dip Corporation
Prime Market of the Tokyo Stock Exchange (Code: 2379)

Mid-term Management Plan ‟dip30th”(FY’25/2～FY’27/2)
November 24, 2023

© dip Corporation.

CONTENTS© dip Corporation.

1

Formulating the ‟dip30th” Plan

P 2

2

Value Creation Process

P 4

3Overview of the ‟dip30th” Mid-term Management Plan

P 7

4

‟dip30th” Strategic and Financial Targets

P 12

5

‟dip30th” Financial Strategies

P 25

6

Appendix

P 28

1

1

© dip Corporation.

Formulating the ‟dip30th” Plan

2

New Mid-term Management Plan, ‟dip30th” Charts a Course for the Future

In our mid-term business strategy ‟dip2025” announced in 2019,
we laid out a roadmap to realize our vision of becoming a ‟Labor force solution company”
and set our aspirations for the fiscal year ending February 28, 2025 at 100 billion yen
in net sales and 30 billion yen in operating income.
By steadily implementing the strategies and tactics of ‟dip2025” we have turned
the crisis of the COVID-19 pandemic into an opportunity, expanded our user and clientbase through unique initiatives such as the dip Incentive Project, andsignificantly increased our share of the part-time and temporary job advertising market.
The DX business, launched in 2019, has achieved high growth by accelerating productdevelopment and promoting upselling in conjunction with job ad sales.
On the other hand, the effects of the COVID-19 pandemic lasted longer than expected andthe job ad market has not yet recovered to pre-pandemic levels, making the sales andprofits set as aspirations difficult to achieve.

In light of the conclusion of the COVID-19 pandemic, the impact of rapidly evolving AI, andchanges in the market and competitive environment, we have decided to formulate a new
medium-term management plan, ‟dip30th”," which will end in February 2027, the 30th
anniversary of our founding.

▲ Integrated Report CoverWith the advancement of new technologies such as AI, solutions are beginning to emerge
for issues that previously seemed intractable. We are committed to confronting structurallabor shortage problems head on and being a pioneer in solving these issues for the wellbeing of the workers through the use of AI. Just as dip greatly expanded its business inthe past by taking advantage of the widespread use of the Internet, we will push forwardwith the ‟dip30th” and turn the dramatic evolution of AI into a business opportunity.
We will continue to pursue the simultaneous realization of social andeconomic value and do our utmost to realize a sustainable society.
We would like to thank all of our stakeholders for their continued support.

© dip Corporation.

３

2

Value Creation Process
1. Materiality
2. Value Creation Process© dip Corporation.

4

1. Materiality
Through materiality initiatives,
we aim to realize "a society where everyone can feel the joy and happiness of work"
Identifying materiality in light of changes such as the rapid evolution of generative AI

VISION
To realize a society in which everyone can experience the joy and happiness of work
Labor force solution company

Business Materiality
Creation of diverse
employment opportunitiess

Elimination of
employment mismatch

Improvement of humanresources and economic
productivitysCreation of rewarding
workplaces

Promotion of DEIs

Respect forhuman rights

Response to
the climate crisis

Management Foundation Materiality
Strengthening humancapital connected with
Philosophy© dip Corporation.

Strengthening governance52. Value Creation Process

Economic Value(FY'27/2)

Net Sales 78-85 billion yen
Operating Income 20-25 billion yen
ROE 30%© dip Corporation.

6

3

Overview of the ‟dip30th” Mid-term Management Plan
1. Overview
2. Creating Social Value (Non-financial KPI)

3. Creating Economic Value (Financial targets)
4. Pillars of the Growth Strategy: Initiatives for a ‘New Era’

© dip Corporation.

