The Septeni Group’s Corporate Governance
Basic Approach

The Company and the company group comprising its subsidiaries (hereinafter called the “Group”) consider that their corporate
governance is based on improvements and the implementation thereof to ensure that actions are taken pursuant to the Group’s
corporate philosophy and code of conduct, decisions are made in a transparent, fair and efficient manner, laws and regulations
are strictly observed, and corporate performance is monitored appropriately.

Outline of Our Corporate Governance Structure

As a result of the functioning of both oversight of theexecution of duties by outside directors through deliberationof the Board of Directors, as well as auditing by independentcompany auditors who are not involved in decisions regarding
the execution of duties, the Company is utilizing the current
corporate governance system as it believes that it will
guarantee further enhanced governance functions and willfurther increase the effectiveness of corporate governance.

The Group is managed under a holding company structurein which the Company, which is the ultimate parent company,
is a holding company and its group companies are operatingcompanies. By separating the function of administering its
overall business from executing its individual businesses, theGroup has been working to facilitate the delegation of
authority and strengthen the Company’s function ofmonitoring the Group’s businesses.

Governance Highlights
Number of Directors (Outside
Directors Included in Total)(Fiscal year ended September 2019)

Number of Board of Directors’Meetings Held

14

Number of Auditors (Outside
Auditors Included in Total)

Number of Board of Auditors’Meetings Held

4 (2)Average Attendance Rates at
Board of Directors’ Meetings

97%
Auditors 100%
Directors

7 (4)Average Auditor
Attendance Rate at Board ofAuditors’ Meetings

100%

14

Note: Above figures include one director who retired during the fiscal year.

Fiscal Year Ended
September 2016

Fiscal Year Ended
September 2017

Fiscal Year Ended
September 2018

Fiscal Year Ended
September 2019

Introduction of performance-linked
stock compensation system for ofﬁcers
Introduction of effectiveness evaluation to enhance
the functioning of the Board of Directors

Main Initiatives

Systematizationof governancefor greater
effectivenessEstablishment of the Financial Results and Disclosures
Committee and the CSR Committee
Abolition of antitakeover measures

Separation of execution and monitoring throughthe introduction of an entrustment-type executive ofﬁcer system

Establishment of Group Risk Management Committee

Number of
Outside Directors

22

Increased to two(including afemale director)

SEPTENI HOLDINGS CO., LTD.

Board of Directors•	‌Introduced an entrustment-type executive officer system inJanuary 2017 with a monitoring-oriented model that
focuses primarily on monitoring Group Executive Officers.
•	‌Presents the overall direction of basic policies and othermanagement matters, creates an environment that supports
appropriate risk-taking by the management team, and takes
responsibility for monitoring the business execution of the
management team.
•	‌Consists of seven directors, of which four, a majority, areindependent outside directors.

Progress of Governance Reforms
Fiscal Year Ended
September 2015

Corporate Governance System

Outside directors
become the majorityof the Boardof Directors•	‌In principle, meetings are held once a month and on
extraordinary occasions as required.

Group Management Meeting•	‌In charge of decision-making on execution of businessmatters throughout the Company and the Group’s
operating companies, and those that involve multiple
operating companies.
•	‌The Board of Directors appoints Group Executive Officers incharge of businesses. The Group President and Chief
Executive Officer, who is concurrently a representative
director, oversees the business execution of Group
Executive Officers.
•	‌The Group Management Meeting supports decision-making
by the Group President and Chief Executive Officer anddiscusses important management matters for the Group.
•	‌In principle, meetings are held twice a month and on
extraordinary occasions as required.

Board of Auditors•	‌Conducts audits of directors’ execution of duties based on
audit policies, audit plans and other criteria established by
the Board of Auditors.

•	‌The Company has adopted a Board of Auditors system
consisting of four auditors, two of whom are highly
independent outside auditors.

Committees

The Company has established various committees to create asystem that enables clarification of authority and responsibility,
as well as prompt and appropriate decision-making.
•	‌Group Risk Management Committee
Responds promptly and effectively to the increasingly
diverse, complex and decentralized risks faced by theGroup, and oversees risk management for the entire Group.
•	‌CSR Committee
In charge of fulfilling social responsibility through CSR
activities.
•	‌Financial Results and Disclosures Committee
In charge of reviewing and evaluating financial informationand timely disclosure information.
•	‌Nomination Advisory Committee
Ensures independence, objectivity and accountability in the
deliberation process for matters related to the appointment
and dismissal of management team personnel (including
Company directors and Group Executive Officers) as adiscretionary committee of the Board of Directors.

