Macromill - Build your Data Culture (EN)

Transcript

1. Build your Data Culture
2. Mission Vision Values Cautionary note Any information in this report related to the industry, market trends, or economic conditions is based on information available as of the writing. The Company makes no guarantee as to the authenticity, accuracy, reasonableness or comprehensiveness of the said information. Any target, plan, estimate, prediction, expectation, or other forward-looking information relating to the Group in this report is based on the current assumptions and beliefs of the Group in light of the information available to it at the time of writing. Factors such as domestic economic conditions, market trends in the industry, competition with other rms, the ability to secure human resources and panels, technological innovation, forex trends, and other operating conditions may cause the actual operating results, the nancial position, and other results of the Group to differ materially from those expressed or implied in the report. Working together with our clients as their marketing partner e Macromill Group provides continuous support to help around 4,000 clients solve their marketing issues. We contribute better decision making by working together with clients on improving the utilization of a variety of day-to-day data. Contents Introduction 02 Our History 04 Services Provided by the Growing Macromill Group 06 Value Creation Model 08 Business Model 10 Three Core Competences Strategy 14 Message from Our CEO Sustainability 22 Macromill Group Sustainability Governance 34 Macromill Group Corporate Governance Data 40 Financial and Non-financial Highlights 42 Corporate Data and Investor Information
3. Introduction Data Governance Sustainability Strategy FY2021/6—Aims to become a Professional Marketing Services Company Macromill began providing the new marketing research solution of online research at the beginning of the 2000s as access to the internet spread through society. The Company has subsequently grown to hold the No. 1*1 share of the Japanese Online Research market. Since the start of the 2010s, the organization has strengthened its business base and scaled up its operations through various strategic measures including domestic and overseas M&As, becoming a privately held company, and relisting on the Japanese stock market. We are now working to evolve our business model to become a Professional Marketing Services Company that provides support for all marketing issues from an upstream standpoint. We will continue to provide services that reflect social change as a pioneer in the growing online research market Our History Revenue*2 (JPY BN) Robust Customer Base Three Core Competences We Have Established Diverse Human Resources Highly Active Consumer Panels INTEGRATED REPORT 2024__MACROMILL, INC. 02 INTEGRATED REPORT 2024__MACROMILL, INC. 03 TSE Listing TSE Delisting TSE Relisting Covid-19 effects Turned into a subsidiary Turned into a subsidiary (Korea) Turned into a subsidiary (Creation of a Joint Venture with Dentsu) Acquired through company split of data consulting business Turned into a subsidiary (Creation of a Joint Venture with Hakuhodo) Turned into a subsidiary (Southeast Asia) (IFRS) Turned into a subsidiary 21.3 17.1 14.2 12.2 (FY) 24.0 28.5 30.9 25.8 35.0 33.0 37.7 40.6 43.8 34.0 2024/6 2023/6 2022/6 2021/6 2020/6 2019/6 2018/6 2017/6 2016/6 2015/6 2014/6 2013/6 2012/6 2011/6 2010/6 2009/6 2008/6 2007/6 2006/6 2005/6 2004/6 2003/6 2002/6 2001/6 FY2001/6—Establishment through early years FY2011/6—Business expansion via strategic M&As 2000 - Macromill established - Start of automated internet research system AIRs - Start of internet research services QuickMill and OpenMill 2004 - Lists on TSE Mothers Index 2005 - Lists on TSE First Section 2007 - Start of product purchasing data system QPR - Macromill consumer panel membership tops 500,000 2010 - Yahoo Value Insight Corporation becomes a subsidiary 2011 - Macromill consumer panel membership tops 1 million 2012 - Korean business Embrain becomes a subsidiary - Dentsu Macromill Insight established (a joint venture with Dentsu Inc.) 2014 - TSE Delisting - Start of digital research service AccessMill - European business MetrixLab becomes a subsidiary 2017 - Relists on TSE Section 1 2018 - H.M. Marketing Research, Inc. (now QO, Inc.) established (a joint venture with Hakuhodo Inc.) 2019 - Southeast Asia Business W&S Holdings (now Macromill South East Asia, Inc.) becomes a subsidiary Notes *1 Online Research market share = Online Research-related sales at Macromill standalone, Dentsu Macromill Insight, and H.M. Marketing Research, Inc. (now QO, Inc.) (FY2024/6) / the online research portion of Japan market research spending in ad hoc internet surveys as estimated by Japan Market Research Association (JMRA) (2023). Reference: JMRA 49th Annual Business Management Survey, announced by Japan Marketing Research Association (JMRA) on June 27, 2024. 2021 - Start of data consulting business - Start of life sciences business 2022 - Eight Hundred, Inc. established (created by a company split of data consulting business and merged with SOUTH Inc. to form a subsidiary in which we hold 71%) 2023 - Sold 100% of shares held in MetrixLab Group, acquired in 2014 and which was mainly engaged in the European and U.S markets, to U.K. company Toluna, and in exchange acquired Toluna’s shares and made the company an equity-method affiliate - Monitas, Inc. becomes a subsidiary - Announced mid-term business plan to run through FY2026/6 *2 J-GAAP based financials for FY2001/6-FY2014/6 and IFRS-based financials for FY2015/6 onwards. J-GAAP and IFRS financial information are prepared based on different accounting principles and are not directly comparable. Macromill believes, however, that as the move from a J-GAAP basis to an IFRS basis did not require material adjustments, the presentation above also appropriately and accurately reflects the consolidated revenue trends since the move to IFRS. In addition, the performance figures for MetrixLab, which was a consolidated subsidiary of the Group from FY2015/6 to FY2023/6, are excluded from this graph because 100% of its stake was sold as of June 1, 2023.
4. Introduction Data Governance Sustainability Strategy Q1 Q2 Survey Answers Sharing of Digital Data Sharing of Digital Data Services Provided by the Growing Macromill Group We expanded our services by acquiring various data, leveraging the advantages of our proprietary panels. We have continued to grow especially in the online research business. We started digital research in 2014 and new businesses in data consulting and life sciences as operations that go beyond the boundaries of the research eld in 2021. INTEGRATED REPORT 2024__MACROMILL, INC. 04 INTEGRATED REPORT 2024__MACROMILL, INC. 05 Attribution/Awareness Data Purchase Data Digital Behavior Data Biological Data 2001~ Created a new market with growth engine, Online Research 2014~ Expanded business by a growth driver, Digital Research - Provide Digital Ad Effectiveness Research based on digital log data 2021 Provide service beyond Research Start Digital Research Expanded to New Business Field Established: Start Online Research Data Acquisition Expansion - Online Research - Of ine Research - Global Research - Database Service - Data Consulting - Advertising Distribution/ Distribution Support - Life Science Business - Southeast Asia Business - Database Service (acquisition of consumer purchasing data) Global Research Offline Research (acquisition of awareness data) Life Science (acquisition of biological data) Data Consulting Online Research (acquisition of awareness data) Advertising Distribution/ Distribution Support Digital Research (acquisition of behavioral data such as weblogs, app logs)
5. Introduction Data Governance Sustainability Strategy Based on our three core competencies, the Group will evolve into a Professional Marketing Services Company that solves the entire marketing issues of client companies, thereby enhancing corporate value and contributing to the realization of a sustainable society. Value Creation Model Macromill Panels New Challenges Existing Business Research (Attribution Data, Awareness Data) Data Utilization Support (Data Consulting) Data Provision (Behavioral, Biological, and Other Data) Marketing Activation Support (Solution) Business Model ˰ P08 Mid-Term Business Plan ˰ P14 Materiality ˰ P22 INTEGRATED REPORT 2024__MACROMILL, INC. 06 INTEGRATED REPORT 2024__MACROMILL, INC. 07 Outputs Mid-Term Business Plan Targets FY2026/6 Revenue ¥ 53.0 billion Operating profit ¥ 7.5 billion Ratio of female managers (non-consolidated) As of July 31, 2030 30% Consumer research panels - Diversifying consumer needs - Emergence of global platforms (such as “FAANG”) - A decreasing birthrate and aging population - Digital transformation - Societal Change Resulting from Covid-19 Pandemic Clients - Consumer touchpoints explode - Aggregated data - Advanced analytics - Expanding partner network - High speed/ sophisticated research needs Inputs Key Points External Environment Our Goal To be the driving force in helping our clients build data cultures Macromill Group Mission Vision Values Financial Capital Business profit ¥ 5.6 billion Total assets ¥ 89.2 billion Three Core Competences Diverse Human Resources Highly Active Consumer Panels Robust Customer Base ˰P10 Social and Relationship Capital Clients Approx. 4,000 clients Domestic consumer research panels Approx. 36 million Human Capital Group employees 2,228 Ratio of group female employees 55% Ratio of female managers (non-consolidated) 25% Contributing to the realization of a sustainable society Increasing the supply of better products and services in markets by providing client companies with marketing data that captures diverse social and consumer needs. Contributing to the sustainable growth of client companies and society. Clients 1. Solving marketing issues 2. Creation of new value through data utilization Consumer Research Panels 3. Find more accurate consumer insights 4. Promote safe and secure data handling Human Capital 5. Establishing a diverse working environment 6. Provide an opportunity to challenge new possibilities 7. Educating data-native talent Partner Companies 8. Open innovation All 9. Governance Refocus on our Core Business “Online and Digital Research” for our Profit Margin Improvement Continuing “Business Model Transformation” for Continued & Stable Growth of our Revenue
6. Introduction Data Governance Sustainability Strategy Approx. 4,000 clients Business Model What is Online Research? Macromill Group Services Online research is the process of conducting surveys and analysis to collect various types of useful data from consumers that might enable companies to supply better products and services to their markets. The Group has access to panels comprised of around 36 million consumers in Japan that provide the data used in its online research. The Group collects high-quality data by surveying these panels on the marketing issues experienced by its clients. The panels are rewarded (through points able to redeem for cash) from part of the Revenue that the Company receives from its clients. The Group provides its clients with data that is enhanced by combining analyzed survey results with a variety of other data (awareness data, behavioral data, and other data) together with accurate attribution information from the panels. This enables client companies to conduct marketing using data of a scale, breadth, and granularity that would not be obtainable through their own efforts. Through the provision of these services and of data, the Group is able to uncover consumer insights guided by fact-based quantitative and qualitative data. For instance, how certain types of people think and behave, and this contributes to helping solve clients’ marketing issues. Clients Consumers Consultation on marketing issues Online research Research results delivery and reports Data collection Domestic consumer panels Approx. 36 million 4 3 1 2 - Aiming to propose new products and services - Aiming to increase revenue and brand recognition - Aiming to create demand forecasts - Aiming to ascertain customer satisfaction levels - Aiming to measure advertising impact “Marketing issues” at client companies Japan Business Focus Business Online Research An internet research service that uses our proprietary automated internet research system to conduct online surveys of consumer panels. Digital Research Digital behavioral log data analysis and digital advertising effectiveness measurement services utilizing cookies and advertising IDs of licensed panels. Future Business Data Consulting Consulting services in the marketing domain, from management and business strategy, through organizational design and management, and database construction, data analysis and utilization, to implementation of measures. Global Research (Incl. Southeast Asia/China) Research services to support Japanese companies entering the global market, research services to support foreign companies entering the Japanese market, and local research services for local companies in Southeast Asia and China. New Business (Life Science/Ads, etc.) New businesses such as life sciences, advertising distribution, etc. Foundation Business Joint Ventures with Ad Agencies and Other Subsidiaries Providing marketing research services with partner companies based on our strength in online research. Offline Research In-person research services including on-site surveys, roundtable discussions, and one-to-one interviews. Database Service (Data Provision) A service to compile and sell a database of consumer purchase histories from some panels. Korea Business In addition to providing online research, offline research, and global research, the company will begin providing services related to the provision of purchasing data, which it already does in Japan. Japan Business Korea Business Focus Business 34% ¥14.8 billion Foundation Business Future Business 15% ¥6.7 billion 37% ¥16.0 billion 14% ¥6.1 billion The weighting of services within consolidated revenue FY2024/6 Provision of better products and services Revenue: ¥ 43.8 billion INTEGRATED REPORT 2024__MACROMILL, INC. 08 INTEGRATED REPORT 2024__MACROMILL, INC. 09 The Japan business is divided into three areas in line with business characteristics: focus business, future business, and foundation business. Marketing research is generally conducted via two methods: online research, in which questions and answers are exchanged with consumer panels via the internet, and offline research, in which consumers are interviewed by mail, telephone, or in roundtable discussions. In Japan, we were the pioneers of online research and have the No.1 market share in the Japanese online research market. Our Korea operations consist of Macromill Embrain Co., Ltd. and its subsidiaries, and like in Japan, we are developing services that leverage our strength in online research. Macromill Embrain is the only major research company in South Korea that has proprietary panels, and has recently been focusing on expanding new services, such as a purchasing data provision service that utilizes its panels.