7

1. Overview
Materiality torealize our vision

Value Created

・Posting 1.68 million high quality job offers
to meet the needs of various industries,
occupations and work styles. Optimal
matching creates the industry's largest
number of jobs in the field of fixed-term
employment.
＜Focus Areas＞
450 thousand jobs for seniors
800 thousand jobs with flexibility toallow for raising children or caring forfamily members
300 thousand jobs for foreign workers
and international students
150 thousand jobs for high school students
・Eliminate mismatches in hiring and address
the shortage of human resources in the
medical and social welfare fields, which is
becoming more serious due to the declining
birthrate and aging population.
＜Job Created＞
Medical・Nursing care workers：
25 thousand per year

Economic
value
Businessstrategies

Management
Strategies

Mid-term Management Plan ‟dip30th”© dip Corporation.

Social value

Creating diverse employment
opportunities
Eliminating employment mismatches

Businessstrategies
Strengthening theManagement
Foundation

Improving human resources,
economic productivity, and creatinga rewarding workplace

Promoting DEI
Respect for Human Rights

・Increase the number of companies utilizing DX
services to 30,000 for DX services in the areasof recruiting,human resources, and sales promotion to
improve labor productivity at small and midsize
companies.

・Increase the number of job openings without
age bias at the time of hiring to 650 thousand.
Expand employment opportunities for a diverse
workforce, including middle-aged and senior
workers.

・Support workers to obtain qualifications
by providing reskilling opportunities andpromote regional revitalization andindustrial stimulation through labor mobility.

・Support the employment of people withdisabilities through a year-round campaign(sponsored by the Ministry of Health, Labor andWelfare) to help people with disabilities
take on the challenge of employment.

・Promote the improvement of working
conditions by posting 1.25 million jobs
with improved compensation (higher hourly
wages).

・Promote a workplace environment that
respects diversity by posting LGBTQ+ friendly
jobs.

・Introduced dip Workplace Diagnostics* toimprove the workplace environment.
Support for retention and achievement after
employment.

・Prohibit the posting of jobs that are in violationof laws and regulations or risk human rights
violations. Educate companies on how tocreate a workplace environment free of humanrights violations.

Responding to the Climate Crisis

・Contribute to the realization of a carbon neutral
society by reducing Scope 1 and 2 GHG
emissions to net zero by FY2025.
・Utilize our nationwide network of sales offices
to collaborate with local governments
immediately after any major disaster. A special
page for recruiting disaster relief volunteers has
been set up on the company's website toprovide prompt and effective support for hard
hit areas.
・Collect and post job information on each site
to meet the diverse employment needs of those
who have lost their jobs due to disasters
caused by the climate crisis. Provide job
opportunities to help workers overcome
economic hardship, and contribute to theeconomic recovery of affected areas.

*Service that identifies workplace
attractions and challenges and provides
proposals for improvement

Company-wide Net sales 78-85 billion yen, Operating income 20-25 billion yen, ROE 30%.

Personnel recruiting services businessDX businessFirst choice・Best result

DX for everyone, all the time

Sales Force
Promote hybrid sales toaccelerate improved
productivity

Service Development
Strength

Promotion Strength

Set up an elite 400-person
scrum team to maximize thevalue provided

Establish the No. 1‘user-first’ brandData・Technology
Strength
Develop a data infrastructurethat supports all aspects ofstrategy execution

Business Development
Strength
Strengthen mechanisms forgenerating innovation

Human capital connected with Philosophy

Governance

Develop measures to maximize the potential of human resources

Improve management effectiveness through dialogue with stakeholders

82. Creating Social Value (Non-financial KPI) ①
Set KPI for each materiality
This year, 6 items were added, expanding the total to 32
Results
Materiality

Create of diverse
employment
opportunities
Eliminating
employment
mismatches

Improving humanresources, economic
productivity, andcreating a rewarding
workplace© dip Corporation.

