dip Corporation
First Section of the Tokyo Stock Exchange (Code: 2379)

Financial results for FY’22/2 Q3(The fiscal year ending February 28, 2022)

January 14, 2022

© dip Corporation.

CONTENTS© dip Corporation.

1

FY’22/2 Q3 Financial Results

P

2

2

FY'22/2 Forecasts

P

6

3

Business Overview and Progress in the DX Business

P

11

4

Progress in the Personnel Recruiting Services Business

P

23

5

Future Growth Strategies

P

30

6

Shareholder Return

P

37

7

Appendix

P

39

1

1

FY’22/2 Q3 Financial Results

The AI/RPA business has been renamed the DX* business, effective April 1, 2021.
※Digital Transformation© dip Corporation.

2

FY’22/2 Q3 Financial Results (Consolidated) ①■ Highlights
Overall・Sales were +23.5% YOY at ¥10.44 bn due to robust growth of the DX business andsteady recovery in the personnel recruiting services business.
・Large-scale advertising was carried out as upfront investment to further increase
market share by capturing the rapid recovery in the job market and to increase recognitionof Baitoru PRO. Operating income was (63.1)% YOY at ¥0.81 bn.

DX business
・Growth of sales and number of companies subject to monthly payment accelerated.
Sales of recurring products as well as non-recurring products were strong.
・Business remained profitable while making investments required for business growth(personnel increase, etc.).
Personnel recruiting services business・Achieved early sales recovery thanks to major promotional campaigns during aperiod when competitors refrained from advertising.
Sales at Baitoru recovered to pre-pandemic levels in December 2021.

© dip Corporation.

3

FY’22/2 Q3 Financial Results (Consolidated) ②
FY’22/2
Q3

FY’21/2
Q3(Million Yen)

(Million Yen)

Sales

8,459

10,448+23.5%

Operating income

2,213

817

(63.1)％

Ordinary income

1,733

759

(56.2)％Net income
attributable toowners of parent(2,424)

515

-

Sales

277

788

+184.5％

Segment Profit

(109)

231

-

EntireCompanyDX
Business© dip Corporation.

YoY4

FY’22/2 Q3 Financial Results (Consolidated) ③■ Breakdown in SG&A

8,455

(Million Yen)

996

5,410

3,654

1,033

Large-scale advertising werecarried out as upfront investment
to further increase market shareby capturing the rapid recovery inthe job market and to increase
Personnel costs
andrecognition of Baitoru PRO*
Othersrelated expenses

3,212
3,804

Advertisingand promotional
Expenses

1,164
0
2021年2月期
FY’21/2
Q3
3Q

2022年2月期
FY’22/2
Q3
3Q* Personnel costs and related expenses include salaries and welfare benefits as well as recruitment related expenses and educational expenses.
© dip Corporation.

5

2© dip Corporation.

FY’22/2 Forecasts

6

FY’22/2 Forecasts ①
Forecasts for the DX business revised upward■ DX Business Net Sales and Segment Profit（Million Yen）

2,900
～2,8002,600～2,300

Sales set to exceed the initial forecast
thanks to bundled sales withpersonnel recruiting services
Strong sales of high-margin products
further boosted profits
700
～600

(100)
～(400)
0

(500)
Sales
売上高

Segment profit
セグメント利益

Previous Forecast
業績予想修正前© dip Corporation.

Sales
売上高

Segment
profitセグメント利益

Revised Forecast
業績予想修正後7

FY’22/2 Forecasts ②
Approach toward sales in Q4■ Sales (compared to the same month of FY’20/2)

Maximum+11.3%

0%(7.2)%

Minimum(12.4)%As new strains of COVID-19
continue to emerge, we have
set upper/lower sales
forecasts for the fourth
quarter of the fiscal year
ending February 2022

(23.2)%(23.7)%(22.4)%(29.1)%(31.8)%(36.1)%

-40%
Q1

Q2

Q3
FY'21/2© dip Corporation.

Q4

Q1

Q2

Q3

Q4

FY'22/2
8

FY’22/2 Forecasts ③
Approach toward operating income in Q4■ Cost structure and operating income(100 million yen)

27.3%

18.6%

8.9%

Operatingmargin

130
116

108

24

10

Operatingincome39

Advertising& sales
promotion
expenses

60

60

Costs of sales
Personnel
expenses
OthersMaximum
Maximum

Minimum
Minimum

forecast

forecast

31
45
29

55

Sales

To further increase market shareafter COVID-19 and increase
recognition of Baitoru PRO,
we plan to invest
approximately 1.4 billion yen
in advertising0
BeforeBeforeCOVID-19
COVID-19

FY’20/2 Q4© dip Corporation.

2022年2月期
FY’22/2 Q4 4Q
9

FY’22/2 Forecasts ④
Full-Year Forecast
FY’21/2
Actual

FY’22/2
FY’22/2
Previous Forecast* Revised Forecast

AmountYoY% change(Million Yen)

(Million Yen)

(Million Yen)

(Million Yen)

Sales

32,49442,800～49,000

38,800～​41,000+6,305～+8,505+19.4%～+26.2%

Operating income

7,312

7,700
～11,800​4,800～​6,200(2,512)～(1,112)(34.4)%～(15.2)%

Ordinary income

6,501

7,300
～11,400​4,500～​5,900(2,001)～(601)(30.8)%～(9.2)%Net income attributableto owners of parent

607

4,950
～7,800​ ,100
3～4,100+2,492​～+3,492+410.1%～+574.7%

Sales

823

2,300
～2,6002,800～2,900+1,976​～+2,076+240.1%～+252.3%

Segment Profit

(541)

(400)
～(100)

600～700+1,141～+1,241-

EntireCompany

DX Business* As of April 7, 2021
© dip Corporation.