Executive Sessions•	‌Attended only by outside directors to ensure an opportunity
for exchanging information and sharing understanding
based on independent and objective standpoints.
•	‌As other independent external parties, including outside
auditors and accounting auditors, may attend the sessions,they also provide an opportunity for cooperation amongsuch parties.
•	‌In principle, meetings are held once every quarter.
Integrated Report 201923

Messages from Outside Directors
Evaluation of the Effectiveness of
the Board of Directors

With the aim of enhancing the function of the Board of Directors,
the Company analyzes and evaluates the effectiveness of theBoard of Directors once a year in principle. A survey for all
directors and company auditors was implemented based on
advice from third party institutions in the fiscal year ended
September 2019. Additionally, interviews with some directors
were conducted. As a result, it was confirmed that the Boardof Directors is managed appropriately, specific initiatives toimprove its effectiveness are promoted voluntarily with a clear
sense of purpose, and its effectiveness is ensured.
Meanwhile, we recognized that there is room for improvementin areas such as balanced discussion, decision-making andreporting for further enhancing the quality of discussion in the
Board of Directors. The Board of Directors of the Company
should advance efforts to further heighten its effectiveness, byimplementing measures that lead to resolving these issues.

Officer Compensation Plan

In September 2017, the Group introduced a new compensation
plan (a board incentive plan (BIP) trust) to more clearly define
the relationship between the remuneration of the Company’s

directors (excluding outside directors and non-residents ofJapan) and executive officers (excluding non-residents ofJapan; collectively, “Directors, etc.”) and the Group’s businessresults in the medium-to-long term as well as the Company’s
shareholder value, while creating a sound incentive toenhance business results and corporate value in the mediumto-long term. As a result, remuneration for directors of theCompany consists of monthly compensation and stockcompensation, and remuneration for outside directors whoare independent from business execution consists of monthly
compensation only.

BIP TrustThis is a performance-linked stock compensation plan thataims to establish a clearer relationship between remuneration
for Directors, etc. and the value of the Group’s stock. The
Company's shares are purchased from the market as officer
compensation, kept in a trust account and delivered inaccordance with the recipient’s position and degree ofachievement of the performance targets in the Midterm
Business Policies.

Director and Auditor Remuneration
Category

Number of Recipients

Officer Remuneration

Remarks

Director

7¥139,008 thousand

3 outside directors included in above¥26,400 thousand

Auditor4¥46,500 thousand

2 outside auditors included in above¥14,400 thousand

Notes: 1. For directors, a portion of remuneration for serving concurrently as a director of a subsidiary of the Company is borne by the subsidiary as expenses.
The total amount of director remuneration, combining the amount borne by the Company above and the amount borne by subsidiaries, was¥173,976 thousand.
2. The number of recipients includes one director who retired at the close of the 28th Ordinary General Meeting of Shareholders held on December 19,
2018. One outside director who serves without remuneration is not included in the number of recipients.

Reasons for Appointment of Outside Directors

24

Attendance at Board of
Directors’ Meetings

Name

Reason for Appointment

Tatsuya
KimuraMr. Tatsuya Kimura is very familiar with the field of corporate management, and because he has actively provided usefuladvice on all aspects of the business administration of the Group based on his experience at global companies, extensive
knowledge and considerable insight, he is deemed capable of providing oversight and advice on the Company’s businessadministration as an outside director.

14/14

EtsukoOkajima

Ms. Etsuko Okajima has an abundance of experience and knowledge, and considerable insight of corporate management,
and because she has actively provided useful advice on all aspects of the business administration of the Group from an
independent and objective position, she is deemed capable of providing oversight and advice on the Company’s businessadministration as an outside director.

14/14

YusukeAsakuraMr. Yusuke Asakura has extensive professional experience and results, and considerable insight as an executive at listed
Internet companies, as a researcher and as an investor, and because he has actively provided useful advice on all aspects of thebusiness administration of the Group, he is deemed capable of providing oversight and advice on the Company’s businessadministration as an outside director.