KPI

Targets

Results

FY’23/2

FY’25/2

FY’27/2

High-quality jobs that meet theneeds of diverse occupations,job types and work styles ※1

1.33
million *1

Maintain No.
1 in themarket1.68 million*1

Number of jobs welcoming
seniors

310,000*1-

450,000 *1

Number of jobs that allow
flexibility for childcare/nursing
care

510,000*1-

800,000 *1

Number of jobs available toforeigner workers/foreign
students

140,000*1-

Number of jobs accepting highschool students

150,000*1-

Number of workers in the
medical, nursing care, andsocial-welfare industries ※2

10,000peopleNumber of companies thathave introduced DX and are
subject to billing in the areas ofrecruiting, human resources,
and sales promotion

12,000companies*1

Number of jobs for which hourly
wage increases or otherimprovements have beenrealized ※3

990,000 *1

Materiality

KPI

FY’23/2

FY’25/2

FY’27/2

Jobs without age bias in
hiring (number of jobs with
optional age input)

130,000*1-

650,000 *1

Employment Opportunities
for People with Disabilities

One-off
campaign

Year-roundcampaign

Year-roundcampaign

Certified as a provider of
excellent recruitment
information

Acquired

Acquired andextendedAcquired andextended

300,000 *1

Number of cases violating
labor laws and regulations

0

Maintain 0

Maintain 0

150,000 *1

Prohibit all postings that may
be considered human rights
violations

Already
implemented

Continue to
implement

Continue to
implement

GHG emissions from all
offices and data centers

49 %reduction in
Scope 1 + 2(February
2020
comparison)

Scope1+2 anddata center
virtually zero *2

Scope1+2 anddata center
virtually zero*2

Promoting DEI
Respect for Human
Rights

25,000peopleResponding to the
Climate Crisis
30,000-Targets

companies*1

1 million *1

1.25 million*1※1: Includes videos, work experience functions, and messages from "dip san".
※2: Total number of people determined by agency services and the number of workers frommedia services (in-house estimate).
※3: Hourly wage increases, continuous service bonuses and celebratory gifts for new hires.
*1: End of February*2: Scope 1 and Scope 2 (city gas and electricity for all offices; from FY23/2, the scope of calculation
includes recreation facilities and data centers)

9

2. Creating Social Value (Non-financial KPI) ②

Results
KPI

Strengthening
human capitalconnected with
Philosophy

Results

FY’23/2

FY’25/2

FY’27/2

Engagement Index *4

3.84

4.0 (out of
maximum 5)

4.2 (out of
maximum 5

Percentage of female employees
hired as new graduates and later
promoted to management positions

43.5%

50%

50%

Percentage of females inmanagement positions

34.4％

40%

40%

Percentage of female employees
taking childcare leave

98.3%

100%

100%

Percentage of female employees
returning to work after childcare
leave

100%

100%

100%

Percentage of male employees
taking childcare leave

92.5％ *3

100%

100%

Percentage of employees withdisabilities

3.0% *4

Legal employment
ratio *4 or higher

Legal
employment
ratio *4 orhigher

Percentage of paid leave taken

59.4%

80%

80%

23.0
hours/month

20 hours or
less/month

20 hoursorless/month

12.6％

10.0%

10.0%

Continue toexpandContinue toexpandAverage overtime work

Job turnover rate

© dip Corporation.

Targets

New graduate training

326 hours

New management training

52 hours

Next generation leader
development training

143 hours

Materiality

KPI

FY’23/2

FY’25/2

FY’27/2

2/3 *5

2/3 or more

2/3 or more

Percentage of female
Directors

55.6% *550%

50%Number of material legal
violations

0

Maintain 0

Maintain 0

Compliance training andtesting participation rate

100%

Maintain 100%

Maintain 100%

Number of investor
interviews

367/year

500/year

550/year

Percentage of Independent
Directors

Strengthening
governanceTargets※4: Index in our ES survey*3：Calculated based on the Childcare and Family Care Leave Law, the percentage of employees taking
childcare leave, etc. and leave for childcare purposes as stipulated in Article 71-4, Item 2 of the
Enforcement Regulations.
*4: As of June 1 (as of the time of the Report on Employment Status of Persons with Disabilities, Ministry of
Health, Labour and Welfare), the statutory employment rate for private companies is 2.3%
(revised in March 2021).
*5: As of May 31, 2023

10

3. Creating Economic Value (Financial targets)
Aim for ROE of 30% in the final year of the medium-term management plan （FY’27/2）■ Net sales■Operating income
Operating
Profit Margin

1000(100 million yen)

