Financial Results for the Fiscal Year Ended February 28, 2021
(Japanese GAAP, Consolidated)
April 7, 2021
Name of company:
Stock code:
Representative:

DIP Corporation
Stock exchange listing: Tokyo Stock Exchange
2379
URL:
https://www.dip-net.co.jp/
Hideki Tomita, Representative Director, President and CEO
Haruhiko Arai, Corporate Officer, CFO, Head of Corporate Management Group
Contact:
Phone: +81-3-5114-1177
Scheduled date of general shareholders meeting:May 26, 2021
Dividend payment date:
May 27, 2021
Scheduled date of filing financial statements:
May 27, 2021
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 FY2021 (from March 1, 2020 to February 28, 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%
FY202132,494
7,312
6,501
607
FY2020(Reference) Comprehensive income:
FY2021¥594 million (-%)
FY2020- million (-%)
Net Income
per Share

Diluted Net Income
per Share¥
FY2021
11.09
FY2020(Reference) Equity in earnings of affiliates:

Return on Equity¥
FY2021

Operating Income toSales Ratio

Return on Assets

%

%

%

2.0
-

18.1
-

22.5
-

¥(741) million

FY2020- million

Note: Figures for FY2020 and year-on-year changes are not shown since consolidated accounting has been adopted from FY2021. The calculations of Return on
Equity and Return on Assets for FY2021 are based on year-end shareholders’ equity and year-end total assets, respectively. Diluted net income per share for
FY2020 is not disclosed due to the absence of dilution effects although dilutive shares exist.

(2) Consolidated financial position
Total Assets
FY2021
FY2020Net Assets¥ million
35,869-(Reference) Shareholders’ equity:

FY2021

Shareholders’ Equity Ratio¥ million
31,178¥30,269 million%
84.4
FY2020Net Assets per Share¥
547.13-- million

Note: Figures for FY2020 are not shown since consolidated accounting has been adopted from FY2021.

(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Balance of Cash and Cash
Equivalent at End of Period¥ million¥ million¥ million¥ million

FY2021

5,905(9,643)(3,041)

12,462

FY2020----Note: Figures for FY2020 are not shown since consolidated accounting has been adopted from FY2021.

2. Dividends
Annual Dividends
End of Q1¥

End of Q2¥

Year-end

End of Q3
¥

Total

¥

FY2020
FY2021

-

27.00
27.00

-

FY2022 (forecast)

-

27.00

-

Total Dividend
Dividend
Payment
Payout Ratio

29.00
29.00
34.00
~52.00

Ratio of
Dividends to
Net Assets¥¥ million

%

%

56.00
56.00
61.00
~79.00

3,138
3,195

505.0
56.0
~68.2

10.2

Note: The dividend payout ratio and ratio of dividends to net assets for FY2020 are not shown since consolidated accounted has been adopted from FY2021.Theratio of dividends to net assets for FY2021 is based on year-end consolidated net assets per share since it is the first year of consolidation.

3. Consolidated Operating Results Forecast for FY2022 (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 toper Share
Owners of Parent¥ million%¥ million%¥ million%¥ million%¥

1st Half

18,050~20,000-

2,000~3,150-1,800~2,950-1,200~2,050-21.69~37.05Full-year

42,800~49,000

31.7
~50.8

7,700
~11,800

5.3
~61.4

7,300
~11,400

12.3
~75.4

4,950
~7,800

714.6
~-

89.47
~140.99

Year-on-year changes for the first half forecast are not shown since consolidated accounting has been adopted from the third quarter of FY2021.

* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes in scope of
consolidation): Yes
Newly included: 1 (Company name: DIP Labor Force Solution Investment Business Limited Partnership)
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:
None
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(including treasury shares)

FY202160,140,000 shares

FY202062,000,000 shares

2. Number of treasury shares at end of period

FY2021

4,815,802 shares

FY20207,720,493 shares

3. Average number of shares outstanding
during the period

FY202154,809,478 shares

FY202054,475,989 shares

Treasury shares include the number of Company shares owned by the ESOP trust account (1,718,935 shares at the end of
FY2020; 1,644,240 shares at the end of FY2021) and the number of Company shares owned by BIP trust account (74,206
shares at the end of FY2020; 74,206 shares at the end of FY2021).
(Reference) Overview of non-consolidated operating results
Non-consolidated Operating Results for FY 2021 (from March 1, 2020 to February 28, 2021)(1) Non-consolidated business performance(Percentage figures indicate year-on-year change)
Sales
FY2021
FY2020Operating Income

Net income¥ million%¥ million%¥ million%¥ million%

32,494
46,415(30.0)
10.1

7,363
14,356(48.7)
11.9

7,231
14,393(49.8)
11.9

620
10,012(93.8)
9.9

Net Income
per Share
FY2021
FY2020Ordinary Income

Diluted Net Income
per Share¥
11.32
183.80¥183.76

Diluted net income per share for FY2021 is not disclosed due to the absence of dilution effects although dilutive shares existed

(2) Non-consolidated financial position
Total Assets
FY2021
FY2020(Reference) Shareholders’ equity:

Net Assets¥ million
36,471
41,114FY2021

Shareholders’ Equity Ratio¥ million
31,74931,512¥30,857 million

Net Assets per Share

%
84.6
74.3
FY2020¥557.76563.13¥30,566 million* 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 theuse of the forecasts, see the section “(5) Outlook” under “1. Qualitative Information” on page 5.
(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 April 7, 2021.

○Table of Contents
1. Analysis of Operating Results and Financial Position ......................................................................................................................... 2(1) Operating Results............................................................................................................................................................................. 2(2) Financial Position ............................................................................................................................................................................ 3(3) Cash Flows ...................................................................................................................................................................................... 4(4) Basic Policy on Profit Distribution and Dividends for the Current and Upcoming Fiscal Years ................................................... 4(5) Outlook ............................................................................................................................................................................................ 5
2. Situation of the Corporate Group .......................................................................................................................................................... 7
3. Basic Approach towards Selection of Accounting Standards ................................................................................................................ 9
4. Consolidated Financial Statements and Primary Notes ....................................................................................................................... 10(1) Consolidated Balance Sheet ........................................................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ................................................................................................. 12
Consolidated Statement of Income ................................................................................................................................................ 12
Consolidated Statement of Comprehensive Income ...................................................................................................................... 13(3) Consolidated Statement of Changes in Equity ............................................................................................................................. 14(4) Consolidated Statement of Cash Flows.......................................................................................................................................... 15(5) Notes on Consolidated Financial Statements ................................................................................................................................. 16(Notes on Going Concern Assumption) ........................................................................................................................................... 16(Bases of Presenting Consolidated Financial Statements) ............................................................................................................... 16(Notes on Accounting Standards, etc. not yet Applied) ................................................................................................................... 18(Additional Information) ................................................................................................................................................................. 20(Consolidated Balance Sheet) .......................................................................................................................................................... 21(Consolidated Statement of Income) ............................................................................................................................................... 21(Consolidated Statement of Comprehensive Income)...................................................................................................................... 22(Consolidated Statement of Changes in Equity) .............................................................................................................................. 23(Consolidated Statement of Cash Flows)......................................................................................................................................... 26(Segment Information etc.) .............................................................................................................................................................. 26(Per share Information).................................................................................................................................................................... 28(Significant Subsequent Events) ...................................................................................................................................................... 28(Reference Information) .................................................................................................................................................................. 29―1－

1. Analysis of Operating Results and Financial Position
A comparative analysis with FY2020 has not been made since the Group has adopted consolidated accounting from the third quarterof FY2021.
For year-on-year comparisons in the non-consolidated financial statements for FY2021, see “(Reference Information)” under “(5)Notes on Consolidated Financial Statements” of “4. Consolidated Financial Statements and Primary Notes.”
The AI/RPA business has been renamed DX business, starting FY2022.

