DIP : Financial Results for the 1st Quarter of the Fiscal Year Ending February 28, 2022 (Japanese GAAP, Consolidated)

Financial Results for the 1st Quarter of the Fiscal Year Ending February 28, 2022

(Japanese GAAP, Consolidated)

July 7,

2021

Name of company:

dip Corporation

Stock exchange listing:

Tokyo Stock Exchange

Stock code:

2379

URL:

https://www.dip-net.co.jp/en/

Representative:

Hideki Tomita, Representative Director, President and CEO

Contact:

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

Phone: [phone]

Scheduled date of filing financial statements:

July 8, 2021

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 1st Quarter of FY'22/2 (from March 1, 2021 to May 31, 2021)

(1) Consolidated business performance

(Percentage figures indicate year-on-year change)

Net Income

Sales

Operating Income

Ordinary Income

Attributable to

Owners of Parent

¥ million

%

¥ million

%

¥ million

%

¥ million

%

FY'22/2 Q1

9,226

-

1,856

-

1,784

-

1,204

-

FY'21/2 Q1

-

-

-

-

-

-

-

-

(Reference) Comprehensive income:

FY'22/2 Q1

¥1,220 million (-%)

FY'21/2 Q1

- million (-%)

Net Income

Diluted Net Income

per Share

per Share

¥

¥

FY'22/2 Q1

21.77

21.74

FY'21/2 Q1

-

-

Note: Figures for FY'21/2 Q1 and year-on-year changes are not shown since consolidated accounting has been adopted from FY'21/2 Q3.

(2) Consolidated financial position

	Total Assets	Net Assets	Shareholders' Equity Ratio
	¥ million	¥ million	%
FY'22/2 Q1	37,266	30,841	80.3
FY'21/2	35,869	31,178	84.4

(Reference) Shareholders' equity:	FY'22/2 Q1	¥29,940 million	FY'21/2	30,269 million
2. Dividends
					Annual Dividends
	End of Q1			End of Q2		End of Q3		Year-end	Total
	¥			¥		¥		¥	¥
FY'21/2		-		27.00		-		29.00
				56.00
FY'22/2		-
FY'22/2 (forecast)				27.00		-		34.00	61.00
					~52.00	~79.00

(Note) Revisions to the latest dividend forecast: None

3. Consolidated Operating Results Forecast for FY'22/2 (from March 1, 2021 to February 28, 2022)

(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	%	¥
1st Half	18,050		-	2,000	-	1,800	-	1,200	-	21.69
~20,000		~3,150	~2,950	~2,050	~37.05
Full-year	42,800		31.7	7,700	5.3	7,300	12.3	4,950	714.6	89.47
~49,000		~50.8	~11,800	~61.4	~11,400	~75.4	~7,800	~ -	~140.99

(Note) Revisions to the latest operating results forecast: None

Year-on-year changes for the forecast for the 1st half of FY'22/2 are not shown since consolidated accounting has been adopted from the third quarter of FY'21/2.

• 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:	None
2.	Changes in accounting policies other than those in 1 above:		None
3.	Changes in accounting estimates:			None
4.	Restatements:			None
(4) Number of outstanding shares (Common stock)
1.	Number of shares issued at end of period	FY'22/2 Q1	60,140,000 shares	FY'21/2	60,140,000 shares
	(including treasury shares)
2.	Number of treasury shares at end of period	FY'22/2 Q1	4,786,617 shares	FY'21/2	4,815,802 shares
3. Average number of shares outstanding	FY'22/2 Q1	55,330,423 shares	FY'21/2 Q1	54,282,885 shares
	during the period	first three months	first three months

Treasury shares include the number of Company shares owned by the ESOP trust account (1,644,240 shares at the end of FY'21/2; 1,631,735 shares at the end of FY'22/2 Q1) and the number of Company shares owned by BIP trust account (74,206 shares at the end of FY'21/2; 74,206 shares at the end of FY'22/2 Q1).

• The Financial Results are not subject to audit 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 July 7, 2021.