10

3

Business Overview and Progress in the DX Business
1. Overview of the DX Business
2. FY’22/2 Q3 Segment Results
3. FY’22/2 Q4 Priority Measures© dip Corporation.

11

1. Overview of the DX Business ① Positioning of the DX Business
Vision‘Labor force solution company’We aim to create a society where as many people as possible can realize a sense ofhappiness through their work. We are developing DX services in addition to our personnel
recruiting services to improve the productivity of client companies and the job satisfactionof each individual worker by digitally streamlining simple tasks.
Personnel Recruiting
Services Business

DX Business

Human workforce solution

Digital labor
force solution

×

AI/RPA business was renamed DX business (Apr. 2021)
The business is aimed at supporting the adoption of DX at SMEs byoffering DX tools that enhance work efficiency and assist sales
activities using the latest technologies under a one-stop SaaS model© dip Corporation.

12

1. Overview of DX Business ② Business Environment
There is substantial room for greater adoption of DX in Japan, especially among SMEs
■ Percentage of companies (by number of employees) deploying DX

74%

38%

Reasons for slower adoptionof DX by SMEs:
・Lack of awareness of which
operations can be streamlined
・The cost and trouble associatedwith introducing DX・Inability to fully utilize the functions
after deploying the tools

Key factors in SMEs decision
to deploy DX:

0%
SMEs

Major Companies

・Low-cost and simple product design
・Implementation support
・High-level of customer success

Source：dip, based on ”Annual Report on National Accounts for 2021” by Ministry of Economy, Trade and Industry© dip Corporation.

13

1. Overview of the DX Business ③ Characteristics of DX Tools, KOBOT Series
A one-stop service providing unique value, designed specifically for SMEs

Easy to introduce
Simple functions and cloud format
enable use on same day

Reasonable prices

Extensive customer
success

Fees start from ¥20,000/month,with no development or
introduction costs

The monthly fee covers
maintenance and operation￥￥
Conventional
DX service

dip’s DX service

Support bysales reps

Remote support bycustomer success repsOne-stop service including installation, operation and maintenancerealize the world of ‘DX for anyone, anywhere’© dip Corporation.

14

1. Overview of the DX Business ④ The Strengths of dip

Easy-to-introduce product specifications × 1,600< direct marketing sales reps
× customer base of 150,000 companies

We will create a DX market among SMEs based on our unique advantages
Product design

VentureSaaS firms

Marketing channel
Marketing, sales

Customer success (CS)Easy-to-introduce
product specifications

1,600< direct marketing
sales reps

High-level inhouse
CS system

Narrow down service
functions of partners(venture firms, etc.),
package them and offer at
low prices

1,500 personnel recruiting services
sales reps + 130 dedicated sales reps*

60<* CS personnel makeproposals on upsellingor continued use

Single-function type,multifunctional type

InboundmarketingCustomer base of
150,000 companies

Inadequate support* February 2022 outlook© dip Corporation.

15

1. Overview of the DX Business ⑤ KOBOT Series Product Lineup
Launched Patronage KOBOT for LINE to increase subscription-based SaaS products
Streamlining of recruiting andpersonnel administration
Corporate Recruiting Page KOBOT

Launched in Jun. 2021
From ¥20,000/month

Creates recruiting webpages on behalf of clients.
Quickly produces original pages featuring Baitoru’s
unique functions, such as workplace introduction videos.

Sales support
Launched in Sep. 2019
From ¥40,000/monthTemp Agency KOBOT
Automatically creates a list of target companies forsales activities of temp agencies.
Calls companies on sales list on behalf of temp agencies.
NEW

Launched in Nov. 2019
From ¥30,000/monthInterview Scheduling KOBOT
Automatically schedules recruitment interviews
with applicants.
(Automatic response by chatbots)Marketing support
Launched in Dec. 2021

Patronage KOBOT

From ¥9,800/month

Issues membership certificate on LINE; offers store
visit reward points and coupons. Supports marketing
activities by restaurants and retailers.

Industry-specific streamlining
Launched in Jul. 2021
From ¥20,000/month

Personnel Administration KOBOT
Provides paperless solutions for part-time worker
onboarding and labor management.
© dip Corporation.

Real Estate Agency KOBOT

Launched in Jun. 2020
From ¥20,000/month

Streamlines data input work, such as obtaining,registering and updating property data.
16

(Reference)
Outline of Patronage KOBOT for LINE (A digital membership service with reward point functions)

Offers promotional tools to small businesses—mainly restaurant
and retail—through easy-to-introduce LINE mini app*.
Assists acquisition of regular customers
Restaurants, etc.

Patronage KOBOT・Simple functions and interface
・Low cost and easy to introduce
・Thorough support, from initial set up
through operation

Users
・Digital membership issued on LINE via
QR code(No app download or membershipenrollment required)
・Receive information on discounts,
limited menus and more

* LINE mini app:・Unlike regular apps, LINE mini app does not have to be installed on devices. It can be launched easily within the LINE app and does not require
account registration either.
・In China, services on mini apps (‘Mini Programs’) within chat apps such as WeChat are already widespread.
The total annual transaction volume and number of daily users in 2020 was approximately 24 trillion yen and 400 million, respectively.
(Source: China’s EC Market and How to Take Advantage Thereof. JETRO)© dip Corporation.