7. Introduction Data Governance Sustainability Strategy Three Core Competences Diverse Human Resources (As of June 30, 2024) In order to create new value for client companies and society through marketing research, we believe it is important for each and every employee to take the initiative in their work and enjoy the process and achievement of their work. The Group focuses on human resource development, fostering a corporate culture, and promoting diversity. Group employees Ratio of group female employees Ratio of female managers (non-consolidated) Highly Active Consumer Panels In addition to its proprietary panels, the Group has built one of the largest affiliated panel networks in Japan. By obtaining permission to acquire and use personal information from our panels, we are able to acquire deeper data for use in marketing, such as purchasing information, internet access logs, and biological data. Moreover, use of the panel network enables us to conduct large-scale quantitative and qualitative research, thus realizing research that combines depth, quality, and quantity. Note *1 To protect the personal information of proprietary panels, we comply with the ICC/ESOMAR International Code of Conduct for the marketing research industry established by the European Society for Opinion and Marketing Research (ESOMAR), as well as the Marketing Research Code of the Japan Marketing Research Association. In addition, Macromill has implemented appropriate measures to ensure the anonymity of panels and the storage and management of personal information. We have established a Personal Information Protection Policy. Our Personal Information Protection Management System ensures its appropriate and effective implementation. For details, please refer to the Privacy Policy on the Macromill website. Information security policy (Japanese only) Privacy policy Health management KPI Panel Strengths Creating one of the industry’s largest panel networks in terms of depth, quality, and quantity Quality control system Focus on panel quality control, data quality control, and information security control by establishing the industry’s highest level of quality control policy 2,228 55% Ratio of men to women in our recruitment Male 52% Ratio of male to female new graduates hired in the past three years Ratio of male to female mid-career hires in the past three years Female 48% Male 47% Female 53% 18% 18% 22% 25% 30% End-July 2030 (Target) End-July 2024 End-July 2023 End-July 2022 End-July 2021 We will accelerate our efforts to promote the advancement of women, aiming to achieve a ratio of 30% of female managers (non-consolidated) by the end of July 2030. First in Japan’s research industry to acquire ISO/IEC 27001:2022 certification, the latest version of the ISMS international standard Overseas Research- focused Panels Approx. 100 million More than 90 countries and regions Domestic Research- focused Panels Approx. 36 million Macromill’s Proprietary Panels Approx. 1.3 million Robust Customer Base Three Core Competences Diverse Human Resources Highly Active Consumer Panels Robust Customer Base Diverse Human Resources Highly Active Consumer Panels Three Core Competences - Efforts to maintain high quality - Efforts to maintain stable supply - Thorough process control - System features that enhance quality - Research activities aimed at improving quality Panel quality control Clients Personal information management system according to global standards*1 Client information assets Measures to prevent information leakage when data is delivered Actual inspection process (screen creation) Data collection (survey responses) Delivery processing (aggregation/reporting) Measures to prevent information leakage by practitioners Measures to prevent information leakage by panels Measures to prevent information leakage by practitioners Measures to prevent information leakage from the system Data quality control Regular health check-up rate Stress check assessment rate 100% 91% Quality control policy for Macromill monitors (Japanese only) INTEGRATED REPORT 2024__MACROMILL, INC. 10 INTEGRATED REPORT 2024__MACROMILL, INC. 11
8. Introduction Data Governance Sustainability Strategy Marketing Processes and Research Scenarios The marketing processes at regular companies can be split into four types as shown in the table. The Macromill Group has research menus aligned to the objectives and issues in each process. FY2024/6 Revenue Breakdown by Client Industries Well diversified client portfolio. Notes *1 Large Accounts with annual revenue of > JPY10MM *2 Retention Rate in Japan = (No. of large clients of Macromill standalone providing over JPY10MM in annual revenue for which Macromill’s solutions were rendered and invoiced in the previous year, and for which there were solutions provided or invoiced in the current year) ÷ (No. of large clients of Macromill (standalone) providing over JPY10MM in the previous year). 5-year average from FY2020/6 to FY2024/6 *3 FMCG = Fast Moving Consumer Goods, CPG = Consumer Packaged Goods (incl. non-durable goods such as soft drinks, toiletries, etc.) Client Relations We have built strong relationships with clients in a wide variety of industries, with a focus on large global corporations. Clients Client Retention Rate of Large Clients*1 Approx. 4,000 clients More than 90% in Japan*2 22% 5% 10% 14% 10% 4% 5% 3% 14% 28% Top 300 Total: 72% DMI (Dentsu Macromill Insight) QO (Former Hakuhodo Macromill Marketing Research) Others in Top 300 Below 301 Total Ad agency/Consultant/Research Agency FMCG*3/CPG*3/Food/ Beverage Financial Institution Auto Electronics/Tech Telecom/Media/IT Robust Customer Base The Group provides a variety of research solutions to its approximately 4,000 corporate clients worldwide, utilizing a diverse range of data obtained from panels comprised of more than 130 million consumers in Japan and overseas, as a partner in solving their marketing issues. Robust Customer Base Diverse Human Resources Highly Active Consumer Panels Three Core Competences Marketing processes What stage are we at? Uncovering market opportunities Understanding potential target markets and consumers. At the stage of researching for clues of product/service development by classifying consumers’ specific traits and comprehending their dissatisfactions and needs • Survey on purchasing/usage situations • Lifestyle survey • Needs-driven survey • Brand image survey • Segmentation survey etc. Concept development Understanding the acceptability of a concept and confirming promising target audiences, key appeal points, and likely price sensitivity. At the stage of determining whether commercialization is possible • Concept screening survey • Concept check survey • Name evaluation survey etc. Typical survey Commercialization/ Marketing planning At the stage of deciding the marketing mix (4P strategy) for an actual product or service. Evaluation tests of factors such as the actual user experience for prototypes, naming of the product or service, tests on packaging, and confirmation of purchase appetite at various price points • Prototype tasting evaluation • Packaging design surveys • Prototype evaluation surveys • Naming surveys • Advertising copy surveys • Price sensitivity surveys etc. Post-release validation and improvement At the stage of tracking the penetration of a product or service already released to the market and confirming purchaser satisfaction to adjust the marketing plan • Product penetration survey • Customer satisfaction survey (purchaser tracking) • Advertising effectiveness measurement survey etc. Release (to market) Search-driven type (seeking a current snapshot/ideas) Validation type (seeking judgement/measurement of effect) INTEGRATED REPORT 2024__MACROMILL, INC. 12 INTEGRATED REPORT 2024__MACROMILL, INC. 13
9. Introduction Data Governance Sustainability Strategy Message from Our CEO Toru Sasaki Director, member of the board Representative Executive Officer and CEO Under the vision of “Build Your Data Culture,” the Macromill Group aspires to be a driving force in helping our clients build data cultures by utilizing our data-native approach to solve today’s marketing challenges and support business success. As a Professional Marketing Services Company that can provide one-stop support for the marketing issues faced by companies, we hope to help companies provide better products and services to the world by working together with them in their marketing activities. Through these activities, we will contribute to the realization of a sustainable society. Notes *1 The Company transferred its Overseas Business (ex-Korea) segment to Toluna in exchange for considerations, including a 17.4% stake in Toluna. This has resulted in Toluna being an equity-method affiliate of the Company from the fourth quarter of the fiscal year ended June 30, 2023. To show our actual business performance of the Macromill Group more accurately, we are showing our Business Profit, which subtracts equity-method investment gains/losses related to Toluna from OP from FY24 *2 The figures for FY2023/6 are adjusted amounts excluding expenses recorded for the transaction of the transfer of an overseas subsidiary (M&A) that occurred in the fourth quarter of FY2023/6 *3 For FY2023/6, in order to make a comparison based on the current company situation, the figures shown are the profit attributable to the parent company from continuing operations, which is excluding the profit attributable to overseas subsidiaries and the gain on sale of an overseas subsidiary (M&A), and the EPS calculated from that FY2024/6 Consolidated Business FY2023/6 FY2024/6 YoY Growth Revenue ¥40.61 billion ¥43.86 billion +8% Business Profit*1 ¥4.96 billion*2 ¥5.62 billion +13% Equity-Method Profits/Losses from Toluna, an Affiliate-Method Subsidiary Š (¥1.15 billion) Š Operating Profit ¥4.49 billion ¥4.47 billion –1% Profit Attributable to Owners of the Parent ¥1.77 billion*3 ¥2.29 billion +29% Basic Earnings per Share (EPS) ¥45.05*3 ¥60.19 +34% Dividend per Share ¥21.00 ¥27.00 +¥6 Revenue and Business Profit: Japan Business (Billions of yen) Revenue and Business Profit: Korea Business (Billions of yen) Earnings by Segment 34.9 37.7 2024/6 2023/6 4.4 5.4 ˙ ˙ Revenueɹ˙ ˙ Business Pro t 5.7 6.1 0.5 0.2 2024/6 2023/6 ˙ ˙ Revenueɹ˙ ˙ Business Pro t Review of FY2024/6 In FY2024/6, we achieved revenue of ¥43.8 billion (up 8% YoY), business pro t of ¥5.6 billion (up 13% YoY), operating pro t of ¥4.4 billion (down 1% YoY), and pro t attributable to owners of the parent in continuous business of ¥2.2 billion (up 29% YoY). Particularly in the Japan business, there was steady progress due to the start of a virtuous cycle driven by the success of measures that have been pursued to date, including the resolution of capacity issues in online research and the resumption of outbound sales. As a result, revenue was brisk, and together with improved productivity, this created a turn back to double-digit growth in business pro t. However, operating pro t was at YoY owing to the impact of equity-method losses at Toluna Holdings Limited (hereafter Toluna). Toluna is undergoing fundamental structural reform for future business growth and was in the process of business integration in FY2024/6. This resulted in an unplanned loss due to expenses incurred for PMI and to weak revenue because of economic conditions in Europe and other operating regions. The business integration progressed well over the course of the year, however, with a focus on the pursuit of xed cost reductions. Therefore, we anticipate earnings improvement in the future, and we are making preparations for our plans to sell shares in FY2026/6 or later. Regarding dividends for FY2024/6, we have increased the dividends from the initial forecast to ¥27 per share for the full year (up ¥6 YoY), and this re ects double-digit growth in business pro t and the fact that equity losses on af liates will not affect the Group’s cash ow. INTEGRATED REPORT 2024__MACROMILL, INC. 14 INTEGRATED REPORT 2024__MACROMILL, INC. 15
10. Introduction Data Governance Sustainability Strategy Revenue: Focus Business (Billions of yen) +6% 14.1 14.8 2024/6 2023/6 Revenue: Foundation Business (Billions of yen) Revenue: Future Business (Billions of yen) +13% 6.0 6.7 2024/6 2023/6 +8% 14.7 16.0 2024/6 2023/6 Review of Japan Business From FY2024/6, in consideration of business characteristics and other factors, the Japanese business is divided into three areas: Focus Business, Future Business, and Foundation Business. FY2024/6 revenue from the Japan business increased in all areas, reaching ¥37.7 billion (up 8% YoY). In terms of expenses, personnel costs rose faster than revenue growth due to an increase in headcount from 2H FY2023/6 as well as to increased hiring of personnel for new businesses and IT personnel. On the other hand, outsourcing expenses were kept below last year’s level thanks to improved productivity from internal resources and the shift to in-house production. As a result of the above, increase in revenue and productivity improvements helped the Company achieve a business pro t of ¥5.4 billion, an increase of more than 20% YoY. Focus Business Focus Business areas are online and digital research services, and they contribute the most to pro ts with a gross pro t margin of more than 60%. Revenue growth in this area was weak through FY2023/6 due to a lack of order capacity. In order to address this, we have been working to hire and train human resources as a top priority. As a consequence, the order capacity issue was resolved in FY2024/6, and by resuming aggressive outbound sales activities, we were able to successfully win back disengaged clients who we had been unable to provide services to, resulting in revenue rising 6% YoY to ¥14.8 billion. In addition, we reviewed our employee incentive program and strengthened recruiting and training systems, which led to an increase in the staff retention rate and improved the pro ciency level of each employee. Through these efforts, we were able to steadily secure revenue with high gross margins in the Focus Business, and also to control outsourcing costs by promoting in-house production through human resource measures, which contributed signi cantly to overall consolidated pro t growth. Revenue: Japan Business (Billions of yen) +8% 34.9 37.7 2024/6 2023/6 Revenue: Korea Business (Billions of yen) +7% 5.7 6.1 2024/6 2023/6 FY2023/6 FY2024/6 1H FY2024/6 2H • Brought back lost clients • Improved employee retention and employee skill levels • Enhanced operational ef ciency and productivity • Solved the capacity problem in Online Research • Resumed outbound sales • Enhanced proposal-based selling capabilities • Achieve higher added value and implement strategic pricing • Expand shares and identify potential needs Steady progress from the start of a virtuous cycle FY2024/6 Results Review of Korea Business Future Business Future Business areas include global research, consulting, and new business services. Revenue reached ¥6.7 billion, a double-digit increase of 13% YoY, due to strong performance in global research and consulting in the rst half of the year and accelerated growth in new businesses in the second half. However, earnings from this business area are highly volatile due to the large scale of each project, and the second half of the year was a slow period due to the expiration of contracts for large consulting projects, resulting in a shortfall against the initial target. The market for services in this area is expanding and we expect to continue to see high growth, so we intend to accelerate this growth through initiatives such as M&As. Foundation Business Foundation Business areas include of ine research and data provision, as well as joint ventures with Dentsu Inc. and Hakuhodo Inc., respectively, industry-speci c joint ventures, and other subsidiary groups. In addition, at the beginning of FY2024/6 we turned Monitas, Inc., which operates a monitoring alliance business, into a consolidated subsidiary, which greatly expanded the size of our accessible consumer panel to approximately 36 million people, one of the largest in Japan. Revenue increased 8% YoY to ¥16.0 billion in FY2024/6 as a result of the consolidation effect of Monitas and strong performance in other joint ventures. Moreover, we achieved steady pro t generation in this area by appropriately controlling expenses and improving productivity. We intend to continue to improve Macromill's solution capabilities by enhancing our expertise, thereby further strengthening our foundation for expanding market share and gaining competitive advantages. Earnings in the Korea Business were affected by market conditions, including a decrease in public surveys conducted by the government and contraction in research budgets at major clients due to an economic downturn that lasted the whole year. However, revenue increased 7% YoY to ¥6.1 billion due to a boost from foreign exchange and synergies from M&As. We are taking advantage of being the only major research company in Korea that has proprietary panels to pursue new businesses such as providing purchasing data, which we already do in Japan, and are working to secure new streams of revenue by developing services that leverage our structural strengths. In order to expand revenue from new businesses, at the end of the second quarter we conducted an M&A to acquire a company engaged in advertising and promotion with a view to promoting collaboration. INTEGRATED REPORT 2024__MACROMILL, INC. 16 INTEGRATED REPORT 2024__MACROMILL, INC. 17
