Sustainability Report

At Ceres, our business philosophy is to "Enrich the world through internet marketing."
In our mid-term business plan released on December 23, 2021, we outlined our goal
to create a "token economy (alternative currency economy)" built from a point
ecosystem and blockchain. We will strive to become a platform that breathes new life
into socio economic activities. To meet these goals in the medium to long term, weunderstand the importance of taking on sustainability related challenges such asaddressing global environmental problems (climate change, etc.) and considering
employee health as well as employee working conditions. These are importantbusiness challenges to overcome that not only reduce risks but also lead to profit
opportunities.
Ceres will continue to promote sustainability in a cross-sectoral and flexible manner
by further bolstering the ESG strategies that we have been working on.
Ceres Inc.
Satoshi Takagi, President and Representative Director‐ Environment‐ Society・TCFD disclosures

・Human rights policy

・Eco-friendly services andproducts

・Human capital management

・Carbon offsetting
・Resource efficiency‐ Governance・Corporate governancephilosophy and structure

・Communication
・Innovation creation

・Social contribution initiatives

・Tree planting

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Sustainability Policy

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Materiality
To help resolve sustainability challenges, Ceres introduced Seven Materialities as themes
to focus on towards more effectively allocating company resources.

- Background of Ceres' "Seven Materialities" Ceres ’Materialities

The Background•Help enrich people's lives through "Moppy",
a point site media that can be used for free on the Internet•

Through our dedicated donation platform,“Moppy x SDGs”, we contribute to disaster relief and thesolution of social problems•

Participating in the solution of social problems andeconomic development through open innovation by actively
investing in the growth of companies, investing in venturecompanies through our investment and development
business (CVC), and providing financial support services
for freelancers through our subsidiary labol

1

Contribute to creating a prosperous
society through proprietary services

2

Contribute to resolving social issues
and economic development throughopen innovation

Contribute to fair operation of digitaladvertising and healthy developmentof the industry•

3

Promote efforts for compliance and development of theadvertising industry as a company involved in Internet
marketing4

Provide environmentally-conscious
products and services•

Promote environmentally friendly initiatives for all products
and services we provide•
5

Promote diverse workforce

Promote initiatives to create an environment that isinclusive of employee diversity in order to build a highly
competitive organization that is resilient to changes•

Pursue efforts to secure and train highly qualified
personnel and implement technologies to ensure advanced
security as a company that handles valuable information
assets of many users, including "Moppy" media with over 5
million active users and "CoinTrade", a crypto asset
exchange that requires advanced security technologies•

Implement governance initiatives to achieve sustainablegrowth and maximize shareholder value over the long term
as a public company

6

Ensure information security andprivacy7

Reinforce corporate governance

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Risk management process
We identified social challenges closely related to our business activities by referring to global frameworks ofsustainability. We then assessed and mapped out the social challenges based on their "impact on the company andits business activities" and "potential contributions by the company" to identify materialities.
Assuming that stakeholder interest in each social challenge is equally high, we classified the mapped out
challenges by theme, including in the areas where we can effectively make a contribution using our resources.
Then we set them as materialities.
Among these social challenges, we acknowledge that problems with a high impact on the company and its businessare areas that we should keep a particular focus on as our themes.
Once a year, our Sustainability Promotion Committee identifies social challenges, evaluates the risks andopportunities related to them, configures and reviews materialities, examines specific measures, and reviews theresults of our achievements.
The identified risks and opportunities are shared with the Risk Management Committee and are then assessed
comprehensively with other risks and opportunities.

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Sustainability promotion framework
The Sustainability Promotion Committee is chaired by the President and Representative
Director. It is made up of internal directors, executive officers, and representative
directors of major group companies. It also consists of outside directors, as well as
directors who are members of the audit and supervisory committee. The Committee also
includes other members deemed necessary by the Committee as observers. The
Committee meets once a year in principle.
This Committee makes recommendations and reports to the Board of Directors on the
promotion of Ceres's sustainability business strategies and decides policies andmeasures. It also presents results on examinations of matters relating to materiality,
progress reviews and deliberations on improvement plans.

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Environment

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TCFD disclosures

Governance
The Ceres Sustainability Promotion Committee meets once a year in principle with the
President and Representative Director acting as chairperson. Each year they deliberateon the identification, evaluation and management of risks and opportunities associatedwith sustainability, including climate change, as a whole. The Committee chairperson
reports the details of this meeting to the Board of Directors.
When making decisions on all business activities (strategies, budgets, business plans,investments, etc.), we ensure the consistency of acknowledged risks and opportunities
and the identified materiality before our decisions are implemented.
＞ Click here for details on our sustainability promotion framework

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TCFD disclosures

Strategy
Risk/Opportunity Classification

Risk

Expected Impact and Targeted Area

Policy andregulatory risks

Short tomediumterm

Market risk

Impact on our Business
Less than
2℃
Scenario

4℃
Scenario[Company-wide]
Energy supply costs are rising due to the implementationof carbon pricing and shifts to low-carbon energy usage.

MediumLow

Medium tolong term[D2C]
When not enough is done in regards to climate change
measures within product supply chains (e.g., cosmetics
and health foods manufactured and sold by the company),
the company's products may fall out of favor with its
customer base.

MediumLow

Reputational risk

Medium tolong term[Company-wide]
Inadequate response to climate change by the company
will make it difficult to procure funds, secure humanresources, and continue business with customers andsuppliers.

High

Low

Acute event risk
(intensification of
extreme weather
events)Short tolong term[Company-wide]
It will become difficult to provide products and services
due to damage to offices, data centers, and contractor
factories in the event of a disaster, etc.

Low

High

Resource
efficiency

Medium tolong term[Company-wide]
Costs will be reduced by improving energy efficiency andthrough high capital efficiency.