(1) Operating Results
Since its establishment in 1997, DIP Corporation (hereinafter, the “Company”) has assisted its client companies with recruiting and theutilization of human resources by providing online job information sites, as well as creating an environment where each individual canwork with enthusiasm and energy, based on its corporate philosophy of “Here at DIP, we want to tap into dreams, ideas and passion tocreate a better society.”
Since FY2020, under a new 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 FY2021, client companies’ reduction in hiring activities and hiring budgets following the COVID-19 pandemic had a spillover
effect on their job advertisements. As a result, sales for FY2021 ended at ¥32,494 million.
In terms of costs, the Company made investments in human resources such as in recruiting new graduates*1, while substantiallycutting SG&A costs mainly by reducing advertising spending. As a result, for FY2021, operating income and ordinary income ended
at ¥7,312 million and ¥6,501 million, respectively. In March 2020, the Company purchased investment securities as a financial hedge
against an economic downturn to secure employees’ jobs. It sold said securities in the fourth quarter for various reasons including the
mitigation of economic uncertainty compared to when the securities were purchased. As a result, net income attributable to owners ofparent came at ¥607 million. For details, please refer to the press release “Notice of Reversal of Loss on Valuation of Investment
Securities and Posting of Loss on Sale of Investment Securities” dated January 27, 2021.
*1 The Company hired 399 new graduates in April 2020.
The following is an overview of results by segment.
(i) Personnel Recruiting Services Business
The personnel recruiting services business operates job advertising platforms, including Baitoru, a job information site for part-timeworkers, 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.
During the fiscal year under review, the continued COVID-19 pandemic since April 2020 had an adverse impact on job advertisement
placement by client companies as restaurants and retailers shortened their business hours or suspended business, forced by thegovernment’s declarations of a state of emergency*2. As a result, sales and segment profit for FY2021 were ¥31,671 million and ¥11,844
million, respectively.
Although market conditions were again affected by the declaration of a state of emergency in January 2021, mainly in the restaurant
and retail sectors, they have recovered in March after bottoming out in February 2021.Amid these circumstances, the Company has been
making efforts to increase the number of subscriber companies by holding online business meetings and utilizing sales tools developed
internally, which enables us to capture clients’ hiring needs on a timely basis. We will continue to strive to expand our customer base bystrengthening the offering of proposals that differentiate us from competitors using a combination of personnel recruiting services andDX services, as well as aiming to increase job seekers’ use of our services by advertising aggressively.
*2: A state of emergency was declared in April 2020 and January 2021.
(ii) AI/RPA BusinessDX service has recently been attracting considerable attention as a technology with the potential to solve labor shortages and improve
productivity. Furthermore, coupled with the proliferation of working from home and changes in work styles due to the COVID-19
pandemic, the need for business automation has been increasing rapidly.
The Company launched its AI/RPA business in the fiscal year ended February 2020 and since September 2019 has been offering
KOBOT, a DX service that can be introduced easily and used at a low cost. The Company's uniquely packaged KOBOT, which combines
existing DX tools, is offered in different formats such as a monthly payment model that includes maintenance and support.
―2－During the fiscal year under review, 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 staff from personnel
recruiting services.
The enhancement of our product lineup saw steady progress with the launch of Sales Pack, a sales support tool for staffing agencies,
the addition of services to Real Estate KOBOT, a work efficiency tool for real estate companies, and the commencement of sales of
KOBOT Platform, a DX development and management tool. As a result, sales and loss of the segment for FY2021 ended at ¥823 millionand ¥541 million, respectively.
The Company will strive to further expand its business by continuing to enhance its products, while at the same time ensuring stable
stock revenue.

(2) Financial Position(Current assets)
Total current assets recorded in the consolidated financial statements at the end of FY2021 were ¥17,782 million. Major
components are cash and deposits of ¥12,462 million and accounts receivable - trade of ¥3,564 million.
(Non-current assets)
Total non-current assets recorded in the consolidated financial statements at the end of FY2021 were ¥18,087 million. Major
components are property, plant and equipment of ¥1,698 million, intangible assets of ¥6,831 million, and investments and otherassets of ¥9,557 million.
(Current liabilities)
Total current liabilities recorded in the consolidated financial statements at the end of FY2021 were ¥3,576 million. Major
components are accounts payable - trade of ¥283 million and other current liabilities of ¥3,024 million.
(Non-current liabilities)
Total non-current liabilities recorded in the consolidated financial statements at the end of FY2021 were ¥1,114 million. Major
components are asset retirement obligations of ¥480 million and other non-current liabilities of ¥438 million.
(Net assets)
Total net assets recorded in the consolidated financial statements at the end of FY2021 were ¥31,178 million. The major
component is retained earnings of ¥28,270 million.

―3－(3) Cash Flows
Cash and cash equivalents (hereinafter, “cash”) amounted to ¥12,462 million at the end of the fiscal year under review.
The breakdowns of cash flows are as follows:(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥5,905 million. This was mainly because inflows such as net income
before income taxes of ¥1,139 million, depreciation of ¥1,999 million, loss on sales of investment securities of ¥5,724 million, anda decrease in trade receivables of ¥2,241 million exceeded outflows such as income taxes paid of ¥3,430 million and a decrease inaccounts payable - other of ¥1,703 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥9,643 million. This was mainly because the purchase of intangible assets of¥3,213 million and the purchase of investment securities of ¥9,869 million exceeded proceeds from sales of investment securitiesof ¥3,593 million.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥3,041 million. This mainly reflected dividends paid of ¥3,163 million.
(Reference) Trend of indicators for cash flows is as follows.
FY2017
Shareholders’ equity ratio (%)
Shareholders’ equity ratio
on a market value basis (%)
Ratio of cash flow to interestbearing debts (annual)Interest coverage ratio (times)

FY2018FY2019FY2020

FY2021

69.6

72.4

74.0

74.3

84.4

617.0

662.9

323.4

345.0

447.0

-

-

-

-

-

-

36,689.5---

Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on a market value basis: Market capitalization/Total assets
Ratio of cash flow to interest-bearing debts: Interest-bearing debts/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments(Note 1) The figures for FY2017 and FY2020 are based on the non-consolidated financial statements.
(Note 2) Operating cash flow is based on cash flow from operating activities according to the Statement of Cash Flows. Interestbearing debts include all liabilities on which interest is paid that are recorded in the Balance Sheet. Interest payments are
based on interest paid recorded in the Statement of Cash Flows.
(Note 3) The ratio of cash flow to interest-bearing debt is not stated, as there has been no interest-bearing debt since FY2017.
(Note 4) The interest coverage ratio is not stated for FY2017 nor FY2019 through FY2021 since there were no interest payments.

