DIP : Financial Results for the First Half of the Fiscal Year Ending February 29, 2024 (Japanese GAAP, Consolidated)（112KB）

Financial Results for the First Half of the Fiscal Year Ending February 29, 2024

(Japanese GAAP, Consolidated)

			October 11, 2023
Name of company:	dip Corporation	Stock exchange listing:	Tokyo Stock Exchange
Stock code:	2379	Company website:	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:	October 12, 2023	Dividend payment date:	November 17, 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 the 1st Half of FY'24/2 (the Period of March 1, 2023 to August 31, 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'24/2 H1	26,545	11.4	6,232		7.8	6,142		10.4	4,366		18.3
FY'23/2 H1	23,819	35.2	5,783		90.2	5,564		91.8	3,692		71.5

(Note) Comprehensive income:	FY'24/2 H1	¥4,307 million (2.2%)	FY'23/2 H1	¥4,215 million (94.4%)
	Net Income	Diluted Net Income
	per Share	per Share
		¥	¥
FY'24/2 H1		78.63	78.46
FY'23/2 H1		66.18	66.02

(2) Consolidated financial position

		Total Assets		Net Assets		Shareholders' Equity Ratio
		¥ million		¥ million		%
As of August 31, 2023		47,650		38,246		79.1
As of February 28, 2023		50,167		38,242		75.0
(Reference) Shareholders' equity:	August 31, 2023 ¥37,691 million	February 28, 2023	¥37,623 million

2. Dividends

					Annual Dividends
	End of Q1		End of Q2		End of Q3	Year­end	Total
	¥		¥		¥	¥	¥
FY'23/2		­		34.00	­	38.00	72.00
FY'24/2		­		40.00
FY'24/2 (forecast)					­	48.00	88.00

(Note) Revisions to the latest dividend forecast: Yes

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

(Percentage figures indicate year­on­year change)

								Net Income		Net Income
	Sales		Operating Income	Ordinary Income	Attributable to
		per Share
								Owners of Parent
	¥ million		%	¥ million	%	¥ million	%	¥ million		%	¥
Full­year	56,300		14.1	14,500	25.7	14,100	21.6	9,400		18.5	168.26

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

• Notes

1. Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes in the 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:	Yes
4.	Restatements:	None

(4) Number of outstanding shares (Common stock)

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'24/2 Q2	60,140,000 shares	FY'23/2	60,140,000 shares
FY'24/2 Q2	4,924,839 shares	FY'23/2	4,313,065 shares
FY'24/2 H1	55,533,332 shares	FY'23/2 H1	55,787,462 shares

Treasury shares include the number of Company shares owned by the ESOP trust account (1,477,075 shares at the end of FY'23/2; 2,123,465 shares at the end of FY'24/2 Q2) and the number of Company shares owned by the BIP trust account (91,462 shares at the end of FY'23/2; 73,817 shares at the end of FY'24/2 Q2).

• The summary report on quarterly financial results is 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 information currently available to the Company and certain assumptions the Company deems reasonable. They do not guarantee future performance. Actual results may differ significantly from the forecasts due to various factors. For assumptions regarding operating results forecasts and notes on the use of the forecasts, see the section "1. Qualitative Information (3) Operating Results Forecast" on page 4.

(Delivery of supplementary materials for financial results)

Supplementary materials for the financial results will be posted on the Company's website on Wednesday, October 11, 2023.

○Table of Contents
1. Qualitative Information	2
(1)	Operating Results	2
(2)	Financial Position	3
(3)	Operating Results Forecast	4
2. Quarterly Consolidated Financial Statements and Notes	5
(1)	Consolidated Balance Sheet	5
(2)	Consolidated Statements of Income and Comprehensive Income	6
	Consolidated Statement of Income	6
	Consolidated Statement of Comprehensive Income	7
(3)	Consolidated Statement of Cash Flows	8
(4)	Notes to Consolidated Financial Statements	9
(Notes to Going Concern Assumption)	9
(Changes in Accounting Estimates)	9
(Additional Information)	10
(Notes to Material Changes in Shareholders' Equity)	13
(Segment Information, etc.)	13
(Significant Subsequent Events)	14

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1. Qualitative Information

(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 striving to solve diverse labor-related issues and realize a society in which everyone can experience the joy and happiness of work through the offering of personnel recruiting services and DX (digital transformation) services.

Thanks to the steady expansion of the personnel recruiting services business and the high growth of the DX business, sales in FY'24/2 H1 amounted to 26,545 million yen (up 11.4% year on year).