MediumLow

Energy source

Medium tolong term[Company-wide]· Energy supply costs are reduced as renewable energy
power generation and other technologies become widelyadopted.
· Energy can be steadily procured by distributing energy
sources.

MediumLow

Products andservices

Short tomediumterm[Points]· Increased advertising for products and services withlow environmental impact· Improvement of the popularity of our point media,"Moppy" due to increased donations to environmentalorganizations[D2C]· Increased preference for products such as cosmetics
and health foods manufactured, sourced, and packaged
with low environmental impact[Blockchain]· Increased preference for cryptocurrency staking
services with comparatively low power consumption

High

Low

MarketShort tolong term[Company-wide]
Enjoyment of investment returns from participation in
new markets using our core technologies

High

Low

Resilience

Medium tolong term[Company-wide]
Reduction of the risk of disruption to product and service
distribution by geographically distributing offices, data
centers, and outsourced product manufacturing facilities

MediumHigh

Transition risk

Material risk

Opportunities

Risk/Op
portunityActualiz
ation
PeriodReferenced Scenario
RCP2.6 (IPCC) and SDS (IEA) are used for the below 2°C scenario, and RCP8.5 (IPCC) and steps (IEA) are used for the below 4°C scenario.
The risks and opportunities are identified and their impact levels are analyzed based on their respective assumed influences on society.
The time periods for the realization of risks and opportunities are defined as follows
Short-term:
By the year 2026, which corresponds to our Medium-Term Management Plan period.
Medium-term: By the year 2030, which is the deadline for Japan to reduce greenhouse gas emissions by 46% from 2013 levels.
Long-term:
By the year 2050, which is Japan's stated goal of achieving net-zero greenhouse gas emissions.

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TCFD disclosures

Risk management
Ceres believes that risks and opportunities should be identified and evaluated frommultiple perspectives rather than limited to particular areas.
Due to this belief, we identify and evaluate risks and opportunities along with thoserelated to climate change in a comprehensive way with those related to overallsustainability in order to determine our priorities.
The identified risks and opportunities are shared with the Risk Management Committee
and are assessed in a comprehensive manner with other risks and opportunities.
＞ Click here to see the risk management process for overall sustainability

Metrics and targets
Ceres is a member of the Japan Climate Leaders' Partnership (JCLP) and has shown its
desire and drive to convert its electricity usage to 100% renewable energy. We havealso participated in the Renewable Energy Pledge 100 RE Action campaign. Starting infiscal year 2021, we began work on reducing our CO2 emissions by 100% by switching
the power used for our offices and web servers such as our Moppy point site toelectricity 100% sourced from renewable energy resources.
Ceres uses the GHG (Greenhouse Gas) protocol to measure and catalog its Scope 1 andScope 2 emissions.
We have achieved zero emissions for Scope 1 and Scope 2 emissions since fiscal year
2021, and we will continue this commitment into the future.
Although we are not currently measuring or setting goals for Scope 3 emissions, we willcontinue to examine them while analyzing future trends.
＞ Click here for environmental data

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Eco-friendly services and products‐ Environmental Charities‐

Moppy point site offers a platform
called Moppy SDGs where you candonate your collected points toorganizations that help resolve social
issues. You can donate from 1 point (1yen) and up, and all Moppy users canparticipate!
With Moppy SDGs, you can support
organizations that work to protect theenvironment by donating points.

In July 2022, CoinTrade cryptocurrency
marketplace, operated by group company Mercury,launched CoinTradeStake staking service, whichallows for cryptocurrency (blockchain) asset
management. Efforts are being made to expand thescale of the service, including expanding target
brands and improving convenience.
Staking is only possible with cryptocurrencies that use a proof of stake (PoS) consensus
algorithm. It does not require a large amount of electricity or high performance computers
as is the case with the proof of work (PoW) consensus algorithm used by Bitcoin and similar
cryptocurrencies. Therefore, it is a service with a low environmental burden.

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Carbon offsetting

Ceres has been working since 2021 towards the achievement of a decarbonized society.
To this end, we have launched our Moppy point site, as well as purchased Green Power
Certificates to offset 100% of the CO2 emissions generated by our electricity use (e.g.,
power used by our offices and servers used for web services) to become carbon neutral.
At the January 22, 2021 Board of Directors meeting, it was decided that 100% of CO2
emissions from the electricity used in group businesses would be offset and made carbon
neutral starting from fiscal year 2021. In addition, the company became a member of theJapan Climate Leaders' Partnership (JCLP) and Renewable Energy Pledge 100 RE
Action.

■ About the Japan Climate Leaders' Partnership (JCLP)The achievement of a decarbonized society requires the business sector to have a soundsense of urgency and to start taking proactive actions. In acknowledgement of this,JCLP was founded in 2009 as a corporate group unique to Japan. As of April 2, 2024,
there are 249 member companies representing Japan from an extensive range ofindustries. The combined sales of JCLP member companies reached about 169 trillion
yen and their total electricity consumption is about 79 Twh.
Working towards the achievement of a decarbonized society, JCLP also facilitates
partnerships with local governments and overseas organizations. This includes
comprehensive partnership agreements with the city of Yokohama and The Climate
Group, an international nonprofit organization, where it acts as a local partner andliaison for the popularization of RE100, EV100, and EP100 initiatives.
＞URL : https://japan-clp.jp/en■ About "100% Renewable Energy Pledge, RE Action"
Founded in October 2019 by Green Purchasing Network (GPN), ICLEI Japan, theInstitute for Global Environmental Strategies (IGES), and the Japan Climate Leaders'Partnership (JCLP), the group targets organizations such as companies, local
governments, educational institutions, medical institutions, etc. with power consumption
under 10 GWh, and displays declarations that they have converted their electricity use
to 100% renewable energy. There are over 356 member organizations as of April 2,2024 with domestic companies, government, and nonprofit organizations included.

