FUNAI SOKEN HOLDINGS INCORPORATED Funai Soken Holdings
Integrated Report 2022
(Covering January ‒ December 2021)
FUNAI SOKEN Consulting Group
Funai Soken Holdings Inc.
Funai Consulting Inc.
Funai Soken Digital Inc.
Funai Consulting Shanghai Inc.
Funai Soken Logistics Inc.
Funai Soken IT Solutions Inc.
Proseed Corporation
HR Force Inc.
Funai Soken Consulting Group Mission and Vision
We help to build a better future for people, Our businesses, and society.
Mission
We at the Funai Soken Consulting Group will offer solutions for a better future to all the people and businesses we are involved with-and to society as a whole -and will do our best to turn those ideas into reality.
Contents
Funai Soken Holdings: The Basics
1. | Our Mission, Editorial Policy |
3. | Our Journey So Far |
5. | Real Strengths Forged in Experience |
7. | Financial & Non-Financial Highlights |
9. | The Value Creation Process |
ESG
- Dedicated to ESG in Management
- Environment
- Social
- Information Security
Our
Vision for the Future
Trusted and respected by society for bringing joy to people and businesses through our work.
We are determined to work together as a corporate group to bring joy to the people and businesses we are involved with. By earning the trust and respect of the people and businesses we seek to please, we can also earn the trust and respect of society as a whole.
Growth Strategies
11. President's Message
17. Mid-Range Business Plan
Value Creation Drivers
19. | Our Business Segments at a Glance |
21. | Consulting |
Governance
47. Corporate Governance
- Corporate Governance Structure
- Director Dialogue
- Business Risks
Corporate Data
59. Financial Review
The Funai Way: Our Core Values
Adventureship | Empathy | Integrity |
Converting change into | A reliable partner | A force for good |
momentum | for business owners | |
■ Our work is not work unless | ■ Our focus on outcomes is | ■ Our work is a vehicle for the |
it's fun. | unwavering. | betterment of society. |
■ We relish the challenges of | ■ We share the mindset of the | ■ We design environments where |
our ongoing quest for growth. | entrepreneurs we serve. | everyone can be themselves. |
■ We are leaders of change. | ■ We dream farther and act | ■ We are good corporate citizens, |
quicker. | and we behave like it. |
33. | Logistics |
34. | Other Businesses |
Link Buttons Used in This Report
Link to relevant
External link section in this report
- Consolidated Financial KPIs 2011-2021
- Consolidated Financial Statements
- The Funai Soken Consulting Group Network
- Corporate Overview & Stock Information
Editorial Policy
This report is designed to provide stakeholders a comprehensive understanding of the Funai Soken Consulting Group's efforts to achieve sustained growth and mid-to-long- term improvements in corporate value. Thus, in addition to financial data, the report contains non-financial information about aspects such as the group's strengths, and the philosophy, business model, sustainability, growth potential, growth strategies, and governance regime that contribute to its earning potential.
This year's report includes information on ESG initiatives, sustainability targets (particularly those relating to climate- related financial disclosures), and outside directors' views on how to boost the effectiveness of the Board of Directors as part of the group's effort to generate sustained growth in
corporate value. In this way, we seek to provide shareholders, investors, and other stakeholders a deeper understanding of our commitment in these areas.
Reference to Guidelines
This report is edited and configured with reference to relevant Japanese and international guidelines.
Scope
This report pertains to FY2021 (January 1 through December 31, 2021), with additional comment regarding other adjacent times as necessary.
All data shown herein pertain to the group's consolidated accounts for the aforementioned period unless otherwise stated.
Disclaimer
This report is published solely for the purpose of providing information relating to the Funai Soken Consulting Group's performance in FY2021 and its strategies for the future. Its purpose is not to induce investment in securities issued by Funai Soken Holdings, and no contents hereof shall constitute a warranty or promise.
Opinions and outlooks contained in this report represent the views of Funai Soken Holdings and the Funai Soken Consulting Group at the time of writing, and we make no guarantee or promise regarding the accuracy or completeness of such contents, and the contents of this report may be changed at any time without notice.