17

2. FY’22/2 Q3 Segment Results ①
Sales surged by +185% from the same quarter of the previous fiscal year.
Growth in sales and number of contracted companies both accelerated■ Sales■ No. of companies subject to monthly payment*2

788（Companies）+185%（Million Yen）

7,847

＋35%

＋28%
6,110

584
*1

*1

5,134

501

4,129
345

3,452

277
2,040
140

38

1,263 1,356

60
0

0
Q4
FY’20/2© dip Corporation.

Q1

Q2

Q3

FY'21/2

Q4Q1

Q2
FY'22/2

Q3

Q4
FY’20/2

Q1

Q2

Q3

FY'21/2

Q4

Q1

Q2

Q3

FY'22/2*1 Certain services including Recruiting Page KOBOT（previously Baitoru RHP) were transferred from the personnel recruiting services businessto the DX business, effective FY’22/2.
*2 No. of companies subject to monthly payment: Number of unique companies using paid services18

2. FY’22/2 Q3 Segment Results ②
Sales of recurring products as well as non-recurring products were strong

788（Million Yen）

Sales of Corporate
Recruiting Page KOBOT
grew by 1.5-fold from theprevious quarter

584
480

Non-recurring products*1(Interview KOBOT)

＋32%
362

221

＋39%

308

Recurring products*2(Corporate Recruiting Page KOBOT
Temp Agency KOBOT, etc.)0
FY'22/2 Q2© dip Corporation.

FY'22/2 Q3*1 Products generally bundled with job advertising services. The contract period is determined in conjunction with the advertising period.
*2 Products with automatic renewal or long-term contracts.

192. FY’22/2 Q3 Segment Results ③
Sales growth remained high as companies subject to monthly payment increased while high ARPU was maintained
Feb. 2021*1

May 2021

Aug. 2021

Nov. 2021

Feb. 2022(Target)Monthlysales¥290 mn ¥400 mn¥160 mn¥210 mn（+18%）（+52%）（+111%）（+189%）

4,700

4,800

6,500

8,600

13,000ー(+3%）(+39%）(+84%)(+176%)¥33,000¥32,000(+15%)(+10%)(+15%)

(+2%)

36%

38%

39%

43%

(+2pts)(+4pts)(+5pts)(+9pts)¥130 mnー(vs Feb. 2021)

No. of companies
subject tomonthly payment(vs Feb. 2021)

ARPU

*2

¥29,000
ー¥33,000 ¥30,000(vs Feb. 2021)

Subscription- *3
based sales ratio

34%
ー(vs Feb. 2021)*1 Certain services including Recruiting Page KOBOT (previously Baitoru RHP) were transferred from the personnel recruiting services business to the DX business, effective FY’22/2.
Figures for Feb. 2021 include Recruiting Page KOBOT for reference purposes.
*2 ARPU: Monthly sales divided by the number of paid client companies*3 Subscription-based sales ratio: Subscription-based sales (automatic renewal or long-term contract) divided by total sales© dip Corporation.

20

3. FY’22/2 Q4 Priority Measures

FY’22/2 Q4
１Expand customerbase

2

Enhance productlineup・Leveraging a direct sales
force of 1,600 and acustomer base of 150,000
companies to further
promote bundled sales ofdx products.

・Offer one-stop proposals of
product packages that suitthe workflows of clients.

・Increase recurring sales
ratio by expanding lineup ofrecurring products toestablish stable customerbase.

- Enhance features of Personnel
Administration KOBOT.

© dip Corporation.

- Further strengthen bundled salesof Corporate Recruiting Page
KOBOT and Interview KOBOT.

- Launch Patronage KOBOT.

3

Strengthen ‘customer
success’ system

・Automate support for service
introduction.
- Leverage automated navigation tools
for initial settings. Promote
improvement of CS efficiency.

・Reinforce CS system for
upselling.
- Contribute to acquiring leads byapproaching companies thatparticipated in webinars.
Continue to strengthen the approach.

21

(Reference)‘DX Certification’ by the Ministry of Economy, Trade and Industry

Our internal DX initiatives* and contribution to encouraging DX introduction
at small and mid-sized client companies have been recognizedWe will aim to be selected as a DX Stock in a bid to improve corporate value further● DX Certification
A system established by the government with the aim ofpromoting DX across society as a whole. The system certifies
companies that are ready to promote DX based on various
criteria, such as having management visions, strategies andｖ

structures in place. Certified companies will be eligible toapply for the DX initiatives of the Ministry of Economy, Tradeand Industry, such as identification as a DX Stock, and will be
subject to DX tax incentives. 254 companies have beencertified as of January 2022.

* 700,000 hours of work (equivalent to 350 employees) are expected to be reduced over a year (FY’22/2)© dip Corporation.

22

4© dip Corporation.

Progress in the Personnel Recruiting Services Business23

FY’22/2 Q3 Segment Results ① Baitoru■ Sales(Million Yen)

Baitoru
Of which,
Baitoru NEXT

FY’21/2

FY’22/2

Q3

Q3

ActualActualYoY Change
Amount% change

6,561

7,548

+986

+15.0％

1,082

1,140

+58

+5.4％

* Includes sales from Baitoru NEXT© dip Corporation.

24

FY’22/2 Q3 Segment Results ② Baitoru
Sales at Baitoru recovered to pre-pandemic levels (Dec. 2021)

Achieved early sales recovery due to aggressive
advertisements while competitors refrain from advertising■ Baitoru Monthly sales (compared to the same month of FY’20/2)
0%

1st declaration ofstate of emergency

Apr. 7 to
May 25, 2020

Request for shortened 2nd declaration of 3rd declaration ofbusiness hours state of emergency state of emergency

Nov. 28, 2020, toJan. 7, 2021

Jan. 8 toMar. 21, 2021

Apr. 25 toJun. 20, 2021

4th declaration ofstate of emergency

July. 12 to
Sep. 30, 2021

Dec. 2021
Vs Dec. 2019(4.9)％-55%
Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

2020
© dip Corporation.