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Resource efficiency

Going paperless and encouraging recycling

Ceres is working to reduce paper usage by, among other things, digitizing internal
company forms as well as using the internet to collect digital signatures for contracts
online.

In addition, we utilize a confidential collection box system (Mamoru-kun) from Nihon
Purple Co., Ltd. to ensure the confidentiality and recycling of used documents.

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Tree planting
For the Future of the Earth
Ceres carried out some tree planting projects to convey its thoughts andfeelings towards the future of the Earth.
We began planting trees in 2009.
Thanks to your support, we were able to plant approximately 1,000 seedlings.
The seedlings are still small, but we hope that a rich and green forest will spread out in 50 to
100 years to enrich the future of our planet.

‐ What are the goals of the tree farms?
Aiming to create a sustainable forest
Tree planting efforts were carried out with the goal of addressing
challenges related to the economic development of Hohhot, Inner
Mongolia, while simultaneously addressing environmental
problems (prevention of global warming and desertification,conservation of biodiversity) in the region.
We believe that the most important thing when it comes to tree
planting efforts is the continuity, maintenance, and expansion of
those efforts.
The prevention of global warming and desertification cannot be
achieved without the support of local villagers, who respond to
our tree planting efforts with smiles. We hope to expand
awareness through these tree planting efforts.

‐ What is carbon offsetting?

Offsetting＝Compensation

Carbon offsetting is a means of compensating for CO2 emissions that cannot be reduced
by CO2 absorption and emission reduction projects like tree planting.
Carbon offsetting through tree planting promotes voluntary CO2 reduction by a wide range
of entities such as companies and local citizens. At the same time, tree planting projects
have also been connected with addressing poverty in the areas where trees are planted.

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Tree planting‐ Why plant trees in Inner Mongolia?
It is one of the areas most susceptible to desertification
China's Inner Mongolia is one of the areas most susceptible to desertification, a serious
problem in Inner Mongolia.
For example, China has 1.73 million square kilometers of desertified land, and China's
National Forestry and Grassland Administration reported that an area of 530,000
square kilometers awaiting maintenance will take about 300 years at the current rate torestore back to health.
* "People's Daily" March 15, 2011

There are various causes of desertification. There are many human factors such as
logging, pasturing and excess farmland conversion, as well as problems caused byclimate change as a result of human economic activities, etc. The causes are numerous
and are intertwined with each other in a complex way.

Why do we plant larch trees?
Larch is a species of tree that spreads across the subarctic regions of the northernhemisphere, e.g., in Europe, Siberia, the Himalayas, North America, and Japan. It ischaracterized by rapid growth and resistance to dryness. (The larch absorbs about 250
kg of CO2 over a 30 year period.)
Larch trees were used in the post-war expansion of forests in Japan due to their rapid
growth and easy planting. Larch trees are one of the most suitable plants for living inareas that are often impacted by severe droughts.

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Society

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Human rights policy
Ceres recognizes that it has an important social responsibility as a company to respect thehuman rights of everyone involved in our business activities, not to infringe upon them, andto deal with any negative effects. We will establish, comply with, and endorse the following
items as the Ceres Human Rights Policy, which refers to our international standards
concerning human rights＊.

1. Respect for Human Rights
We respect the human rights of everyone involved in our business activities, and we
strive not to infringe upon them and to deal with any negative effects.

2. Prohibition of Discrimination
We prohibit all discrimination in hiring and in the workplace on the basis of sex, gender,
race, language, religion, politics or other personal opinions.
In addition, we operate a media and advertising agency, and we do our utmost to
eliminate discriminatory messages within advertisements and media.

3. Prohibition of Forced Labor and Child Labor
We prohibit all forced labor and child labor, not only for Ceres employees, but also
throughout our supply chain.

4. Prohibition of Harassment
We prohibit all forms of harassment in the workplace. For this purpose, a harassment
consultation desk has been established within the Human Resources & General Affairs
Department, and upon receiving a consultation from an employee, the person in charge
shall promptly investigate the facts and strive to resolve the problem as soon as possible
while giving due consideration to privacy.
In addition, we will regularly conduct harassment prevention training for our employees
in order to raise awareness.

5. Establishment of Reporting Desk
An internal reporting desk for consultation and reporting shall be established in the
Legal Group and Internal Audit Group at the Corporate Planning Office in case eventsare discovered that violate our efforts to respect human rights. The representative of
the reporting desk and consultation desk shall be the general manager of the corporate
planning office. Upon receiving a consultation or a report, we will promptly confirm thefacts and take action.

* The International Bill of Human Rights, including the Universal Declaration of Human Rights, theILO Declaration on Fundamental Principles and Rights at Work, and the Guiding Principles on
Business and Human Rights.

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Human capital management

Ensuring diversity in human resources
Our philosophy of diversity in human resources
Ceres operates in the rapidly changing Internet industry and actively invests inblockchain technology, which has the potential to become a social infrastructure in the
future. We believe that diversity in our members is important to build a highly
competitive organization that is resilient to change.
Ceres believes that diversity is the inclusion of people with various backgrounds in termsof gender, sexual preference, nationality, race, language, ideology and more.

A human resource development policy that ensures diversity
Ceres values the coexistence of diverse backgrounds and aims to bring out individual’sabilities and turn them into organizational achievements. Organizational management
will therefore become more important and difficult.
For this reason, we are enhancing organizational management education and training forleaders and leadership candidates.