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Introduction Data Governance Sustainability Strategy FY2024/6 FY2025/6 Actual (a) Initial Guidance (b) Variance (b-a) YoY Growth (%) (b/a-1) Revenue ¥43.86 billion ¥48.00 billion +¥4.13 billion +9% Business Profit ¥5.62 billion ¥6.20 billion +¥0.57 billion +10% Operating Profit ¥4.47 billion ¥5.70 billion +¥1.22 billion +27% Profit before Tax ¥4.74 billion ¥5.90 billion +¥1.15 billion +24% Profit Attributable to Owners of the Parent ¥2.29 billion ¥3.10 billion +¥0.80 billion +35% Basic Earnings per Share (EPS) (Yen) ¥60.19 ¥82.00 +¥21.81 +36% FY2025/6 Guidance Forecast People Driven Technology Driven Marketing Research Marketing Consulting Marketing Solutions Address general marketing needs Address speci c marketing needs Provide hands-on data utilization support Ad-hoc model Pursuing convenience in data acquisition Subscription mode Our Strengths One of the largest panel sizes in Japan Panel and data of approx. 36 million individuals Extensive client base of more than approx. 4,000 companies More than approx. 2,000 data-native employees Our commitment to greater market presence FY2025/6 Guidance Forecast and Mid-Term Business Plan (MTBP) Outlook In August 2023, the Group announced a new MTBP covering the three-year period from FY2024/6 to FY2026/6, targeting revenue of ¥53 billion and operating profit of ¥7.5 billion in FY2026/6. FY2024/6 was the rst year of this plan, but we made a steady start. By continuing to implement various measures we were able to solve the internal problem of insuf cient order capacity, and by resuming aggressive outbound sales we have further strengthened our sales force, which has been one of our strengths for some time. FY2025/6, the current scal year, is an important year as a gateway toward the nal year of the plan. While continuing to invest for future growth, we aim to achieve steady revenue and pro t growth during this middle year and to pursue efforts to achieve the ultimate targets of the plan. Speci cally, we intend to grow the Focus Business by continuing to expand sales of online and digital research in our Japan business. We aim to achieve at least double-digit growth in new businesses in the Future Business areas of global research, data consulting, and life sciences, while also launching a new data provision service under a subscription model during FY2025/6. In addition, we expect stable growth in the Foundation Business. We also expect revenue and pro t to increase in the Korea business as the impact of deteriorating business con dence runs its course and sales in new businesses expand. In terms of expenses, with respect to hiring in our Focus Business, as we have exited the phase of large headcount increases by resolving capacity issues, we expect to be able to control the pace of personnel cost increase on a consolidated basis. In addition, while we plan to increase system-related expenses by continuing to invest in the upgrade of our core research systems, we aim to control the allocation of investments while maintaining a balance with revenue growth. Through such appropriate control of costs, we aim to keep the rate of increase in overall operating expenses below the rate of revenue growth. Furthermore, we expect equity-method losses at Toluna to decline compared to FY2024/6. The marketing research industry is undergoing a transformation into an insight industry via the integration of peripheral areas such as consulting and digital data analysis. Demand for existing marketing research is rm, and market expansion in these increasingly incorporated consulting- and technology-driven research areas continues at a high pace. As a result, we expect the overall market for the insight industry to continue to grow in the future. The Group is reforming its business model in order to build a structure that can respond in a comprehensive manner to client demand in the insight industry. Although technological advances have increased the volume and variety of data available to client companies, most of this data is fragmented, and many companies are unable to ll data gaps in-house or do not know how to integrate and utilize the data they have acquired. To this end, in 2021, the Company launched a marketing consulting business staffed by highly specialized personnel to solve marketing issues in more upstream processes than traditional marketing research areas. In addition, as marketing solutions that will drive our future growth from a technological standpoint, we launched an advertising distribution business in 2023 and plan to start providing data under a subscription model in FY2025/6, the current scal year. We intend to continue to develop a variety of services to meet the needs of the insight industry. These initiatives will lead to the creation and acquisition of new research demand, thus contributing to the expansion of online and digital research in our Focus Business. As well as solving issues faced by client companies, they will also expand career paths for employees and contribute to the strengthening of our client base and human capital. We therefore intend to continue to develop a variety of services required by the insight industry based on data, while maintaining our research base. INTEGRATED REPORT 2024__MACROMILL, INC. 18 INTEGRATED REPORT 2024__MACROMILL, INC. 19
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Introduction Data Governance Sustainability Strategy Purpose of Core Research System Renewal Provide marketing solutions Further improve productivity Accelerate business expansion - Provide data in subscription model services - Expand the client base and increase contact points - Launch a series of new services starting from FY2025/6 - Utilize generative AI - Improve operational efficiency drastically - Release a series of new system functions to gradually generate effects from FY2026/6 onward - Strengthen security - Increase the added value of our services - Create an environment for enabling agile development - Build a foundation for global business expansion We strive to further our competitive advantage within the insight industry by seeking solutions to address diverse challenges faced by client companies and pursuing operational excellence Utilization of Technology Moreover, we will work on upgrading the core systems that have supported the strong growth achieved in the more than two decades since our founding. As technology evolves on a daily basis, we believe that introducing new system infrastructure is critical to ensuring our growth in the years to come. By utilizing new technologies, we can establish a structure that provides a variety of data more quickly than ever before, and we expect this to help develop new services and add value to our existing services. In terms of productivity, we will use cutting-edge technologies such as generative AI to fundamentally improve the ef ciency of operations that currently require human intervention, enabling us to allocate specialized human resources to more complex and high-value-added areas. Through these efforts, we believe we can dominate the changing insight industry by pursuing synergies among our businesses and linking new initiatives to results, while building on our strengths. We aim to achieve the goals of our MTBP by continuing to expand our business through productivity improvements and the launch of new solutions, as well as through the proactive use of M&A opportunities. External Recognition Selection as a component of various stock indices Macromill was chosen for the first time as a component of the FTSE Blossom Japan Index, a representative index for ESG investment, and for the second consecutive year as a component of the FTSE Blossom Japan Sector Relative Index. The Company was selected as a component of the JPX-Nikkei Mid and Small Cap Index for fiscal 2024, a stock price index composed of companies that aim to sustainably increase their corporate value and manage their businesses with shareholders in mind. Dear Shareholders Macromill will celebrate its 25th anniversary on January 31, 2025. We have positioned the year 2025, a major milestone, as a year of “RESTART” for further growth. In FY2024/6, the rst year of our MTBP, we focused on our initial target of returning to growth in our mainstay online and digital research businesses and were able to achieve solid results. We believe this is due to our three unwavering strengths: our panel network, one of the largest in Japan with approximately 36 million members; our client base of over 4,000 companies; and our data-native human resources of over 2,000 people. The world is constantly evolving, and consumer awareness and behavior will continue to change, including through unpredictable events such as the COVID-19 pandemic. Such changes inevitably impact our business of obtaining consumer insights, and the strong relationships of trust with our panels cultivated since our founding are a major source of added value in our business activities. In a world where our clients are required to exibly change the products and services they offer in response to changes in consumer behavior, we are also required to be able to solve our clients’ business issues above and beyond the traditional framework of marketing research. We have always led the industry in creating unique solutions in line with current trends. We believe that because we have a relationship of trust with our clients centered on marketing research, they expect us as an industry leader to develop new marketing methods that are not bound by precedent and to further evolve our services. Of course, the most important strength underpinning such business expansion is our human resources. We support our clients’ data-driven decision-making by acquiring and providing a wide variety of data on areas such as consumer awareness, digital behavior, purchasing, and biometrics. As a consequence, we have an environment which embodies data culture and nurtures data-native talent, and we have over 2,000 data-native personnel. As demonstrated by the establishment of online research methods that were not yet widespread in the industry at the time of the company’s founding, overcoming numerous dif culties and continuing to take on challenges without fear of failure or risk is part of Macromill’s DNA. This DNA continues to be passed down through our daily operations and is constantly evolving as we continue to hone our data-native ideas and skills. We would like to thank our investors once again for their support over the years. Everyone at Macromill will continue to work together to be the one and only partner for our clients. Toru Sasaki Director, member of the board Representative Executive Officer and CEO INTEGRATED REPORT 2024__MACROMILL, INC. 20 INTEGRATED REPORT 2024__MACROMILL, INC. 21
13. Introduction Data Governance Sustainability Strategy Stakeholders Materiality Outline Main Initiatives Related SDGs Clients ˰P24 1. Solving marketing issues Macromill Vision: We aspire to be the driving force in helping our clients build data cultures by utilizing our data-native approach to solve today’s marketing challenges and support business success Q  Build relationships as marketing partners Q  Help to instill data-driven decision-making (building a Data Culture) Q  Pursue solutions and services aimed at solving social issues, including achieving a sustainable society 2. Creation of new value through data utilization Provide new value creation through the use of data, amid increasing adoption not only in the field of marketing but also throughout business Q  Strengthen data utilization support (consulting) business Q  Develop innovative data-driven services, including marketing activation support business Consumer Research Panels ˰P25 3. Find more accurate consumer insights Through strong relationships with the Group’ s proprietary panels and access to one of the largest affiliated panel networks in Japan, uncover accurate insights and deliver insights representing consumers to the world. In doing so, provide new value not only to client companies but also to society as a whole Q  Strengthen relationships with our proprietary panels. Expand data type Q  Establish one of the largest affiliated panel networks in Japan Q  Explore, in our own research, market needs in terms of perceived appeal and value Q  Publish a wide range of research results, such as the Macromill Weekly Index and voluntary survey reports 4. Promote safe and secure data handling Obtain data from trusted relationships with members of our proprietary panels. Take responsibility for providing assurance and safety, thoroughly managing information and strengthening security Q   Provide appropriate explanations and explicit permissions for our proprietary panels when obtaining data Q  Provide reliable data of the highest quality in the industry and pursue the best quality control methods to meet the needs of the times Q  Establish and comply with internal rules based on the Information Security Basic Policy Human Capital ˰P26 5. Establishing a diverse working environment Recognizing that addressing various marketing issues demands solutions that are born out of the perspectives and experiences brought by diverse employees. Therefore, we foster an environment that respects the individuality of employees and allows them to reach their full potential Q   Promotion of Diversity and Inclusion Q  Support for employees to help a flexible work environment and family care Q  Promotion of women’s greater participation 6. Provide an opportunity to challenge new possibilities Develop a workplace that enables flexible, independent career development and choice in response to changes in the environment Q   Implement training programs and skills development to enable employees to take on the challenge of growth opportunities Q  Encourage a diverse career path 7. Educating data-native talent Develop the talent to inherit the experience and know-how regarding data handling that Macromill has accumulated since our founding. Cultivate people who can provide value using a high level of expertise and advanced thinking for a wide variety of client companies Q   Implement professional development programs and training Q  Acquire talent through M&A and mid-career hires Q  Develop talent through industry-academia collaboration and partnerships Partner Companies ˰P29 8. Open innovation Work to use new digital technologies and solve increasingly complex marketing challenges. Accelerate innovation by building open partnerships and actively employing outside resources to fill gaps in in-house knowledge Q   Expand collaborations and partnerships Q  Create business ecosystems in collaboration with partners across a range of industries and business categories Q  Aggregate diverse ideas and technologies to create new markets and business models All ˰P34 9. Governance Amid dramatic social change, form a sound organizational culture while strengthening governance to enhance corporate value over the medium to long term Q  Maintain and build an optimal governance structure Q  Ensure compliance with laws and regulations; promote compliance management Q  Promote risk management activities Q  Ensure fairness and transparency Q  Build an organizational structure with high ethical standards The Macromill Group has identified nine material issues as key priorities for achieving sustainable growth for both society and for our Group. To do this, we examined the foundation of our corporate activities and our impact on stakeholders. We also considered opportu- nities and risks in light of changes in the business environment. As a company that supports the marketing activities of client companies, we will forge links between them, consumers, and society to Please see our Sustainability Report for more details. Macromill Group Materiality drive innovation. This will provide a source of value creation through which we will help realize a better society. To provide solutions to solve our clients’ marketing challenges, our most important asset is our talent. We will maintain and improve employee engagement so that our diverse workforce can fully exploit their abilities and thrive in their work. INTEGRATED REPORT 2024__MACROMILL, INC. 22 INTEGRATED REPORT 2024__MACROMILL, INC. 23 Macromill Group Sustainability