14/14

YoshikiIshikawa

Mr. Yoshiki Ishikawa has extensive professional experience and results, and considerable insight as both a preventive
medicine researcher and as a founder of a company using methods based on behavioral science, and he is deemedcapable of providing oversight and advice on the Company’s business administration as an outside director.

—(Elected at the December
2019 Ordinary General
Meeting of Shareholders)

SEPTENI HOLDINGS CO., LTD.

(Fiscal year ended September 2019)

In our rapidly changing market environment,
I will leverage my experience with and knowledgeof global companies to help improve corporate value.
The Septeni Group has been proactive in setting up a system
to establish a higher level of corporate governance in order toimprove management effectiveness while ensuring agility andefficiency and maintaining soundness. The Board of Directors
has created a system in which the board focuses on monitoring
Group Executive Officers, who are responsible for businessexecution, and decides on matters stipulated by laws and the
Articles of Incorporation as well as important corporate affairs
in addition to monitoring business execution.
Video, music, e-books and other content are proliferating as
smartphones become the main device for accessing
the Internet, and social media is being used in a growing
range of domains such as payments and purchasing. As an
outside director, I intend to leverage my experience with andknowledge of global companies in this rapidly changing
market environment to contribute to the sustainable growth of
the Septeni Group and the improvement of its corporate value
over the medium to long term.

Tatsuya Kimura
Outside Director

I will contribute to strengthening governance throughmonitoring and advice on execution of duties by the people
we appoint and sustainably generating added value.
I believe the strength of the Septeni Group lies in its robust
mechanisms for producing entrepreneurs. Under the strong
leadership of President Sato, the Group conducts optimal
allocation of personnel using its unique human resource
development formula and human resource database andemploys a system for business incubation at SEPTENIVENTURES Co., Ltd. These mechanisms have led to clear
results in rapidly developing fully contributing team members
and human resources who can create the Group’s next
businesses. As a member of the Nomination Advisory
Committee, I am concentrating on further strengthening thesemechanisms and appointing entrepreneurial talent who will
create the future of the Group, with a succession plan in mind.
In addition, as an independent officer, I intend to help generate
sustainable added value for all stakeholders by strengthening
governance through monitoring of and advice on the executionof duties delegated to the people who we have appointed.

Etsuko Okajima
Outside Director

Integrated Report 201925

Board of Directors, Auditors and Executive Officers(As of January 1, 2020)

Directors

Auditors

Representative Director

Representative Director

Director

Outside Director

Internal Auditor

Internal Auditor

1997 Joined the Company
2001	Director and General Manager of Internet Operations
2003 CMO
2004 COO
2007 Senior Managing Director
2009	Representative Director and President(current position)2017	Group President and Chief Executive Officer(current position)
2019	Executive Officer, Dentsu Inc. (currently Dentsu Group Inc.)
2020	Member of Dentsu Japan Network Board(current position)

1998 Joined the Company
2004	Director and Manager of Personnel
and Administration2005 Managing Director
2009 Senior Managing Director
2017	Group Senior Executive Officer (current position)2018	Representative Director (current position)

1998 Joined the Company
2004 Head of Osaka Branch2005	General Manager of Media
Director
2009	Representative Director, SEPTENI CROSSGATE CO., LTD.
2017 Group Executive Officer
2018	Director of the Company (current position)
2019	Group Senior Executive Officer (current position)2008	Director, Cancer Scan Co., Ltd. (current position)2014	Director, Campus for H Inc. (current position)
2019	External Director (Audit & Supervisory Committee
Member), Sansan, Inc. (current position)
External Director (Audit & Supervisory Committee
Member), Gaiax Co., Ltd. (current position)
Outside Director of the Company (current position)

1998 Joined the Company
1999	Director and General Manager of Management
2000	Managing Director and General Manager
of Management
2002	Senior Managing Director, CFO and General Manager
of Management
2004	Representative Director, President and CFO
2009 Vice-chairman of the Board
2015 Internal Auditor (current position)

1993	Joined Dentsu Inc. (currently Dentsu Group Inc.)
2013	General Manager of Operations Management
Department of TV & Entertainment Division,
Dentsu Inc.
2014	General Manager of Network 3 Department of Radio &TV Division, Dentsu Inc.
2017	Deputy Managing Director of Digital Platform Center
and General Manager of Operations Promotion Office,Dentsu Inc.
2018	Seconded to Dentsu Digital Inc.
Executive Officer and Head of Account Planning Unit,
Dentsu Digital Inc. Internal Auditor of the Company(current position)