An internal environment improvement policy that ensures diversity
In order for staff with diverse backgrounds to make the most of their individual abilities,
it is necessary to have a mechanism that allows for each person to share their ideas.
At Ceres, we are designing offices and systems that enable us to create such amechanism.

Promotion of informal communication
Ceres believes that revitalizing
communication among members with diverse
backgrounds will facilitate the generation of
new ideas and provide an opportunity for new
services and business opportunities to beborn.
Our offices and various systems are designed
to produce this kind of spontaneouscommunication.

＞ Click here to see our offices. (Japanese text only. )System for revitalizing communication
In-house party subsidy system(Get-together party)

In-house club activity system
We will subsidize the cost of the activity.

For the purpose of deepening exchanges
with other departments, this systemprovides a subsidy of up to 3,000 yen perperson once a month when a party is held
between employees.

【Main club activities】 Video game club,analog game club, English club, bowlingclub, etc.

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Human capital management

Development of diverse workstyles‐Childcare support system
Childcare leave
Employees who live with or care for children in the third grade of elementary schoolor younger are entitled to 40 hours of time off per year.

Childcare assistance Payments
This system provides subsidies equivalent to 40% of the fees for using daycare
facilities (up to 30,000 yen) to full-time employees who have children under 3 yearsof age.

Working from home
Employees who have children in the third grade of elementary school or younger are
offered a maximum of three days a week to work from home.

Childcare support for use of babysitting services
This program offers up to eight discount coupons per month for use of babysitting
services during working hours are distributed to employees who care for children in
the third grade of elementary school or younger.

Working parents support
This system provides monthly support of 20,000 yen to employees who havechildren under 3 years of age and restricts or limits overtime work over a specified
period of time.

Balance between childcare and work
Broader support for shorter working hours for childcare, child nursing leave, andmore overtime and late-night work restrictions for childcare than is legallyrequired.(Available for children in the 3rd grade of elementary school or younger.
Statutorily, under 3 years of age or until elementary school entrance.)

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Human capital management‐ Flextime system
Ceres has introduced a flextime system.
The system increases the flexibility of working hours and supports diverse members
to support both productivity and the personal lives of professionals.

‐ In-person and remoteCeres has implemented a workstyle that combines office work and remote work totake advantage of both in accordance with the characteristics of each groupcompany's business.
At Ceres, we combine office work with remote work up to twice a week to maximize
productivity and emphasize communication within the team.
Yumemi, an engineering-focused group company that supports digitaltransformation, in principle, allows its employees to work fully remote andconcentrate on development.

‐ Welfare system to cover the entire cost oforal contraceptives
One of Ceres' efforts to improve the QoL of its employees is a system to fully cover
the cost of oral contraceptives supplied by our wholly owned subsidiary, Salus,inc.
The benefits of oral contraceptives are not only for birth control purposes, but also
for improving irregular periods and period pain, and relieving stress caused byirregular periods. With this system, we support the improvement of work comfort
and productivity by reducing physical and mental burdens caused by women's
specific symptoms.

‐ Housing allowance
Ceres pays 40% of the rent excluding utility and management fees, etc. (maximum
30,000 yen to 60,000 yen depending on position) for employees who rent anapartment within five stations of the nearest station to the company.
We will help to improve quality of life and work efficiency by reducing the physical,
mental, and time burdens brought by commuting.

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Human capital management

Creating a system that can demonstratehuman resource development and ability
Management by Objectives（MBO）
Ceres has introduced Management by Objectives (MBO) as an evaluation system.
Because members set their own goals, they are expected to increase their commitments
and develop staff who take the initiative rather than simply completing the tasks they
are given.

Support for skill improvement
At Ceres, in-house training sessions are held as needed according to job type, area ofexpertise, position, etc. The costs of external training to help members improve theirskills are also covered.
In addition, we have several systems to support our members' development, such as areward system for acquiring qualifications, financial assistance for members who areattempting to master more difficult qualifications, and subsidies for the purchase ofbooks necessary for their efforts.
Group company Yumemi has adopted a number of initiatives and systems to improve theskills of its members, such as declaring itself "the company that conducts the most study
sessions in Japan."

Expand career opportunities
Ceres has established a system that allows each employee to choose the career pathbest suited to them.
In addition to management positions, we also provide employees with options to grow intheir areas of specialization so that they can choose a work style that suits thembest.Employees who aspire to become specialists are eligible for specialist position
allowance as they work to improve their skills.
For employees in management positions above the rank of leader, managerial position
allowance is provided.

Culture of challenge
Ceres has incorporated a program for new business planning that utilizes its own
management resources in training sessions for new graduates joining the company.
Proposed projects can be presented to the directors and executive officers, and if
accepted, the project can be launched and promoted by the person who initially
proposed the project.
In addition, there is a culture in which proposals are proactively made to directors on adaily basis regarding business, systems, structures, etc. that will benefit the company.
Group company Yumemi has three unique systems called the C.xO system, executive
officer system, and director challenge system. These systems allow members to try
company roles such as executive officer or director. In fact, there is a member who
graduated only two years ago who has served as a legal director from their first year.
By daring to put ourselves in a unique position, we are expanding our members'
perspectives and at the same time challenging ourselves to create new businesspossibilities by incorporating different perspectives into the business philosophy.
＞Click here to see data on human capital.

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Communication

Ceres believes that advertising is valuable information thatenhances the quality of people's lives.
Moppy point site operated by Ceres aims to be a piece of media that leaves no one
behind by providing free access to information through smartphones, PCs and otherwidely used devices.
We will continue to improve the quality of information disseminated through Moppy pointsite and contribute to the well-being of society as a whole.