14. Introduction Data Governance Sustainability Strategy Clients 1. Solving Marketing Issues New relationships with clients—The intention behind our Vision Since the Group was established, it has consistently built its business around handling data. With a data-native mindset, we have sought to provide concrete solutions to our clients’ marketing challenges. In addition, we want to help client companies make smarter decisions so that we can realize a better society. Going forward, that basic stance will not change. To achieve this, we believe client companies need to make data-driven decisions the norm—in other words, to build a data culture. The corporate Vision we defined for the fiscal year ended June 30, 2021 embodies our desire to be a driving force of data culture. Going forward, we aim to expand innovation across marketing business areas by providing innovative services that use a variety of data from our proprietary consumer research panels. Clients 2. Creation of New Value through Data Utilization Creation of new value based on our proprietary consumer research panels As companies accelerate their digital transformation (DX) activities, we believe that the use of data in marketing activities will further expand in the future. Client companies collect and generate a variety of data on a daily basis. However, many of them struggle to use this data directly in their marketing activities, due to issues such as the lack of sufficient accompanying attribute data or non-uniform granularity of the data they acquire. In other words, we can say that, in addition to the existing challenges of increasingly complex consumer perceptions and the need to respond to rapidly changing marketing activities, client companies now face a new challenge of utilizing data. The Company identifies overlaps between proprietary panels and the users and data of client companies. By supplementing and synchronizing this data with our own, we are able to enhance the value of the data held by client companies into data that can easily be used in marketing activities. This is made possible by the scale of our proprietary panels, and the data we are able to obtain via the explicit consent of our panels based on a relationship of trust. At the same time, we believe we are able to do this because we have earned the trust of our clients. In FY2022/6, we launched our data utilization support (consulting) business, which uses the daily data that client companies need for their marketing activities. In addition, we believe that this business will lead to the provision of more innovative services in the future, such as a marketing activation support business that directly supports the marketing activities of client companies, including advertising distribution. We will pursue the creation of new value through these businesses and aim to build a unique approach to solve our clients’ marketing issues. Consumer Research Panels 3. Find More Accurate Consumer Insights The Macromill Group’s business model and consumer research panels The Group’s consumer panels include the network of proprietary panels we have built in Japan since our foundation in 2000 (approx. 1.3 million people) and the affiliated panel network (approx. 36 million people) which we have significantly expanded through M&A. The network in Japan boasts a strong competitive advantage in terms of high quality born out of relationships specializing in research, while the affiliated panel network has a strong competitive advantage in terms of scale. In particular, our proprietary panels include a digital measurement panel encompassing more than 900,000 people. Made possible by the evolution of digital devices, this panel has enabled us to provide behavioral data on the Internet and smartphones since 2014. For this reason, the results of the questionnaire and the actual behavior data can be analyzed together. This makes it possible to provide a deeper evaluation and analysis based on actual contact history and awareness. In addition, from 2011 we established and began operation of consumer purchasing panels made up of 30,000 consumers from across Japan. In April 2024, these panels were expanded to 35,000 consumers with purchasing data being compiled on a daily basis. Consumers record their purchases using barcode scanners or a dedicated smartphone app, enabling us to provide a database service drawing on more than 10 years’ worth of data. This service allows client companies to analyze how their marketing initiatives are reflected in consumer buying behavior. The data we acquire from our proprietary panels become deeper, richer and more diversified than clients can secure on their own. Moreover, it’s including the data which is difficult to acquire by clients themselves. By integrating the data held by client companies with data from our proprietary panels, we can analyze the results of clients’ marketing activities in more detail. Obtaining and providing more accurate data and insights from proprietary panels drives smarter client decisions. We believe that this will in turn benefit consumers and society. Consumer Research Panels 4. Promote Safe and Secure Data Handling High-quality panel data and safe handling The Macromill Group pays a portion of the service fees it receives from client companies to the proprietary panel as rewards (redeemable points). This ensures the collection of high-quality information. We implement rigorous quality control on the consumer research panels and the data obtained from them. We employ a range of methods to improve and ensure the accuracy of responses and the quality of data. These include using technology to eliminate fraudulent responses and developing new quality control methods based on the specialist research findings of Macromill Research Institute. In addition, we have explicit permission from our proprietary panels to obtain and utilize various marketing data, including research data. With privacy protection regulations such as GDPR (EU General Data Protection Regulation) being strengthened in many countries these days, we stringently manage the information we receive from our client companies and proprietary panels and are actively working to strengthen information security. We see these efforts as part of the quality of the services we provide. Note * To protect the personal information of proprietary panels, we comply with the ICC/ESOMAR International Code of Conduct for the marketing research industry established by the European Society for Opinion and Marketing Research (ESOMAR), as well as the Marketing Research Code of the Japan Marketing Research Association. In addition, Macromill has implemented appropriate measures to ensure the anonymity of panels and the storage and management of personal information. We have established a Personal Information Protection Policy. Our Personal Information Protection Management System ensures its appropriate and effective implementation. For details, please refer to the Privacy Policy on the Macromill website. Quality control policy for Macromill monitors (Japanese only)ɹɹ Information security policy (Japanese only)ɹɹ Privacy policy Data available from our proprietary panels Provide accurate and detailed attribute data Obtained data from our proprietary panels   Data attributes of our proprietary panels ˇ Gender Annual income Place of residence Family Age Occupation Research Broadcast data Purchasing data Log data Locational data Consumer data We aspire to be the driving force in helping our clients build data cultures by utilizing our data-native approach to solve today’s marketing challenges and support business success. Macromill Panel Data Utilization Support (Data Consulting) Data provision (Behavioral, Biological, and Other Data) Research (Awareness Data) Marketing Activation Support (Solution) INTEGRATED REPORT 2024__MACROMILL, INC. 24 INTEGRATED REPORT 2024__MACROMILL, INC. 25
15. Introduction Data Governance Sustainability Strategy Trajectory of our initiatives - Forming a support framework based on interviews with employees taking maternity or childcare leave - Implementing educational activities aimed at balancing work and family care - Reviewing of workforce environment for diversity - Multifaceted initiatives to promote the career path of female employees (Developing and providing inventory tools for career development, setting up opportunities for dialogue across departments, publishing female employee interview articles internally, etc.) - Designing opportunities for collaboration between managers with female team members Original leave systems - Happy Holiday 6 days of special paid vacation per year - Thanks Holiday Long-time service leave (10 years: 10 days, 20 years: 20 days, 30 years: 30 days) Promotion of diversity and inclusion The Group believes that ensuring diversity and inclusion in the workforce continues to be vital in improving the value we bring to our clients as well as for meeting our corporate social responsi- bility goals. Since 2015, we have been promoting diversity and inclusion with the aim of fostering an environment of mutual respect for differences in which all employees can live up to their full potential. In the latest employee satisfaction survey carried out in January 2024, many respondents agreed that “there is an atmosphere of recognizing diverse values” (TOP 2: 80%). Through consistent efforts to date, we have steadily fostered a culture of mutual respect and acceptance of diversity. Realizing diverse and exible working styles As the average age of our workforce increases, we are also putting effort into creating an environment that allows employees to work in a variety of ways to accommodate changes in their life circum- stances. Currently, each division has two designated days to come into the office week. We are working to ensure active communi- cation within the organization while also introducing hybrid working styles where employees can work remotely up to three days a week. One in five employees has childcare responsibilities (children under 18). Such employees can now work shorter, six- or seven-hour days until the end of their child’s third year of elementary school. The rate of return after childcare leave remains high, at 91.7% for the July 2023-June 2024 period. Employees can also revise their work hour schedules every three months, allowing them to work flexibly to suit their lifestyles. In addition, a remote working system has been introduced from FY2025/6 allowing employees to work fully remotely from non-office locations even if they are caring for a family member or have other circumstances. We are also working to enhance our leave system. In addition to annual paid leave, we have unique leave systems such as a Happy Holiday system granting six days of special paid leave each year and a Thanks Holiday system for long-time employees. The employee satisfaction survey found a favorable level of satisfaction among short-time employees regarding the balance between work and private life. We are steadily fostering a climate and culture that makes it easy to balance work and home life. Training by rank All-employee training Managers • Leadership development - Strategic planning - Facilitation • HR session • Finance academy • New management training Mid-level employees • Project management • Operational efficiency • Logical thinking • Business skill assessment Newer employees • OJT trainer course • One year post-employment review training (new graduates) New hires • Introductory training (mid-career employees/new graduates) Mental health training Compliance/harassment prevention training In-house job posting and transfer system We operate an internal open job posting and transfer system to promote the independent career development of our employees. We regularly publish open positions, to which employees can freely apply. This is a fast initiative, with successful applicants transferring to start their new roles just three months after applying. We hope that employees can gain new experience by embracing challenges, combining this with the experience and personal connections they have cultivated up to that point. In this way, they can grow into highly valued team members. Knowledge sharing and feedback initiative to support growth In addition to HR-led, company-wide, rank-based training, we also have extensive training programs for each job category. In addition, various training materials are posted on the company intranet to share training knowledge, thereby promoting understanding of specific roles and operations in other departments. Various training materials on the in-house knowledge website Mill Navi • HR - Induction training materials for new graduates (understanding the company/business skills/mindset/ stance, etc.) - OJT trainer programs • Sales Division - Aimed at enabling employees to understand our services/ acquire sales skills and support business operations • Researcher Division - Marketing research basics/design and analysis courses, etc. Feedback mechanisms to support growth We operate a management by objectives (MBO) system with the aim of cultivating employees. We provide frequent and real-time feedback to help achieve the goals set jointly by managers and their team members. We use absolute evaluation standards not only to evaluate the extent to which employees achieve their individual goals, but also to make a comprehensive judgment by taking into account actual performance in the workplace, including work processes and the degree to which employees demonstrate the Group Values. We conduct an annual 360° feedback survey for managers, under which they receive feedback on their actions from superiors, subordinates, and peers. • Understanding one’s own strengths through the ‘Strengths Finder’ • Self-career inventory through the introduction of career sheets • Organization and disclosure of information regarding internal departmental roles, specific job descriptions, skills to be acquired, etc. • Changes in life stages and use of systems • Conducting of generational roundtable discussions Self- awareness Job under- standing Career training Cultivating human resources through systematic training programs and career-building rotations Recognizing that, in our business activities, enhancing the value of employees is directly linked to enhancing corporate value, we seek to cultivate human resources through systematic education programs and a voluntary job-rotation framework. Training programs by rank Career development promotion program Basic Policy Regarding Human Rights (Japanese only) Human Capital 5. Establishing a Diverse Working Environment Initiatives to promote the greater participation of women Since 2021, we have been focusing on promoting the greater participation of women. Our goal was to increase the ratio of female managers from 16% as of the end of June 2021 by 5%–10% by the end of July 2024, and ended up raising this figure by 9% increase to 25%. We will continue to step up efforts to promote women’s participation, targeting a ratio of female managers of 30% by the end of July 2030. Basic Policy Regarding Human Rights The Macromill Group has established a Basic Policy Regarding Human Rights that expresses our stance of respecting human rights through our corporate activities. By protecting and promoting human rights, we seek to build long-term relationships of trust with all stakeholders, including employees, clients, and shareholders. We will also share the values of respecting human rights in our relationships with business partners across the business value chain. Components of the Basic Policy Regarding Human Rights 8. Freedom of self-expression and protection of privacy 5. Management of working hours and wages 4. Prevention of forced labor and child labor 3. Emphasis on diversity and prohibition of harassment 2. References consulted and scope 1. Commitment to human rights 6. Respect for freedom of association and the exercise of the right to collective bargaining 7. Maintaining employee health and safety 10. Communications 9. Initiatives and framework for respecting human rights Human Capital 6. Provide an Opportunity to Challenge New Possibilities INTEGRATED REPORT 2024__MACROMILL, INC. 26 INTEGRATED REPORT 2024__MACROMILL, INC. 27
