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Frequently Asked Questions

Questions about the Company

When was Link and Motivation established?

On March 27, 2000.
For an overview of the company, please refer to the Company Overview (corporate).

When were Link and Motivation's shares listed?

Link and Motivation's shares were listed on the Second Section of the Tokyo Stock Exchange on December 17, 2007.

Does Link and Motivation have subsidiaries?

We have a total of six subsidiaries:Link Tourist Inc.,Link Investor Relations Inc., Link Place Inc.,Link Sports Entertainment Inc.,Link Dining Inc.,and Digit Co.,Ltd..

What is Link and Motivation's management philosophy?

Our philosophy is to "contribute to the vitalization of society through motivation engineering."

We work to implement this philosophy by providing one-stop support for corporate transformation, using our core technology, "motivation engineering," to link the motivation of each individual to the organization's overall strategy, and to organizational strategy, recruiting strategy and place strategy.

What measures is Link and Motivation taking to enhance corporate governance?

To fulfill Link and Motivation's founding management philosophy - "contribute to the revitalization of society through motivation engineering" - we are strengthening corporate governance with the fundamental objective of fair and transparent management.
For further details, see our Corporate Governance Policies.

I've heard that Link and Motivation has a quarterly dividend system.

Link and Motivation operates on its own calendar - three months is the equivalent of one "year" for Link and Motivation - and employs a fast-paced management approach. Applying this idea to our dividend policy, we have decided to make dividend payments four times a year.

One of our management priorities is to deliver returns to shareholders that are linked with consolidated performance. Our fundamental policy is to actively return profits to shareholders, taking into account factors such as consolidated results for the period, the business environment outlook and investment plans. Specifically, we aim to maintain the payout ratio at about 30 percent of consolidated net income.

We plan to use internal capital reserves to invest in vigorous business development and enhancement of our corporate infrastructure in order to ensure shareholder profits in the future.

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Questions about Link and Motivation's Business

What is Link and Motivation's business?

Our business is corporate transformation consulting using our core technology, motivation engineering.

Motivation engineering consists of diagnostic techniques, which we use to diagnose problems from the standpoint of motivation, and transformational techniques, which we use to execute transformational measures according to the results of the diagnosis. We have expanded the scope of our business to include corporate transformation that applies these techniques to stakeholder management - in other words, building relationships between a company and its various stakeholders (employees, job applicants, customers, and shareholders and investors).

Could motivation engineering be imitated?

Our technical strengths create a high entry barrier. Our proprietary techniques for visually representing and quantifying motivation and the vast database we have accumulated keep us unrivaled in our field.

How many products and services do you have?

As of November 2007, we offer 67 products and services.

We have built a product portfolio and strategically expanded our menu of products and services in each of our four business areas and six product categories. Consulting firms rely heavily on the qualities of individuals, so the growth that can be achieved by adding staff is limited. By promoting standardization with a focus on database diagnosis and packaged products and by establishing a high-quality lineup of products and services, we are able to achieve a significantly higher level of growth.

How many clients does Link and Motivation have?

In our first nine years in business, we have served about 1,800 client companies. A large part of this success is due to efficient and effective sales, one of our main strengths. By efficiently and effectively utilizing diverse sales channels, we have established a high-quality customer base in the short time since the company's founding.

Our sales channels are broadly divided into three types. "Push sales," in which we regularly hold effective sales promotion seminars, have brought in about 50 percent of our customers. "Pull sales," which rely on brand-building through books and speeches and introductions from existing customers, account for about 35 percent. The remaining 15 percent of our customers come from the use of outside partners, such as Recruit Co., Ltd.

We have a high repeat customer rate* of 79.4 percent.

  • *The percentage of clients who had transactions with LMI in 2005 and continued to do business with LMI in 2006 (not including clients with total transactions of less than 50,000 yen).
Link and Motivation has established a dominant brand in recruiting. What is your secret?

We apply our core technology, motivation engineering, to our own company, and have developed our own recruiting expertise.

We view recruiting as a long-term branding activity, and have actively invested in it since the Company's inception. As a result, we have established a strong recruiting brand while continuously and steadily attracting top-notch employees. In a 2007 employer brand survey*, Link and Motivation was rated the most popular company in the consulting industry.

  • *Note: Conducted by Recruit Co., Ltd.
Is it true that gross profit per employee has increased every year?

Yes. While we've kept the average age of our employees low by expanding hiring of new university graduates, we've maintained or increased gross profit per employee year on year by creating an original staff development system, among other measures.

Specific examples include the LM Academy, a systematic stage-by-stage employee development program, and the LM Code, which clearly states work processes and rules to follow in conducting business activities.

Who are Link and Motivation's competitors?

We're the first company in the world to turn motivation, an intangible concept, into a business. Consequently, we do not compete with any one specific company. In each of our business areas (motivation management, entry management, place management and brand management), we compete with various companies, including staff support, recruitment support, facility management, IR/PR support and market research companies.

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Questions about Business Performance and Financial Indicators

What is Link and Motivation's fiscal year-end?

Link and Motivation's fiscal year ends on December 31.

When do you release financial results?

We release financial results on a quarterly basis.

The schedule for announcements is mid-February for the full year, mid-August for the first half, and mid-May and November for the first and third quarters, respectively. Please refer to the IR Calendar for details.

Where can I find Link and Motivation's financial statements?

For each quarter, we post our financial statements in the IR Library section of our website on the release date. Release notices are posted in the IR Information section.

What are Link and Motivation's main management indicators?

We basically manage the Company with a focus on capital efficiency, profitability and productivity. Two key indicators are the ordinary profit margin and gross profit per employee.

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Questions about Link and Motivation Stock and the General Meeting of Shareholders

When are the record dates for dividend payments?

The record dates are December 31 for the year-end dividend and June 30 for the interim dividend. With the introduction of a quarterly dividend system, record dates for first-quarter and third-quarter dividends are March 31 and September 30, respectively.

Who should I contact to find out about stock procedures?

Our stock is handled by Mizuho Trust & Banking Co., Ltd. You may request change of address forms, transfer requests and other forms (Japanese language only) on their website.

How many shares are in a trading unit?

One share.

When and where is the General Meeting of Shareholders held?

The ordinary General Meeting of Shareholders is held every March. The date and location will be posted on the General Meeting of Shareholders page (under construction).

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