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Innovation creation

Ceres aims to revitalize the industry by actively investing in the advancement oftechnology and the creation of new businesses in the Internet marketing and blockchain
fields, as well as in the promotion of their social implementation.
In addition to initiatives within the group, we are building an open innovation ecosystem
consisting of a variety of strong and weak connections, such as by investing in promising
start-ups in our CVC business and working on technological and commercial cooperation.
Moreover, group company Labol provides Labol AI factoring service and Labol card
payment service for freelancers to support their cash flow, thereby helping to speed up
the investment cycle for freelancers.

As part of open innovation, we make venture investments forthe following purposes
1. Enhancing the value of existing businesses
2. Creating new businesses (mergers, alliances, M&A)

3. Continuing to earn investment income (IPO, transfer)

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Social contribution initiatives

Approved as a TOKYO Workstyle Reform Declaration Company by
the Tokyo Metropolitan Government‐ We received recognition from the Tokyo
Metropolitan Government as a TOKYOWorkstyle Reform Declaration Company.
Ceres is pleased to announce that we have been
approved as a TOKYO Workstyle Reform Declaration
Company in the Promotion of Workstyle Reform
initiative that the Tokyo Metropolitan Government is
promoting to increase incentives to improve the working
conditions and paid leave offerings of companies
operating in Tokyo.
Ceres will continue to create a comfortable work
environment for employees that allows them to switch
on and off from work.

‐ Declaration
We shall create a work environment that allows employees to switch on and off from work,
enabling a more modern workstyle.

‐ Goals‐ Initiative Details

Improvement of working conditions

Improvement of working conditions

Aim for an average of 20 hours or lessper person per month in overtime
working hours.

In the middle of the month and at theend of the month, data on total
working hours will be provided to
managers to ensure that they manage
the working hours of their members.

Improvement of leave style
Aim for employees to take 70% or moreof annual paid leave.

Improvement of paid leave● Data on the usage of annual paid
leave will be provided to managers,
and the HR department will inquirewith employees who did not takeenough annual paid leave.
● Managers will take the initiative tocreate working conditions and working
environments that facilitate
employees' use of annual paid leave.

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Social contribution initiatives‐ Context surrounding creation of the TOKYO Workstyle Reform
Declaration
The TOKYO Workstyle Reform Declaration Company system is a program in which theTokyo Metropolitan Government recruits companies to make a Workplace Reform
Declaration in order to increase incentives for working conditions reform among
companies in Tokyo. It also provides various types of support for improving working
conditions and paid leave offerings.
Companies that have made this declaration set goals and initiatives for the next two to
three years to reduce employees' long working hours and promote the use of annual paid
leave, etc., in a written declaration, and make company-wide efforts to achieve them.
As a mid to long-term growth strategy, Ceres will not only strengthen its existing media,
but also launch new media and expand into O2O business.
We intend to place greater emphasis than ever before on diversity in the staff
responsible for such growth strategies.We believe that by bringing talented people toCeres from various backgrounds who can influence each other, new and unprecedented
ideas will be born.
We also believe that we need to encourage more diverse working strategies than everbefore to realize such ideas.In order to make Ceres a place where talented people withvarious backgrounds can play more active roles, we plan to continue to implement
various initiatives into the future.This Workstyle reform declaration is a part of these
initiatives.

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24Social contribution initiatives

Endowed the "Beyond Blockchain
Basics/Advanced" course at Keio University‐ In our support of higher education,
we operate an endowed blockchain course at Keio University
Moppy points managed by Ceres are a kind of cryptocurrency token that can be exchanged
for cash, electronic money, etc. Therefore, we believe it has a very high affinity with thecryptocurrencies and blockchain technologies that are globally widespread. A blockchain isa cryptographic technology that underpins bitcoin and other cryptocurrencies. It’s a
network that performs decentralized management and it has properties that make it
virtually impossible for third parties to tamper with. It is currently expected to be
implemented throughout various fields. However, while awareness of cryptocurrencies isincreasing, the lack of staff who can properly learn about and apply blockchain technology
is a challenge.
Through this endowed course, we hope to contribute to the development of virtual currency
and blockchain technology by helping to train professional engineers in Japan.
(From left)
Kenji Saito, Keio University
Takagi, President and Representative Director of CERES Inc.
Jun Murai, Keio University‐Outline of Endowed Course

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Social contribution initiatives

Support for the Only One Table Tennis
Championships‐ For the “smiles, vitality and life force" of all people.
Ceres supports the Only One Table Tennis Championships, which aim to promote mutual
understanding between people with and without disabilities.
We believe many things can be learned and gained from people with and without disabilities
by making the most of their individuality and interacting with each other. Looking at thephotos taken at this Festival, all of them are filled with “smiles, vitality and life force".
We support this event because we thought that making more people aware of these kinds ofopportunities and supporting them will connect Japan to the future.

‐ Support Para-Sports Festival
We sponsored the first Only One Table Tennis Championships in Tokyo
The purpose of these games is to promote mutual understanding between people with andwithout disabilities.
- First of all, making the most of a disability by participating in the games, and teachingothers about disabilities- A strong life force can be felt from those who play hard while still coping well with theirdisability.
We hope the Only One Table Tennis Championships can support para sports as well as
provide a place where people with disabilities can spontaneously express their individuality.
We also hope people without disabilities can learn from people with disabilities there.
Making the inspiration and strong life force of para sports participants the theme, thisevent aimed to promote para sports as well as to promote interactions between people withand without disabilities in preparation for the Tokyo 2020 Paralympic Games.