2021

25

FY’22/2 Q3 Segment Results ③ Baitoru
Expansion of customer base accelerated. Seeking to increase market share further

Sales growth to accelerate as number of applications
and app downloads exceed pre-pandemic levels
No. of Applications*No. of app downloads*

133

150

Pre-pandemic

107

100

Pre-pandemic

100

0

0
Nov. 2019* November 2019 referenced as 100© dip Corporation.

Nov. 2021

Nov. 2019Nov. 2021
26

(Reference)
Number of subscriber companies grew significantly on rapid recovery of demand in the restaurant sector■ Baitoru monthly number of subscriber companies (compared to the same month of FY’20/2)[1st declaration ofstate of emergency]
Apr. 7 to May 25, 2020

[Request for shortened [2nd declaration of[3rd declaration ofbusiness hours] state of emergency] state of emergency]
Jan. 8 toNov. 28, 2020, to
Apr. 25
Mar. 21, 2021
Jan. 7, 2021
to Jun. 20, 2021

[4th declaration ofstate of emergency]
July. 12
to Sep. 30, 2021

Dec. 2021
Vs Dec. 2019+26.4％

0%-42%Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jun. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
2020
2021
FY'21/2
FY'22/2© dip Corporation.

27

(Reference)
Share of job postings continued to grow
■ Number of job advertisement postings at competing media (compared to the same month of FY’20/2)

Baitoru

0％

Rival media B

Rival media A△60.0%Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2021
2020
2022
*Source: dip© dip Corporation.

28

FY’22/2 Q3 Segment Results ④ Hatarako.net■ Sales(Million Yen)

FY’21/2

FY’22/2

Q3

Q3

ActualActualYoY Change
Amount% change

Hatarako.net

1,335

1,664

+329

+24.6％Of which,
Dispatch Agencies

1,127

1,442

+315

+28.0％Of which,
Direct employment

208

222

+14

+6.7％

・Sales to dispatch companies continue to recovermainly in the clerical work and the manufacturing sector.

(Note) From its inception, Hatarako.net played the role of a go-between for dispatch companies to solicit applications from those applying for dispatchedemployees. Since 2017, however, it has become a comprehensive website for dispatch companies and general client companies to solicit job applications directly.

© dip Corporation.

29

5

Future Growth Strategies
1. Key Points of the Growth Strategies

2. Progress at Baitoru PRO
3. Initiatives for Further Growth of Market Share© dip Corporation.

30

1. Key Points of the Growth Strategies

Growth strategy 1
Maintain high growth in the DX business by increasing sales of recurring products
Increase sales of recurring products, leveraging 1,600+ direct marketing sales reps and a customer base of 150,000
companies. Maintain high sales growth by enhancing the product lineup and strengthening the customer success system.

Growth strategy 2
Through new service Baitoru PRO, capture market share in specialized job sectors
suffering from severe labor shortage
Number of job postings increased steadily to over 300,000 by leveraging 1,500 sales reps. Became No. 1 in number of job
postings in the beauty care and childcare sectors, in addition to nursing care. Aim to become No.1 in the healthcare sector
also.

Growth strategy 3

Further expand our market share by implementing unique initiatives ahead of ourcompetitors. Aim for early realization of becoming industry leader in job ad market for
part-time workers.
Accelerate sales growth of job ad services by launching promotional campaign of dip Incentive Project that combines digitaland mass advertising, in addition to offering differentiated proposals in combination with our DX products.
© dip Corporation.

31

2. Growth strategy 2 Progress at Baitoru PRO ①
Baitoru PRO; dip’s first new service in 12 years (Launched in May 2021)

New job openings-to-applicant ratio by job type
(Before COVID-19 Feb. 2020)

Healthcare

Nursing careChildcare

3.38

5.49

4.18

Beauty care

7.66

WEB/IT

3.58

Restaurant(Cooks)4.08

A comprehensive job information site for
specialized jobs in industries that faceserious labor shortages.
The service encourages movement in thelabor force by supporting professionals aswell as individuals aiming to become
professionals.
By leveraging our strengths such as 1,500
sales staff and unique promotions thatcombine digital and mass media, we aim to
expand sales in the professional field* to380 billion yen.

Source: “New Job Openings-to-Applicant Ratio by Job Type (Regular Employment including Part-Time)”, Ministry of Health, Labour and Welfare※ Professional job advertising and recruiting market© dip Corporation.

32

2. Growth strategy 2 Progress at Baitoru PRO ②
In addition to nursing care, we also have the largest number of job postings in the beauty and childcare fields(excluding jobs introduced through Hello Work*)

Aiming to become No.1 in the number of postings
in the healthcare sector during the current fiscal year
Baitoru PRO(Thousand)

Rival Media C（Actual number）

Nursing care(Thousand)

Rival Media C (Number of Hello Work postings)

Beauty care(Thousand)

10
100

3
30

3
30

0

0

0
May 19 June July

© dip Corporation.

Aug. Sep. Oct. Nov.

Dec.

Childcare

May 19 June July

Aug. Sep. Oct. Nov.

Dec.

* Common name for Public Employment Security Office(Note) Based on figures as of the beginning of each month for June and afterwards

May 19 June July

Aug. Sep. Oct. Nov.

Dec.