850
～780
CAGR15%

800

23.4%

29.4%
～25.6%

25.8%

350
300

250
～200

(100 million yen)

250

36.0%

30.0%

CAGR20%22.7% 23.4%

200

600

CAGR12%

150

400

200

■ROE

11.1%

CAGR12%

493

100

563

50

115

145
2.0%

0

0

FY'23/2
Actual

FY'24/2
Forcast

FY'27/2
Plan

FY'23/2
Actual

FY'24/2
Forcast

FY'27/2
Plan

FY’20/2 FY’21/2 FY’22/2 FY’23/2

FY’24/2
Expectation

FY’27/2
Plan(Reference) Assumptions【 Market Assumptions 】
Assumption of continued moderate economic expansion【 Investment Plans 】
・Software investment in existing services grows
by about 15% annually
・Separately, AI-related investments are expected to total
approximately two billion yen over three years
・Assumes capitalization rate will remain at current level© dip Corporation.

【 Staffing plans 】
・Recruitment of new graduates: 300 in FY24, 340 in FY25, 400 in FY26
（Breakdown）
Media：215 in FY24, 215 in FY25, 215 in FY26
Permanent Placement：50 in FY24, 15 in FY25, 40 in FY26
DX：20 in FY24, 90 in FY25, 120 in FY26
・Mid-career*： 150 in FY24, 130 in FY25, 155 in FY26
* 70/year in Engineering, Planning, etc.; 30-50/year in Permanent Placement and DX;
Corporate Division only replacing retirements(Note) These are current assumptions and are subject to change.

11

4. Pillars of the Growth Strategy: Initiatives for a ‘New Era’
Focused on the theme ‘New Era’, we will seize on the rapid evolution of AI as an opportunity totransform our business structure and improve sales productivity thorough AI-Agent
Upper limits on financial targets are determined by factoring in the upsides of these growth strategies

Transforming the business structure with AI-Agent

1・Accelerate growth in existing areas
・Expand business into new areas

Improving sales productivity

2

3© dip Corporation.

・Develop new sales techniques using AI technology and data
・Promote cross-selling of media and DX products

Expanding the business through new services(to be announced in FY2024)12

4‟dip30th” Strategic and Financial Targets
1. Media Services (Job advertisement)
2. Permanent Placement Service
3. AI-Agent Services

4. DX Services© dip Corporation.

13

1. Media Services (Job advertisement) ①
Market for fixed-term employment is expected to continue to grow
Leverage competitive advantages to further expand market share■ Competitive advantages■Market environment（Million）

・Broad user base due to high brand recognition

Yearly changes in number of fixed-term employees

・Unique services and promotions based on 'user first’・Consulting sales force united by Philosophy

21.7
21.2

19.7

19.9

20.2

21.0

20.8

・Ability to develop services that are in tune with the voices of workers

21.0

・Customer base of 150,000 companies and a unique repository of

20.4

customer information

19.1（Reference）
Share of part-time and temporary worker job information market*
35.0%

26.4%

30.0%

25.0%

21.4%
17.9%

20.0%

15.0%

10.0%

7.7%

10.0%

12.2%

2014

2015

2016

2017

2018

2019

2020

2021

2022

13.9% 15.1%
Gained market share
due to terminationof 'an' service

5.0%

2013

23.7%

2027

Increased market share
during COVID-19 pandemic

0.0%

Source： Labor force survey by the Statistics Bureau, Ministry of Internal Affairs and Communications© dip Corporation.

FY'15/2

FY'16/2

FY'17/2

FY'18/2

FY'19/2

FY'20/2

FY'21/2* Prepared by the Company based on third-party market research

FY'22/2

FY'23/2

14

1. Media Services (Job advertisement) ② Business Strategies

Improve matching accuracy using AI

1

Improve the accuracy of AI based on dip's proprietary data (employers and job seekers)
to significantly improve application and hiring rates and increase the ability to attract users.

Strengthen consulting sales with a user-first focus

2

3

In addition to improving the treatment of job seekers, eliminating employer biases related to age,gender, and nationality will increase job opportunities for users and enhance the recruiting
power of client companies.