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26

Governance

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27

‐ Basic stance on corporate governance
As a publicly traded company, Ceres has established a system to maximize its corporate
value from a long-term perspective as a basic corporate governance goal. It aims toenhance its management organization in order to improve management efficiency andstrengthen compliance.
Ceres belongs to an internet-related industry where the market landscape is changing
rapidly. We recognize that some of the most important management issues are ensuring theflexibility of the business, while at the same time increasing our transparency and integrity,and in addition securing trust from our shareholders, customers, users, employees, andother stakeholders. We will ensure thorough information management and fulfill our
responsibility to stakeholders by disclosing relevant information without delay. In addition,in order to strengthen compliance, we are proactively taking measures such as
strengthening our internal auditing system as well as improving leveraged service quality bystrict adherence to the rules outlined under the Privacy Mark system. We will continue totake a sincere approach to improving our internal systems.

‐ Basic policy for establishment of internal control system＞ Click here for more information‐ Corporate governance system

Copyright © 2024 Ceres Inc. All Rights Reserved.

28

‐ Summary of Board of Directors' effectiveness assessment results
Ceres conducts effectiveness assessments of its Board of Directors in accordance with the
Corporate Governance Code established by the Tokyo Stock Exchange and discloses
summaries of the results in order to enhance the effectiveness of the Board of Directors,
build a more comprehensive corporate governance structure, and increase corporate value
over the medium to long term.
＞ About the summary of Board of Directors' effectiveness assessment results for the fiscal year
ended December 2023

‐ Nomination and Remuneration Advisory Committee
Ceres established the Nomination and Remuneration Advisory Committee on March 24,
2020, which is composed of a majority of Independent Outside Directors, as an optional
advisory body to the Board of Directors.
The purpose of the Nomination and Remuneration Advisory Committee is to enhance thecorporate governance system by strengthening the independence, objectivity, andaccountability of the Board of Directors' functions regarding the nominations andcompensation of directors, etc. The Committee deliberates on the following items in
consultation with the Board of Directors and reports to the Board of Directors on thecontents of such deliberations.
(1) Draft proposal for the general meeting of shareholders regarding the appointment anddismissal of directors(2) Draft proposal for the appointment and dismissal of Representative directors andexecutive directors with specific titles(3) Other matters deemed necessary by the Board of Directors regarding the appointment
and dismissal of directors, the appointment and dismissal of representative directors andexecutive directors with specific titles(4) Draft proposal for the general meeting of shareholders regarding remuneration for
directors, etc.
(5) Draft policy for determining the details of cash remuneration and non-cash
remuneration for individual directors (excluding Directors who are Audit & Supervisory
Committee Members)(6) Other matters deemed necessary by the Board of Directors regarding remuneration for
directors, etc. The members of the Ceres Nomination and Compensation Advisory Committee
are as follows. Chairman: Satoshi Takagi, President and Representative Director;
Committee Members: Hitoshi Tada, Outside Director; Yoshindo Takahashi, Outside Director(Audit & Supervisory Committee Member)

Copyright © 2024 Ceres Inc. All Rights Reserved.

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‐ Skills matrix
The expertise and experience of the directors are as follows.

Copyright © 2024 Ceres Inc. All Rights Reserved.

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‐ Independent outside directors

a. An executive director of a listed company or its subsidiaryb. An executive or non-executive director of the parent company of a publicly traded company
c. An executive director of a sister company of a publicly listed company
d. A person whose major business partner is a publicly traded company or
an executive director thereof
e. A major business partner of a publicly traded company or its executive director
f. A consultant, accountant, or legal professional who receives a significant amount of money orother property from a publicly traded company in addition to executive compensation
g. A major shareholder of a listed company (if the major shareholder is a corporation,
its executive director)
h. An executive director (only the person himself/herself) of a business partner(which does not fall under d, e, or f) of a listed company

I. An executive director (only the person himself/herself) of a place with which the Outside
Directors have a reciprocal appointment relationshipj. An executive director (only the person himself/herself) of a place where the listedcompany makes donations
k. Other

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Copyright © 2024 Ceres Inc. All Rights Reserved.

32

‐ Executive compensation
Executive compensation consists of a basic salary as a fixed kind of remuneration,
restricted stock remuneration (non-monetary remuneration) as a medium- to long-term
incentive for the purpose of continuously improving Ceres’s corporate value and sharing
shareholder value, and bonuses as a short-term incentive.
For Outside Directors, only a basic salary as a form of fixed remuneration is paid in light of
their roles and independence. In addition, at the Board of Directors meeting held on
February 19, 2021, we established the Directors' Remuneration Policy, which includes apolicy for determining the details of compensation, etc. for individual directors (excluding
Directors who are Audit & Supervisory Committee Members). The outline of the policy is asfollows.

Directors' remuneration policy

1. Basic policy on directors' remuneration policy
・ Decisions shall be made in accordance with the career, work experience, duties,
responsibilities, etc. of each Director, taking into consideration Ceres’s businessperformance and business environment, etc.
・ Directors shall increase their motivation to continuously improve businessperformance over the medium to long-term in order to meet the expectations ofshareholders, and to contribute to the improved value of the entire Group.
・ Aim for competitive compensation levels in order to secure diverse and talented
staff who can put our corporate philosophy into practice.
・ Objectivity and transparency shall be ensured not only for the remuneration system
for Directors but also for individual remuneration for each Director throughdeliberation and supervision of the Nomination and Compensation Advisory Committee,
a voluntary advisory body which is composed of a majority of Outside Directors.

2. Basic structure of directors' remuneration

From the perspective of maintaining and improving corporate governance and putting
basic policies into practice, remuneration for Ceres's Directors (excluding Directors
who are Audit & Supervisory Committee Members and Outside Directors) consists ofthree types: (1) basic salary as fixed remuneration, (2) bonuses as short-term
incentive remuneration, and (3) stock remuneration (pre-delivery type restricted
stock) as medium- to long-term incentive remuneration. The ratio, etc. shallcorrespond to the position of the Director. Remuneration for Outside Directors shall belimited to basic salaries, which is a kind of fixed remuneration, in light of their
expected roles.