33

3. Growth strategy 3 Initiatives for Growth of Market Share ①
Market share growth accelerated. Seeking early realization of becoming No.1 in industry■ Share of part-time and temporary worker job ad market*
21.4%

17.9%

15.1%
13.9%
12.2%

Increased
market share
during COVID19 pandemic

Aiming for further growth ofmarket share through uniqueinitiatives ahead of competitors

Gain market share due
to termination of'an' service

10.0%

7.7%

0%
FY'15/2

FY'16/2

FY'17/2

FY'18/2

FY'19/2

FY'20/2

FY'21/2* Share was calculated by estimating the market size based on the sales of major job information media.
© dip Corporation.

34

3. Growth strategy 3 Initiatives for Growth of Market Share ②
Launched “Dip Incentive Project” that posts information of jobs with higher wages and salaries

Improve conditions for workers by proposing pay raises to client companies.
This will enhance the client’s competitive advantage in the recruiting market, andalso contribute toward alleviating labor shortages amid increasing demand forhuman resources mainly in restaurant and service sectors
Job postings by participating companies amount to 720,000 out of the total of 1,000,000 posted● Examples of incentives
Costs are borne by the recruiting companies

Higher hourly wages
Bonus for continuous serviceｖ
Cash gift upon employment
Vaccine Incentive- Vaccine allowance- Preferential treatment(hourly wages and shifts)- Special leave© dip Corporation.

* As of January 12, 2022

35

3. Growth strategy 3 Initiatives for Growth of Market Share ③
Launch of ‘dip Incentive Project' promotion

Significantly expand the user and customer basethrough promotions that combine digital and mass advertising

New commercial featuring DAIGO (playing a dip employee) and Nogizaka46 (job seekers) will be aired.
A dip sales employee played by DAIGO appeals to client companies
to improve the working conditions of workers.

© dip Corporation.

36

6© dip Corporation.

Shareholder Return37

Shareholder Return
FY’22/2 Dividend forecast■ Dividend per share(Yen)

Interim
Dividend

Year-end
Dividend

Commemorative
Dividend

56

56

29

29

56

50
43
36

29

26

2

24
18

16

The year-end dividend for the fiscal
year ending February 2022 isscheduled to be 29 yen per share,equal to the year-end dividend for theprevious fiscal year

19

24

27

27

27

FY'20/2

FY'21/2

FY'22/2(Reference) Dividend policy
The divided amount is determinedtaking into consideration the dividend
results of the prior fiscal year andusing a dividend payout ratio of 50%
as a guide.

0
FY'17/2© dip Corporation.

FY'18/2

FY'19/238

7© dip Corporation.

Appendix391. Corporate Profile / Overview ①© dip Corporation.

Company name

dip Corporation

EstablishedMarch 1997

Representative

Hideki Tomita, Representative Director, President & CEO

Location

3-2-1 Roppongi, Minato-ku, Tokyo

Capital¥1,085 million

Sales¥32,494 million

Employees

2,009

Main Business

Provision of online job information and DX services

MarketFirst Section of the Tokyo Stock Exchange (code: 2379)(As of end of August 2021)(For the fiscal year ended February 2021)(Full-time employees as of November 30, 2021)

40

1. Company Profile / Overview ②
Philosophy
Corporate Philosophy

VisionHere at dip

Labor force solution company

we want to tap into

Dip provides our clients personnel recruiting services and AI/RPA services tosolve various types of labor-related issues as a “General Trading Company
Dealing in Labor Force”.

dreams,ideas andpassionto create a better society

Founder's Spirit
1 See tough situations as opportunities.
Turn difficulties into opportunities through a change in mindset.
Under every circumstance, be vigilant; don‘t let your guard down. Take abird's-eye view of things from every angle and then pioneer your own way.

2 Continue to take on new challenges.
dip way

No matter the situation, do not be afraid of failure; persevere boldly.
Solve social issues as an innovator with the spirit of a pioneer.

3 Never give up.
dream
We have our own dreams. We talk about our dreams. We strive to make our
dreams come true. We never give up along the way.

idea
Ideas are the source of our growth and development. By respecting
individualism, and fostering a free and natural corporate culture, new ideas
flourish, leading to the creation of valuable and innovative services.

passionBeing passionate about our work encourages the people around us to bepassionate. Praise one another generously, celebrate joy, recognize worry,encourage each other and discuss everything. Maintaining unity, we continue to
win the victory through our teamwork and leadership.
© dip Corporation.

With a strong will and dedicated action, keep going. Never give up.
If you fail, learn. Complete greater achievements.

4 Go beyond expectations.
Do not just accept, “think” and drive value from your own ideas.
Exceed expectations. Propel your own growth.

5 Enjoy your work, enjoy your life.
Strike a balance between your work and your personal time to createa fulfilling life.

6 Each employee has a role to play in creating dip.
Cultivate your individuality in the philosophy we share.
Make your mark in building our future.

41

1. Company Profile / Overview ③
Personnel Recruiting Service Business Model

OnlineJob ads Sites

Baitoru
Pool of job ads

Posting fee*1
Job Posting

ClientApplication / Recruiting fee*2
Posting fee
Job Posting / Recruiting

Baitoru NEXT

Hatarako.net

Baitoru PRO

Recruiting fee*2
Recruiting

Applications

Pool of job ads /Career Change Support

Job Seeker

Applications
Career Change Support

Nurse de hatarako
Recruiting
Service

Applications*1 A model in which a fee is collected in return for posting a job on one of our sites for a specified period of time.
© dip Corporation.