Outside Director

Outside Director

Outside Director

Outside Auditor

Mamoru Furushima

Takeshi Okuyama

1989 Joined British Airways Plc
1992	Joined Philip Morris Limited(currently Philip Morris Japan Limited)1995	Joined Gillette Japan Incorporated (currently The
Procter & Gamble Company of Japan Limited)2001	Associate Professor, Graduate School of Business,
Nihon University
2006	Professor, Graduate School of Asia-Pacific Studies,
Waseda University
Outside Auditor of the Company
2007	Professor, Graduate School of Commerce,
Waseda University
2008	Visiting scholar, University of Oxford
2012	Visiting fellow, Columbia University
2014	Outside Director of the Company (current position)2016	Professor, Waseda Business School(Graduate School of Business and Finance),
Waseda University (current position)

1989 Joined Mitsubishi Corporation
2001	Joined McKinsey & Company
2002	Joined Globis Management Bank, Inc.
2005	President, Globis Management Bank, Inc.
2007 CEO, ProNova Inc. (current position)2014	Outside Director, Astellas Pharma Inc.
External Director, MARUI GROUP Co., Ltd.
(current position)2015	Outside Director of the Company (current position)2016	Outside Director, Link and Motivation Inc.
(current position)2018	Outside Director, Euglena Co., Ltd. (current position)
2019	External Director, Money Forward, Inc. (current position)2007 Joined McKinsey & Company
2010	Joined Naked Technology Inc.
Representative Director, President and CEO, Naked
Technology Inc.
2011 Joined mixi Inc.
2013	Representative Director, President and CEO,mixi Inc.
2014 Visiting Scholar, Stanford University
2015 Outside Director, Raksul, Inc.
2016 Outside Director, Loco Partners
2017	Visiting Scholar, National Graduate Institute for Policy
Studies (current position)
Representative Director, Signifiant Inc. (current position)
Outside Director of the Company (current position)

1993 Joined Chuo Audit Corporation
1997	Registered as a certified public accountant
2000 Joined Fuji Accounting Office
2003 Joined PwC Advisory Co., Ltd.
2007	Joined the Legal Training and Research Institute ofJapan under the Supreme Court of Japan
2008	Registered as a member of the Tokyo Bar Association2009 Joined Okuno & Partners
2015	Representative of Furushima Law & Accounting Office(current position)
Outside Director (Audit and Supervisory Committee
Member) of Nippon Chemical Industrial Co., Ltd.
(current position)
Outside Auditor of the Company (current position)

2002	Joined the Legal Training and Research Institute ofJapan under the Supreme Court of Japan
2003	Registered as a lawyer (Daini Tokyo Bar Association)
Joined Mori Hamada & Matsumoto2011	Partner, Mori Hamada & Matsumoto(current position)2014	Associate Professor, Waseda Law School2019	Outside Auditor of the Company (current position)

Koki Sato

Tatsuya Kimura

Isamu Ueno

Etsuko Okajima

Tadahiro Matsuda

Yusuke Asakura

Yoshiki Ishikawa

Muneyoshi Nomura

Outside Auditor

Group Executive Officers
Group President and Chief Executive Officer
Koki SatoGroup CEOGroup Senior Executive Officers
Isamu Ueno

Group COO, in charge of Group personnel andgeneral affairs

Tadahiro Matsuda

In charge of Group corporate planning, public
relations, new businessGroup Executive Officers
Teruyuki Noguchi

Yusuke Shimizu

Kei Hatano

Yuichi Kono

Kana Setoguchi

Masayuki Takano

Masayuki Muto

Yusuke Fukuhara

Daisuke Suefuji

Takefumi Okada

In charge of Group legal affairs
In charge of Group accounting and financial affairs
In charge of information systems and business promotion
Digital Marketing Business (domestic)
Digital Marketing Business (overseas)

26

SEPTENI HOLDINGS CO., LTD.

Nobuo Kojima

Digital Marketing Business (domestic)
Digital Marketing Business (domestic)
Digital Marketing Business (domestic)
Digital Marketing Business (domestic)
Media Platform Business

Integrated Report 201927

The Septeni Group’s CSR
Diversity and Inclusion

CSR Policy
We believe that helping to resolve social issues through our businesses is a means of fulfilling our
responsibilities to society and stakeholders that best reflects the Septeni Group. Through this approach
to CSR, we aim to realize a sustainable society as well as the Septeni Group’s mission of “Inspiring theworld with entrepreneurship.” We will continue to carry out CSR activities centered on this approach.

