Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Value Creation Process for “10X”
Value Creation Process

18

The Competitive Advantage of the Septeni Group19

Human Resource Strategies
in Human Capital Management

21

HR Initiatives

22

Strategy & Performance

Sustainability

Corporate Governance

Company Overview

17Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

18

Company Overview

Value Creation Process
The Septeni Group’s core value lies in human resources with a good sense of ownership and a strong entrepreneurial spirit andextensive human resource database and technologies.
By maximizing human capital, we will demonstrate high performance and empower stakeholders and industries through our business.
We are striving to achieve our mission in anticipation of “10X.”

Output

Input

Outcome

Human resources
with a good senseof ownershipand a strong
entrepreneurial spiritCore value
Responding tomajor changes
in industry
and society
Pp.3-4

Mission• Improved
employee job
satisfaction

To inspire
the world withentrepreneurship• Return ofprofits toshareholders• Digital MarketingBusiness• Media PlatformBusiness• Expansion into New
Business Segments

Empowering
people andindustry throughour businesses

Accelerating
growth torealize “10X”• Improved
quality of lifefor users• Mutualdevelopmentwith partnercompanies• Growth ofclients’businesses

Extensive humanresource database
and technologies

Improvement of core value(further acquisition of human resources/improvement of data accuracy)

New Vision
P.6

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

Company Overview19The Competitive Advantage of the Septeni GroupBy enhancing our core value, which includes human resources with a good sense of ownership and a strong entrepreneurial spirit,and an extensive human resource database and technologies, we will strive to find further solutions to social issues.

Human resources
with a good senseof ownershipand a strong
entrepreneurial spiritCore Value

Extensive humanresource databaseand technologies

Human capital that excels inboth quantity and quality

Entrepreneurial personnel thatcreate new businesses

Employees

Cumulative entries to the newbusiness plan contest “gen-ten”

1,909

239

Along with increasing our net sales, we will also continue
to increase the scale of our companies. In the fiscal year
ended September 2022, the number of our employees
increased greatly due to new consolidations. With anaverage age of 29.6*, we have created an environment
where young human resources eager to grow canchallenge themselves and succeed.

Human resources with a good sense of ownership and astrong entrepreneurial spirit (entrepreneurial personnel)
anticipate changes in society and create new businesses
one after the other, thereby accelerating our growtheven further.

Initiatives to increase competitive advantage

Initiatives to increase competitive advantage• We are actively carrying out recruitment
activities in preparation for future growth.

• We have systems in place to support theautonomous growth of employees, and we haveprovided diverse avenues for challenge such as“gen-ten,” the new business plan contest.

(As of the end of September 2022)

teams(over 11 years)*Average for major companies in Japan• We will actively invest in human capital,
including increasing the basic pay for fixedsalaries, to increase our competitiveness in therecruitment market and continuously secure
excellent human resources.

• We are constantly carrying out activities aimed
at instilling the philosophy that is at the core of
the Group’s culture, centered on the Philosophy
Penetration Project driven by volunteers.

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

Company Overview

20

The Competitive Advantage of the Septeni Group

Scientific HR Initiatives based onthe HR Development Equation

Human resource development focused on
maximizing the performance of each individual

HR Technology Awards

Best Workplaces inAsia 2022 rankings

Employees with a strong sense ofownership volunteering forcross-divisional committees

HR Systems Category

Large company category

Excellence Award

Best company

220

For our entrepreneurial personnel to be able to further
display their abilities, we use systems based on a
massive database that enable employees to quickly
become contributors and to be optimally allocated.

Along with expanding systems to support diverse work
styles, we hold events to celebrate challenges andsuccesses and endeavor to increase motivation andmaximize performance for every individual.

The Group has a culture where all members see things
with the eyes of executives, apply themselves diligently
and cooperate with each other in order to create an evenbetter corporate body. Cross-group volunteer projects inevery area of ESG are actively under way.

Initiatives to increase competitive advantage

Initiatives to increase competitive advantage

Initiatives to increase competitive advantage• Led by the Human Capital Lab, an organizationthat researches human resource data, weendeavor to publicize and disseminate theGroup’s in-house case studies and research
results externally and spur further innovation
through joint research with universities andother corporations.

• Our trial development program, CDP,
hypothesizes new work styles based onremote working, visualizes the condition andgrowth status of individuals and supports their
growth and management by managers whileconsidering their health and safety.

• Led by the Sustainability Committee establishedin 2022, we have set KPIs and put measures inplace to disclose data for all our materiality(priority challenges) and are working toincrease understanding and penetration bothwithin and outside the company.

Involvement in the company as an ownerin total

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

21

Company Overview

Human Resource Strategies in Human Capital Management
At the Septeni Group, we carry out highly reproducible human resource development policies that use our extensive human resource database and technologies
in order to help every one of our human resources with a good sense of ownership and a strong entrepreneurial spirit to maximize their values and abilities.