A Comprehensive Communication Structure
Financial Information | Non-Financial Information | |||||||
General information about our activities: corporate website | ||||||||
Online | https://hd.funaisoken.co.jp/en/ | |||||||
IR information for | ESG management and | |||||||
shareholders and investors | sustainability information | |||||||
https://hd.funaisoken.co.jp/en/ir/ | https://hd.funaisoken.co.jp/en/sustainability/index.html | |||||||
Integrated Report 2022 | ||||||||
(for shareholders, investors, client companies, employees, | ||||||||
students, families, business partners, local communities, etc.) | ||||||||
Documents | ||||||||
Shareholders meeting convocation notices (for shareholders, etc.) Securities Report (for investors, etc.)
Summary of Financial Results(for investors, etc.)
Operation Reports (for shareholders, etc.)
1 | 2 |
(Million30,000yen) | Our Journey So Far | ||||||||||||||||||||||||||||||||||||||||||||||||||||
28,000 | Company Timeline and Financial Performance | 50th | 1,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||
anniversary | |||||||||||||||||||||||||||||||||||||||||||||||||||||
26,000 | 1,300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
24,000 | 1,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
22,000 | 1,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
20,000 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
18,000 | 900 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Move to | |||||||||||||||||||||||||||||||||||||||||||||||||||||
16,000 | holding | 800 | |||||||||||||||||||||||||||||||||||||||||||||||||||
company | |||||||||||||||||||||||||||||||||||||||||||||||||||||
structure | |||||||||||||||||||||||||||||||||||||||||||||||||||||
14,000 | 700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
12,000 | Global Financial Crisis | 600 | |||||||||||||||||||||||||||||||||||||||||||||||||||
10,000 | Mid-Range | Mid-Range | Mid-Range | ||||||||||||||||||||||||||||||||||||||||||||||||||
Business Plan | Business Plan | Business Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||
8,000 | （2014-2016） | （2017-2019） | （2020-2022） | ||||||||||||||||||||||||||||||||||||||||||||||||||
6,000 | Listed on | 300 | |||||||||||||||||||||||||||||||||||||||||||||||||||
stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
market | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4,000 | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2,000 | Founded | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||
0 | '70 | '71 | '72 | '73 | '74 | '75 | '76 | '77 | '78 | '79 | '80 | '81 | '82 | '83 | '84 | '85 | '86 | '87 | '88 | '89 | '90 | '91 | '92 | '93 | '94 | '95 | '96 | '97 | '98 | '99 | '00 | '01 | '02 | '03 | '04 | '05 | '06 | '07 | '08 | '09 | '10 | '11 | '12 | '13 | '14 | '15 | '16 | '17 | '18 | '19 | '20 | '21 | 0 |
Drivers Creation Value Strategies Growth Basics The Holdings: Soken Funai
1970ｓ
Inauguration
March 6, 1970
Yukio Funai starts the Japan Marketing Center(now renamed Funai Soken Holdings).
1980ｓ
Listing
1981
Preparing for stock listing.
March 1985
1990ｓ
Focus on the service industry
March 1990
Tadashi Moto'ori is appointed the 2nd president, coinciding with a shift from predominantly the distribution industry
2000ｓ
Expanded operations
February 2000
Funai Information Systems established (renamed Funai Soken IT Solutions in July 2014).
Net sales Operating income Employees at end of year
2010ｓ
Move to a corporate group structure
February 2010 | February 2015 |
Inaugural annual Great Company Awards | Proseed becomes a wholly owned |
held. | subsidiary. |
ESG
September 1970
Members-only Cosmo Club established.
1972
Yukio Funai's Henshin Shoho
(Commerce in Change) becomes a bestseller.
3
Name changed to Funai Consulting.
September 1988
Listed as a Specially Designated Stock on the 2nd Section of the Osaka Stock Exchange.
to the service industry.
June 1993
Stock reclassified on OSE 2nd section.
March 2000
The 3rd President Masahiko Koyama launches the "change of gears" to achieve financial and workforce growth.
December 2004
Stock listed on the Tokyo Stock Exchange 2nd section.
December 2005
Stock reclassified on the TSE and OSE 1st section.
March 2010
Sakae Takashima is named the company's 4th president, implementing group policy of self-control, autonomy, and teamwork.
January 2012
Funai Consulting Shanghai established.