Materiality of Diversity and Inclusion

We promote diversity and inclusion based on the approach that achieving work styles that maximize the abilities of each employee
is the source of our competitiveness.

Selection Process for Priority Challenges

Basic Approach

From among the many issues facing society, we have established five priority challenges based on a comprehensive determinationof what stakeholders expect of the Septeni Group and the importance of the issues to Group businesses. We promote CSR
activities in line with these challenges and conduct periodic reviews to update these activities.

Step 1

Step 3

Identification of social issues based on the SDGs, ISO 26000 and other international
standards

Confirm Priority Issues

Comprehensive determination by the CSR Committee of the importance ofissues to the Septeni Group’s businesses and stakeholders’ expectations of theSepteni Group

Expectations of the Group

Step 2

Very highIdentify Issues

Promotion of Women’s Participation (Support for
the Participation of Diverse Human Resources)

Specification of Priority Challenges

Confirmation of appropriateness and specification of priority challenges by the
Board of Directors
High

Importance to the Group’s businesses

Priority Challenge

Diversity andInclusion

Culture andSports Support

Main Initiatives in the Fiscal Year
Ended September 2019

Initiatives Planned for the Fiscal YearEnding September 2020

Promotion of women’s participation
Group-wide support for women’s careers

Promotion of women’s participation
Group-wide support for women’s careers

LGBT initiatives
Awareness-raising activities throughLGBT & Allies Network1

LGBT initiatives
Awareness-raising activities throughLGBT & Allies Network

Measures against discriminationand harassment
Implementation of anti-harassment
training for managers

Measures against discriminationand harassment
Implementation of anti-harassment
training

Support for culture
Provision of the “RouteM” manga artist
development program

Support for culture
Provision of the “RouteM” manga
artist development program
Support for art university students

Support for sport
Support for top athletes

Very highFor women, career development can be interrupted by thegender-specific life event of childbirth. We promote initiatives
that minimize factors inhibiting women’s career development,
to create an environment that allows employees to be fairly
evaluated regardless of gender, and to encourage the active
participation of female employees in that environment.

Introduction of Babysitter Subsidy System2

Priority Challenges and Initiatives

Support for sport
Support for top athletes

Support the Sound
Developmentof the Internet
Advertising Industry

Ad verification initiatives

Response to industry issues

Industry
Development
throughUtilization of AI—(Selected as a priority challenge for the
fiscal year ending September 2020)

Utilization/application of data in
HR technology
Utilization/application of data indigital marketing

Development ofHigh-Quality
Human Resources

Movement toward open innovation for
the AI-based personnel system
Enhancement and increase of research
reports

Response to social issues using the
AI-based personnel system

Contributions to
the SGDs

Diversity (From the Septeni Way)
Using diversity as a competitive edge
We respect all human rights andmutually recognize diversity.
We work to realize working styles inwhich individuals can exhibit andapply their respective strengths.

The Septeni Group provides highly capable and motivatedemployees with many opportunities to take on challenges,
regardless of their sex, age or nationality. We believe thatthe independent and valuable work of employees from various
backgrounds contributes to business results, leading in turn to thesustainable growth of the Group. Based on this belief, we promoteand support diverse work styles, as stated in “Diversity,” one of theguidelines of our code of conduct, the Septeni Way.

We have introduced a system that helps employees balance
work and childcare by subsidizing 70% of babysitting costs for
employees who utilize the babysitting service contracted by
the Company.
2. Implemented at main Group companies only

Target for the Promotion of Women’s Participation
Ratio of female managers: 17% (Target for 20203)
3. Main Group companies in Japan

Ratio of Female Employees and Ratio of Female Managers
(%)
40
30

Ratio of female employees (Japan)

30.4

20
10
0

32.4

8.3

10.9

2014

2015

Ratio of female managers (Japan)

33.0

32.0

13.8

14.4

34.6

16.7

2016
2017
(As of October)

2018

39.6
21.9

2019

LGBT Initiatives (Support for the Participation of Diverse Human Resources)
SEPALLY RAINBOW is a Group-wide LGBT & Allies Network
formed to create workplaces where all employees are
motivated to work, regardless of whether or not they are
LGBT, by deepening understanding of the LGBT community
and increasing the number of allies. The network conducts
training and exchange sessions with LGBT employees.