Copyright © 2024 Ceres Inc. All Rights Reserved.

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3. Policy for determining the amount of each type of remuneration, etc.

(1) Basic remuneration (Fixed remuneration)
Decisions shall be based on comprehensive consideration of the position, full-time orpart-time status, career, past salary and remuneration levels, areas of responsibility
and duties, and remuneration levels in the same industry, etc.

(2) Bonuses
In light of the nature of short-term incentive remuneration and commonality with theinterests of shareholders, the amount of basic remuneration for each director shall be
determined according to the achievement status of the amount of consolidated net
income (meaning net income attributable to shareholders of the parent company asshown in the consolidated statements of income, hereafter referred to as"consolidated net income"), which is resolved by the Board of Directors and announced
around February each year as a performance forecast, taking into consideration theposition of each director (excluding Directors who are Audit & Supervisory Committee
Members and Outside Directors), the amount of basic remuneration for the applicablefiscal year, his/her contribution in the relevant fiscal year, the performance andgrowth rate of the business division in charge, and other factors.

(3) Stock remuneration (Pre-delivery type restricted stock)

In addition to providing incentives for the sustainable improvement of Ceres’s
corporate value, monetary claims are paid as remuneration to grant restricted stock
for the purpose of further sharing value with shareholders.
The total amount of such stock remuneration shall be determined on the assumptionthat it does not exceed 20,000 shares and 2 million yen per year, taking into
consideration the amount of consolidated net income of the group for the applicablefiscal year. In addition, the number of stock compensation grants for each individual
and the amount of monetary claims to be paid for such grants shall be determined inconsideration of the basic remuneration amount for eligible Directors (excluding
Directors who are Audit & Supervisory Committee Members and Outside Directors.
Hereinafter referred to as "eligible Directors") for the applicable fiscal year, thecontribution of each eligible Director during the fiscal year, the performance andgrowth rate of the business department in charge, and trends in the price of Ceres'scommon stock.

Copyright © 2024 Ceres Inc. All Rights Reserved.

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4. Process of determining directors' remuneration, etc.
The amount of basic remuneration and bonuses among the directors' remuneration(excluding Directors who are Audit & Supervisory Committee Members) shall be
determined individually by the President and Representative Director, who isdelegated by the Board of Directors, after mutual evaluation of individual Directors,
deliberation and formulation of draft proposals by the Nomination and Remuneration
Advisory Committee, and determination of the total amount of each remuneration at
the Board of Directors. With regard to stock remuneration (pre-delivery type
restricted stock), the amount and the number of shares to be granted to eachindividual shall be determined by the Board of Directors after deliberation andformulation of a draft proposal by the Nomination and Remuneration Advisory
Committee.

Individual disclosures are not made as there is no director whose total amount ofconsolidated remuneration, etc. is more than 100 million yen.
The total amount of remuneration, etc., by category of directors of the submitting company,
the total amount of remuneration, etc., by type of remuneration, etc., and the number of
directors subject to the remuneration are as follows.

Note:(1) The amount of remuneration, etc. above includes the remuneration paid for during the termof office of one Outside Director (Audit & Supervisory Board Member) who retired at theconclusion of the 18th Ordinary General Meeting of Shareholders held on March 29, 2023.
(2) Bonuses represent the amount of provisions for directors' bonuses.
(3) Restricted stock is granted to Directors (excluding Outside Directors and Audit &Supervisory Committee Members) as non-monetary remuneration. The above restricted
stock remuneration is the amount recorded as expenses for the fiscal year.
(4) In addition to the above, the total amount of remuneration received by Outside Directors
from subsidiaries is 2.4 million yen.

Copyright © 2024 Ceres Inc. All Rights Reserved.

35

‐ Policy on shareholdings including cross-shareholdings

Standards and concepts for classification of investment sharesWith regard to the classification of investment shares held for pure investment purposes
and investment shares held for purposes other than pure investment, shares held for the
purpose of gaining profit from changes in the value of the shares or dividends on the sharesare classified as investment shares held for pure investment purposes, and other shares areclassified as investment shares held for purposes other than pure investment.

Since Ceres is engaged in the investment development business, investment shares for pureinvestment purposes are presented as operational investment securities and investment
shares for purposes other than pure investment are presented as investment securities in
the consolidated balance sheets.

Investment shares held for purposes other than pure investment
Method to verify the policies and rationality of shareholdings, and details of the verificationby the Board of Directors, etc. regarding the relevance of holding individual stocks
Investment shares for purposes other than pure investment are held for the purpose ofmaintaining and strengthening business alliances and transactions, and Ceres’s basic
policy toward cross-shareholdings is to hold these shares in a limited manner after carefully
considering the synergies gained from business alliances and information sharing with thetarget companies. In addition, Ceres will review decisions to continue holding stocks, andwill seek to reduce the number of stocks held without a significant reason.

Copyright © 2024 Ceres Inc. All Rights Reserved.

36

‐ Privacy Policy
Ceres Inc. (hereinafter "we") is mainly engaged in two areas of business, the Internet
Media Business and the Internet Job Advertising Business, with the aim of becoming acompany that "realizes a prosperous world through Internet marketing." We are acutely
aware of the importance of protecting the personal information we receive from customers
through our services in this increasingly advanced information society. We will continue tothoroughly educate our executives and employees in ethics to protect personal information.
In addition, we have defined the following items as our privacy policy. We declare that wewill always pay attention to evolving social demands and make company-wide efforts tocontinually improve our personal information protection management system, etc.
1. Matters concerning the acquisition, use, and provision of personal informationi.

Personal information shall be acquired, used, and provided in an appropriate manner.
Personal information acquired shall not be used for any purpose other than theintended purpose and measures shall be implemented to avoid its use for any otherpurpose.

ii.