16. Introduction Data Governance Sustainability Strategy An environment that embodies a data culture and develops data-native talent The Macromill Group’s vision is: “Build your Data Culture.” We contribute the data-driven decision-making of clients by acquiring and providing data ranging from consumer awareness to digital behavior, purchasing, and biology. Especially, in cultivating researchers, we have established a distinctive three-year training program to develop basic capabilities and, in addition to a wide variety of classroom-based education, conduct periodic testing to check that employee’s working knowledge is entrenched. To address the demand for more sophisticated business analytics going forward, we are strengthening the development of analysts. We have developed an in-house online training program for aspiring employees. Furthermore, from July 2024, the Company began subsidizing the cost of acquiring the Japan Statistical Society Certificate from level 2 upward, thereby expanding support for employees to improve their data literacy. We are also pursuing numerous efforts to embody our data culture. Based on the results of the latest employee satisfaction survey, we are conducting an in-house analysis to enable more in-depth consideration of such a culture, which is informing the action plans being explored by each division. 2.5 3.0 3.5 4.0 4.5 5.0 0.2 0.3 0.4 0.5 0.6 0.7 Correlation with job motivation Average score for each question Employee satisfaction survey correlation analysis Business conceptual- ization skills Organizational management Personality Strategic planning abilities Team member management Legal and regulatory compliance Delegation Training and evaluation Degree of vision permeation Target achievement Diversity management Knowledge management Succession planning Business/ work ow management * For each of the above, there are five levels of position-specific competencies Leadership competency items Macromill Consortium Participating Companies Bloom & Co., Ltd. M-Force Inc. Hojosen Co. Ltd. InsightPeaks Co., Ltd. Penguin Tokyo Inc. dots. and, Inc. HARVEST Inc. Defining leadership competency In order to ensure that the next generation of managers is nurtured and that the leadership development of managers is carried out in a comprehensive manner, we have created new definitions of the leadership competencies that are required for each position. By using these definitions in the evaluation items of the 360° Feedback Survey for managers, managers can understand the level of leadership required for their position in their own self-evaluation and the evaluations of those around them. They can then analyze the strengths they already have and issues requiring development to become the kind of leader they want to be, and implement specific action plans over the course of the following year. Increase in total number of training participants and investment costs In recent years, amid social demands for employee career autonomy and reskilling, the Company has been stepping up its efforts to expand the opportunities offered to employees for self-improvement and skills development and to increase investment expenditure. Compared with two years ago, the total number of employees taking part in training courses over the course of one year increased by 1.9 times and investment expenditure by 1.3 times. We will continue to provide useful growth opportunities for our employees and create an environment in which each and every one of them can push their own potential. Human Capital 7. Educating Data-Native Talent Recruiting and training data professionals From 2017 to 2019, in collaboration with client companies, we held a public contest for data analysis-based marketing strategy planning. We carried out a hands-on program of using consumer data to propose solutions to the marketing issues of companies, receiving entries from around 2,500 students. Since 2020, we have also been offering summer and winter internships for students. By gaining experience in our data aggregation and analysis operations, roughly 800 students every year are honing their data literacy, which they can then apply to business. Moreover, in July 2022, we transferred our data consulting business to SOUTH Inc., a marketing and consulting business, through an M&A. We then converted this into a subsidiary, renamed Eight Hundred, Inc., and have since continued to expand the consulting business. Postgraduate placement programs through industry- academia partnerships Alongside our internal training programs, we provide a wide variety of employees with opportunities to hone their skills, including receiving training from invited lecturers from partner companies and development opportunities through industry-academia collaboration. Company-sponsored study programs with Shiga University’s Graduate School of Data Science, to which we have continuously dispatched employees since 2019, have enabled our data scientists to further deepen their capabilities and knowledge. From FY2025/6, the number of graduate schools to which employees are dispatched will be expanded and the recruitment method will be changed from recommendation by others to self-recommendation in order to widen the scope of opportunities for employees to develop their careers autonomously. Our subsidiary Eight Hundred has also concluded an industry-academia collaboration in the area of data science with Hitotsubashi University and Tokyo University of Science, with the aim of further developing the data science field through joint research and the training of personnel who will lead the next generation. Placement locations (from FY2025/6 onward) Shiga University Graduate School of Data Science Yokohama City University Graduate School of Data Science Shiga University Master of Business Analytics (MBAN) Program Partner Companies 8. Open Innovation Initiatives through joint ventures with Japanese advertising agencies In 2013, the Company made Dentsu Marketing Insight Inc. (now Dentsu Macromill Insight Inc.) a consolidated subsidiary. In 2018, Tokyo Survey Research Inc. (now QO, Inc.), which was formerly a wholly owned subsidiary of Hakuhodo became a consolidated subsidiary. We jointly manage these companies with our partners, one with Dentsu and one with Hakuhodo, who hold a minority of each company’s equity. As joint ventures, they carry out marketing research for the Dentsu and Hakuhodo groups. When considering marketing initiatives in Japan, the advertising agencies Dentsu and Hakuhodo have a major presence. Together with these two companies, we are working in our joint ventures to build a marketing research business that includes digital areas for achieving more effective marketing measures. Efforts in the area of consulting In January 2020, we established the Macromill Consortium. Through it we aim to create a one-stop support to work with companies that have unique strengths in data and marketing consulting to help our clients solve their marketing challenges. By bringing together the strengths of each company and pursuing open innovation, we are continuing our efforts to provide increased added value for our clients. Dentsu Macromill Insight QO, Inc. INTEGRATED REPORT 2024__MACROMILL, INC. 28 INTEGRATED REPORT 2024__MACROMILL, INC. 29
17. Introduction Data Governance Sustainability Strategy Fundamental Policy and Supported Initiatives Fundamental Policy We have formulated the following basic policy regarding the environment, including climate change. - Based on the Macromill Code of Conduct, we will pursue initiatives to reduce CO2 emissions and strive to improve the natural environment. - Through marketing research, we will strive to address environ- mental issues and enhance corporate value. - We will strive for ongoing improvements with the aim of enhancing environmental performance by seeking to achieve our environmental targets and evaluating the impact of our business activities on the environment. - We will actively strive to prevent pollution, mitigate climate change, and preserve biodiversity and ecosystems. Supported Initiatives We support the Japanese Government’s declaration of carbon neutrality (2020) and the declaration of greenhouse gas reduction targets for 2030 (2021). We will continue to work on climate change mitigation through collaboration with a wide range of stakeholders, including governments, businesses, and industry associations, towards the realization of a low-carbon society in order to achieve the targets of the Paris Agreement (2015), which sets out an international framework for reducing CO2 /GHG (greenhouse gases) emissions. TCFD: Task Force on Climate-related Financial Disclosures The Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board (FSB) recommends that companies understand and disclose the financial implications of the risks and opportunities posed by climate change. In August 2022, the Company expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). JCI: Japan Climate Initiative The Japan Climate Initiative (JCI) is a network to strengthen the dissemination of information and exchange of views among companies, local authorities, organizations, and NGOs that are actively working to combat climate change. The Company signed up to the initiative in August 2024 and supports the declaration of ‘Joining the front line of the global push for decarbonization from Japan.’ KEIDANREN (Japan Business Federation): Charter of Corporate Behavior As a member company of KEIDANREN, we respect and put into practice the spirit of the Charter of Corporate Behavior in order to realize a sustainable society. KEIDANREN (Japan Business Federation): Charter of Corporate Behavior Support for the Save Earth Foundation Since October 2024, the Company has been a supporting member of the Save Earth Foundation, providing support for activities to maintain and improve biodiversity in reforestation activities. Disclosure Compliant with TCFD Recommendations Governance system for climate change-related matters The Board of Directors serves as the oversight body on the environment, including climate change. The Executive Officers’ Meeting and Management Meeting make decisions on basic policies and other important matters, while substantive discussion and examinations take place in the Sustainability Committee, which serves as an advisory body. Executive officers and corporate officers participate in the Sustainability Committee, taking reports on environmental risk assessments, including climate change, and on the progress of initiatives, and discussing policies going forward. Preparation of reports and agendas is the purview of the Environ- mental Subcommittee under the Sustainability Committee. The Executive Officers’ Meeting and Management Meeting monitor initiatives related to climate change and related issues based on the deliberations of the Sustainability Committee, discussing ways of managing progress and basic policies and important matters requiring decisions. As outlined above, the Sustainability Committee consults on the Company’s basic policies and important matters related to the environment. The policies and matters are then decided by the Executive Officers’ Meeting and Management Meeting, before receiving final approval from the Board of Directors. Supervision Report Supervision Execution Board of Directors (About once a year) Executive Of cers’ Meeting and Management Meeting (About once a year) Environmental Sustainability Subcommittee (About four times a year) Sustainability Committee (About two to three times a year) • Decides on basic policies related to climate change • Decides on important matters related to climate change • Discusses and makes recommendations on basic policies related to climate change • Discusses and makes recommendations on important matters related to climate change • Discusses and makes recommendations on basic policies related to climate change • Discusses and makes recommendations on important matters related to climate change Monitors our response to climate change Governance framework for climate change-related matters Environmental Issues Note * Measures are being pursued under a similar structure in the areas of HR, data governance, and society. Risks Timeline Countermeasures Less than 2°C scenario Transition risk*1 becomes apparent; physical risk*2 is not assumed to be high As some industries to which our clients belong have a high degree of both risk and opportunity, we will diversify risk by closely monitoring the initiatives of individual clients and suppliers, in addition to industry-wide trends. • Increased costs due to stricter regulations on energy sources and replacement of facilities and equipment as part of the shift to renewable energy sources Medium to long term • We will comply with all current relevant laws and regulations, reduce our internal electricity consumption, and promote occupancy in buildings where there are initiatives to become more environmentally friendly and energy efficient. • Lack of action to address climate change erodes trust from stakeholders and reduces business opportunities Medium to long term • By promoting and disclosing information on ESG initiatives, including climate change-related issues, we will pursue dialogue with shareholders, investors, and other stakeholders and continuously work to improve our ESG score with each assessment body. 4°C scenario Physical risk*2 becomes apparent; transition risk*1 is not assumed to be high We aim to diversify risk and increase opportunities by considering the expansion of businesses and services into industries with lower risks and greater opportunities even in the 4°C scenario. • Increased costs to deal with rising temperatures, damage to business locations caused by flooding and other disasters, human casualties, and supply chain disruptions Short to long term • Ongoing BCP review and internal training • Decline in business opportunities due to the medium- to long-term impact of natural disasters and rising temperatures, etc., on client companies Medium to long term • We aim to diversify risk by keeping a close eye on the initiatives of our clients and suppliers Notes *1 The transition to a low-carbon society aimed at mitigating climate change involves policy, legal, technological, and market changes that could have a variety of impacts on a company’s finances and reputation. These risks are called “transition risks” *2 Risks that may materialize due to disasters caused by climate change (including direct damage such as torrential rain, floods, storm surges, droughts, wildfires, etc., and indirect damage such as reduced sales due to supply chain disruptions, as well as damage caused by long-term changes in climate change patterns such as rising temperatures, reduced snow and ice cover, and rising sea levels). These risks are called “physical risks” Climate change-related risks and opportunities The nature of the Group’s business is that we carry out our activities primarily online. We, therefore, recognize that the direct impact of climate change on our business is limited. However, technological innovations and changes in markets, services, and consumer attitudes related to climate change could affect our client companies’ revenues, which in turn could affect our business results. Changes in our client companies’ technologies and services, especially with respect to climate change, or changes in consumer attitudes, will affect the demand for research. As a countermeasure to this point, we are monitoring the trends of client companies regarding climate change and regularly reviewing risks. By doing so, we continue working to diversify our client portfolio and capture marketing demand. Based on the characteristics of our business, the Group recognizes the risks and opportunities posed by climate change as follows. Climate change-related risks Opportunities Timeline Countermeasures Less than 2°C scenario Transition risk*1 becomes apparent; physical risk*2 is not assumed to be high • Growing demand for online research associated with the shift to a paperless operation Medium to long term • Expanding the online research capacity structure and promoting efficiency to tap into demand and improve sales • Diversification of consumer behavior due to increased environmental awareness and marketing demand for new products and services Short to long term • Capturing changes in consumer behavior and communicating them to society, and increasing sales through proposal activities to clients 4°C scenario Physical risk*2 becomes apparent; transition risk*1 is not assumed to be high • Growing demand for online research to avoid travel and visits due to the increased risks caused by climate change, such as the prospect of infectious diseases Medium to long term • Developing and providing a variety of online research solutions, such as shifting offline research online, to increase sales • Increased marketing demand for new products and services due to changes in consumers’ lifestyle Short to long term • Capturing changes in consumer behavior and communicating them to society, and improving sales through proposal activities to clients Climate change-related opportunities Countermeasures In the less than 2°C scenario, the risk of a surge in procurement costs is assumed for various industries that use fuel and electricity. We recognize that changes in client companies’ technologies and services, as well as in consumer attitudes, will INTEGRATED REPORT 2024__MACROMILL, INC. 30 INTEGRATED REPORT 2024__MACROMILL, INC. 31
