DIP : Q&A Summary of Financial Results for FY'23/2 Q2（25KB）

Q&A Session on the Financial Results for the Second Quarter of the Fiscal Year Ending

February 28, 2023

This question-and-answer booklet is a compilation of the main questions received from those who attended the financial results briefing. Some of the content has been added or revised to facilitate understanding.

• Regarding the Personnel Recruiting Services Business

Q1. What conditions do you think are necessary for the part-time job market to recover to pre-pandemic levels? Can it recover if the number of inbound tourists returns to pre-pandemic levels? Or are other conditions necessary?

A1. Inbound tourists are a factor, but I think that the classification of COVID-19 under the Infectious Disease Law should be lowered, and that people will have to be able to act or live without constraint, such as being able to go to events as before. I have the impression that progress is gradually being made toward the latter.

Q2. dip's share of the part-time and temporary job market has increased to 23.7%, closing the gap with

competitor media. What were the factors for the market share growth?

A2. Our ability to attract many applicants through various promotions has led to the rise in our market share. Offering services that our competitors do not offer, such as using a DX tool (Interview Scheduling KOBOT) for interviews and hiring, was also factor.

Q3. As restaurants become busy going forward, they may find it difficult to hire staff. Will this be positive for dip since this will result in a rise in the price per job ad? Are there any risks?

A3. It will be a plus for us. Since the restaurant industry is one of Baitoru's particular strengths, we believe we can make effective proposals to client companies. We also hope to offer support through both job ads and DX products, such as by contributing to solving the labor shortage through the provision of DX products.

Q4. Sales of Baitoru PRO seem to be strong. What is the CPA situation?

A4. Our current aim of promoting Baitoru PRO is to increase recognition rather than attracting applicants. Therefore, we consider recognition to be an important KPI, not CPA.

• Regarding the DX Business

Q5. How do you view the growth of the business in the second half onward based on the strengthening of sales by job ad agencies and marketing of the Patronage KOBOT for LINE? Will we see a full-scale growth acceleration next year onward?

A5．We believe there are several factors for the pace of future growth of the DX business. The growth pace will depend on the strengthening of sales by agencies and progress in the marketing of the Patronage KOBOT for LINE. We currently expect growth to fall within the revised forecast range.

Q6. The net increase in the number of companies subject to monthly billing in the DX business seems to have fallen compared to the previous quarter. Is this because cross-selling to existing clients of the Personnel Recruiting Services business has run its course and the DX business is entering a phase in which it will improve ARPU by enhancing product functions and the product lineup?

A6. We believe we can grow both the number of companies subject to monthly billing and ARPU. We will aim to increase the number of companies by growing the number of clients through market share expansion of the Personnel Recruiting Services business, sales increase by job ad agencies, and marketing of the Patronage KOBOT for LINE, a DX product for sales promotion. In addition, we will continue to make efforts to improve ARPU by increasing cross- selling and enhancing our product lineup.