Since the Group’s founding in 1990, we have always
regarded people (employees) as core capital, and wehave grown steadily by investing actively in them. Since
we began the Digital Marketing Business in 2000, we
have continued to expand our business in line withmarket development. However, in a new market,competition for human resources that will be an
immediate asset has been extremely fierce.
In this kind of business environment, the ability to recruit
human resources with high potential and develop themefficiently heavily affects a company’s competitiveness.
Using the high-quality human resource database we haveaccumulated for over 20 years and technologies toanalyze it, such as AI, we have built a scientific humanresource development model. Based on this, we identify
human resources with a high probability of succeeding at
our company during the hiring processes, and weendeavor to efficiently increase their human capital value
by providing them with an individually-optimized
development plan after they join.

Implementing science-backed
HR Initiatives based on the HRDevelopment Equation

An HR value chain
designed as an integrated service
from recruitment to development

The Group defines the concept of human resources
development not as a matter of “being developed” butrather as one of “developing through the accumulation of
positive experiences in the workplace.” The idea is thatmutual interaction between the individual characteristics
people are born with and the environments surrounding
them influences their growth. We express this in the formof our HR Development Equation.
Based on this approach, we established the Human
Capital Lab within the company to use AI and othertechniques to research the vast quantities of humanresource data we had accumulated to date, and we aredeveloping and applying science-backed HR Initiatives
based on the results of that research.

Leveraging the human resources databases we haveaccumulated over the years, we are building HR
Initiatives (an HR value chain) designed as an integrated
service from recruitment to onboarding to development.
The results of HR Initiatives implemented are stored in
the same database, and the system is designed tocontinuously improve the accuracy of initiatives byapplying the PDCA cycle as operations continue. Byleveraging technology in this way, we strive to realize
efficient and highly reproducible human resource
development and maximize our human capital.

HR Development Equation
GrowthPersonality

EnvironmentTeamHR value chain
Onboarding

Development

Optimize retention ofemployees joining

Providean individuallyoptimized
development planfor each person

Work

G = P E( T +W )+Business environment andhuman resource strategy

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

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

Integrated Report 2022
Introduction

Updating Our Philosophy

Messages from Management

Value Creation Process for “10X”

Strategy & Performance

Sustainability

Corporate Governance

Company Overview

22

HR Initiatives
We implement HR Initiatives based on the HR Development Equation approach in all domains from recruitment to development.
Through the appropriate utilization of human resource data, we aim to increase human capital value to benefit both individuals and the company.

Recruitment

Identification of successful humanresources and individual feedback
In recruitment activities, we have developed a successprediction model that uses AI to calculate the likelihoodof a person succeeding after joining the company, andwe use it as reference information for selection andevaluation. The calculation is done based on information,
mainly the potential recruit’s personality and data
available at the time of selection. Using data as areference enables decision-making based on quantitative
information instead of allowing it to depend entirely onthe subjectivity and feelings of the person in charge ofrecruitment. It leads to a highly accurate identification ofpersonnel who will succeed at our company.
We also use data when communicating with potential
recruits and support them to make a decision on joining
the company. We analyze the data above and provide
each person with a tailor-made “career feedback”
disclosure showing what kind of growth curve apotential recruit is likely to experience after joining thecompany, when and what kind of factors are likely tomake them stumble and what the possible solutions are.
Disclosing an individually-optimized career plan toevery potential recruit allows them to picture their
growth path after joining the company, encouraging
them to join the Group. Through these technologies
and initiatives, we efficiently recruit personnel with ahigh chance of succeeding after joining us.

Please visit the website below for detailed verification resultsin the domain of recruitment.
https://www.hc-lab.tech/media/practice_case/recruiting2/330/(*Only available in Japanese)

Development

Optimal allocation and development plan
After employees join the company, we conduct jobassignments by compatibility based on the personality
data of their team members and supervisors in order toquantitatively assess the environment individuals will
adapt to most easily and determine their placements.
Additionally, based on that data, we provide individuals
with a report stating their strengths, weaknesses,optimum learning style and methods for adapting to theorganization. We also give their supervisors a reportcontaining the optimum communication and training
methods, which supports growth according to anindividual’s unique characteristics. As a result of these
initiatives, we have confirmed that new employees areable to adapt and become contributors at an early stage.

Appropriate utilization ofhuman resource data based on guidelines
To ensure that human resource data is used in an
appropriate and sound manner, we have published
Digital HR Guidelines containing principles for theutilization of human resource data. As stated above, theGroup uses analyses of human resource data in various
HR Initiatives, all of which are conducted according to
the principles of the Guidelines. We will continue to aim
to increase human capital value through the appropriate
utilization of human resource data.

Digital HR Guidelines

Please visit the website below for detailed verification resultsin the domain of development.
https://www.hc-lab.tech/media/practice_case/adaptation2/558/(*Only available in Japanese)
With the belief that “increases in corporate value are achieved
through the growth of individuals,” we intend to continue pursuing
initiatives that will be beneficial to both individuals and the company.
https://www.septeni-holdings.co.jp/dhrp/guideline/threeprinciple/(*Only available in Japanese)