18. Introduction Data Governance Sustainability Strategy CO2 emissions (t-CO2 ) FY2018/6 FY2019/6 FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6 Scope 1 0 0 0 0 0 0 0 Scope 2 Office electricity consumption*1 516 520 435 349 155 22 2 Scope 3*2 Category 1 Purchased goods and services *3 *3 *3 *3 *3 *3 3,737 Category 1 The use of cloud services*4 *3 *3 *3 217 131 61 6 Category 3 Fuel- and energy-related activities (not included in scope 1 or scope 2) *3 *3 *3 *3 *3 44 43 Category 6 Business travel *3 *3 *3 *3 *3 99 121 Category 7 Employee commuting *3 *3 *3 *3 *3 143 168 Notes *1 Figures for FY2022/6 and FY2023/6 have been revised as some sites had switched to renewable energy. *2 Not applicable for categories 2, 8, and 9 to 15 in Scope 3. *3 Figures not provided due to the difficulty of calculation. *4 CO2 emissions for cloud service providers are calculated using the calculation tools they provide. Social Issues Contributing to Society via Marketing Research Our policy We believe that one of the social missions of our Group is to understand, analyze, and disclose the situation of consumers due to social changes. We will publish a wide range of knowledge gained through our Group’s businesses, including marketing research, in the form of reports and columns. We will share information that captures changes in individuals, companies, and, ultimately, society as a whole. Macromill Weekly Indexɹɹ Macromill Weekly Index Asia (Japanese only) (Japanese only) Publication of Fixed-point Survey Data Since 2013, we have published the Macromill Weekly Index, which offers highly up-to-date information on a wide range of indicators obtained from a panel of consumers in Japan. It includes weekly consumption amounts and categories, consumer sentiment, and business confidence. In a testament to the trustworthiness of this data, extracts have been used in the Japanese Cabinet Office’s ‘Cabinet Meeting Documentation about the Monthly Economic Report’. Since 2020, the Company has also published consumer trends of Asian regions in the Macromill Weekly Index Asia. Goodmill’s social contribution activities Goodmill is a social contribution program we have carried out since 2018, based on our belief that we can use research to make the world a better place. As part of our CSR strategy, we are engaging in a variety of initiatives, including research support for NPOs and other non-profit organizations, as well as volunteer activities and other efforts. Examples of organizations that use the system (extract from a list) Social Contribution Activities of the Macromill Group Dentsu Macromill Insight, Inc. We have introduced REGOG, an internal communication tool for giving thanks and praise to each other, and donate the equivalent of one school meal to a child around the world when at least 10 ‘letters’ per month are sent. QO, Inc. The Social Issue Lab (SIL) is a research organization that uses the power of research to give a platform to the voiceless of society and provide opportunities to learn about social issues. It operates a research program and shares research findings from core research, reports, and other activities. SIL began its activities in October 2023, and together with external partners, has conducted core research on themes such as the ‘gender gap,’ ‘earthquake relief,’ ‘disaster prevention and mitigation,’ and ‘online defamation.’ Macromill Embrain Co., Ltd. Subsidiary Macromill Embrain is conducting a “1%+Donation” campaign to support the Korean Organization for Rare Diseases and the Korea Down Syndrome Society. Under this campaign, each month it accepts 1% of total monitoring costs (accumulated) as a donation and also collect donations from its research panels. To date, it has donated approximately W750 million (roughly ¥83 million) to these organizations. have an impact on research demand in the medium term. At the same time, there will be significant opportunities as new products and services are developed. Since some industries present high degrees of both risk and opportunity, we will diversify risk by closely monitoring the initiatives of individual client companies and business partners, as well as overall industry trends. Given that the 4°C scenario could also become a reality, we will diversify risks and expand opportunities by considering the expansion of our business and services to industries with lower risks and greater opportunities in this case. Initiatives and Goals Information disclosure We are committed to disclosing information on our CO2 emissions. As the Group’s business activities are primarily carried out online, the calculation of CO2 emissions for Scope 2 covers emissions from major offices in Japan, and for Scope 3 covers emissions from cloud service providers contracted to provide online research services and other emissions that can be calculated. Initiatives to reduce GHG emissions Promotion of paperless operations and recycling We promote the digitalization of our operations and strive to be paperless. Specifically, we are working on digitalizing internal documents such as the minutes of meetings, invoices, and contracts. We have also introduced a system whereby printing is carried out after authentication using ID cards issued to each individual at the time of printing, which enables us to monitor the amount of photocopy paper used and raise awareness of the need to reduce it. In addition, 100% of office paper waste is recycled, with used documents being recycled using dedicated recycling bins to ensure both confidentiality and recycling. Occupancy of a building with initiatives to become more environmentally friendly and energy efficient Shinagawa East One Tower, where the Company is located, obtained an ‘S Rank’ under the 2021 SDGs compliant version of the CASBEE® (Comprehensive Assessment System for Built Environment Efficiency) Real Estate Evaluation System, the highest rating as a ‘Green Building’ with high environmental performance in areas such as energy conservation. Efforts are continuing to improve environmental performance, including the acquisition of Net Zero Energy Building (ZEB) certification under the e Building-Housing Energy-efficiency Labeling System (BELS) in 2023. As a tenant, we work to contribute to the environmental and energy-saving initiatives promoted by the building. Goals The short-term goal is to achieve net zero CO2 emissions (Scope 1+2) by FY2031/6, and the long-term goal is to maintain net zero CO2 emissions (Scope 1+2) in FY2051/6. Analysis of current situation The Company promotes hybrid working styles, utilizing remote working, and as a consequence electricity consumption and CO2 emissions are on a downward trend. In data management, the migration from on-premise data centers to the cloud, which was implemented in 2016, has resulted in a significant reduction in energy consumption. CO2 emissions associated with office electricity consumption In line with the switch to renewable energy for our main offices, including headquarters, we significantly reduced CO2 emissions from electricity consumption in FY2024/6, cutting them to a level close to our goal of almost zero. Going forward, we will continue to contribute as a tenant to the environmental and energy conser- vation initiatives of the buildings we occupy, taking various actions such as switching to renewable energy for office electricity and using data centers with low environmental impact. We will also aim to gauge the current situation and carry out measures toward achieving carbon neutrality. INTEGRATED REPORT 2024__MACROMILL, INC. 32 INTEGRATED REPORT 2024__MACROMILL, INC. 33
19. Introduction Data Governance Sustainability Strategy Basic Concept on Corporate Governance The Group has established a Macromill Code of Conduct to serve as the foundation of the corporate rules that our officers and employees observe in their daily work. Based on its management philosophy, the Macromill Code of Conduct outlines details in four key areas - compliance with laws and regulations, proper relations with society, respect for human rights, and sincere corporate activities – in accordance with the policy that it is essential for the proper and sound development of Macromill that all the Company officers and employees (including full-time, contract, part-time, skilled part-time, temporary, and seconded workers) fully recognize their necessary social responsibility in the various corporate activities and act in compliance with social ethics. We will establish and continuously review and expand our corporate governance framework to realize sound and transparent corporate management based on the Macromill Code of Conduct. Macromill Group Corporate Governance Overview of the Corporate Governance Framework While enhancing management transparency and fairness by actively disclosing information in a timely manner and keeping compliance management in mind, the Group will maximize its corporate value by proactively pursuing sustainable pro t. Also, we recognize the importance of building an effective Corporate Governance Framework by building and maintaining a management organization that can quickly respond to changes in the social environment and steering a management course with an awareness of the importance of our shareholders, while engendering harmony between the Company and its stakeholders. Management Supervisory Functions „ Board of Directors As the Company’s highest decision-making management entity, the Board of Directors meets one or more times every month and decides on important matters focused on the exclusive authority matters prescribed in Article 416 of the Companies Act. The Board of Directors comprises six directors, five of whom are outside directors, and one of these outside directors, Yuji Shiga, is the Chairman of the Board. The Company has established the following committees on its Board of Directors: Corporate Governance Framework Corporate Governance (Japanese only) Corporate Governance Framework (As of September 25, 2024) General Shareholders’ Meeting Supervision Execution Coordination Board of Directors (Comprises 6 directors, 5 of whom are outside directors) Nominating Committee (Comprises 3 directors, all of whom are outside directors) Compensation Committee (Comprises 3 directors, all of whom are outside directors) Audit Committee (Comprises 3 directors, all of whom are outside directors) Audit Committee Assistant Accounting Auditor Internal Audit Section Representative Executive Officer Each Department Management Meeting Executive Officer Compliance Promotion Committee (Representative Executive Officer, CCO, Head of the Legal and General Affairs Division, Head of the HR Division, Audit Committee Members) Executive Officers’ Meeting Determine proposals for appointment and dismissal of directors Appoint / Dismiss Appoint / Dismiss Appoint / Dismiss Appoint / Dismiss Appoint / Dismiss Supervision Audit Audit Instruct Audit Conduct Instruct Instruct Instruct Report Report Insights and experience Name Position Company management Finance and accounting M&A Legal and Risk management Global Data and Digital Marketing and Industry knowledge Sustainability HR and personnel administration Toru Sasaki Director, Representative Executive Officer and CEO ˔ ˔ ˔ Yukiko Nakagawa Outside Director ˔ ˔ ˔ Yuji Shiga Outside Director ˔ ˔ ˔ Kimitake Ito Outside Director ˔ ˔ ˔ Kovari-Krecsmary B. Szilvia Outside Director ˔ ˔ ˔ Tsuyoshi Nishitani Outside Director ˔ ˔ ˔ Directors’ skill matrix Note * Listing of the particular strengths and expertise of each individual that relates to the Group’s business. (1) Nominating Committee The Nominating Committee is the body that decides the content of proposals concerning the appointment and dismissal of directors to be submitted to the Shareholders’ Meeting. The Nominating Committee is comprised of three outside directors. One of these outside directors, Kimitake Ito, chairs the committee. (2) Compensation Committee The Compensation Committee is the body that decides the details of the compensation awarded to individual directors and executive officers. The Compensation Committee is comprised of three outside directors. One of these outside directors, Yukiko Nakagawa, chairs the committee. (3) Audit Committee Meeting in principle once a month, this committee is the body that decides on audits with regard to any illegality or impropriety on the part of directors or executive of cers in the execution of their business duties. It also determines the content of proposals concerning the appointment and dismissal of the accounting auditor to be submitted to the Shareholders’ Meeting. The Audit Committee is comprised of three outside directors. One of these outside directors, Yuji Shiga, chairs the committee. „ Activity Report for FY2024/6 • Board of Directors The Board of Directors made decisions on the convocation of the Shareholders’ Meeting and the content of proposals to be submitted to the meeting, the election of executive of cers, the selection of committee members and committee chairs, delegation of authority to executive of cers for business execution decisions, appropriation of retained earnings, and other matters stipulated in the Board of Directors Regulations. It also supervised the progress of the management plan through monthly and quarterly nancial reports and reviewed and deliberated on matters related to the evaluation of the effectiveness of the Board of Directors and matters related to the medium-term management plan. In addition, it supervised the execution of duties by executive of cers, including by receiving periodic reports from them on the status of business execution. • Nominating Committee The Nominating Committee decided on the content of proposals to be submitted to the Shareholders’ Meeting regarding the appointment of directors, and also considered and deliberated on matters related to succession planning for the CEO and executive of cers, personnel evaluation of executive of cers, and matters related to the appointment of executive of cers to be discussed by the Board of Directors. • Compensation Committee The Compensation Committee decided the compensation policy for directors and executive officers, the details of compensation for each individual, and the introduction of a performance-linked share-based compensation system. The committee also considered and deliberated on matters related to the design of the compensation system for Executives. • Audit Committee The Audit Committee formulated the audit policy and audit plan, con rmed the implementation status of the Audit Committee audit, con rmed the activities and audit results of the Internal Audit Section as well as exchanging opinions with internal audit staff, con rmed the audit results of the accounting auditors as well as exchanging opinions with the accounting auditors, and con rmed the operation status of the internal reporting system. It also considered and deliberated on other matters related to the compensation, evaluation, and reappointment of accounting auditors and the content of the audit report. Stance and procedures on the diversity and scale of the Board of Directors Macromill is a company with Committees, and its Nominating Committee decides on proposals concerning the appointment of directors that are submitted to the General Shareholders’ Meeting. The Nominating Committee determines the skills needed to enable the sustainable growth in the medium- and long-term corporate value of the Group, and based on the knowledge, experience, and abilities of each director, nominates directors whom it believes can maintain the overall skillset of the Board of Directors from standpoints such as balance, diversity, and appropriate scale. INTEGRATED REPORT 2024__MACROMILL, INC. 34 INTEGRATED REPORT 2024__MACROMILL, INC. 35