Regarding costs, the Company invested in human resources, such as recruiting new graduate employees in 2023 to boost its sales capabilities. As a result, operating income, ordinary income, and net income attributable to owners of parent for FY'24/2 H1 came to 6,232 million yen (up 7.8% year on year), 6,142 million yen (up 10.4% year on year), and 4,366 million yen (up 18.3% year on year), respectively.

An overview of the results by segment is detailed below.

Effective FY'24/2 Q1, the presentation of the breakdown information of revenue generated from contracts with customers has been changed from "Baitoru, Baitoru NEXT, Baitoru PRO, Hatarako.net, DX, Other" to "Media (job advertising) services, Permanent Placement services, DX services, Other services" due to a revision of the Company's sales management categories according to service type.

There are no changes to reported segments due to the above change.

(i) Personnel Recruiting Services Business

The personnel recruiting services business operates the following platforms as media (job advertising) services: 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 also operates the following platforms as Permanent Placement services: Nurse de Hatarako, a job agency service for medical professionals, and Nursing Care de Hatarako, a job agency service for nursing jobs. The Company aims to expand the user and customer bases for these services through the vigorous efforts of its sales force and its service development and promotional capabilities.

In FY'24/2 H1, sales of the personnel recruiting services business saw steady progress. As a result, segment sales and segment profit stood at 23,676 million yen (up 9.8% year on year) and 8,115 million yen (up 8.4% year on year).

(ii) DX Business

Since September 2019, the DX business has been supporting the digital transformation (DX) of small and medium-sized enterprises (SMEs) through the offering of the KOBOT series. This SaaS DX product series is priced for SMEs, features simple functions, and is easy to introduce as it is designed for SMEs.

In FY'24/2 H1, the business saw an increase in sales of its products, including Interview Scheduling KOBOT, which automatically schedules interviews with job applicants, Temp Agency KOBOT, which supports dispatch companies' sales activities with automated sales list creation services, and Corporate Recruiting Page KOBOT, which creates client recruiting pages featuring Baitoru's unique functions, such as workplace introduction videos. As a result, segment sales were 2,869 million yen (up 27.2% year on year), and segment profit was 1,331 million yen (up 31.1% year on year).

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(2) Financial Position

(ⅰ) Analysis of Financial Position

Total assets recorded at the end of FY'24/2 Q2 were 47,650 million yen, a decrease of 2,516 million yen from the end of the previous fiscal year. The major factors were a decrease of 2,708 million yen in cash and deposits and an increase of 318 million yen in intangible assets.

Total liabilities stood at 9,404 million yen, a decrease of 2,520 million yen from the end of the previous fiscal year. This mainly reflected a decrease of 824 million yen in income taxes payable, an increase of 210 million yen in provision for bonuses, and a decrease of 2,114 million yen in other current liabilities.

Net assets recorded at the end of FY'24/2 Q2 were 38,246 million yen, an increase of 4 million yen from the end of the previous fiscal year. The primary factors were an increase of 2,238 million yen in capital surplus due to a gain on the disposal of treasury shares associated with the extension of the ESOP trust and the additional granting of restricted shares, an increase of 2,185 million yen in retained earnings, and an increase of 4,298 million yen in treasury shares due to market purchase and the extension of the ESOP trust.

(ⅱ) Status of Cash Flows

Cash and cash equivalents (hereinafter "cash") stood at 17,265 million yen in FY'24/2 H1. The breakdown of the cash flow is as follows:

(Cash flows from operating activities)

Net cash provided by operating activities was 4,062 million yen (a decrease of 1,686 million yen year on year). This was mainly attributable to net income before income taxes of 6,077 million yen, depreciation of 1,534 million yen, a decrease in trade receivables of 426 million yen, and interest and dividends received totaling 503 million yen, which offset a decrease in accounts payable - other of 1,842 million yen and the payment of income taxes amounting to 2,806 million yen.

(Cash flows from investing activities)

Net cash used in investing activities totaled 3,892 million yen (an increase of 1,980 million yen year on year). This was mainly attributable to payments into time deposits amounting to 2,000 million yen and the purchase of intangible assets totaling 1,747 million yen.

(Cash flows from financing activities)

Net cash used in financing activities amounted to 4,882 million yen (an increase of 3,065 million yen year on year). This was mainly attributable to the purchase of treasury shares amounting to 5,509 million yen and a dividend payment totaling 2,177 million yen, which offset proceeds from the sale of treasury shares to the ESOP trust amounting to 2,646 million yen.

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