Expand sales force (direct sales and agents) and improve productivity
through the use of AI
Improve sales efficiency and closing rates by utilizing AI in sales activities such as creating job ads,
listing sales targets, and making proposals to customers.

Unique services based on ‘user first’ × Promotions

4© dip Corporation.

Quickly incorporate user needs into services and promote them in a hybrid manner.
Further deepen coordination with sales strategies to implement promotions tailored toeach focused customer segment and achieve a high return on investment.
15

1. Media Services (Job advertisement) ③
Aim for sales and profit growth by improving sales productivity through the use of AI and other means
Overall productivity is also expected to increase as the ratio of highly productive
third-year and above sales employees rises■ Net sales■ Segment profit
593～(100 million yen)

CAGR9%

Segment Profit
Margin

37.6%～

34.0%(100 million yen)223～
CAGR11%

427
146

FY'23/2
Actual

FY'24/2

FY'27/2
Plan

FY’24/2 Forecast

Approx. 1,200

Percentage of sales employees
FY’27/2 Plan

FY'27/2
Plan

Salesperson productivity by year
(Annual Sales)*59（Million yen）

Approx. 1,400（Reference）
Number of new graduates（Media services）
FY’23/2：355 FY’24/2：430© dip Corporation.

FY'24/2（Reference）■ Key KPI targets
Number of Media Services
sales personnel(Excludes management
positions)

FY'23/2
Actual47%
2024年2月期

FY’24/2

Percentage of
75% employees with 3
or more years
experience25
4

2027年2月期
計画

FY’27/2
plan

First year
* FY’23/2 Results

Second year

Third year
and beyond 16

2. Permanent Placement Service ①
The medical and nursing care placement market is expected to continue to grow at a high rate
Leverage the user base of existing media to create new employment opportunities through optimal matching■Market environment■Competitive advantages

Medical and nursing care recruiting market*⚫

User base (both actual and potential) for existing media in the medical
and nursing care fields＋¥300 bn

（CAGR+4％）

Approx.
¥150 bn⚫

media services⚫

Approx.
¥120 bn

Client base of medical and nursing care facilities cultivated throughCustomer development capability with direct salespeople, including
media sales⚫

Optimal matching using cutting edge AI and other technologies(Reference) Propose an optimal combination of job advertisement andrecruiting services to site users
I want to finda job on my own.

Media Service（Job Advertisement）

Baitoru Baitoru NEXT
2021
2021年
© dip Corporation.

2027
2027年

* Prepared by the Company based on a third-party market size survey

I want to be
introduced toa job that suits me.

Existing Media Users(Job seekers)

Hatarako.net Baitoru PRO

Permanent
Placement Service（Recruitment）

Nurse deHatarako

Nursing Carede Hatarako
17

2. Permanent Placement Service ② Business Strategies

1

2

3

Create diverse employment opportunities through optimal matching using"people (career advisors) + AI"
In line with the needs of job seekers, we propose diverse work styles with people + AI.
Utilizing AI-agent services to improve matching accuracy, employment rates,
and reduce short-term turnover rates.

Increase the number of registered candidates for recruitment byreferring clients from existing media
Expand the number of full-time registrants by rebranding existing media and promoting
employment for inexperienced workers through qualification support services.

Expand customer base and strengthen relationships with medical
and nursing care facilities
Develop customers through sales that combine media and agent services. Expand sales of DX
products for medical and nursing care to increase the number of recruiting establishments andstrengthen relationships. Promote the development of sales offices.

Expand career advisor (CA) structure and increase productivity

4© dip Corporation.

Improve productivity by strengthening CA hiring, controlling the attrition rate (continued to be 12%),and continuously improving the workflow through the use of AI / DX.
18

2. Permanent Placement Service ③
Create new employment opportunities through optimal matchingby leveraging the existing media user base. Aim for high sales growth andprofitability by strengthening the career advisor workforce and improving productivity.
■ Net sales■ Segment profit
Segment
Profit Margin(100 million yen)70～

24.3%～

15.6%(100 million yen)

17～
CAGR39%CAGR54%18
FY'23/2
Actual2
FY'24/2

FY'27/2
Plan

FY'23/2
Actual

FY'24/2

FY'27/2
Plan■ Key KPI targets
FY’24/2 Forecast

Number of career advisors© dip Corporation.

