DIP : Financial Results for FY2023 Q3 Ending February 28, 2022 (Japanese GAAP, Consolidated)（126KB）

Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2023

(Japanese GAAP, Consolidated)

January 12, 2023

Name of company:

dip Corporation

Stock exchange listing: Tokyo Stock Exchange

Stock code:

2379

URL:

https://www.dip­net.co.jp/en/

Representative:

Hideki Tomita, Representative Director, President and CEO

Contact:

Haruhiko Arai, Corporate Officer, CFO, Head of Corporate Management Group

Phone: +81­3­5114­1177

Scheduled date of filing financial statements:

January 13, 2023

Dividend payment date:

－

Supplementary documents to the financial results:

Available

Financial results briefing:

Scheduled (for institutional investors and analysts)

(All figures are rounded down to the nearest million yen)

1. Consolidated Operating Results for the First Nine Months of FY'23/2 (the Period of March 1, 2022 to November 30, 2022)

(1) Consolidated business performance

(Percentage figures indicate year­on­year change)

Net Income

Sales

Operating Income

Ordinary Income

Attributable to

Owners of Parent

First nine months

¥ million

%

¥ million

%

¥ million

%

¥ million

%

36,718

30.8

9,491

146.1

9,281

153.6

6,253

134.4

of FY'23/2

First nine months

28,063

14.4

3,857

(35.0)

3,659

(29.7)

2,667

－

of FY'22/2

(Reference) Comprehensive income: First nine months of FY'23/2 ¥6,758 million (150.1%)

First nine months of FY'22/2

¥2,702 million (­%)

Net Income

Diluted Net Income

per Share

per Share

First nine months

¥

¥

112.00

111.70

of FY'23/2

First nine months

48.09

47.97

of FY'22/2

Note: Figures for the first nine months of FY'23/2 represent figures that have been applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and others, which were adopted at the beginning of FY'23/2 Q1. The percentage changes are calculated using the consolidated earnings for the first nine months of FY'22/2 before applying said accounting standards.

(2) Consolidated financial position

	Total Assets	Net Assets			Shareholders' Equity Ratio
As of November	¥ million		¥ million		%
47,353		36,552		75.9
30, 2022
As of February 28,	42,454		32,989		76.4
2022
(Reference) Shareholders' equity: November 30, 2022	¥35,950 million	February 28, 2022	¥32,415 million

Note: Figures as of November 30, 2022, represent figures that have been applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and others, which were adopted at the beginning of FY'23/2 Q1.

2. Dividends

				Annual Dividends
	End of Q1		End of Q2	End of Q3	Year­end	Total
	¥		¥	¥	¥	¥
FY'22/2		－	27.00	－	34.00	61.00
FY'23/2		－	34.00	－
FY'23/2 (forecast)				－	34.00	68.00
			～43.00	～77.00

Note: Revisions to the latest dividend forecast: None

3. Consolidated Operating Results Forecast for FY'23/2 (from March 1, 2022 to February 28, 2023)

(Percentage figures indicate year-on-year change)

								Net Income	Net Income
	Sales		Operating Income	Ordinary Income	Attributable to
		per Share
								Owners of Parent
	¥ million		%	¥ million	%	¥ million	%	¥ million	%	¥
Full-year	49,400		25.0	10,400	85.6	10,100	89.8	6,800	95.0	121.89
～51,500		～30.3	～12,600	～124.9	～12,300	～131.2	～8,400	～140.9	～150.57

Notes: Revisions to the latest operating results forecast: None

The consolidated operating results forecast above represents figures that have been applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and others, which were adopted at the beginning of FY'23/2 Q1. The percentage changes were calculated using the consolidated earnings for the same fiscal period of the previous year before applying said accounting standards.