January 2014
Funai Soken Logistics becomes a wholly owned subsidiary.
July 2014
Transition to holding company structure. Funai Consulting renamed Funai Soken Holdings; consulting arm spun off as the new Funai Consulting; sales support arm spun off as Funai Soken Corporate Relations.
February 2018
HR Force established.
June 2018
Shinwa Computer Service becomes a wholly owned subsidiary.
March 6, 2020
50th anniversary of the group's founding.
March 2021
Takayuki Nakatani is appointed president, and a new set of core values, the Funai Way, is established for the group's management.
April 2022
Tokyo Stock Exchange reorganizes market segments; Funai Soken Holdings shares now listed on the Prime market
July 2022
Funai Soken Corporate Relations and Shinwa Computer Service merge to create a new company: Funai Soken Digital Inc.
Governance
Data Corporate
4
Real Strengths Forged in Experience
Throughout the Funai Soken Consulting Group's steady growth over the past half century, we have amassed a wealth of strengths, and these have enabled us to thrive in good times and bad through prudent application of sensible strategies. We will continue to add to those strengths as a vehicle for creating new group value.
Japan's Leading Consultant for Mid-scale | |||
1 | Companies and SMEs | ||
As Japan's foremost specialists in management solutions for mid-scale businesses and SMEs, we | |||
have developed a unique capacity for offering proprietors across-the-board support from early | |||
strategy planning to final implementation and embedding. | |||
Net sales | Operating income | ||
28,813 mil. yen | 6,349 mil. yen | ||
A long-standing, | Management | Business models | |
created for clients | |||
trusted brand | workshops | ||
by Funai Consulting | |||
52 | 178 | ||
228 | |||
years so far |
Group companies
8
（as of Jul. 1, 2022）
Wide-Ranging Client Base | |
2 | Our pool of management workshop clients is one of the largest among all consulting firms in Japan. |
In recent years, we have begun holding workshops in Shanghai, where they are regarded as being | |
unlike those found anywhere else in the world. |
A Diverse Workforce | |||
3 | A diverse workforce of talented people is vital for sustaining the group's development. We are | ||
committed to enhancing our talent management capabilities and maintaining an environment that | |||
enables our people-the true drivers of our growth-to make the most of their strengths. | |||
Group employees | Group consultants | ||
1,317 | 873 | ||
Childcare leave | Digital | Non-Japanese | ||
uptake | transformation staff | employees | ||
51％ | (Men: 17.24%; | *Counted in accordance | 5.8％ of group workforce | |
with Funai Soken Holdings | ||||
women: 100%; | definition of "digital | |||
overall: 51%) | 183transformation staff." | |||
Female employees | Women in management | |||
37.4% of group workforce | 23.5％ of group management positions |
A Solid Financial Foundation | |
4 | Our high ROE and equity ratio provide a solid financial foundation to underpin our ongoing quest for |
sustained improvements in corporate value through growth investments, as well as shareholder value | |
through steady shareholder returns. | |
ESG Drivers Creation Value Strategies Growth Basics The Holdings: Soken Funai
Governance
Management workshop members
(incl. those from 302 Funai Soken Logistics, 166 Funai Consulting Shanghai)
7,018
Seminars
(in person & online)
1,377
Client companies
(excl. seminar participants)
10,000＋
Return-to-shareholders ratio | Dividends up |
60.1％ | years in |
a row | |
11 |
Data Corporate
Client companies of our consulting business
5,461
(in Japan)
Funai Consulting contract renewal rate
75.2％
