Ltd.)

180,000

1.69

THE BANK OF NEW YORK MELLON 140040 (Standing Proxy:
Settlement and Clearing Services Division, Mizuho Bank, Ltd.)

166,259

1.56

BNYM SA/NV FOR BNYM FOR BNYM GCM CLIENT ACCTS
M ILM FE (Standing Proxy: MUFG Bank, Ltd.)

151,138

1.42

HARIGAE Tomonori

53.19

Total

140,840

1.32

4,785,271

45.03

Artner Co., Ltd.

Founded

September 18, 1962

Representative

President and CEO SEKIGUCHI Sozo

Share listing

Prime Market of the Tokyo Stock Exchange(Securities code: 2163)

General Meetingof Shareholders

Held in Osaka

Capital¥238,284,320* The number of shares owned as a proportion of the total number of issued shares(excluding treasury stock).

Headquarters

Stock Price Changes (February 3, 2014 – January 31, 2024)
1,800

Tokyo headquarters
Sumitomo Fudosan Realty andDevelopment Shin-Yokohama Building 5F,
2-5-5 Shin-Yokohama, Kohoku Ward,
Yokohama City 222-0033
Osaka headquarters
Sumitomo Nakanoshima Building 2F,
3-2-18 Nakanoshima, Kita Ward,
Osaka City 530-0005

TOPIX

1,600
1,400
1,200

Business bases

Yokohama, Osaka, Utsunomiya, Nagoya

Learning centers

East Japan, West Japan

Business fields

1) Software2) Electronics
3) Machinery
Basic research, design, and development in theabove fields, as well as tasks relating to them

Number of
employees

1,321

License Number

Worker Dispatching Business (派27-020513)
Paid Employment Agency Business (27-ユ-020355)

Sustainability

ArtnerGrowth Strategy

Other
corporations

2,126,000

Name

Value Creation Story

Financial
institutions

11.25

Number of tradable
sharesManagement Message

Share Distribution by
Owner Category

Foreigncorporations, etc.

36,000,000 shares

Introduction

Fiscal Year-End

1,000
800

Governance

600
400
200
0

FY2015FY2016FY2016FY2018FY2017FY2019FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2020

FY2021

FY2022

FY2023

FY2024

FY high (yen)

243

399

466

1,153

1,341

1,058

1,102

930

1,080

2,404

FY low (yen)

133

175

210

398

566

671

527

774

820

994

*Artner’s stock price and TOPIX, shown as line graphs, are both indexed to 100 as of February 3, 2014.
*Stock prices were retroactively revised to factor in the impact of stock splits conducted as follows.
February 1, 2017 (2-for-1 stock split) / April 1, 2018 (2-for-1 stock split)

63

Artner Co., Ltd. Annual Report 2024

Artner Co., Ltd. Annual Report 2024

Data Section

FY2015FY2017(Caution regarding forward-looking
statements, etc.)
The forward-looking statements,
including earnings forecasts, contained inthese materials are based on information
currently available to the Company andon certain assumptions deemed to bereasonable. Consequently,
the statements herein do not constituteassurances regarding the Company’s
actual results. Actual financial and otherresults may differ substantially from thestatements herein due to various factors.

64