Measures against Discrimination and Harassment—

The Septeni Group continuously promotes activities that create
an environment that prevents the occurrence of discriminationand harassment based on gender, age, nationality, race,
ethnicity, religion, philosophy, beliefs, social status, disability,
sexual orientation or gender identity, thus encouraging
individuals to fully exercise their strengths.

Receipt of Gold Rating on the PRIDE INDEXFor the second consecutive year, the Septeni
Group has received the Gold Award, or thehighest rating on the PRIDE INDEX, which
evaluates corporate LGBT initiatives.

Anti-Harassment Training for Managers

The Septeni Group invitedlecturers from outside theGroup to conduct antiharassment training for fulltime officers and managers.

Anti-harassment training for managers

My Story

Mai Masuda, MANGO, Inc.
I am in charge of recruiting at MANGO, Inc. Since 2018, I have been involved with SEPALLYRAINBOW to increase knowledge of LGBT issues so that all candidates can participate in theselection process with peace of mind. After starting the activities, I experienced first-hand theinterest the topic generates in society. I was covered by local media in Miyazaki and received
feedback not only from my colleagues, but also from people outside the company who saw thearticle. We will move forward step by step so that diversity is not seen as unusual, but rather
taken for granted.

1. LGBT and people with other sexual and gender identifications, as well as people who understand and support them

28

SEPTENI HOLDINGS CO., LTD.

Integrated Report 201929

Development of High-Quality Human Resources

Open Innovation of Our AI-Based Personnel System

Materiality of Development of High-Quality Human Resources

We are promoting initiatives based on the approach that utilizing AI and other technologies in developing human resources will
strengthen our competitiveness. We also broadly disclose information, including the results of these initiatives, to help improve
productivity throughout society.

Basic Approach

The Septeni Group was founded in 1990, but it began shifting
the focus of its business to the Internet in 2000, when theInternet was still in its infancy. The Group has continued to
grow in tandem with the Internet industry, confronting variousorganizational issues along the way.
At the Human Capital Lab, which was established in 2016,
we use AI (i.e. machine learning) and other means to integrate
and analyze the extensive volume of human resource datathat we have continued to amass in the process of growing
the Company. Based on this, we conduct ongoing research toshed light on the structure of human resource developmentin growth industries from a scientific perspective and widely
share the results.
By taking a scientific perspective and using actual datato communicate the organizational issues that the Company
experienced in the process of growing, we hope to provide
some clues to other corporations on how to solve theirissues, particularly corporations facing issues specific toorganizational growth.

To help improve the productivity of society in general, we publicly disclose and widely publicize in-house case studies and research
results. We are also working to generate further innovation through joint research with external parties and other methods.

Digital HR Project
We are conducting the Digital HR Project, which analyzes
human resources using the power of data and technology,
centered on our HaKaSe AI engine that analyzes data using
our Formula of Development. To help resolve personnel
issues, we have made more than 15 HR solutions and over
30 research reports publicly available. They can all beviewed on the project website and used free of charge byregistered members.
▶ The Digital HR Project website presents reports on case studies
and research on the application of technologies to HR.

Providing Our Research-Based Tool for a Free Trial
HaKaSe mini

Reportingandservices

SEPTENIHOLDINGS
CO., LTD.

Reporting

Human Capital Lab
Human
resourcedata

HaKaSe mini, which incorporates some of the functions of HaKaSe, is available to the public through limited-time free trials. It is
intended for use by managers as a training tool for their team members. After completion of a member review and training plan in 30
minutes, the tool provides a feedback sheet and a training plan sheet for each member. Many users have tried this Digital HR tool.

Integration, analysis anddevelopment

SocietyNotes: 1. The review uses the 360-degree review used in joint research with Emotion Tech Inc.
2. The training plan employs the FFS (Five Factors & Stress) theory of Human Logic Laboratory, Inc.

Services

1

Register member nicknames
Manager

Services and Initiatives Based on Research
Online Recruiting

By utilizing predictions of post-employment success, which isone of the outcomes of our research, and our online interview
system, we have successfully created a complete Internet-based
recruiting system, from job application submission to early
informal job offer, for students from regions outside Japan’smajor urban centers.
By reducing the burden of transportation and accommodation
costs, as well as travel time, incurred by such students in theirjob-hunting activities, this system has enabled us to secure
human resources from a larger pool of candidates.