○Table of Contents
1. Qualitative Information .........................................................................................................................................................................	2
(1)	Operating Results.............................................................................................................................................................................	2
(2)	Financial Position ............................................................................................................................................................................	3
(3)	Operating Result Forecasts ..............................................................................................................................................................	3
2. Quarterly Consolidated Financial Statements and Primary 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 on Consolidated Financial Statements ...................................................................................................................................	8
(Notes on Going Concern Assumption).............................................................................................................................................	8
(Additional Information) ...................................................................................................................................................................	8
(Notes on Material Changes in Shareholders' Equity).......................................................................................................................	9
(Segment Information, etc.).............................................................................................................................................................	10
(Significant Subsequent Events)......................................................................................................................................................	10

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1. Qualitative Information

A comparative analysis with FY'21/2 has not been made since the Group has adopted consolidated accounting from the third quarter of FY'21/2.

The AI/RPA business has been renamed DX business, starting FY'22/2.

(1) Operating Results

Since its establishment in 1997, dip Corporation (hereinafter, the "Company") has assisted its client companies with recruiting and the utilization 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 a corporate vision of becoming a "Labor force solution company," the Company has been striving to solve diverse labor-related issues as a "General Trading Company Dealing in Labor Force" that provides clients with personnel recruiting services and DX (digital transformation) services.

In the first quarter of FY'22/2, the spread of COVID-19 and measures to prevent a further spread of the virus continued to have a spillover effect on client companies' job advertisements. As a result, sales for the period under review ended at ¥9,226 million.

In terms of costs and expenses, the Company made investments in human resources such as in recruiting new graduates*, as well as in advertising in anticipation of a rapid recovery of the job market due to the progress in vaccination rollout.

As a result, for the first quarter of FY'22/2, operating income, ordinary income, and net income attributable to owners of parent ended at ¥1,856 million, ¥1,784 million, and ¥1,204 million, respectively.

• The Company hired 95 new graduates in April 2021. The following is an overview 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, and Hatarako.net, a comprehensive job information site. The Company aims to expand the user and customer base for these platforms through the vigorous efforts of its sales force and the award-winning quality of its websites.

Although sales decreased on a year-on-year basis in March 2021 as COVID-19 had a limited impact on sales in March 2020, they showed a year-on-year increase in April and May 2021. As a result, sales and segment profit for the first quarter of FY'22/2 were ¥8,725 million and ¥3,021 million, respectively.

For reference, job advertising orders were on a recovering trend in June 2021 due to the lifting of the state of emergency and the start of vaccination of the general public. In anticipation of a rapid recovery in job advertising demand going forward, we will continue to make efforts to increase customer engagement and gain further market share.

In May 2021, we launched Baitoru PRO, a comprehensive job information site for specialized jobs with a focus on industries that face a serious shortage of labor. The service will encourage movement in the labor force by supporting qualified and experienced professionals as well as individuals aiming to become professionals. The number of job information posted on the site is growing steadily, with more than 180,000 postings being made to date. We will continue to make full use of our salesforce, customer base, and promotion know-how to expand our business in the specialized jobs segment.

(ii) DX Business

Since September 2019, the DX business has been supporting the digital transformation (DX) of SMEs through the offering of KOBOT, a DX service packaged according to the workflows of client companies and introduced and renewed easily based on a subscription model.

During the period under review, the sales of the KOBOT series increased (led by sales of Interview KOBOT, the services of which include the automatic setting of interview dates), due to a reinforced sales system featuring collaboration with sales reps from personnel recruiting services. As a result, sales and segment profit were ¥501 million and ¥48 million, respectively.

We will also strive to increase subscription-based sales by rolling out a one-stop service that offers subscription-based products such as Recruiting Page KOBOT and Personnel Administration KOBOT, in addition to Interview KOBOT.

The Company will strive to further expand its business by continuing to enhance its customer base and product lineup and strengthening the customer success function, thereby ensuring stable stock revenue.

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