(4) Basic Policy on Profit Distribution and Dividends for the Current and Upcoming Fiscal Years
The Company considers income distribution to shareholders to be one of its most important management responsibilities. We
pay a regular dividend twice a fiscal year (an interim dividend and a year-end dividend), while maintaining the internal reserves
necessary to invest in the future growth of the company and to address changes in the business environment.
The Company previously used the dividend payout ratio of 30% as a guide in determining its dividend payments, and from thefiscal year ended February 28, 2021 onwards, we will use the dividend payout ratio of 50% as a guide as well as take into
consideration the dividend results in the prior fiscal year in determining dividend payments.
Guided by the above profit distribution policy, the Company paid an interim dividend of ¥27 per share in FY2021 after taking
into account the dividend amount of the previous fiscal year. It plans to pay a year-end ordinary dividend of ¥29 per share,bringing the annual dividend to ¥56 per share.
For FY2022, the Company plans to pay an annual ordinary dividend of ¥61~79 per share, which is broken down into aninterim dividend of ¥27 per share and a year-end dividend of ¥34~52 per share, after taking into consideration its outlook forfull-year operating results, financial position, and other matters.

―4－(5) Outlook(i) Business risks related to COVID-19
In FY2021, client companies’ reduction in hiring activities and hiring budgets following the COVID-19 pandemic had aspillover effect on their job advertisements. The Company has been making efforts to increase the number of subscriber companies
by holding online business meetings and utilizing sales tools developed internally, which enables us to capture clients’ hiring needs
on a timely basis. It is also striving to establish a broad customer base to avoid being significantly affected by the operating
performances of certain industries and clients. We will continue our efforts to further strengthen our direct marketing sales
capabilities, as well as expanding our user and customer bases through new services and promotions.
In the AI/RPA business, the need for business automation has been increasing rapidly amid changes in work styles due to thepandemic, such as the spread of working from home. We will continue to strive to expand our customer base in the small andmedium-sized company sectors, as well as increase the lineup of subscription-based products packaged for each workflow of thecustomer which can be introduced easily and continue to be used for an extended period. We will also make efforts to extend
customers’ subscription periods and boost upselling by strengthening our “customer success” system to offer continuous support
after the introduction of products.
There is also a risk of employees contracting COVID-19 and causing hindrance to the Company’s business and operations.
However, since the end of January 2020 the Company has been managing its offices with a focus on preventing employees frombeing infected based on its “Guidelines for Preventing the Spread of COVID-19,” as well as striving to ensure the safety of
employees by recommending working from home, staggered commuting and work rotation. In addition, to prevent the spread of
infection within and outside the company, we are striving to reduce the risks of infection such as by making it a rule to conductbusiness meetings with clients online. We will continue our efforts to prevent the spread of the virus and strive to achieve a quick
recovery of earnings.
(ii) Outlook of FY2022
With regard to the macro environment in FY2022, we expect economic activities to normalize over late FY2022 and FY2023
due to the progress in vaccination combined with the easing of financial and monetary policies in Japan and other major economic
zones, although the number of COVID-19 infections in Japan is expected to see modest rises and falls for the time being.
Amid such circumstances, we expect operating margins of the personnel recruiting services business to return to FY2020 levelsin the second half of FY2022 as we continue our efforts to increase the number of subscriber companies through various sales
measures.
In the DX business, we expect sales to significantly increase due to continued efforts to increase business activities by sales
representatives of the personnel recruiting services business, as well as through the expansion of the product lineup.
The full-year consolidated operating results forecast for FY2022 based on the above is as follows.
Consolidated operating results forecast for FY2022 (from March 2021 to February 2022)
FY2021(Actual)Sales
Operating Income
Ordinary Income
Net Income Attributableto Owners of Parent

FY2022(Forecast)

Change(in amount)

Change(in percentage)¥ million
32,494
7,312¥ million
42,800 ~ 49,000
7,700 ~ 11,800¥ million
10,305 ~ 16,505
387 ~ 4,487%+31.7% ~ +50.8%+5.3% ~ +61.4%

6,501

7,300 ~ 11,400

798 ~ 4,898+12.3% ~ +75.4%607

4,950 ~ 7,800

4,342 ~ 7,192+714.6% ~ -%Please also refer to the charts on the following page indicating the results and forecasts of monthly sales and operating margin, which
are the basis of the above forecasts.

―5－

―6－

2. Situation of the Corporate GroupThe main businesses of the Company are the personnel recruiting services business, which provides human work force, and the DX
business, which provides digital labor force.
The AI/RPA business has been renamed DX business, starting FY2022.

(Personnel Recruiting Services Business)
In the personnel recruiting services business, the Company operates job information sites and a recruitment business specificallyfor the nursing field. In the operation of job information sites, the Company provides job seekers with job information by posting
recruitment ads of its client companies.
(1) Baitoru………… Operation of website Baitoru, which focuses on offering part-time employment information. The main
customers of the business are employment agencies and companies seeking part-time staff. We charge a
posting fee for posting job information on the website.

(2) Baitoru NEXT……… Operation of website Baitoru NEXT, which focuses on regular employee job information. The main
customers of this business are employment agencies and companies seeking regular employees. We
charge a posting fee for posting job information on the website.
(3) Hatarako.net………… Operation of website Hatarako.net, which is a comprehensive job information website. The main
customers of this business are dispatch staffing agencies and companies seeking regular employees andpart-time workers. We charge a posting fee for posting job information on the website.
In our recruitment business for nurses, the Company offers the following services:
Nurse de Hatarako…… Introduces the medical institution that best suits the needs of nurses and nurse assistants who seek a newworkplace and who have registered with our website, Nurse de Hatarako, through interviews andconsultation with a career advisor.* The Company charges a brokerage fee from the medical institution
when a successful employment contract is realized.
* A career advisor is a consultant specialized in matching nurses looking to change jobs with workplaces
that best suits their employment needs.
(AI/RPA Business)
In the AI/RPA business, the Company has been supporting the DX of small and medium-sized companies since September 2019
through the provision of KOBOT, which can be conveniently introduced and used at an inexpensive price. KOBOT is a uniquely
packaged service according to workflows and is mainly offered on a monthly subscription basis that includes maintenance andsupport.

