DIP : Financial Results for the Fiscal Year Ended February 28, 2023 (Japanese GAAP, Consolidated)（366KB）

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Financial Results for the Fiscal Year Ended February 28, 2023

(Japanese GAAP, Consolidated)

April 14,

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 general shareholders meeting:

May 24, 2023

Dividend payment date:

May 25, 2023

Scheduled date of filing financial statements:

May 25, 2023

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 FY'23/2 (the Period of March 1, 2022 to February 28, 2023)

(1) Consolidated business performance

(Percentage figures indicate year­on­year change)

Net Income

Sales

Operating Income

Ordinary Income

Attributable to

Owners of Parent

¥ million

%

¥ million

%

¥ million

%

¥ million

%

FY'23/2

49,355

24.9

11,538

106.0

11,599

118.0

7,935

127.5

FY'22/2

39,515

21.6

5,602

(23.4)

5,320

(18.2)

3,487

473.9

(Reference) Comprehensive income:	FY'23/2 ¥ 8,424 million (138.7%)	FY'22/2	¥3,529 million (493.3%)
	Net Income	Diluted Net Income	Return on Equity	Return on Assets	Operating Income to
	per Share	per Share	Sales Ratio
	¥	¥	%		%	%
FY'23/2	142.04	141.65	22.7		25.0	23.4
FY'22/2	62.77	62.61	11.1		13.6	14.2

(Reference) Equity in earnings of affiliates:FY'23/2 ¥380 millionFY'22/2 ¥(124) million

Note: Figures for FY'23/2 are 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. The percentage changes are calculated using the consolidated earnings for FY'22/2 before applying said accounting standards.

(2) Consolidated financial position

	Total Assets	Net Assets	Shareholders' Equity Ratio	Net Assets per Share
	¥ million	¥ million	%	¥
As of February 28, 2023	50,167	38,242	75.0	673.93
As of February 28, 2022	42,454	32,989	76.4	581.26

(Reference) Shareholders' equity: February 28, 2023 ¥37,623 million February 28, 2022 ¥32,415 million

Note: Figures as of February 28, 2023, are 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.

(3) Consolidated cash flows

		Cash Flows from		Cash Flows from		Cash Flows from		Balance of Cash and Cash
	Operating Activities		Investing Activities		Financing Activities		Equivalent at End of Period
				¥ million			¥ million			¥ million			¥ million
FY'23/2				13,203			(4,121)			(3,680)			21,974
FY'22/2				10,482			(3,850)			(2,524)			16,589
2. Dividends
					Annual Dividends				Dividend	Ratio of
						Total Dividend		Dividends to
												Payout Ratio
		End of Q1			End of Q2	End of Q3	Year­end	Total	Payment		Net Assets
				(Consolidated)
					(Consolidated)
	¥			¥		¥	¥		¥	¥ million	%	%
FY'22/2		­		27.00	­	34.00	61.00	3,502	97.2	10.8
FY'23/2		­		34.00	­	38.00	72.00	4,137	50.7	11.5
FY'24/2 (forecast)		­		35.00	­	48.00	83.00		49.3

3. Consolidated Operating Results Forecast for FY'24/2 (the Period of March 1, 2023 to February 29, 2024)

(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	56,300		14.1	14,500	25.7	14,100	21.6	9,400		18.5	168.26

First-half forecasts have not been made.

• 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) 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

(3) Number of outstanding shares (Common stock)
1.	Number of shares issued at end of period	FY'23/2	60,140,000 shares	FY'22/2	60,140,000 shares
	(including treasury shares)
2.	Number of treasury shares at end of period	FY'23/2	4,313,065 shares	FY'22/2	4,371,937 shares
3. Average number of shares outstanding	FY'23/2	55,866,330 shares	FY'22/2	55,554,875 shares
	during the period

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; 1,477,075 shares at the end of FY'23/2) 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).