*2 A model that allows job openings to be posted on our website for free,with a fee paid when an application is received or an applicant is hired.

42

2. FY‘22/2 Q3 Financial Results ①
Income statement（Million Yen）

FY'20/2

FY'21/2

FY'22/2

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

12,011

10,813

11,925

11,664

9,168

6,906

8,459

7,960

9,226

8,387

10,448

Cost of sales

746

737

759

793

801

756

835

909

1,060

1,092

1,176

Gross income

11,264

10,076

11,166

10,870

8,366

6,149

7,623

7,051

8,166

7,295

9,272

7,507

6,602

7,222

7,689

5,563

5,210

5,410

5,677

6,310

6,111

8,455

3,143

3,009

3,015

3,498

3,111

3,271

3,212

3,260

3,405

3,323

3,654

3,213

2,626

3,097

2,918

1,421

956

1,164

1,438

1,871

1,810

3,804

Land & Office Rental

265

264

264

280

292

290

288

288

286

286

285

Others

884

702

844

992

737

693

744

689

746

691

710

Operating income

3,757

3,473

3,944

3,181

2,803

938

2,213

1,373

1,856

1,184

817

Ordinary income

3,774

3,481

3,951

3,185

2,811

937

1,733

1,296

1,784

1,115

759

Net Income attributableto owners of parent

2,599

2,328

2,713

2,370

1,930

829

(2,424)

509

1,204

948

515

Sales

Selling, general &administrative expenses
Personnel costs andrelated expenses*
Advertising andsales promotion costs* Personnel costs and related expenses include salaries and welfare benefits as well as recruitment related expenses and educational expenses.
(Note) Dip has adopted consolidated accounting, starting from the third quarter of the fiscal year ended February 2021.
Figures for FY'20/2, FY’21/2 Q1 and Q2 are non-consolidated and for reference purposes.

© dip Corporation.

43

2. FY‘22/2 Q3 Financial Results ②
Balance sheet（Million Yen）

AssetsCurrent assets
Non-current assets
Property, plants andequipment
Intangible assets
Investments andother assets

Liabilities
Current liabilities
Non-current liabilities

Net Assets
Shareholders‘ equity
Total accumulated
other comprehensive
incomeShare acquisition rights
Non-controllinginterests© dip Corporation.

FY’21/2

FY’22/2 Q3(As of February 28,2021)（As of November 30, 2021）

Comparison to
the previous year

35,86917,782
18,087
1,698
6,831
9,557
4,691
3,576
1,114
31,17830,302

41,05321,368
19,685
1,997
7,581
10,106
8,924
7,697
1,227
32,12831,564+5,184+3,586+1,597
+298
+750
+548
+4,233+4,120+112+950+1,261

(33)

2

+35

892
16

546
16

(346)
(0)
44

2. FY’22/2 Q3 Financial Results ③Statement of cash flows（Million yen）

Cash and cash equivalents
at beginning of period

12,462+8,168Operating activities(481)

Investment
activities

Purchase ofproperty, plant and equipment(2,276)

Purchase of intangible assets

(48)

Other

Financing
activities(2,806)(3,183)

Dividends paid

(2,587)
+596

Other

Cash and cash equivalents
at end of period© dip Corporation.

15,23745

3. FY’22/2 Q3 Segment Results ①
DX business KPI（retroactive figures)■ Sales■ No. of companies subject to monthly payment

7,847

788 （Companies）（Million yen)）

6,110
584
5,134

501
4,548
3,928

398
331
2,564
194

91

1,708

113

0

0

Q4
FY’20/2© dip Corporation.

1,899

Q1

Q2

Q3

FY'21/2

Q4Q1

Q2
FY'22/2

Q3

Q4
FY’20/2

Q1

Q2

Q3

FY'21/2

Q4

Q1

Q2

Q3

FY'22/2(Note) Certain services including Recruiting Page KOBOT (previously Baitoru RHP) were transferred from the personnel recruiting services businessto the DX business, effective FY’22/2. Figures for FY’20/2 and FY’21/2 include Recruiting Page KOBOT and are for reference purposes.

46

3. FY’22/2 Q3 Segment Results ②
Number of personnel in the DX business(Persons)

206

212

Q2

Q3

190

172

180

136

93
82

54

60

35

3

0
Q4
FY'19/2© dip Corporation.

Q1

Q2

Q3

FY'20/2

Q4

Q1

Q2

Q3

FY'21/2

Q4

Q1

FY'22/247

3. FY’22/2 Q3 Segment Results ③
Personnel recruiting services business KPI

Baitoru
Sales

Q1

FY’20/2
Q2
Q3

Q1

FY’21/2Q2
Q3

Q4

FY’22/2
Q1
Q2

Q4

Q3

9,426

8,603

9,624

9,353

6,891

5,256

6,561

5,753

6,402

5,957

7,548

+10.1%

+9.4%

+8.5%

+13.1%(26.9)%(38.9)%(31.8)%(38.5)%(7.1)%+13.3%+15.0%

14,506

13,81814,81915,285

11,841

10,87313,015

12,845

13,65913,461

16,524+9.7%+10.2%+9.9%+11.9%(18.4)%(21.3)%(12.2)%(16.0)%+15.4%+23.8%+27.0%+10.3%+13.7%+14.9%+39.0%+13.5%

+2.6%

+1.6%

(15.5)%(6.2)%(3.4)%+15.6%

1,394

1,377

1,488

1,479

1,156

854

1,082

1,035

1,122

1,047

1,140

+37.0%+18.0%+12.8%+11.3%(17.1)%(37.9)%(27.3)%(30.0)%(2.9)%+22.6%+5.4%*1（Million yen）