―7－

Business flow chart―8－3. Basic Approach towards Selection of Accounting Standards
The company currently carries out business and fund procurement mainly in Japan and will adopt Japanese standards for the time
being. Regarding the application of IFRS (International Financial Reporting Standards), we plan to deal with the matter as
appropriate based on future business development and trends of domestic competitors.

―9－

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet(Thousand Yen)FY2021
As of February 28, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Provision for refund
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Provision for share-based remuneration
Provision for share-based remuneration for directors
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

12,462,677
3,564,913
5,421
1,862,167(113,149)
17,782,031

1,752,278(575,256)
1,177,021
977,204(686,393)
290,810
227,782
2,455
1,698,070
6,155,008
676,615
6,831,623※ 5,663,928

1,825,956
300,000
619,641
1,159,593(11,455)
9,557,664
18,087,358
35,869,390

283,333
19,912
203,690
44,7153,024,936
3,576,588
78,260116,840
480,554438,946
1,114,601
4,691,190―10－

(Thousand Yen)FY2021
As of February 28, 2021
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1,085,000
3,234,282
28,270,725(2,287,095)
30,302,911(33,575)(33,575)
892,247
16,61531,178,199
35,869,390―11－

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Thousand Yen)FY2021
From March 1, 2020
To February 28, 2021
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income of insurance
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share of loss of entities accounted for using equity method
Loss on amortization of restricted share-based renumeration
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on change in equity
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Income attributable to non-controlling interests
Net income attributable to owners of parent―12－

32,494,768
3,303,654
29,191,113※ 21,878,955
7,312,158
3,891
14,887
5,353
4,265
10,491
38,889741,572
91,346
17,085850,005
6,501,042
159,368
203,006
362,375
5,723,762
5,723,762
1,139,655
361,927
169,826
531,753
607,901
230
607,671

Consolidated Statement of Comprehensive Income(Thousand Yen)FY2021
From March 1, 2020
To February 28, 2021
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities accounted for using equity
methodTotal other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―13－607,901(14,711)
1,758※ (12,953)
594,948594,717230

(3) Consolidated Statement of Changes in Equity
FY2021 (From March 1, 2020 to February 28, 2021)(Thousand Yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,085,000

2,194,544

Retained earnings
30,784,271

Total shareholders'equityTreasury shares(4,140,840)

29,922,975

Changes during period
Dividends of surplus
Net income attributable toowners of parent(3,167,083)(3,167,083)

607,671

607,671

Purchase of treasury shares

(145)

(145)

Disposal of treasury shares

2,209,854

663,677

2,873,531

Cancellation of treasury shares(1,190,212)

1,190,212-

Increase due todecrease in affiliates

45,865

Change in ownership interest ofparent due to transactions with
non-controlling interests

45,86520,09620,096

Changes in items other thanshareholders' equity (net)Total changes during period
Balance at end of period-

1,039,737(2,513,546)

1,853,744

379,936

1,085,000

3,234,282

28,270,725(2,287,095)

30,302,911

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Total accumulated
othercomprehensive
incomeShare acquisitionrightsNon-controllinginterests

Total net assets(20,621)(20,621)946,142-

30,848,497

Changes during period
Dividends of surplus(3,167,083)

Net income attributable toowners of parent

607,671

Purchase of treasury shares(145)

Disposal of treasury shares

2,873,531

Cancellation of treasury shares-

Increase due to decrease inaffiliates

45,865

Change in ownership interest ofparent due to transactions with
non-controlling interests

20,096

Changes in items other thanshareholders' equity (net)(12,953)(12,953)(53,895)

16,615(50,233)

Total changes during period(12,953)(12,953)(53,895)

16,615

329,702

Balance at end of period(33,575)(33,575)

892,247

16,61531,178,199―14－

(4) Consolidated Statement of Cash Flows(Thousand Yen)FY2020From March 1, 2020
To February 28, 2021
Cash flows from operating activities
Net income before income taxes
Depreciation
Share-based remuneration expenses
Share of loss (profit) of entities accounted for using equity method
Interest and dividend income
Insurance claim income
Commission expenses
Loss (gain) on sales of investment securities
Loss (gain) on change in equity
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Increase (decrease) in unearned revenue
Increase (decrease) in accounts payable - other
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for refund
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Proceeds from insurance income
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Cash flows from investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from exercise of employee share options
Dividends paid
Proceeds from share issuance to non-controlling shareholders
Other payments
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―15－

1,139,655
1,999,686
497,597
741,572(3,453)(5,353)
14,9285,724,610(159,368)(203,006)
2,241,001
28,729(32,902)(1,703,879)(16,447)(52,005)(5,362)(118,518)(794,427)
37,6249,330,682
66
5,353(3,430,261)
5,905,840(155,438)(3,213,099)(9,869,461)
3,593,469(4,246)
5,338(9,643,438)(145)
88,76812,275(3,163,372)
36,152(14,928)(3,041,250)(6,778,848)
19,241,526※ 12,462,677

(5) Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Bases of Presenting Consolidated Financial Statements)
The Company has adopted consolidated accounting from FY2021. The basis of presenting consolidated financial statements is asfollows.
1. Scope of consolidation(1) Number of consolidated subsidiaries: 1
Name of consolidated subsidiary: DIP Labor Force Solution Investment Business Limited Partnership (“DIP Labor Force
Solution Fund”)
DIP Labor Force Solution Investment Business Limited Partnership has been newly established during the fiscal year underreview and included in the scope of consolidation.
(2) Non-consolidated subsidiaries
Name of non-consolidated subsidiary: DIP America, Inc.
Reason for exclusion from scope of consolidation:
The non-consolidated company has been excluded from the scope of consolidation since it is minor in size and its total
assets, sales, net income/loss (amount proportional to the equity share) and retained earnings (amount proportional to theequity share), etc., do not have a significant impact on consolidated financial statements.
2. Application of equity method(1) Number of affiliates accounted for using the equity method: 5Names of affiliates:
JOLLY GOOD Inc.
GAUSS, inc.
hachidori, inc.
Marketing-Robotics INC.
TRUNK Co., Ltd.
Due to a third-party allotment of shares, SpeakBUDDY Ltd., which was an affiliate accounted for using the equity method,has been excluded from the scope of application of the equity method due to a decrease in the Company’s ownership.
(2) Non-consolidated subsidiaries and affiliates not accounted for using the equity method
Names of non-consolidated subsidiaries and affiliates not accounted for using the equity method:
DIP America, Inc.
Bioworks Corporation
Reason for not applying the equity method:
These companies have been excluded from the scope of application of the equity method since they have a minor impact
on consolidated financial statements in terms of net income (amount proportional to the equity share) and retained earnings(amount proportional to the equity share), etc., and have no significance as a whole if they are excluded from the target ofthe equity method.
(3) Matters deemed necessary to be stated regarding procedures for application of the equity method
The most recent financial statements have been used for companies accounted for using the equity method that have a
different fiscal year-end date.
The consolidated statements have been adjusted to reflect significant transactions that took place between their fiscal yearend dates and the consolidated fiscal year-end date.