Approx. 140

FY’27/2 Plan

Approx. 240～
19

3. AI-Agent Services ①

Creating new job opportunities by shifting from ‘search-based’ to ‘interactive’ job selection■ Background of business launch⚫ We believe that we can create a new business in the fixed-term
employment field through the use of AI and have begun developing
AI-Agent business. We hope to accelerate the launch of the businessand create new employment opportunities by shifting from theconventional 'search-based' to an 'interactive' job selection process.

⚫ Generally, a low percentage of job seekers find employment after
accessing a website, so increasing the accuracy of matching andimproving the employment rate with AI-Agent will create a significant
revenue opportunity.
⚫ dip's strengths are the latest, accurate, and high-quality job information
gathered by our sales staff and our extensive user base. We believe that
we can leverage these strength, which none of our competitors have,to create a highly accurate AI engine, and in April 2023, we began
development of an AI-Agent business utilizing cutting-edge AI technology.

■ AI-Agent Services business model

By presenting the best job
opportunities to each job
seeker, recruitment rate is
greatly improved.

JobseekerBaitoru App

Specify your preferred area ofwork and desired conditions
by typing in the chat.

By inputting unique
up-to-date, accurate, andhigh-quality information into
AI, it is possible to create
AI with higher accuracy
than competitors.
Input high quality job
information acquired
through direct visits
to clients

dip
Direct Sales

AI presents open positions
with a high degree ofmatching
By eliminating application
mismatches, increase
recruitment and retention
rates of client companies<Display image>⚫ We will turn the dramatic evolution of AI into business opportunities, justas we have greatly expanded our business by capturing the spread of
the Internet.
© dip Corporation.

20

3. AI-Agent Services ②
Differentiating the performance of AI with unique information gatheredby sales employees and advanced development capabilities■Competitive advantages⚫ Broad and diverse user base
⚫ Wealth of proprietary information collected by direct sales
staff in close contact with customers■ Direction of business development
Installed as one of the functions of the existing site to improve therecruitment/employment rate of job seekers. By increasing thenumber of applications, we will achieve an increase in sales anda reduction in the cost of acquiring applications.

⚫ Strong technological capabilities/AI development systemthrough collaboration with Matsuo Laboratory⚫ Superior development capabilities with 400 engineers⚫ Deep insight into the AI domain cultivated through theoperation of 「AI now」 one of Japan's largest AI

After improving the accuracy of matching, a recruitment billingmodel will be introduced. By introducing highly matchedpersonnel, the recruitment and employment rates are increased,
and the retention rate is also improved.

information websites
Expand the implementation area

© dip Corporation.

21

4. DX Services ①
Media sales employees expand sales of simple,
easy-to-introduce DX products specialized for small and midsize companies
Significant room remains for DX adoption
among small and midsize companies in Japan; this will drive market expansion■Market environment■ Competitive advantages

Percentage of companies deploying DX

74%⚫

Simple, easy-to-implement product designed specifically for small andmidsize companies⚫

Package our own products and those of our partners (startups) andprovide them at low cost with excellent UI/UX.

⚫

A customer base of 150,000 companies built up through more than 20
years of media operations⚫

38%

2000* direct salespeople, including media sales and dedicated sales* Total sales employees in Personnel Recruiting Services and DX Business（Reference）Characteristics of KOBOT Series
Simple functionality

Priced for small andmidsize companies

Easy to introduce

0%

SMEs
中小企業
© dip Corporation.

Major大企業
Companies￥224. DX Services ② Business Strategies

1

Accelerate service development in the areas of human resources,
recruitment, and marketing support
Improve quality of existing products and develop new products in each area

Promote product development in new areas

2

Expand product lineup to include business communications, nursing care DX, robotics
and other domains

Strengthen collaboration with media sales and expand DX- dedicated sales force

3

Increase the order rate and reduce the churn rate by improving media sales proposals.
Focus on developing new clients.