• Notes

1. Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes in scope of consolidation): None
   Newly included: None
   Excluded: None
2. Adoption of special accounting methods for the preparation of quarterly financial statements: None
3. Changes in accounting policies, changes in accounting estimates and restatements during the period under review

1.	Changes in accounting policies resulting from revisions to accounting standards:	Yes
2.	Changes in accounting policies other than those in 1 above:	None
3.	Changes in accounting estimates:	None
4.	Restatements:	None

1. Number of outstanding shares (Common stock)
2. 1. Number of shares issued at the end of period (including treasury shares)
   2. Number of treasury shares at the end of period
   3. Average number of shares outstanding during period

FY'23/2 Q3	60,140,000 shares	FY'22/2	60,140,000 shares
FY'23/2 Q3	4,180,186 shares	FY'22/2	4,371,937 shares
FY'23/2 Q3	55,837,030 shares	FY'22/2 Q3	55,480,392 shares

Treasury shares include the number of Company shares owned by the ESOP trust account (1,562,485 shares at the end of FY'22/2; 1,483,240 shares at the end of FY'23/2 Q3) and the number of Company shares owned by BIP trust account (100,706 shares at the end of FY'22/2; 91,462 shares at the end of FY'23/2 Q3).

• The summary report on quarterly financial results are not subject to quarterly audits by a certified public accountant or an audit firm.
• Explanation on the appropriate use of operating results forecasts and other notes

(Notes on forward-looking statements)

The forward-looking statements contained herein are based on the information currently available to the Company's management and certain assumptions the Company deems reasonable at the time of preparing Financial Results. Actual results may differ significantly from the forecasts due to a variety of factors. For assumptions regarding operating results forecasts and notes on the use of the forecasts, see the section "(3) Operating Results Forecast" under "1. Qualitative Information" on page 3.

(Delivery of supplementary documents on the financial results)

Supplementary documents on the financial results are scheduled to be posted on the Company's website on Thursday, January 12, 2023.

○Table of Contents
1. Qualitative Information	2
(1)	Operating Results	2
(2)	Financial Position	3
(3)	Operating Results Forecast	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Consolidated Balance Sheet	4
(2)	Consolidated Statements of Income and Comprehensive Income	5
	Consolidated Statement of Income	5
	Consolidated Statement of Comprehensive Income	6
(3)	Consolidated Statement of Cash Flows	7
(4)	Notes to Consolidated Financial Statements	8
(Notes to Going Concern Assumption)	8
(Changes in Accounting Policies)	8
(Additional Information)	9
(Notes to Material Changes in Shareholders' Equity)	12
(Segment Information, etc.)	13
(Significant Subsequent Events)	14

―1－

1. Qualitative Information

The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and others since the beginning of FY'23/2 Q1. The year-on-year comparisons and comparison with the end of FY'22/2 in "(1) Operating Results" and "(2) Financial Position" are based on the consolidated earnings for FY'22/2 before applying said Accounting Standard and others. For further details, see "2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Consolidated Financial Statements, (Changes in Accounting Policies)."

(1) Operating Results

Since its establishment in 1997, dip Corporation (hereinafter, the "Company") has assisted its client companies with the recruiting and deployment of human resources by providing online job information sites, as well as creating an environment where each job seeker can work with enthusiasm and energy, based on its corporate philosophy of 'Here at dip, we want to tap into dreams, ideas and passion to create a better society.'

Since FY'20/2, under the corporate vision of becoming a 'Labor force solution company,' the Company has been aiming to realize a society in which everyone can experience the joy and happiness of work by providing human resource services and DX services and working to solve various problems in the labor market.

Sales for the first nine months of FY'23/2 ended at ¥36,718 million (up 30.8% year on year), thanks to the steady growth of the personnel recruiting services business, which outpaced the market's recovery, and the high year-on-year growth of the DX business .

With regard to costs, the Company continued from the first quarter to make investments in human resources, such as hiring 2022 new graduates to further strengthen the sales force, as well as aggressive advertising investments, among others.

As a result, operating income, ordinary income, and net income attributable to owners of parent for the first nine months of FY'23/2 came to ¥9,491 million (up146.1% year on year), ¥9,281 million (up 153.6% year on year), and ¥6,253 million (up 134.4% year on year), respectively.

The following is an overview of results by segment.