3. Fiscal periods of consolidated subsidiaries
The fiscal year-end date of consolidated subsidiary DIP Labor Force Solution Investment Business Limited Partnership isNovember 30. The financial statements as of its fiscal year-end date have been used in the preparation of consolidated financial
statements. The consolidated statements have been adjusted to reflect significant transactions that took place between its fiscal
year-end date and the consolidated fiscal year-end date.
―16－

4. Significant Accounting Policies(1) Valuation standards and methods for significant assets(i) Securities
Available-for-sale securities
Securities without market value……The moving-average cost method(ii)Valuation standards and methods for inventories
Supplies……Last purchase cost method(Balance sheet amounts are determined by writing down the book value according to the decrease inprofitability.)(2) Depreciation methods for major depreciation assets(i) Tangible fixed assets
Depreciation of buildings is calculated by the straight-line method, and depreciation of tangible fixed assets except forbuildings is based on the declining-balance method. However, depreciation of facilities attached to buildings and structuresacquired on or after April 1, 2016 is based on the straight-line method.
Useful lives of major assets are as follows:
Buildings:

3 to 47 years

Structures:

15 to 40 years

Tools, furniture and fixtures:

2 to 20 years(ii) Intangible fixed assets
Depreciation of intangible fixed assets is calculated by the straight-line method. However, depreciation of software forinternal use is based on the usable period (5 years) in the Company.
(3) Reporting basis for significant allowances(i) Allowance for doubtful accounts
To prepare for bad debt losses from accounts receivable, loans receivable, etc., the Company provides for the estimateduncollectible amount of normal receivables based on historical loss ratios. Specific claims including doubtful receivables, etc.
are individually evaluated for the likelihood of recovery and the estimated uncollectible amount is provided.
(ii) Provision for refund
To prepare for future refunds of recruitment fees in the human resources introduction service for nurses, the estimated amountof future refunds in recorded.
(iii) Provision for bonuses
To provide for payment of bonuses to employees, an estimated amount of bonuses to be paid is recorded at the end of the
fiscal year.
(iv) Provision for employee benefit trust
To provide for stock-based incentives for employees pursuant to the Stock Granting Regulations, an estimated amountaccording to points allotted to employees is recorded at the end of the fiscal year.
(v) Provision for management board benefit trust
To provide for stock-based compensation to directors pursuant to the Stock-based Compensation Regulations, an estimatedamount according to points allotted to directors in office at the end of the fiscal year is recorded.

―17－

(4) Scope of cash and cash equivalents in the statement of cash flows
Cash and cash equivalents in the statement of cash flows comprise cash in hand, demand deposits, and short-term investmentswith maturities of three months or less from the date of acquisition, that are liquid, readily convertible into cash and are subject
to minimum risk of price fluctuation.
(5) Other important matters related to the preparation of the financial statements
Accounting for consumption taxes
Consumption taxes are accounted for using a tax-exclusive system.

(Notes on Accounting Standards, etc. not yet Applied)
1. Accounting Standard for Revenue Recognition, etc.
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30; March 31, 2020)(1) Overview
They are comprehensive accounting standards for revenue recognition. Revenue is recognized after applying the following
five steps:
Step 1: Identify contract with the customer.
Step 2: Identify performance obligations within a contract.
Step 3: Calculate the transaction price.
Step 4: Allocate the transaction price to performance obligations within a contract.
Step 5: Revenue is recognized when performance obligations are fulfilled or as they are fulfilled.
(2) Scheduled date of application
The beginning of FY2023(3) Impact of application of the accounting standards, etc.
The impact is being assessed as of the time of preparation of these financial statements.
2. Accounting Standards for Fair Value Measurement, etc.
・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31; July 4, 2019)
・Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9; July 4, 2019)
・Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19; March 31,
2020)(1) Overview
The Accounting Standard for Fair Value Measurement and the Implementation Guidance on Accounting Standard for Fair
Value Measurement (hereinafter, “Accounting Standards for Fair Value Measurement, etc.”) were developed to improvecomparability with international accounting standards, and guidance, etc. on the method of fair value measurement were set
forth. The Accounting Standards for Fair Value Measurement, etc. will be applied to the fair value of the following items:
・Financial instruments in the Accounting Standard for Financial Instruments
・Inventories held for trading purposes in the Accounting Standard for Measurement of Inventories
In addition, the Implementation Guidance on Disclosures about Fair Value of Financial Instruments was revised to set forth
notes such as the breakdown for each fair value level of financial instruments.
(2) Scheduled date of application
The beginning of FY2023(3) Impact of application of the accounting standards, etc.
The impact of the application of the Accounting Standard for Fair Value Measurement and others on consolidated financial
statements has not yet been determined at present.
―18－

3. Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections
Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (ASBJ Statement No.
24; March 31, 2020)(1) Overview
It is aimed at indicating the outline of the accounting principles and procedures that were adopted when the provisions ofrelated accounting standards, etc. are not clear.
(2) Scheduled date of application
The end of FY2022
4. Accounting Standard for Disclosure of Accounting Estimates
Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No. 31; March 31, 2020)(1) Overview
It is aimed at disclosing information that contributes to the understanding of users of financial statements on the details of
accounting estimates that were the basis of amounts recorded in the financial statements of the current fiscal year and were initems that may have a significant impact on the financial statements of the following fiscal year.
(2) Scheduled date of application
The end of FY2022―19－