Provide optimal solutions with acquired data and AI technology

4© dip Corporation.

Provide the best solutions in a timely manner based on data collected by AI-embedded products.
Contribute to expanding sales of personnel recruiting services by constantly connecting with customers.
23

4. DX Services ③With a sales organization dedicated to DX, we will expand sales of products in the sales promotion area,
cultivate sales in new areas, and strengthen our solution capabilities through the use of AI and data.

■ Net sales■ Segment profit
Segment
Profit Margin(100 million yen)

121～

44.6%

38.8%～

41.1%(100 million yen)

47～

CAGR29%47

57

FY'23/2
Actual

FY'24/2
ForcastCAGR27%

FY'27/2
Plan

21

23

FY'23/2
Actual

FY'24/2
Forcast

FY'27/2
Plan■ Key KPI targets
FY’24/2 Forecast

Number of companies
ARPU
Stock sales ratio© dip Corporation.

14,000

FY’27/2 Plan

30,000

FY’24/2 Forecast

FY’27/2 PlanFY’24/2 Forecast

FY’27/2 Plan

￥43,000
68％￥40,000

Maintain 70%

24

5“dip30th” Financial Strategies
1. Financial Targets
2. Cash Allocation© dip Corporation.

25

1. Financial Targets

Maximize equity spread to increase corporate and shareholder value
Achieve ROE of 30% in the final year of the medium-term management planby growing profits and improving capital efficiency■ROE target
36.0%

30.0%
22.7%

23.4%

Equity spread
11.1%
10～11%
Cost of equity

2.0%
FY'20/2© dip Corporation.

FY'21/2

FY'22/2

FY'23/2

FY'24/2
Expectation

FY'27/2
Plan

Cost of Equity Assumptions
・Cost of equity (approximately 10-11%) = risk-free rate (0.8%) + Beta (1.5) x risk premium (6-7%)
・ Risk-free rate: October 2023 average of the 10-year new issue JGB rate
・ Beta: Calculated on a 5-year monthly basis based on the rate of change between TOPIX and our stock price・Market risk premium: Based on the long-term expected market yield calculated by our company, we assume a market risk premium of 6-7%.

26

2. Cash Allocation
In addition to the dividend payout ratio of 50%, a new total return ratio of 65% has been established
After making growth investments, cash and cash equivalents in excess of 'Maximum Cash' are returned to shareholders
Basic policy “Cash allocation with an emphasis on growth investment and shareholder returns”
Growthinvestments⚫

Investments for the growth of existing businesses and the creation of new businesses(human resource investments, system investments, promotional investments, etc.)⚫

Investments in research and development related to AI and other advanced technologies and their use in business⚫

M&A and other investments to accelerate business growth⚫

In principle, the Company will maintain a dividend payout ratio of 50%, based on the minimum dividend paid in the previous fiscal year.
Dividends are paid twice a year.

⚫

Aim for a total payout ratio of 65%⚫

Consider additional shareholder return measures, taking into account cash position and other BS conditions, prospects for achieving financial
targets, stock price level, and other factors

Shareholder
returns➢

The management of funds necessary for business operations is called Maximum Cash*, and in principle, excessive cash anddeposits beyond that limit are not held. However, we do not make decisions based on a single fiscal year, but carefully assess mediumterm investment opportunities, and if there is excess cash and deposits, we return them to shareholders.

➢

In a situation where it may be difficult to achieve the medium-term profit target, we will consider additional shareholder returns to bring ROE
closer to the target, taking into account the BS situation, stock price level, and other factors.

* Maximum Cash Concept
The sum of 3 months of payments, plus tax and dividend payments（Reference）FY’24/2：￥18bn（＝March-May in 2023 payments ￥12 bn + taxes ￥4 bn + dividend payment ￥2 bn）© dip Corporation.

26

6© dip Corporation.