ROE | Operating margin | Equity ratio |
18.2％ 22.0％ 80.7％
5 | 6 |
Financial Highlights
Non-Financial Highlights
Net Sales, Operating Income, Net Income
(Million yen) | Net sales | Operating income | Net income | |||||
30,000 | 28,813 | |||||||
25,752 | 25,027 | |||||||
25,000 | ||||||||
21,697 | ||||||||
20,000 | 18,685 | |||||||
15,000 | ||||||||
10,000 | ||||||||
4,946 | 5,705 | 4,982 | 6,349 | |||||
4,631 | ||||||||
5,000 | ||||||||
3,206 | 3,549 | 3,868 | 3,498 | 4,373 | ||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 | |||
Total Dividends & Share Buy-back
(Million yen) Total dividends Shares bought back from market 4,000
3,500 | 3,503 | ||||
3,000 | 2,771 | 2,972 | |||
2,630 | |||||
1,500 | |||||
739 | |||||
2,500 | 260 | ||||
999 | |||||
2,000 | |||||
1,500 | 1,520 | ||||
1,000 | 2,003 | 2,233 | 2,370 | ||
1,771 | |||||
1,520 | |||||
500 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
Total Assets, Net Assets, Equity Ratio
(Million yen) | Total assets | Net assets | Equity ratio | （％） | ||
50,000 | 90 | |||||
45,000 | 83.3 | 82.2 | 82.4 | 85 | ||
80.7 | ||||||
79.4 | ||||||
40,000 | 80 | |||||
35,000 | 75 | |||||
30,884 | ||||||
30,000 | 26,732 | 28,419 | 27,951 | 70 | ||
25,650 | ||||||
25,000 | 65 | |||||
20,000 | 25,687 | 60 | ||||
21,624 | 22,370 | 23,165 | 23,688 | |||
15,000 | 55 | |||||
10,000 | 2017 | 2018 | 2019 | 2020 | 2021 | 50 |
Operating Cash Flow
(Million yen) | |||||
6,000 | |||||
5,214 | |||||
5,000 | 4,522 | ||||
4,000 | 3,950 | ||||
3,554 | 3,515 | ||||
3,000 | |||||
2,000 | |||||
1,000 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
Employee & Consultant Numbers for the Entire Funai Soken Consulting Group | Funai | |||||||||||||||||||||||||
Consultants | Non-consultant employees | Soken | ||||||||||||||||||||||||
1,400 | 1,303 | 1,317 | ||||||||||||||||||||||||
1,105 | 1,209 | Holdings: | ||||||||||||||||||||||||
1,200 | 941 | |||||||||||||||||||||||||
1,000 | 873 | |||||||||||||||||||||||||
783 | 859 | 873 | ||||||||||||||||||||||||
800 | 646 | 739 | 813 | The | ||||||||||||||||||||||
600 | 500 | 565 | Basics | |||||||||||||||||||||||
400 | ||||||||||||||||||||||||||
396 | 444 | 444 | ||||||||||||||||||||||||
200 | 283 | 308 | 295 | 366 | Growth | |||||||||||||||||||||
0 | ||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
Our people are our most valuable asset and our biggest investment. Our goal is to reach a workforce of 1,500 people across the Funai Soken | ||||||||||||||||||||||||||
Strategies | ||||||||||||||||||||||||||
Consulting Group in 2022. | ||||||||||||||||||||||||||
Consultant Hiring: Recent Graduates & Mid-Career Hires
Recent graduates | Mid-career | Recent grad. %age of total consultant hires | （%） | ||||||||
250 | 84 | 76 | 80 | 86 | 82 | 100 | Value | ||||
200 | 70 | 71 | 80 | ||||||||
Creation | |||||||||||
150 | 114 | 91 | 60 | ||||||||
100 | 123 | 152 | 168 | 144 | 40 | ||||||
50 | 68 | 20 | Drivers | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||
29 | 21 | 29 | 51 | 38 | 27 | 30 | |||||
0 | 0 | ||||||||||
We are recruiting aggressively, and are known for hiring large numbers of recent graduates. |
Women in | Non-Japanese | ESG | |
Women in Our Workforce | |||
Management Positions | Employees |
（%） | (Groupwide) | （%） | (Groupwide) | (Groupwide) | ||||||||||
37.4 | 23.5 | |||||||||||||
38 | 25 | 20.4 | 90 | 83 | 77 | |||||||||
36.3 | 80 | |||||||||||||
20 | ||||||||||||||
35.8 | 16.2 | 70 | ||||||||||||
36 | 15 | 60 | 51 | |||||||||||
34.4 | 50 | |||||||||||||
Governance | ||||||||||||||
33.5 | 10 | 40 | ||||||||||||
34 | 30 | |||||||||||||
5 | 20 | |||||||||||||
10 | ||||||||||||||
32 | ||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 0 | 2019 | 2020 | 2021 | 0 | 2019 | 2020 | 2021 | ||