(Additional Information)(Employee Stock Ownership Plan (ESOP) Trust)
In May 2012, the Company introduced an employee stock ownership plan trust (“ESOP trust”) to enhance corporate value in themedium and long term by motivating Company employees to work harder and creating a greater awareness of participation in
management and by further promoting management aimed at increasing the value of Company shares.
(1) Summary of plan
By contributing funds for the acquisition of Company shares, the Company established a trust with employees who satisfy
certain requirements as the beneficiaries. Over a predetermined acquisition period, the trust acquires from the stock market
Company shares in the number expected to be delivered to Company employees in accordance with pre-established Stock
Granting Regulations. Subsequently, the trust delivers or pays to employees without compensation, either whilst in employment
or on retirement, Company shares or the proceeds from their sale according to the rank and years of service of employees during
the trust period in accordance with the Stock Granting Regulations.
(2) Company shares remaining in the trust
Company shares held in the ESOP trust account are recorded as treasury shares under net assets at book value to the trust(excluding ancillary expenses). The book value and number of treasury shares are ¥105,409 thousand and 1,644,240 shares,
respectively, at the end of FY2021.
(Board Incentive Plan (BIP) Trust)
In August 2016, the Company introduced a Board Incentive Plan (BIP) trust for directors (excluding outside directors and overseas
residents; the same applies hereinafter) to increase their motivation to contribute to improving corporate value in the medium tolong term and to share a common sense of interest with the shareholders.
(1) Summary of plan
By contributing funds for the acquisition of Company shares, the Company established a trust with directors who satisfy
certain requirements as the beneficiaries. The trust acquires, by way of third-party allotment from the Company, Company
shares in the number expected to be delivered to Company directors in accordance with pre-established Stock-based
Compensation Regulations. Subsequently, the trust delivers to directors who meet certain beneficiary requirements on the fixed
date of the beneficiary right such as their retirement Company shares or the cash equivalent of the proceeds from their sale
determined according to performance indicators, etc. each fiscal year in accordance with the Stock-Based Compensation
Regulations.
(2) Company shares remaining in trust
Company shares held in the BIP trust account are recorded as treasury shares under net assets at book value to the trust(excluding ancillary expenses). The book value and number of treasury shares are ¥221,950 thousand and 74,206 shares,
respectively, at the end of FY2021.
(Accounting estimates following the COVID-19 pandemic)
The weakening of companies’ motivation to hire due to the COVID-19 pandemic has impacted the Company’s business activities
as job advertisement from client companies has been affected.
Although we expect the situation to begin to recover as the second state of emergency declared in January 2021 was lifted in lateMarch, it is extremely difficult to accurately forecast when the pandemic will abate.
Accounting estimates for impairment loss on fixed assets and the collectability of deferred tax assets are based on information
available at the time of the preparation of financial statements under the assumption that the impact of the pandemic will continue
for a certain period of time.

―20－

(Consolidated Balance Sheet)Amounts related to non-consolidated subsidiaries and affiliates are as follows.
(Thousand yen)
FY2021(As of February 28, 2021)
Investment securities (shares)

686,235

Overdraft agreements and commitment line agreements
To facilitate efficient procurement of operating capital, the Company has entered into overdraft agreements with threebanks.
In addition, to ensure flexibility and stability in financing, the Company has entered into commitment line agreementswith three financial institutions. The unused balance of loans under these agreements as of the end of the fiscal year underreview is as follows.
(Thousand yen)
FY2021(As of February 28, 2021)
Total of overdraft limits
Total of commitment line

10,000,000
30,000,000

Used loans-

Available

40,000,000

The above commitment line agreements are subject to the following financial covenants. If the Company violates all of
the following covenants, a lump sum repayment of the loan will be required at the lender’s request.
FY2021 (As of February 28, 2021)(i) The total amount of net assets on the consolidated balance sheet as of the last day of each fiscal year must be maintainedat ¥0 or more.
(ii) The amount of operating income or loss (or net income or loss after income taxes) on the consolidated statement ofincome as of the last day of each fiscal year must not be in the red for two consecutive years.

(Consolidated Statement of Income)
Major items and their amounts included in “selling, general and administrative expenses” are as follows.
(Thousand yen)
FY2021(From March 1, 2020
To February 28, 2021)
Salaries and allowances
Advertising expenses
Provision of allowance for doubtful accounts

8,990,002
2,919,166
11,788Provision for bonuses

193,540

Provision for share-based renumeration

6,281

Provision for share-based renumeration for
directors
Retirement benefit expenses
Research and development expenses

16,734
24,371
158,439―21－

(Consolidated Statement of Comprehensive Income)Amount of reclassification adjustment and tax effect relating to other comprehensive income(Thousand yen)
FY2021(From March 1, 2020
To February 28, 2021)
Valuation difference on available-for-salesecurities
Valuation difference arising during the year
Reclassification adjustment(5,744,960)
5,723,762

Before tax-effect adjustment
Tax effect(21,198)
6,486

Valuation difference on available-for-salesecurities(14,711)Amount equivalent to equity share in entities
accounted for using equity method
Amount arising during the year

1,758

Total other comprehensive income(12,953)―22－

(Consolidated Statement of Changes in Equity)
FY2021 (March 1, 2020 to February 28, 2021)
1. Type and total number of outstanding shares and of treasury shares
Number of shares at
Number of shares
Type of sharesthe beginning of theincreased during the
fiscal year
fiscal year

Number of shares
decreased during the
fiscal year

Number of shares at theend of the fiscal year

Shares issued
Common stock (Notes 1)

62,000,000-

1,860,000

60,140,000

Total

62,000,000-

1,860,000

60,140,000

Common stock (Notes 2, 3)

7,726,205

35,053

2,945,456

4,815,802

Total

7,726,205

35,053

2,945,456

4,815,802

Treasury shares

Notes: 1. Outline of reason for changes in shares issued
The number of shares decreased can be broken down as follows.
Decrease due to retirement of treasury shares:

1,860,000 shares

2. Outline of reason for change in treasury shares
The number of shares increased can be broken down as follows.
Increase due to purchase of restricted shares without consideration:
Increase due to request for purchase of odd-lot shares:

35,000 shares
53 shares

The number of shares decreased can be broken down as follows.
Decrease due to disposal by an affiliate accounted for using equity method

5,712 shares

Decrease due to exercise of stock options:
Decrease due to sale or delivery of shares in the ESOP trust account:

4,500 shares
74,695 shares

Decrease due to retirement of treasury shares:
Decrease due to delivery of restricted shares:

1,860,000 shares
1,000,549 shares

3. The number of shares of Company stock held in the ESOP trust account that are included in the number of treasury sharesat the beginning and end of the consolidated fiscal year is 1,718,935 shares and 1,644,240 shares, respectively, and thenumber of shares of Company stock held in the BIP trust account is 74,206 shares and 74,206 shares, respectively.

―23－

2. Share acquisition rights

Company name

Type of
Number of shares subject to share acquisition rights
sharesBalance at the end
subject toAt theAt the end of the fiscal year
share
beginning
Increase
Decreaseof the(thousand yen)acquisitionof thefiscal year
rightsfiscal year

Breakdown

6th series of stock options
based on resolution of theBoard of Directors on June

-

-

-

-

-

273,972

-

-

-

-

-

331,760

-

-

-

-

-

244,840

-

-

-

-

-

41,674----892,247

28, 2016
7th series of stock options
based on resolution of theBoard of Directors on
The Company

September 15, 2017
8th series of stock options
based on resolution of theBoard of Directors on June21, 2018 (Note 1)
9th series of stock options
based on resolution of theBoard of Directors on June21, 2019 (Note 2)
Total(Notes) 1. The exercise period for the 8th series of stock options based on the resolution of the Board of Directors on June 21,2018 has not yet commenced.
2. The exercise period for the 9th series of stock options based on the resolution of the Board of Directors on June 21,
2019 has not yet commenced.
3. Dividends(1) Dividend payments
Resolution

Total dividends(thousand yen)

Dividend
per share (yen)Record date

Effective date

Source ofdividends

Common stock

1,626,10629

February 29,
2020

May 27,2020

Retainedearnings

Common stock

1,540,976

27

August 31,
2020

November 12,
2020

Retainedearnings

Type

Meeting of Boardof Directors on
April 7, 2020
(Note 1)
Meeting of Boardof Directors on
October 8, 2020
(Note 2)
(Notes)1.Total dividends based on the resolution of the annual general meeting of shareholders on April 7, 2020 include
dividends of ¥49,849 thousand in relation to 1,718,935 shares of Company stock held in the ESOP trust account anddividends of ¥2,151 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.
2. Total dividends based on the resolution of the annual general meeting of shareholders on October 8, 2020 include
dividends of ¥45,428 thousand in relation to 1,682,525 shares of Company stock held in the ESOP trust account anddividends of ¥2,003 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.