20. Introduction Data Governance Sustainability Strategy Reason for selection as outside directors Yukiko Nakagawa Ms. Yukiko Nakagawa has extensive experience including teaching at domestic and overseas educational institutions as a Doctor of Commerce, and also possesses knowledge and insight as an expert in human resource development, organization development, and development of global human resources. In recent years, she has conducted research on implementation and solutions to resolve SDGs issues through digital transformation. We expect her to provide us with bene cial advice and proposals from the viewpoints above for the management of our Company. Yuji Shiga As an attorney at law, Mr. Shiga has a high degree of insight and supervisory ability regarding compliance governance in corporate groups, as well as a wealth of experience and knowledge in international legal affairs, which are indispensable for global expansion. We expect him to provide us with bene cial proposals and advice that will contribute to strengthening the compliance and governance systems of our group as an Outside Director. Kimitake Ito Mr. Ito has gained experience and expertise at consulting rms and investment funds in management reform, performance improvement, capital policy support, and MBO support for various companies. We expect him to provide us with bene cial advice and proposals for the realization of the Group’s growth strategy. Kovari-Krecsmary B. Szilvia Based in Tokyo and New York, Ms. Kovari-Krecsmary has extensive experience and knowledge acquired through engaging in management transformation and performance improvement at Fortune 500 and major Japanese companies across ve continents as a chief of management, business, digital strategy, and marketing. We expect her to provide bene cial advice and proposals for the management and business strategies of the Group. Tsuyoshi Nishitani Mr. Tsuyoshi Nishitani has a high level of expertise, professional ethics, and supervisory skills as a certi ed public accountant, and has experience in business advisory services for large, well-established listed companies, start-ups, and local governments. We expect him to provide bene cial advice and proposals from the viewpoints of strengthening the governance system of the nancing and accounting area of our group. Evaluation of the Effectiveness of the Board of Directors The Company conducted a survey to seek the opinion of each Director regarding the effectiveness of the Company’s Board of Directors. After the answers were collected and analyzed by the Board of Directors’ Secretariat, the effectiveness of the Board was analyzed and evaluated on the basis of its discussions. The Board of Directors was rated highly overall on evaluation points such as “the evaluation of action plans based on the FY23 survey results”, “the roles and functions of the Board of Directors”, “the composition and scale of the Board of Directors”, “the operation of the Board of Directors”, “communication with the management team”, and “relations with shareholders and investors”. As a result, we believe that the Board of Directors is being suf ciently effective. To further increase its own effectiveness, the Company’s Board of Directors will consider and implement measures to address issues, particularly those outlined below, and make efforts to improve its functionality based on results of the survey on the effectiveness of the Board of Directors. (1) Create a consultation service with constant easy access, particularly to support outside directors. (2) Develop a long-term grand design for the CEO succession plan while establishing closer communication between and aligning the goals of the Nominating Committee and the Board of Directors on this issue. (3) Accelerate the timing of materials provision to board meeting attendees, allowing directors more time to prepare in advance. Succession plan for the CEO and other officers The Board of Directors continuously monitors the cultivating of personnel to take up the reins of management in the next generation, from short-, medium-, and long-term perspectives, in light of the Company’s management principles and strategies. The Nominating Committee selects candidates for such positions at the appropriate time. We will continue to consider a range of issues as basic initiatives to be discussed by the Nominating Committee and in other forums, while also taking into account the opinions of the current CEO, including the issues of: (1) required personnel requirements, (2) the timing of succession, (3) forming a candidate pool and appropriately cultivating candidates over time (including key career appointments of candidates), (4) grasping the character of candidates on the part of each member of the Nominating Committee, and (5) selection of candidates. We will furthermore focus on devising and implementing speci c training programs to ensure that adequate time and resources are given to systematically training successor candidates. Business Execution Functions „ Representative Executive Officer, Executive Officers The Company appoints one representative executive of cer from among its executive of cers. The representative executive of cer represents the Company as Chief Executive Of cer, and executes tasks delegated by resolutions of the Board of Directors. The executive of cers provide the Board of Directors with a monthly report on nancial results regarding the monthly closing of accounts, as well as reporting on the status of business execution once a quarter. The executive of cers also assist the representative executive of cer and bear responsibility for the promotion and supervision of business execution. „ Executive Officers’ Meeting Comprising the representative executive of cer and executive of cers, the Executive Of cers’ Meeting resolves by majority decisions important matters of business execution delegated to it by resolution of the Board of Directors. Audits Performed by Audit Committee and Internal Audits Comprising three outside directors, the Audit Committee performs audits. Routine audits are conducted by one audit assistant appointed by resolution of the Audit Committee. The Company has also established an Internal Audit Section, an independent, full-time organization, with three employees (as of June 30, 2024) that conducts internal audits. The Internal Audit Section conducts internal audits of the Group based on the annual audit plan, with its main tasks being operational audits, evaluation of internal control over nancial reporting, and information security audits. The results of internal audits are reported to the Representative Executive Of cer and CEO and shared with the Audit Committee, which consists of outside directors, and the Executive Of cers’ Meeting. The maintenance and operations of the internal auditing system are appraised from an independent standpoint under the leadership of the executive of cer CFO. Any issues are reported to the relevant departments to promote improvement. Follow-up on the improvement process is also conducted to strive for appropriate operations within the Group. Compliance Promotion Committee Aimed at strengthening and promoting companywide compliance systems, the Company deems a representative executive of cer as its chief compliance of cer. It has established a Compliance Promotion Committee, chaired by the Head of the Legal and General Affairs Division. The Compliance Promotion Committee reviews and promotes policies and measures relating to compliance, promotes and improves compliance systems, and comprehensively manages the thorough awareness of, and compliance with, the corporate philosophy and standards of corporate behavior. Director Compensation Our statutory Compensation Committee, consisting only of outside directors creates policies relating to the determination of the amounts of remuneration and other payments for its directors and executive of cers. An outline follows. „ Directors The amount of compensation for each director is determined by the Compensation Committee, taking into account factors that include a director’s career, expert knowledge, level of ability, compensation history, responsibilities and the results of a survey on the compensation rates of other companies. Compensation for directors who have no concurrent executive of cer status is comprised of basic compensation xed) of an amount that re ects their duties. „ Executive Officers Executive of cer’s compensation is decided on an individual basis by the Compensation Committee. It considers the required role, the authorities given, and the extent of the responsibilities to be ful lled in his or her delegated duties. In addition, it incorporates the results of a survey on the compensation levels of other companies. The compensation amount for executive of cers consists of “basic compensation ( xed)”, “performance-linked compensation”, and “shares with restriction on transfer”. Performance-linked compensation is decided based on our policy and is awarded as an incentive to improve Group business performance. Group revenue and business pro t are used as the benchmarks for performance evaluation. The total amount paid is decided by the following method. Shares with restriction on transfer are awarded to eligible executive of cers to expose them to the same advantages and disadvantages of share price uctuation as shareholders, and to further increase their motivation to contribute to increasing the share price and improving corporate value. Total amount of performance-linked compensation payable = the total amount based on target criteria for each executive officer x {(a coefficient linked to the rate of achievement of the Group revenue target for the fiscal year x 40%) + (a coefficient linked to the rate of achievement of the Group business profit target for the fiscal year x 60%)} Compensation for Directors and Officers in the fiscal year ended June 30, 2024 Classification Total Compensation Allocation (Millions of yen) Allocation by Type of Compensation (Millions of yen) Number of Eligible Recipients Fixed compensation Performance-linked compensation Non-monetary compensation, etc. Executive Officers 172 122 31 18 4 Director (excl. Outside Directors) 1 1 ʵ ʵ 1 Outside Directors 38 38 ʵ ʵ 6 Total 212 162 31 18 11 INTEGRATED REPORT 2024__MACROMILL, INC. 36 INTEGRATED REPORT 2024__MACROMILL, INC. 37
21. Introduction Data Governance Sustainability Strategy Yukiko Nakagawa Outside Director (Independent Director), Chair of Compensation Committee and Audit Committee Member Ken Inoue Executive Officer, CTO Toru Sasaki Director, Representative Executive Officer and CEO Taro Dohi Executive Officer, CCO Shintaro Hashimoto Executive Officer, CFO, CGO Yuji Shiga Outside Director (Independent Director), Chairman of Board of Directors, Chair of Audit Committee and Nominating Committee Member Kovari-Krecsmary B. Szilvia Outside Director (Independent Director), Nominating Committee and Member Compensation Committee Member Kimitake Ito Outside Director (Independent Director), Chair of Nominating Committee and Compensation Committee Member Tsuyoshi Nishitani Outside Director (Independent Director), Audit Committee Member Risk Management System While sharing risk information through important meetings such as the Executive Of cers’ Meeting and the Management Meeting based on information gathered by each department, the Company strives for early detection and prevention of risks through activities based on the “Information Security Management Regulations” and “Basic Regulations Concerning Personal Information Protection”. In addition, we strive to mitigate risks by early detection and prevention of potential risks through audits by the Audit Committee and internal audits, while building good relationships with outside experts such as lawyers, certi ed public accountants, certi ed tax accountants, and labor and social security attorneys to receive advice as needed. In the event of a major incident in the course of business activities, a response team headed by the Representative Executive Of cer is established to respond promptly and accurately to minimize losses and damages. • Acquisition of Third-party Certification In line with recent changes and demands in society, we want to ensure that our clients can continue using our services without concern. To that end, in addition to the Privacy Protection System (P Mark) certi cation we acquired in 2004, we acquired the latest international standard ISO/IEC 27001:2022 (ISMS) certi cation*1 in 2023. Note *1 This is the first to receive the certification for all business areas among the companies listed on the full regular member company list of the Japan Marketing Research Association (JMRA). Based on our search on the ISMS certification organization site (https://isms.jp/lst/ind/), as of June 28, 2023 Constructive Dialogue with Shareholders and Investors The Company has established the following basic policy regarding the development of systems and initiatives to promote constructive dialogue with shareholders and investors. (1) In order to disclose information on our management and nancial conditions in a proactive, honest, fair, and timely manner and promote IR activities that contribute to further enhancement of corporate value, we have established a dedicated IR department. This has enabled us to actively engage in dialogue with shareholders and investors to build smooth relationships and promote mutual understanding. In addition, we conduct regular shareholder surveys to better understand the actual composition of the shareholder base and to conduct more effective investor relations activities. (2) For preparing and disclosing disclosure materials, the Company has established a Timely Disclosure Liaison Committee, which is led by the IR Of ce and includes the heads and staff of the Finance and Accounting Division, the Legal and General Affairs Division, the HR Division, Public Relations and Brand Management Division, and other divisions responsible for the matters to be disclosed. The committee gathers appropriate information, prepares materials to ensure the accuracy of the posted information, and con rms and ensures compliance with rules and regulations related to timely disclosure. In addition, we have established “Detailed Rules for the Management of Timely Information Disclosure” as an internal set of rules, and endeavor to disclose information in a fair, timely, and appropriate manner based on these rules. We also disclose information on our website and in English when necessary. (3) We hold quarterly nancial results brie ngs mainly for domestic and foreign institutional investors and analysts to explain the progress of our business and performance. In addition, the Company makes the brie ng materials and videos available on its website in both Japanese and English in an effort to disseminate information to promote a better understanding of the contents of the meetings. In response to requests from institutional investors