Self-Analysis Tool

Based on technology for quantifying the compatibility between
personality and environment, and for optimizing participation in

My Story

the workplace, we have gained an objective understanding of
personality and aptitude, and created a self-analysis tool that
identifies the points of appeal of job seekers. We have madethis tool available to all students.
By having students utilize this tool, we hope to provide eachof them with the opportunity to choose a more suitable career.

Alumni Network

30

2Manager answers
questionsIndividual
diagnoses

Print out andprovide feedback

20

minutes

Review

Feedback sheet

Members
answer questions
Individual
diagnoses

20

minutes

360-degree
review
Members’
answers
complete

Training plan

Shared URL
Team orientation

5

minutes3

Yuta Okusako, SEPTENI HOLDINGS CO., LTD.

SEPTENI HOLDINGS CO., LTD.

Team member

5

minutes

Check of Review and Training Plan

The Septeni Group Alumni Network has been established tomake our AI-based personnel system widely available among
Group alumni.
Through this network, we will also build business partnerships
by sharing information about the Group and our outsourcing
and business alliances, and by providing career development
services.

In the three years since we started online recruiting, the results have been substantial. The
number of applicants from regional universities has quadrupled, and regional university
students account for more than 50% of candidates receiving informal job offers. Someparticipants seemed uneasy about not being able to meet face to face, but the personalized
feedback we gave based on the information they provided in the selection process resolved
their anxieties, and they appear to consider their participation in the selection worthwhile.
By being more open in providing information and other measures, we will continue to create
recruiting venues that are highly meaningful for both students and companies.

Manager

Notify all members of shared URL

Joint Research with Emotion Tech
The Septeni Group and Emotion Tech Inc. are jointly developing a new method for assessing human resource performancethat combines Emotion Tech’s Net Promoter Score® (NPS®)4
emotional data analysis technology and employee engagement quantification expertise with the Septeni Group’s expertise in quantifying growth. As part of our research activities,

we released a report on our joint research into quantifying
active participation and retention using NPS®.
4. Net Promoter Score® (NPS®): A benchmarking metric for loyalty. Net Promoter
Score® and NPS® are registered trademarks of Bain & Company, Inc., Frederick
Reichheld and Satmetrix Systems, Inc.

Integrated Report 201931

Support for Culture and Sport

External Recognition
Reset Game Special Live-Action Project

Materiality of Support for Culture and SportWe believe that art, culture and sport, which give people great joy and excitement, are indispensable for a vibrant society. To help
realize such a society and create the stars of tomorrow, we utilize the power of the Internet to conduct activities to support theactive participation of artists and athletes in their fields of endeavor and the promotion of those fields.

Winner of a Bronze award at Spikes Asia 2019, one of the largest
advertising awards
in the Asia Pacificregion.

Cho-Yo Hana-Yo

Ranked third place in the Web
Manga category of the Tsugi
ni Kuru Manga Awards (Nextgeneration Manga Awards)

Basic Approach

The Septeni Group supports the active participation of a wide range of people, including artists and athletes.

Measures to Support Culture

COMICSMART, INC. emphasizes “three-way satisfaction” — pleasure for readers, gratification for writers and success for business —and aims to further develop manga culture through its business.

 outeM, a support program aimed at nurturing mangaRartists
Under RouteM, a support program by subsidiary COMICSMART,
INC. aimed at nurturing in-house manga artists, we assist in
disseminating their works, as well as providing financial andproduction support to enable them to focus on their creative
activities with peace of mind and demonstrate their talents acrossa wider range of domains.
● Assistance in Disseminating Works
Works are published in serial form on the manga app GANMA!,
which has reached a cumulative total of more than 13 million
downloads.
● Financial Support
We provide production support grants ranging from ¥100,000 to¥500,000 to manga artists according to the respective stage of
their careers, so that they can use the time they normally spend
on part-time jobs and other work to produce manga instead.
In addition, we are building diverse systems to provide a way
for manga artists to be well compensated for their works,
including the distribution of advertising revenue generated
through GANMA! and content royalties (such as for publicationof comic books and film adaptations).