Return-to-Shareholders Ratio & Dividend Payout Ratio
（％） | Return-to-shareholders ratio | ||||
100 | Dividend payout ratio | ||||
90.6 | |||||
90 | 85.0 | ||||
80 | 78.1 | ||||
70 | 60.1 | ||||
60 | |||||
47.3 | 64.0 | ||||
50 | 52.2 | 54.2 | |||
50.0 | |||||
47.3 | |||||
40 | |||||
30 | |||||
20 | |||||
10 | |||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 |
Dividend Per Share* | Dividend on Equity |
(Yen) | （％） | 9.9 | |||||||||
50 | Interim | Year end | 48.0 | 10.0 | 9.8 | ||||||
45.0 | 9.5 | ||||||||||
9.0 | |||||||||||
40.0 | |||||||||||
40 | 9.0 | ||||||||||
35.0 | 27.0 | 8.5 | 8.2 | ||||||||
30.0 | 25.0 | ||||||||||
30 | 8.0 | ||||||||||
23.0 | 7.5 | ||||||||||
20.0 | 7.5 | ||||||||||
20 | 20.0 | 7.0 | |||||||||
6.5 | |||||||||||
10 | 15.0 | 17.0 | 20.0 | 21.0 | 6.0 | ||||||
10.0 | 5.5 | ||||||||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 | 5.0 | 2017 | 2018 | 2019 | 2020 | 2021 |
*The percentage of the Funai Soken Consulting Group workforce made up of women, and the | At Funai Consulting Shanghai and | ||||||||||||||||||||||||||||||||||||
percentage of group management positions held by women are increasing, but we need to do more. | throughout the whole group, our workforce | ||||||||||||||||||||||||||||||||||||
To that end, we provide management training for women and offer a broad range of working styles. | is becoming increasingly international. | ||||||||||||||||||||||||||||||||||||
*The base date for calculating women in management positions has been changed from | |||||||||||||||||||||||||||||||||||||
January 1 to December 31. Figures published last year (which showed 16% for 2019 and 22% | Corporate | ||||||||||||||||||||||||||||||||||||
for 2020) have been revised to reflect the change. | |||||||||||||||||||||||||||||||||||||
Management Workshop Members | Seminars & Participants | ||||||||||||||||||||||||||||||||||||
(incl. in-person, online (free and paid) seminars) | Data | ||||||||||||||||||||||||||||||||||||
Seminars held | Participants | ||||||||||||||||||||||||||||||||||||
(Seminars) | 29,280 | (Participants) | |||||||||||||||||||||||||||||||||||
8,000 | 7,459 | 7,379 | 7,177 | 7,018 | 1,500 | 25,931 | 26,197 | 30,000 | |||||||||||||||||||||||||||||
6,682 | 22,868 | 22,817 | 21,526 | ||||||||||||||||||||||||||||||||||
7,000 | 6,115 | 1,200 | 21,747 | 24,000 | |||||||||||||||||||||||||||||||||
6,000 | |||||||||||||||||||||||||||||||||||||
5,181 | |||||||||||||||||||||||||||||||||||||
5,000 | 900 | 18,000 | |||||||||||||||||||||||||||||||||||
4,000 | 600 | 1,398 | 1,377 | 12,000 | |||||||||||||||||||||||||||||||||
3,000 | |||||||||||||||||||||||||||||||||||||
866 | 775 | 804 | 900 | ||||||||||||||||||||||||||||||||||
2,000 | 300 | 593 | 6,000 | ||||||||||||||||||||||||||||||||||
1,000 | |||||||||||||||||||||||||||||||||||||
0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||
Management workshops are one of our group' s foremost platforms, | Seminars help proprietors and executives find solutions to business |
*Common shares in Funai Soken Holdings were split at a ratio of 1.5-for-1 on January 1, 2018. For the purposes hereof, annual dividend per share is calculated as if the stock split had been conducted at the beginning of FY2017.
bringing together business proprietors to study challenges facing | management problems. They are the ideal point of first contact where |
specific industries, business types, and solution categories. | we can meet prospective clients. |
7 | 8 |
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Funai Soken Holdings Co. Ltd. published this content on 13 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 16:44:03 UTC.