When outsourcing the handling of personal information, we will select a subcontractor
that meets our personal information protection standards, conclude an outsourcing
agreement to protect personal information, and thoroughly implement appropriate
management and supervision of the subcontractor.

2. Matters concerning the safety of personal informationi.

We will implement reasonable safety measures to prevent accidents such as loss,
damage, or leakage of personal information, and correct any problems.

ii.

If a customer requests a notification of the purpose of use, disclosure, correction,
addition or deletion, or refuses to provide or let us use their personal information, theperson in charge will respond promptly. We will respond only after confirming theidentity of the individual, and will prevent unauthorized falsification of personal
information by third parties.

3. Matters concerning compliance with laws and regulations
With regard to the handling of personal information, we will comply with Japanese laws
and regulations, guidelines established by the government, and other rules concerning
the protection of personal information.
4. Matters concerning the handling of complaints and consultations

We will respond promptly to complaints and inquiries regarding personal information.

5. Matters concerning continuous improvement of the personal information protection
management system
Our personal information protection management system will continue to improve as
relevant laws and regulations are revised and social conditions change.

Copyright © 2024 Ceres Inc. All Rights Reserved.

37

Sustainability data collection

Copyright © 2024 Ceres Inc. All Rights Reserved.

38

Data collection
Item

Fiscal Year Ended
December 2022

Fiscal Year Ended
December 2023

Aggregation
Range

Total emissions (Scope 1 + Scope 2) (t-CO2)００Consolidated

Scope 1 emissions (t-CO2)00Consolidated

Scope 2 emissions (t-CO2)00Consolidated

Scope 3 emissions (t-CO2)-

10,201

Consolidated

Scope3／Category

Emissions Examples

Fiscal Year Ended
December 2023

Category1

Purchased goods and Services

Category2

Ratio［％］9,793

96.00%

Capital goods

127

1.24%

Category3

Fuel- and energy-related activities

6.19

0.06%

Category4

Upstream transportation and distribution

162

1.59%

Category5

Waste generated in operations

0.13

0.00%

Category6

Business travel

55.3

0.54%

Category7

Employee commuting

51.8

0.51%

Category12

End-of-life treatment of sold products

5.73

0.06%

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Data collection
Item

Fiscal Year Ended
December 2022

Fiscal Year Ended
December 2023

Aggregation
Range

Number of employees

498

615

Consolidated

Female134

171

Consolidated

Ratio

26.9%

27.8%

Male

364

444

Ratio

73.1%

72.2%

188

271

Ratio

37.8%

44.0%

30s

182

202

Ratio

36.5%

32.8%

117

121

23.5%

19.6%

10

19

2.0%

3.0%

1

2

0.2%

0.3%

20s and under

40s
Ratio
50s
Ratio
60s and over
Ratio

Consolidated

Consolidated

Consolidated

Consolidated

Consolidated

Consolidated

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Data collection
Item

Fiscal Year Ended
December 2022

Fiscal Year Ended
December 2023

Aggregation
Range

Number of managers--

Non-consolidated

Female--Non-consolidated

Ratio

-

13.8%

Male

-

-

-

86.2%

Average age

33.9

32.9

Consolidated

Female (age)

33.6

32.7

Consolidated

Male (age)

34.0

33.1

Consolidated

Average years of employment (years)

3.7

3.7

Consolidated

Female (years)

3.9

3.6

Consolidated

Male (years)

3.6

3.7

Consolidated

5,767

5,563

Non-consolidated

82.0%

72.4%

Non-consolidated

23.5

9.9

Non-consolidated

00

Non-consolidated

100.0%

100.0%

Non-consolidated

100.0%

100.0%

Non-consolidated

98.0%

99.0%

Non-consolidated

40.0%

42.8%

Non-consolidated

100.0%

100.0%

25.0%

20.0%

Ratio

Average annual salary (thousand yen)
Percentage of paid leave taken
Average monthly overtime working hours
Number of occupational accidents
Percentage of stress check tests taken

Percentage of harassment prevention training
sessions taken
Percentage of regular health checkups taken

Percentage of childcare leave taken
FemaleMale

Non-consolidated

Non-consolidated
Non-consolidated

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Data collection
Item

Fiscal Year Ended
December 2022

Fiscal Year Ended
December 2023

Aggregation
Range

Number of directors

99Non-consolidated

Female11Non-consolidated

Ratio

11.1%

11.1%

Male

8

8

Ratio

88.9%

88.9%

4

3

44.4%

33.3%

4

3

44.4%

33.3%

Total remuneration for directors

211,019

212,321

Non-consolidated

Internal

190,919

197,021

Non-consolidated

55Non-consolidated

20,10015,300Non-consolidated

5＊1

5＊2

Board of Directors Meetings (Attendance rate)

99.4%

96.5%

Nomination and Remuneration Committee
Meetings (Attendance Rate)

100.0%

100.0%

Number of Sustainability Promotion Committee
Meetings

1

1

ー

Number of internal reports00

Non-consolidated

External
Ratio
Independent

Ratio

Number of subjects
External
Number of subjects

Non-consolidated

Non-consolidated

Non-consolidated

Non-consolidated

Non-consolidated
Non-consolidated*1 Including the remuneration paid during the term of office of one outside Director (Audit &Supervisory Board Member) who retired at the conclusion of the 17th Ordinary General Meeting of
Shareholders held on March 23, 2022.
*2 Including the remuneration paid during the term of office of one outside Director (Audit &Supervisory Board Member) who retired at the conclusion of the 18th Ordinary General Meeting of
Shareholders held on March 29, 2023.

Copyright © 2024 Ceres Inc. All Rights Reserved.

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