● Production Support
LCD tablet devices are loaned at no charge to manga artists
affiliated with the RouteM program. Follow-up is provided on
how to use these tablets to support their transition to full digitalproduction.
Through the provision of assistant staff, networking eventswith other manga artists and other forms of support, theprogram has created a production environment that helps
manga artists to produce works of higher quality.

Measures to Support Sports
Recruitment of Fencer Shihomi Fukushima

In April 2018, we recruited top sabre fencer Shihomi Fukushima
as a new graduate employee and are supporting her activities as
an athlete.

(Persons)

2018	20th in the FIE World Ranking
3rd in the women’s team sabre category in the Asian Games2019	3rd in the women’s sabre category and 3rd in the women’s team sabre categoryof the Asian Fencing Championships
5th in the women’s individual sabre category of the All Japan Fencing
Championships

More than 100 RouteM participants

Support for the Sound Development of the Internet Advertising Industry

80
60

Materiality of Support for the Sound Development of the Internet Advertising Industry

40

We are working to contribute to the greater soundness and further development of the market by resolving various issues in theInternet advertising industry caused by the sharp increase in Internet users and rapid advances in technology.

20
2013

2014

2015

2016

2017

2018

2019

Basic Approach
Yonemaru, Exclusive RouteM Artist
Yonemaru, creator of the popular GANMA! manga Taniku Chan and Kanata Konata, which iscurrently published in serial form, drew manga as a hobby while working at a bookstore after
graduating from university and decided to try to become a professional manga artist after
receiving a newcomer award. However, two years of rejections of her proposed serials fromboys’ manga publishers led the concerned Yonemaru to apply to RouteM at the recommendationof a friend.
“I still remember the GANMA! editor at the planning meeting telling me to draw what I reallywanted to,” says Yonemaru. Having drawn many designs and stories in a trendy style on order
up until then, she says it was fulfilling to be able to create freely without restrictions, taking on
new genres and drawing what she loved.
About a year after the start of serialization, the decision was made to publish the manga inbook format. At that time, Yonemaru says she was filled with a sense of accomplishment thatlasted for days. When she visited her parents’ home with a copy of the printed book, theycongratulated her on her efforts. It turned out that they had already bought dozens of copies!
“My parents had been worried more than anything about me becoming a manga artist. They
wanted me to keep working at the bookstore, so I was really relieved when I gained theirapproval,” she recalled with a smile.

32

SEPTENI HOLDINGS CO., LTD.

2016	Winner in the sabre team category of the Asian U-23 Fencing Championships
Winner in the women’s individual sabre category of the All Japan Fencing
Championships
15th in the women’s individual category of the Mexican Sabre Grand Prix

1000

My Story

2015	Winner in the women’s individual sabre category of the All Japan Intercollegiate
Fencing Championships2017	7th in the women’s sabre individual category of the World Fencing
Championships
4th in the women’s team sabre category of the World Fencing Championships
Champion in the women’s team sabre category of the Summer Universiade

Number of Artists
120● Major Achievements

The Septeni Group implements initiatives with a focus on the“Three Promises of the Septeni Group,” a policy for the sounddevelopment of the Internet advertising industry.
Policy for the sound development of the Internet advertising industry
Three Promises of the Septeni Group(1) Respond sincerely
We consider integrity to be the basis of everything we do and wewill act with resolve based on right and wrong rather than profit andloss. We will remain conscious about the communication of useful
information to society through appropriate means that lead tocontinual trust in Internet advertising and, with the cooperation of
stakeholders, will act to make all of the people involved smile.
(2) Improve quality
We will observe the relevant laws and regulations and the rules
agreed upon with the parties involved and aim to establish
internal operations that preemptively avoid accidents orwrongdoing while moving toward the enhancement of quality
service through ongoing education and improvement.

(3) Challenge the possibilities
We will continue the challenge of using new technologies andtechniques to enhance the value of Internet advertisements andimprove the satisfaction of stakeholders.

Ad Verification5 Initiatives

Septeni engages in ad verification to respond to issues
in digital advertising such as advertising fraud due tounauthorized traffic and the display of ads on inappropriate
sites.

ACP Partner Certification

We have obtained partner
certification under the Agency
Certification Program (ACP)
operated by Momentum, Inc. as anadvertising agency that actively
engages in ad verification.
5. Ad verification: A mechanism for preventing inappropriate ad display
by measuring damages to advertising value, taking into account ad
fraud, brand safety, and viewability.

Integrated Report 201933