＜YoY＞
Number of（Companies）
subscriber companies＜YoY＞

Number ofapplications

Baitoru NEXT
Sales

＜YoY＞

（Million yen）

＜YoY＞
Number ofsubscriber companies
Number ofapplications

Hatarako.net
Sales（Companies）

3,257

3,169

3,577

3,715

3,000

2,631

3,305

3,474

3,589

3,551

4,096

＜YoY＞

+29.9%+16.2%+20.6%+17.8%(7.9)%(17.0)%(7.6)%(6.5)%+19.6%+34.9%+23.9%＜YoY＞+33.7%+20.4%+20.6%+24.7%+12.9%(0.2)%(11.8)%(6.6)%(12.0)%(2.2)%+27.2%

1,954

1,866

1,969

2,000

1,616

1,144

1,335

1,576

1,651

1,484

1,664

+16.2%+12.2%

+8.4%

+8.4%

(17.3)%(38.7)%(32.2)%(21.2)%+2.2%+29.7%+24.6%

3,180

3,187

3,454

3,513

2,822

2,374

2,602

2,683

2,602

2,426

2,557

+19.5%+16.7%+18.0%+10.1%(11.2)%(25.5)%(24.7)%(23.6)%(7.8)%+2.2%(1.7)%+19.2%+17.1%+12.1%+21.3%+24.3%+27.7%+31.2%+54.3%+33.4%+2.6%+12.2%（Million yen）

＜YoY＞
（Companies）
Number ofsubscriber companies＜YoY＞

Number ofapplications＜YoY＞© dip Corporation.

*1 The KPIs of Baitoru include those of Baitoru NEXT.
*2 Certain services including Recruiting Page KOBOT (previously Baitoru RHP) were transferred from the personnel recruiting services businessto the DX business, effective FY’22/2.

48

3. FY’22/2 Q3 Segment Results ④
Sales at Nurse de Hatarako■ Sales（Million yen）

Nurse deHatarako© dip Corporation.

FY’21/2

FY’22/2

Q3

Q3

ActialActual281

YoY Change
Amount327+45% change+16.4％

49

3. FY’22/2 Q3 Segment Results ⑤
Nurse de Hatarako ranked No. 1 in customer satisfaction

Of the five factors judged for the survey, Nurse deHatarako ranked No. 1 overall, ranking first in‘usability’, ‘quality of jobs’ and ‘communication skill’.

No. 1 in 2022 Oricon customer satisfaction survey Nurse Career Change category
Note: Oricon’s customer satisfaction survey is an annual questionnaire survey of users who actually used a
service or product, with the objective of ‘visualizing satisfaction.’© dip Corporation.

50

4. Market Environment
Government and ruling party announce policy to enhance tax benefits
for companies raising wages to reduce inequality◀ November 16, 2021
Nihon Keizai Shimbun morning edition

December 1, 2021 ▶
Nihon Keizai Shimbun morning edition◀ October 14, 2021
Nihon Keizai Shimbun morning edition© dip Corporation.

51

5. Financial results ①
Operating results (Sales and operating income for entire company)
 Sales（Million yen）

Listed on
Tokyo
Stock Exchange
Mothers

Listed on
the first sectionof the Tokyo
Stock exchange

38,062

42,176 46,415

33,17832,494

26,79819,530

852

1,805

3,086

5,171

8,434

9,374

11,506

7,969

13,0509,524 11,432 9,951

0 Operating income(Million yen)

7,162

9,119

10,79912,745

14,356

7,312

4,806
194

355

442

636

631

711

1,288

316

210

803

1,057

1,714

0

Note: dip has adopted consolidated accounting, starting from the third quarter of the fiscal year ended February 2021.
© dip Corporation.

52

5. Financial results ②
Operating results for the personnel recruiting services business Sales at Baitoru (Includes sales from Baitoru NEXT)（Million yen）

30,55826,61533,567 37,008
24,462

20,97515,089

590

86

1,364

2,585

4,486

5,319

6,901

5,517

7,178

8,406

6,528

9,579

0

 Sales at Baitoru NEXT
(Million yen)

5,740
4,833
4,129
3,461
2,263
316

306

464

971

0

© dip Corporation.

53

5. Financial results ③
Operating results for the personnel recruiting services business Sales at Hatarako.net（Million yen）

7,010 7,790
5,526

29

306

762

1,205

1,685 1,930

2,335 2,596

5,672

3,945

3,259

2,938
1,564

1,112 1,134 1,054 1,030

1,827

0

 Sales at Nurse de Hatarako※(Million yen)

2,179
1,580

809

Affected by the change in recognition timing
2,323

2,545

2,841

2,593
1,959
1,573

1,561

1,526

774
51
0

© dip Corporation.

54

6. Medium-Term Management Strategy dip2025 ①
Nine Themes© dip Corporation.

55

6. Medium-Term Management Strategy dip2025 ②
Growth Strategy

We will achieve growth in the
personnel recruiting services businessas well as increase subscription-based
revenues driven by the DX businessNewbusinesses（SDGs）

DX business

Personnel recruiting services© dip Corporation.

56

6. Medium-Term Management Strategy dip2025 ③
Aspirations toward FY’25/2

FY’25/2
Aspirations¥100 bn
Op. income¥30 bnSales

Portion of DX business:¥45.0 bn
Op. income ¥10.8 bn
Sales

FY’21/2
Results¥32.4 bn
Op. income ¥7.3 bn
Sales© dip Corporation.