―24－

(2) Dividends with a record date in the fiscal year but an effective date in the following fiscal year
Resolution
Meeting of Board of
Directors on April 7,
2021 (Note)(Note)

Type
Commonstock

Total dividends(thousand yen)

Source ofdividends

Dividend pershare (yen)1,654,236

Retainedearnings

29

Record date

Effective dateFebruary 28, 2021

May 27, 2021

Total dividends include dividends of ¥47,682 thousand in relation to 1,644,240 shares of Company stock held in the ESOP
trust account and dividends of ¥2,151 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.

―25－

(Consolidated Statement of Cash Flows)
Reconciliation of cash and cash equivalents as of the end of the fiscal year and the accounts reported in the balance sheet(Thousand yen)
FY2021
From March 1, 2020
To February 28, 2021
Cash and deposits account12,462,677

Cash and cash equivalents

12,462,677(Segment Information etc.)[Segment information]
1. Overview of reported segments(1) Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among theconstituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation ofmanagement resources and for assessing business performance.
(2) Types of products and services included in each reported segment
The Company’s reported segments are the personnel recruiting services business, which consists of online job information
advertising and the recruitment of nursing staff, and the AI/RPA business, which develops and provides services that use AI or
RPA.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in “Bases of Presenting
Consolidated Financial Statements.”
The income figures stated in the reported segments are based on operating income.
3. Information on amounts of sales and profit or loss by reported segment
Fiscal year 2021 (March 1, 2020 to February 28, 2021)(Thousand Yen)
Reported segment

Amount recorded instatement of income(Note 2)Adjustment(Note 1)

Personnel recruiting
services business

AI/RPA business

31,671,534

823,233

32,494,768-

32,494,768

-

-

-

-

-

Total

31,671,534

823,233

32,494,768-

32,494,768

Segment profit (loss)

11,844,100(541,326)

11,302,774(3,990,615)

7,312,158

1,844,070

46,8091,890,879

108,806

1,999,686

Total

Sales
Sales ― outside
customers
Sales and transfer– inter-segment

Other items
Depreciation(Notes) 1. Adjustment of segment profit (loss) of (¥3,990,615 thousand) is corporate expenses not allocated to any reported
segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to reported
segments.
2. Segment profit (loss) was adjusted with operating income on the statement of income.
3. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decisionby the highest decision-making body, such information was not allocated to each segment.

―26－

[Related information]
FY2021(March 1, 2020 to February 28, 2021)
1. Information by product and service(Thousand yen)
Baitoru
Sales to outside
customers

24,462,807

Hatarako.net
5,672,602

Nurse de Hatarako

AI/RPA

1,526,429

823,199

Others9,730

Total
32,494,768

2. Regional information(1) Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information
on main clients is omitted.
[Impairment loss on fixed assets by reported segment]
Not applicable[Goodwill amortization and unamortized balance by reported segment]
Not applicable[Information on gain from negative goodwill by reported segment]
Not applicable―27－

(Per Share Information)
FY2021
From March 1, 2020
To February 28, 2021
Net assets per share¥547.13

Net income per share¥11.09Notes: 1. Diluted net income per share is not shown due to the absence of dilutive shares with dilution effects.
2. The basis for calculation of net income per share is as follows.
FY2021
From March 1, 2020
To February 28, 2021
Net income attributable to owners of parent (thousand yen)Amount not attributable to common stock shareholders

607,671-(thousand yen)
Net income attributable to owners of common stock of parent(thousand yen)
Average number of shares of common stock outstanding
during the fiscal year (shares)

607,671
54,809,478

Note: The number of Company shares held in the ESOP trust account (1,687,691 shares) and the number of Company shares heldin the BIP trust account (74,206 shares) are excluded from the average number of shares of common stock outstanding
during the fiscal year that was used in the calculation of per share information for FY2021.

(Significant Subsequent Events)
None

―28－

(Reference Information)(1) Statement of Income(Thousand Yen)FY2020From March 1, 2019

FY2021
From March 1, 2020
To February 28, 2021

To February 29, 2020

Change(in amount)

Change(in percentage)

Sales

46,415,333

32,494,768(13,920,565)(30.0)

Cost of sales

3,036,482

3,303,654

267,171

8.8

Gross profit

43,378,851

29,191,113(14,187,737)(32.7)

Selling, general and administrative
expenses

29,022,516

21,827,205(7,195,311)(24.8)

Operating income

14,356,334

7,363,908(6,992,426)(48.7)

Interest income

3,483

3,453

(30)

(0.9)

Dividend income of insurance

2,145

14,887

12,742

593.9

Insurance claim income

17,766

5,353(12,413)(69.9)

Subsidy income

4,034

4,265

230

5.7

Other

13,795

10,491(3,303)(23.9)

Total non-operating income

41,22538,450(2,774)(6.7)

Loss on investments in investment
partnerships-

62,62862,628-Loss on amortization of restricted
share-based payment-

91,346

91,346

-

Other

3,864

17,085

13,221

342.2

Total non-operating expenses

3,864

171,061

167,197

4,326.8

14,393,695

7,231,297(7,162,397)(49.8)

Gain on reversal of shareacquisition rights

43,284203,006

159,722369.0

Total extraordinary income

43,284203,006

159,722

369.0

2,758

-

(2,758)-Loss on sales of investment
securities-

5,723,762

5,723,762-

Loss on sales of shares ofsubsidiaries and associates

152,600-(152,600)--

810,040

810,040-

Total extraordinary losses

155,358

6,533,802

6,378,444

4,105.6

Net income before income taxes

14,281,622

900,502(13,381,119)(93.7)

Income-taxes - current

4,380,319

361,927(4,018,392)(91.7)

Income taxes - deferred(111,144)(81,667)

29,476(26.5)

Total income taxes

4,269,175

280,259(3,988,916)(93.4)Net income

10,012,446

620,242(9,392,203)(93.8)

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on valuation of investment
securities