(Reference) Overview of non-consolidated operating results
Non-consolidated Operating Results for FY'23/2 (from March 1, 2022 to February 28, 2023)
(1) Non-consolidated business performance				(Percentage figures indicate year-on-year change)
	Sales			Operating Income	Ordinary Income	Net income
	¥ million		%		¥ million		%	¥ million		%	¥ million		%
FY'23/2	49,355		24.9		11,606		104.7	10,552		93.8	7,272		101.4
FY'22/2	39,515		21.6		5,671		(23.0)	5,446		(24.7)	3,610		482.1
	Net Income			Diluted Net Income
	per Share			per Share
			¥				¥
FY'23/2			130.18				129.82
FY'22/2			64.99				64.83

Note: Figures for FY'23/2 are 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. The percentage changes are calculated using the non-consolidated earnings for FY'22/2 before applying said accounting standards.

(2) Non-consolidated financial position

	Total Assets		Net Assets	Shareholders' Equity Ratio	Net Assets per Share
		¥ million		¥ million	%	¥
As of February 28, 2023		50,007		38,085	75.0	671.43
As of February 28, 2022		42,959		33,496	76.7	590.64
(Reference) Shareholders' equity:	FY'23/2	¥37,483 million	FY'22/2 ¥32,939 million

Note: Figures as of February 28, 2023, are 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.

• Financial result reports are not subject to 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 "1. Summary of Operating Results, etc., (5) Outlook" on page 5.

(Delivery of supplementary documents on the financial results)

Supplementary documents for the financial results are scheduled to be posted on the Company's website on Friday, April 14, 2023.

○Table of Contents
1. Summary of Operating Results, etc. .................................................................................................................................................... 2
(1)	Operating Results	2
(2)	Financial Position	3
(3)	Cash Flows	4
(4)	Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Upcoming Fiscal Year	4
(5)	Outlook	5
2. Situation of the Corporate Group	6
3. Basic Approach towards Selection of Accounting Standards	7
4. Consolidated Financial Statements and Notes	8
(1)	Consolidated Balance Sheet	8
(2)	Consolidated Statements of Income and Comprehensive Income	10
	Consolidated Statement of Income	10
	Consolidated Statement of Comprehensive Income	11
(3)	Consolidated Statement of Changes in Equity	12
(4)	Consolidated Statement of Cash Flows	14
(5)	Notes to Consolidated Financial Statements	15
(Notes on Going Concern Assumption)	15
(Bases of Presenting Consolidated Financial Statements)	15
(Changes in Accounting Policies)	18
(Additional Information)	19
(Consolidated Balance Sheet)	22
(Consolidated Statement of Income)	23
(Consolidated Statement of Comprehensive Income)	24
(Consolidated Statement of Changes in Equity)	25
(Consolidated Statement of Cash Flows)	28
(Segment Information, etc.)	29
(Revenue Recognition)	33
(Per share Information)	34
(Significant Subsequent Events)	34

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1. Summary of Operating Results, etc.

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. 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 "4. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements, (Changes in Accounting Policies)".

(1) Operating Results

Since its establishment in 1997, dip Corporation (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, through the provision of personnel recruiting services and DX (digital transformation) services and by working to solve various problems in the labor market.

Thanks to the steady expansion of the personnel recruiting services business that outpaced the market recovery and the high year- on-year growth of the DX business, sales for FY'23/2 ended at ¥49,355 million (up 24.9% year on year).

The Company also made investments in human resources, such as hiring new graduates in 2022 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 came to ¥11,538 million (up 106.0% year on year), ¥11,599 million (up 118.0% year on year), and ¥7,935 million (up 127.5% year on year), respectively.

The following is a summary of results by segment.

1. 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 FY'23/2, sales of the personnel recruiting services business grew beyond pre-pandemic levels in the part-time and temporary job information media market which had not recovered to pre-pandemic levels. As a result, segment sales and segment profit for FY'23/2 ended at ¥44,577 million (up 21.5% year on year) and ¥14,849 million (up 56.1% year on year), respectively.

(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 FY'23/2, a reinforcement of the sales promotion system 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 ¥4,778 million (up 68.9% year on year) and ¥2,132 million (up 187.3% year on year), respectively.

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

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