57

6. Medium-Term Management Strategy dip2025 ④
Human Work Force ‘Matching jobs quicker than anywhere else’

High-quality job postings
supported by direct
marketing sales

Job seekers (users)with existing andpotential needs

Fresh, accurate and high-quality
job postings

High brand recognition

Appealing job information manuscripts
leveraging production and editing
skillsWebsites and apps with userfriendly UI/UX that makes it easy tosearch for jobs

Offers optimal matching
using the power oftechnology© dip Corporation.

58

6. Medium-Term Management Strategy dip2025 ⑤
Digital Labor Force ‘DX for anyone, anywhere’
Largecompanies
Approx.

Major SIers
IT Consultants

4,000 companies

The strengths of DIP’s DX businessMid-sized
companies

Areas
where
existing
players are
scarceMajor SIers have not expanded into the mid-sized andsmall company markets since introduction and followups involve a lot of effort and require the establishmentof a sales framework

Sales force of 1,600 sales reps
Customer base of 150,000 companies

Approx.

300,000 companies
ディッtarget markets

Small companies

Development and introduction of
packaged products for various
industries, using tools developedby third parties

1,600,000 companies

Strong “customer success” system

Approx.

Source: dip, based on “June 2016 Economic Census for Business Activity” by the Statistics Bureau, Ministry of Internal Affairs and Communications (MIC)
Number of employees of each company segment: Small (1–19); mid (20–1,000); large (more than 1,000)© dip Corporation.

59

6. Medium-Term Management Strategy dip2025 ⑥
New Business ‘Societal improvement through businesses based on SDGs’
Corporate philosophy

Here at dip, we want to tap into dreams, ideas andpassion to create a better society
The SDG market is a potential growth market backed by the United Nations declaration.
We will launch new businesses in this market to achieve continuous growthand contribute to a sustainable society.

© dip Corporation.

60

7. List of Companies in which dip Invests
Investments are made based on dip’s management philosophy and vision

By work type
Sales

DX Business

Personnel Recruiting
Services Business“DX for anyone, anywhere”“Matching jobs quicker than anywhere else”

Clerical work

Recruiting,labor services

Training

Education
Marketing

IP management

Development

New Businesses(SDGs)“Societal improvement
as a business based on SDGs”
By industry
Healthcare© dip Corporation.

Environment
Finance

Real estateEntertainment61

8. Overview of Baitoru PRO ①
Market size of specialized jobs segment■ Market size of job advertisements and placements*1

Approx. ¥950 bn

Market size of specialized jobs*2¥382 bn(Estimate)

Approx. ¥540 bn

Share of ※3
specialized jobs:*3
Approx. 22%¥209 bn

Job advertisements© dip Corporation.

Share ofspecialized jobs:*4
Approx. 32%¥173 bn*1 Job advertisements: “Results of Job Information Service Market Size
Survey” by the Association of Job Information of Japan
Placements: “Results of Aggregation of Business Reports of
Employment Placement Businesses” by the Ministry of Health, Labourand Welfare*2 The following six industries: Nursing care, healthcare, childcare, beauty
care, IT, and restaurant*3 Estimated by DIP based on “Results of Aggregation of Number of Job
Advertisements Posted” by the Association of Job Information of Japan*4 Estimated by DIP based on “Results of Aggregation of Business Reportsof Employment Placement Businesses” by the Ministry of Health, Labourand Welfare

Placements62

8. Overview of Baitoru PRO ②
Roadmap for the growth of Baitoru PRO

Obtainjob
postings© dip Corporation.

Enhanceuser
recognition

Enhanceprecision ofmatching
between job
informationand job
seekers

Sales
increase63

9. Initiatives in ESG ①
Efforts to promote diversity
In 2015 we launched a project to foster autonomous career development among female employees.
In February 2017, we received the “Eruboshi” certification from the Ministry of Health, Labor andWelfare as a company which excels in promoting the participation and advancement of women in the workplace.
■ Efforts to increase work opportunities for women・Female employee ratio*1

46.5 %

・Female manager ratio*1*2

32.4 %
・ Childcare/maternity leave/take ratio *1

100.0 %

・Childcare/maternity return ratio *1*1. As of FY'21/2*2. The average of all companies is 7.8% (Aug. 2020) (source: Teikoku Databank)© dip Corporation.

87.2 %
64

9. Initiatives in ESG ②
Enriching society through business activities and social contribution activities

First Shakatsu! project:
Food Bank Project

Regional revitalization project:
Kurashi Taiken Tours

Career education for children:
Baitoru Kids Program

Hosting a food pantry in cooperation
with a food bank76 events have been held nationwide as ofend of Feb. 2020, contributing tocreating jobs in regional areas

Providing opportunities for children tounderstand the meaning and value ofworking by teaching our
know-how on “work”© dip Corporation.

65

Disclaimer and contact
Disclaimer
 The forward-looking statements contained in this material are recognition, opinion, judgement,
and forecast as of the date of preparation of this material, and we do not guarantee theirrealization. Actual results may differ from the forecast depending on a variety of factors.
 Information contained herein regarding companies other than dip is quoted from public sourcesand others. dip has neither verified nor is it responsible for the accuracy of such information.

 Any statements made herein are made solely for provision of information and are not an
inducement to investment in dip securities. It is recommended to refrain from making
investment decisions that are fully dependent on this material.
 English documents are prepared as a courtesy to our shareholders. In the event of any
inconsistency between English-language documents and the Japanese-language documents, theJapanese-language documents will prevail.

IR inquiries
IR team, dip Corporation

E-mail: finance@dip-net.co.jp
URL: https://www.dip-net.co.jp/en© dip Corporation.

66