Appendix28

1. Functional Strategies ①
Sales Force

Service Development
Strength

Promotion Strength

Promoting hybrid sales toaccelerate improved productivity

Set up an elite 400-person scrum
team to maximize the value provided

Establish the No. 1 ‘user-first’brand■Improving sales productivity through the use of AI
Full use of AI in a series of sales activities, including draftingof manuscripts for media sales, listing of sales targets,
proposing work to customers, picking up job offers and roleplaying practice for registered career advisors of agent
services. Core system replacement and CRM systemconstruction were also implemented to improve sales
efficiency and closing rates.
■Developing new sales techniques using
technology and data
In addition to promoting inbound sales using B-to-B
marketing, we have established a lead acquisition model thatcan efficiently approach customers with a high probability ofreceiving orders.

© dip Corporation.

■Establish a 400-person scrum teamDeveloped with seamless cooperation by 400 people frommultiple professions including engineering, planning, design,
CRM, data, marketers■Hire 200 engineers during the mid-term plan period
Continue to strengthen recruitment of engineers. Constantly
innovate services and continue to provide the highest quality.
■Increased the ratio of in-house production to 50% or more
Aiming for efficient product development by building adevelopment system with partners and assigning the right people
to the right projects through an optimal combination of in-houseand outsourced production.
■Significantly shorten the development process throughAI/automation
AI development tools, including GitHubCopilot, have alreadybeen implemented. The process has been greatly streamlined
and fast development.
■Updating the development infrastructure
We have renewed our legacy development infrastructure andbuilt a new infrastructure to increase development efficiency.
Significantly improved development quality, cost, and delivery(QCD).

■Integrated marketing products that create a user-first
approach
By developing hybrid promotions that integrate mass, digital,
and SNS, we are developing user-first projects andcontributing to the creation of services.
■AI/Automation for improved effectivenessAlready implemented AI tools for ad content creation andforecasting effectiveness. Delivering high quality and
immediate value by significantly streamlining the marketing
process.
■Data-Driven Marketing
Utilize marketing mix modeling to build a model that can
predict/learn tactics, budget allocation, etc. to match strategy.
Maximize quality of awareness and sales efficiency■Improve customer satisfaction through effective sitemanagement
We analyze the factors that affect customer lifetime value(Life Time Value) and operate a job advertisement site withhigh accuracy in matching users with job advertisements.
Improve customer satisfaction and reduce advertising costs29

1. Functional Strategies ②
Data・Technology Strength

Business Development Strength

Develop a data infrastructure that
supports all aspects of strategy execution

Strengthen mechanisms forgenerating innovation■Build a data infrastructure that connects the entire
company
Establish a “Labor force solution platform” to connect companywide data in a secure environment to shorten lead time, reduce
costs, and improve service quality■Proactive adoption of AI/automation tools
Through the activities of the company-wide AI utilization project
team "AI Force", we are actively introducing AI / automation
tools and significantly streamlining our business processes■Automate portions of business operations■AI has already been introduced throughout the company.
AI has partially replaced and automated some of the clerical
work of sales. Contributed to reduction of sales man-hours andimprovement of productivity.
■Increase number of job ad applications through AI-Agent
Develop AI-Agent to improve the accuracy of matching users
and job ads. Increase the number of applications to job
advertisements, thereby increasing sales and reducing costs.

■Create new social and economic value with the “dip Innovation Engines” thatgenerates new businesses and services
We will develop a mechanism for innovation that creates business. Internally,
the Dream Conference was newly established with the participation of all internal
directors and corporate officers. We are also working to create new businesses throughthe dip Accelerator, which allows any employee to propose a business idea.
In collaboration with external parties, we are investing in startup companies throughCVC to search for new businesses and technologies, and we are also promoting
collaborative creation with academia at the dip Technology Institute and the dip
Research Institute.
These four functions are positioned as the "dip Innovation Engines" and are designed
to enhance our innovation capabilities and build the foundation for business creation.
■Four functions that promote business creation
Business creation
with management
participation
In cooperation with
Academia

dip Technical Research Institutedip Research Institute© dip Corporation.

Employee Accelerator

Executive Dream Conference

Business creation withparticipation by all

Innovation
EngineStartup Investment

CVC30