Loss on valuation of shares ofsubsidiaries and associates―29－

(2) Statement of Cash Flows(Thousand Yen)FY2021
From March 1, 2020
To February 28, 2021

FY2020From March 1, 2019
To February 29, 2020
Cash flow from operating activities
Net income before income taxes
Depreciation
Share-based remuneration expenses
Interest and dividend income
Insurance claim income
Commission expenses
Gain on reversal of share acquisition rights
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on sales of shares of subsidiaries and associates
Loss on investments in investment partnerships
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Increase (decrease) in unearned revenue
Increase (decrease) in accounts payable - other
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for refund
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net

14,281,622
1,693,153
224,808(3,483)(17,766)968(43,284)
2,758
152,600(1,018,169)
27,42636,723
381,585(6,702)
27,817(19,060)(149,895)
659,962
113,833

900,502
1,999,686
497,597(3,453)(5,353)
14,928(203,006)
5,724,610
810,040
62,6282,241,001
28,729(32,902)(1,703,879)(16,447)(52,005)(5,362)(118,079)(796,627)
37,844

Subtotal

16,344,895

9,380,451

Interest and dividends received
Proceeds from insurance income
Income taxes paid

95
17,766(3,971,222)

66
5,353
(3,430,261)

Cash flow from operating activities

12,391,533

5,955,610(200,147)(2,245,474)(671,498)(380,490)
200,000(155,438)(3,213,099)(9,519,461)
3,593,469--(414,084)(82,716)
18,625(14,240)(4,246)
5,338-(3,375,942)(9,707,523)(1,805,344)
83,970199,474(2,992,653)
(968)

(145)
88,76812,275(3,163,372)(14,928)(4,515,520)(3,077,402)

Increase (decrease) in cash and cash equivalents

4,500,071(6,829,315)

Cash and cash equivalents at beginning of period

14,741,455

19,241,526

Cash and cash equivalents at end of period

19,241,526

12,412,211

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries and associates
Payments for investments in capital of subsidiaries andassociates
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Payments for asset retirement obligations
Cash flows from investing activities
Cash flow from financing activities
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from exercise of employee share options
Dividends paid
Other
Cash flow from financing activities―30－

(3) Selling, general and administrative expenses
The breakdown of SG&A in accordance with the categories stated in the presentation materials is disclosed below.
(Thousand Yen)FY2020From March 1, 2019
To February 29, 2020

FY2021
From March 1, 2020
To February 28, 2021

Change(in amount)

Change(in percentage)

Personnel expenses (Note)

12,667,492

12,856,167

188,674

1.5

Advertising and sales
promotion expenses

11,855,457

4,981,074(6,874,383)(58.0)

Rent expenses on land andbuildings

1,075,328

1,159,718

84,3907.8

Other3,424,238

2,830,245(593,992)(17.3)

Total
29,022,516
21,827,205(7,195,311)(24.8)(Note) Personnel expenses include salaries, welfare benefits, etc., as well as recruitment-related expenses and educational expenses.

―31－

(4) Segment InformationⅠ

FY2020 (March 1, 2019 to February 29, 2020)

1. Overview of reported segments(1) Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among theconstituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation ofmanagement resources and for assessing business performance.
(2) Types of products and services included in each reported segment
The Company’s reported segment is the personnel recruiting services business, which consists of online job information advertisingand the recruitment of nursing staff.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in “Significant Accounting Policies.”
The income figures stated in the reported segments are based on operating income.
3. Information on amounts of sales, profit or loss, assets, liabilities, and other items by reported segment(Thousand yen)
Reported segment
Personnel recruiting
services business

Others(Note 1)

Amount recorded instatement of income(Note 3)Adjustment(Note 2)

Total

Sales
Sales –
customers

outside46,369,290

46,043

46,415,333-

46,415,333

-

-

-

-

-

Total

46,369,290

46,043

46,415,333-

46,415,333

Segment profit (loss)

18,809,768(535,595)

18,274,173(3,917,838)

14,356,334

1,576,377

2,227

1,578,605

114,547

1,693,153

Sales and transfer– inter-segment

Other items
Depreciation(Notes) 1. The “Others” segment includes businesses not included in the reported segment, the AI/RPA Business.
2. Adjustment of segment of profit (loss) of (¥3,917,838 thousand) are corporate expenses not allocated to any reported
business segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable toreported segments.
3. Segment profit (loss) was adjusted with operating income on the statement of income.
4. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decisionby the highest decision-making body, such information was not allocated to each segment.

―32－

[Related information]
1. Information by product and service(Thousand yen)
Baitoru
Sales to outside
customers

Hatarako.net

37,008,556

Nurse de Hatarako

7,790,636

Others

1,561,762

54,379Total
46,415,333

2. Regional information(1) Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information
on main clients is omitted.
[Impairment loss on fixed assets by reported segment]
Not applicable[Goodwill amortization and unamortized balance by reported segment]
Not applicable[Information on gain from negative goodwill by reported segment]
Not applicableⅡ

FY 2021 (March 1, 2020 to February 28, 2021)

1. Overview of reported segments(1) Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among theconstituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation ofmanagement resources and for assessing business performance.
(2) Types of products and services included in each reported segment
The Company’s reported segments are the personnel recruiting services business, which consists of online job information
advertising and the recruitment of nursing staff, and the AI/RPA business, which develops and provides services that use AI or
RPA.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in “Bases of Presenting
Consolidated Financial Statements.”
The income figures stated in the reported segments are based on operating income.

―33－

3. Information on amounts of sales and profit or loss by reported segment(Thousand Yen)
Reported segment

Amount recorded instatement of income(Note 2)Adjustment(Note 1)

Personnel recruiting
services business

AI/RPA business

31,671,534

823,233

32,494,768-

32,494,768

-

-

-

-

-

Total

31,671,534

823,233

32,494,768-

32,494,768

Segment profit (loss)

11,844,100(541,326)

11,302,774(3,938,865)

7,363,908

1,844,070

46,8091,890,879

108,806

1,999,686

Total

Sales
Sales ― outside
customers
Sales and transfer– inter-segment

Other items
Depreciation(Notes) 1. Adjustment of segment profit (loss) of (¥3,938,865 thousand) is corporate expenses not allocated to any reported
segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to reported
segments.
2. Segment profit (loss) was adjusted with operating income on the statement of income.
3. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decisionby the highest decision-making body, such information was not allocated to each segment.
[Related information]
1. Information by product and service(Thousand yen)
Baitoru
Sales to outside
customers

24,462,807

Hatarako.net
5,672,602

Nurse de Hatarako
1,526,429

AI/RPA
823,199

Others9,730

Total
32,494,768

2. Regional information(1) Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information
on main clients is omitted.
[Impairment loss on fixed assets by reported segment]
Not applicable(Note) English documents are prepared as a courtesy to our stakeholders. In the event of any inconsistency between English-language
documents and the Japanese-language documents, the Japanese-language documents will prevail.

―34－