and analysts, we also hold individual and small-group meetings and brie ngs in Japan, and actively hold meetings with major institutional investors in North America, Europe, and Asia. In addition, we strive to develop opportunities to provide information to individual investors with an emphasis on ease of understanding. (4) The IR department compiles the opinions and concerns identi ed in dialogue with shareholders and investors and reports and provides feedback to the Board of Directors and the Executive Of cers’ Meeting as appropriate with the aim of considering, implementing, and achieving various measures to raise corporate value. Details on the status of dialogue with shareholders and investors, feedback system, and themes of the dialogue are disclosed on our IR website (https://group.macromill.com/ir/governance.html) (5) To prevent insider information from being leaked to outside parties, we thoroughly manage information such as undisclosed material facts in accordance with the “Insider Trading Control Regulations” and the “Detailed Rules for the Management of Timely Information Disclosure” and strive to ensure that information is communicated to shareholders and investors in a fair and impartial manner. Board of Directors and Executive Officers (As of September 25, 2024) Directors Executive Officers Concurrently serving as Director Toru Sasaki Representative Executive Officer, CEO Pro le Graduated Keio University, Faculty of Economics. Holds Master’s degree in Business from the University of Texas at Austin, McCombs School of Business. Joined Asahi & Co. (Current KPMG Azusa LLC), Industrial Growth Platform, Inc. in 2008. Served as a Representative Director at Prime Mover Inc. Currently serving as a Representative Director at Corporate Governance Advisory Japan Inc., and Outside Director, Audit and Supervisory Committee Member at VITAL KSK HOLDINGS, Inc. Pro le Born in Hungary. After graduating Tokyo University, she joined JWT (Tokyo, New York) and earned an MBA degree at Hult Ashridge. Held senior positions at Dentsu, EY and Net ix. Since 2019 she has been serving as the CMO at Japan’s leading BNPL company, Paidy, responsible for all marketing, UX and PR. Appointed as the CSO in 2023. Expertise in strategy, global business, digitalization and D&I. Joined Macromill as an Outside Director in September 2023. Pro le Holds Master of Laws Degree from University of Southern California Gould School of Law and a Bachelor’s degree from Waseda University’s School of Political Science and Economics. Joined Asahi Law Of ces (now Nishimura & Asahi (Partnership) Foreign Law Joint Enterprise) in 2000. Served for Schulte Roth & Zabel LLP (New York) in 2004. Became a Partner at Nishimura & Asahi (now Nishimura & Asahi (Partnership) Foreign Law Joint Enterprise) in 2009 (still active). Began serving at Macromill as an Outside Director in September 2022. Pro le Holds a Master’s degree in Architecture from the Department of Architecture, Graduate School of Engineering the University of Tokyo. Joined McKinsey & Company in 2004, Bain Capital Asia LLC in 2007. Served as a Director at Discover Japan Inc., Currently serving as a Representative Executive Of cer at Search Fund Japan, Inc. Joined Macromill as an Outside Director in September 2023. Pro le Graduated from Faculty of Commerce, Chuo University. Joined Macromill in June 2003 after working at Ikko and ABC Mart. Served the role of research direction, sales, and PMI for business integration at Macromill. Appointed as an Executive Of cer/General Manager of Online Research Division in 2010. Appointed as a Senior Executive Of cer of Misecolle Inc. in 2013. Left Macromill in 2014, returning in June 2015 after working at Glider Associates Inc. as an Executive Of cer and Board Director. Served as an Executive Of cer of Macromill from October 2015, Representative Executive Of cer, Vice President from September 2018, and appointed as a Director, Representative Executive Of cer and CEO in September 2020. Pro le Holds a Ph.D. in Commerce from Keio University. Has accumulated knowledge and insight from 25 years of business experience as an expert in human resources management and the management of global personnel and organizations. She has six years’ experience in academia, including holding teaching positions at educational institutions in both Japan and overseas. Also has extensive experience as a company director. Was appointed as an Outside Director in September 2021. Pro le Graduated from Keio University and joined Mercedes-Benz Japan Co., Ltd. Served for Finance, Sales Planning, and Human Resources departments. Contributed to global HR strategy implementation and expansion at Colt Technology Services Co., Ltd since 2000. After serving for Colt Technology Services, took successive service in various posts, such as Chief Human Resources Of cer, Chief Corporate Of cer, and other signi cant roles at OYO Japan Co., Ltd. (Now: Tabist). Owns over 30 years of experience as a senior global HR leader at German, US, and Indian companies. Holds a Master’s degree in International Business Administration from Aoyama Gakuin University, Master of Arts in Education (Counseling Psychology) from Tsukuba University, and certi cate of Advanced Management Program from Harvard Business School. Appointed as Chief Corporate Of cer in April 2022. Pro le Holds a Master of Business Administration degree from Dartmouth College, and a Bachelor’s and Master of Science degree in Industrial Engineering from Georgia Institute of Technology. Joined Andersen Consulting (now Accenture plc) in 2000, working at the Tokyo and San Francisco of ces. Joined DeNA Co., Ltd. in 2011, with responsibility for Global Operations & IT Strategy, Business Development & Corporate Strategy, and Corporate M&A & Alliance. Joined Macromill in September 2019 as Director of Corporate Development & Strategy and served as Vice President of Corporate Strategy from 2020. Appointed as CFO in April 2022 and CFO/CGO in September 2023. Pro le Graduated from Waseda Business School, Waseda University. After experiencing machine translation tech-sales and system integrator, joined Microsoft KK, Japan. At Microsoft, successively held East Asia regional manager of IT department, product development units at internet department and entertainment department, in both Japan and the U.S. Through the career, experienced over twenty years of operation, nancial management, product development, business development, process engineering, market development strategy, etc. at high-tech companies including COO at a service company. Appointed as CTO in January 2022. INTEGRATED REPORT 2024__MACROMILL, INC. 38 INTEGRATED REPORT 2024__MACROMILL, INC. 39
22. Introduction Data Governance Sustainability Strategy Millions of yen 2021/6 2022/6 2023/6 2024/6 Earnings Position*1 Revenue 34,088 37,736 40,616 43,861 ɹJapan Business 29,978 32,722 34,909 37,719 ɹKorea Business 4,127 5,023 5,725 6,142 Business profit*2 5,076 5,106 4,960 5,624 ɹJapan Business 4,475 4,421 4,427 5,422 ɹKorea Business 600 684 532 202 Operating profit 5,076 5,106 4,498 4,470 Profit before tax 4,887 5,030 3,728 4,746 Profit attributable to owners of the parent 2,822 2,915 1,778 2,293 Cash Flow Position Cash flows from operating activities 6,023 5,514 2,909 8,313 Cash flows from investing activities (1,133) (1,658) (5,234) (1,952) Free cash flows*3 5,128 4,093 (2,162) 6,592 Cash flows from financing activities 631 (8,510) 5,658 (14,292) Cash and cash equivalents at the end of period 19,079 14,756 18,255 10,398 Financial Position Total assets 84,041 83,634 94,154 89,205 Equity attributable to owners of the parent 29,236 31,704 37,657 40,741 Net debt*4 20,213 20,598 22,665 20,100 Net debt*4/EBITDA ratio*5 2.3 2.9 3.3 2.6 Per Share Data Basic earnings per share (EPS) (Yen) 70.08 79.71 191.89 60.19 Owners’ equity per share (BPS) (Yen) 739.44 801.37 985.95 1,077.69 Dividend per share (Yen) 13.00 17.00 21.00 27.00 Main Indicators Operating profit margin (%) 14.9 13.5 11.1 10.2 Return on equity (ROE) (%) 9.9 10.3 5.1 5.9 Return on assets (ROA) (%) 6.1 6.0 4.2 5.2 Ratio of equity attributable to owners of the parent (%) 34.8 37.9 40.0 45.7 Notes *1 Due to the sale of the Overseas (ex-Korea) Business Segment, figures for Revenue and Operating Profit have been retroactively adjusted to exclude this business segment for periods prior to FY2023/6. Figures for Profit Before Tax and Profit Attributable to Owners of the Parent have been retroactively adjusted through FY2022/6, but not for FY2021/6 *2 The Company transferred its Overseas Business (ex-Korea) segment to Toluna in exchange for considerations, including a 17.4% stake in Toluna. This has resulted in Toluna being an equity-method affiliate of the Company from the fourth quarter of FY2023/6. To show our actual business performance of the Macromill Group more accurately, we are showing our Business Profit, which subtracts equity-method investment gains/losses related to Toluna from OP from the first quarter of FY2024/6. The figures for FY2023/6 are adjusted amounts excluding expenses recorded for the transaction of the transfer of an overseas subsidiary (M&A) that occurred in the fourth quarter of FY2023/6 *3 Free cash flow = Cash flows from operating activities ± Cash flows from investing activities – Interest paid 2021/6 2022/6 2023/6 2024/6 Number of consolidated employees*6 of the Macromill Group Number of employees 2,637 2,970 2,155 2,228 Ratio of female employees 50% 52% 54% 55% Average age (years) 36 37 38 35.6 Ratio of female managers*7 28% 32% 26% 28% Average age of management personnel (years) 42 43 43 41.9 Ratio of women among executive officers 8% 9% 0% 0% Number of non-regular employees 225 241 259 262 Ratio of non-regular employees 11% 11% 11% 11% Number of people with disabilities employed 28 31 31 32 Retirement rate*8 10% 12% 11% 9% Number of non-consolidated employees of Macromill Number of employees 1,088 1,185 1,179 1,186 Ratio of female employees 48% 49% 50% 51% Average age (years) 33 33 33 33.9 Average years of continuous service 4.9 5.2 5.6 5.7 Wage differential between men and women ɹAll employees Š Š 70.5% 68.5% ɹFull-time employees Š Š 75.1% 72.2% ɹPart-time and fixed-term employees Š Š 63.0% 78.5% Rate of male childcare leave 24% 18% 37% 62.5% Ratio of female managers*7 18% 18% 22% 25% Average age of management personnel (years) 38 38 39 39.9 Ratio of women among executive officers 10% 13% 0% 0% Number of non-regular employees 104 105 116 117 Ratio of non-regular employees 9% 8% 9% 10% Number of people with disabilities employed 22 22 21 23 Retirement rate*8 9% 12% 10% 9% *4 Net debt = interest-bearing debt (borrowings + bonds) - cash and cash equivalents; lease liabilities were included until FY2022/6 *5 Following the sale of the Overseas (ex-Korea) Business Segment, Net Debt and EBITDA Ratio have been retroactively adjusted through FY2022/6 to remove the impact of this segment, but figures for FY2021/6 have not been adjusted *6 Due to the transfer of the business of wholly owned subsidiary MetrixLab Group to Toluna Holdings Limited on June 1, 2023, the number of employees as of the end of June 2023 was down year on year *7 Cumulative figure as of end-July *8 Percentage of full-time employees who resigned Financial and Non-financial Highlights Financial Highlights INTEGRATED REPORT 2024__MACROMILL, INC. 40 INTEGRATED REPORT 2024__MACROMILL, INC. 41 5,624 5,076 5,106 4,960 2024/6 2023/6 2022/6 2021/6 31,704 40,741 10.3% 29,236 9.9% 5.9% 37,657 21.8% 2024/6 2023/6 2022/6 2021/6 22,665 20,100 3.3 2.6 20,213 2.3 20,598 2.9 2024/6 2023/6 2022/6 2021/6 Revenue (Millions of yen) Business profit*2 (Millions of yen) Equity attributable to owners of the parent and Return on equity (ROE) (Millions of yen) Net debt*4 and Net debt*4/EBITDA ratio*5 (Millions of yen) 43,861 34,088 37,736 40,616 2024/6 2023/6 2022/6 2021/6
23. Introduction Data Governance Sustainability Strategy Top 10 Shareholders (As of June 30, 2024) Number of shares held Shareholding ratio*1 (%) The Master Trust Bank of Japan, Ltd. (Trust Account) 6,813,200 17.8 NORTHERN TRUST CO. (AVFC) RE USL NON-TREATY CLIENTS ACCOUNT 6,107,600 16.0 Custody Bank of Japan, Ltd. (Trust Account) 4,002,800 10.5 SSBTC CLIENT OMNIBUS ACCOUNT 3,936,081 10.3 NORTHERN TRUST CO. (AVFC) RE THE HIGHCLERE INTERNATIONAL INVESTORS SMALLER COMPANIES FUND 1,584,100 4.1 GOVERNMENT OF NORWAY 1,339,800 3.5 STATE STREET BANK AND TRUST COMPANY 510443 781,100 2.0 MSIP CLIENT SECURITIES 474,398 1.2 JP MORGAN CHASE BANK 385781 441,448 1.2 Custody Bank of Japan, Ltd. (Trust E Account) 436,700 1.1 Note *1 Shareholding ratios are calculated after deduction of treasury stock (2,239,535 shares) Group Companies Dentsu Macromill Insight, Inc. A joint venture with Dentsu. Over 3,000 projects per year. Professionals on insight excavation who are well acquainted with consumers and lifestyle. Provides the optimized survey methodology depending on the marketing challenge. QO, Inc. A joint venture with Hakuhodo. Utilizing expertise in research and marketing planning, we accompany clients through the entire process of marketing management tasks, including strategy formulation and marketing plan development. Macromill Carenet, Inc. A joint venture with Carenet. Specializes on medical eld, a combination of Macromill’s survey know-hows and Carenet’s rich medical expertise and talents. Monitas, Inc. (Japanese only) Consumer panel network provider. Provides an environment for monitoring marketplace and insight discovery based on “customer data” that companies have accumulated through membership for sales and repeater acquisition. M-CUBE, INC. (Japanese only) Manages/builds Macromill’s 35,000 purchase panels/purchase database. Specializes in consumer’s purchase behavior and provides purchase x awareness data, analytic report. M-Force Inc. (Japanese only) Provision of customer-centric marketing solutions, including the cloud tool 9segs analyzer and the N1 analysis consulting. Centan Inc. (Japanese only) Provides deep consumer insights by collecting and analyzing consumers’ subconscious biological reactions including EEG. Eight Hundred, Inc. (Japanese only) Have a competitive edge in marketing and data utilization. The company provides one-stop support for clients’ business challenges, from business strategy creation to implementation support by a professional team of consultants, analysts, and engineers. acclimate Inc. (Japanese only) acclimate provides a consulting service with a competitive edge in Digital Transformation (DX) promotion and a start-up business. We have a human resource matching platform which has a large number of registered professionals and deliver a one-stop service to solve our client’s business challenge, including team building. Macromill South East Asia, Inc. Provides online and of ine marketing research solutions and panel supply services in Southeast Asia, mainly in Vietnam, Indonesia, and Thailand. Macromill Embrain Co., Ltd. Macromill’s local subsidiary in Korea (location: Seoul). Started as an online research company in Korea, now it conducts marketing research, social research, and overseas research from various perspectives as a comprehensive research company with more than 330 employees and the largest panel in Korea at more than 1.7 million people. Macromill China Insight, Inc. (Japanese only) Develops business centered on online research at its local subsidiary in China (location: Shanghai). Proposals are made according to the research background and objectives, utilizing the knowledge of the Macromill Group. Corporate Data and Investor Information Corporate Data (As of June 30, 2024) Company name: MACROMILL, INC. Headquarters: Shinagawa East One Tower 11F, 2-16-1 Konan, Minato-ku, Tokyo 108-0075, Japan Established: January 31, 2000 Paid-in capital: ¥1,090 million Number of employees: 1,186 (Non-consolidated) 2,228 (Consolidated) IR information: https://group.macromill.com/ir/ Stock Information (As of June 30, 2024) Number of shares issued: 40,480,500 Number of shareholders: 7,013 Stock exchange listing: Prime Market of Tokyo Stock Exchange Ticker code: 3978 General Shareholders’ Meeting: September Transfer agent: Mizuho Trust & Banking Co., Ltd. INTEGRATED REPORT 2024__MACROMILL, INC. 42 INTEGRATED REPORT 2024__MACROMILL, INC. 43
24. Shinagawa East One Tower 11F, 2-16-1 Konan, Minato-ku, Tokyo 108-0075, Japan TEL +81-3-6716-0700 https://group.macromill.com/