(i) Personnel Recruiting Services Business

The personnel recruiting services business operates job advertising platforms, including Baitoru, a job information site for part-time workers, Baitoru NEXT, a job information site for regular employees and contract employees, Hatarako.net, a comprehensive job information site, and Baitoru PRO, a comprehensive job information site for specialized jobs. The Company aims to expand the user and customer bases for these platforms by leveraging its strengths in sales, service development, and promotion.

During the first nine months of FY'23/2, sales of the personnel recruiting services business grew beyond pre-pandemic levels, while the part-time and temporary job information media market has not recovered to such levels. As a result, segment sales and segment profit ended at ¥33,228 million (up 26.9% year on year) and ¥11,873 million (up 70.9% year on year), respectively.

In particular, Baitoru PRO saw steady growth, recording sales of ¥3,129 million (up 113.7% year on year). The Company will continue to make efforts to increase sales in the specialized job sector by focusing on sales activities and promotion.

(ii) DX Business

Since September 2019, the DX business has been supporting the digital transformation (DX) of SMEs through the offering of the KOBOT series, a SaaS DX product series that offers reasonable and extensive customer service and is easy to introduce due to its specific design for small and medium sized companies.

During the first nine months of FY'23/2, a reinforcement of the sales promotion system, among others, led to an increase in sales of the Interview scheduling KOBOT, which automatically schedules interviews with job applicants, and Temp Agency KOBOT, which supports dispatch companies' sales activities with automated sales list creation services, as well as recurring products* including the Corporate Recruiting Page KOBOT, which creates client recruiting pages featuring Baitoru's unique functions, such as workplace introduction videos.

As a result, segment sales and segment profit ended at ¥3,489 million (up 86.1% year on year) and ¥1,586 million (up 311.0% year on year), respectively.

The Company will continue to make efforts to enhance the quality of its products and improve its marketing efficiency by selling DX products in packaged deals. It will also promote upsell strategies by reducing cancellation rates through enhanced customer support.

* Recurring products: Products with automatic renewal or long-term contracts

―2－

(2) Financial Position

(ⅰ) Analysis of Financial Position

Total assets recorded at the end of FY'23/2 Q3 were ¥47,353 million, an increase of ¥4,899 million from the end of the previous fiscal year. The major factors were increases of ¥2,372 million in cash and deposits, ¥1,035 million in notes and accounts receivable - trade, ¥574 million in intangible assets, and ¥1,037 million in investment securities.

Total liabilities stood at ¥10,801 million, an increase of ¥1,336 million from the end of the previous fiscal year. This mainly reflected an increase of ¥1,350 million in other current liabilities.

Net assets recorded at the end of FY'23/2 Q3 were ¥36,552 million, an increase of ¥3,563 million from the end of the previous fiscal year. The major factors were increases of ¥484 million in capital surplus, ¥2,416 million in retained earnings, and ¥506 million in valuation difference on available-for-sale securities.

(ⅱ) Status of Cash Flows

Cash and cash equivalents (hereinafter referred to as "cash") stood at ¥18,942 million in the first nine months of FY'23/2. The breakdown of the cash flows is as follows:

(Cash flows from operating activities)

Net cash provided by operating activities was ¥9,114 million (an increase of ¥945 million year on year). This was mainly attributable to net income before income taxes of ¥9,143 million, depreciation of ¥2,055 million, share-based remuneration expenses of ¥676 million, and an increase in other liabilities of ¥1,271 million, which offset an increase in trade receivables amounting to ¥923 million and the payment of income taxes amounting to ¥3,056 million.

(Cash flows from investing activities)

Net cash used in investing activities totaled ¥3,059 million (an increase of ¥253 million year on year). This was mainly attributable to the purchase of intangible assets and the purchase of investment securities amounting to ¥2,614 million and ¥462 million, respectively.

(Cash flows from financing activities)

Net cash used in financing activities amounted to ¥3,681 million (an increase of ¥1,094 million year on year). This was mainly attributable to a dividend payment of ¥3,887 million.

(3) Operating Results Forecast

The Company's operating results forecast has not changed from the forecast announced on October 13, 2022.

―3－