INTEGRATED REPORT 2023

dip Corporation

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

dip Integrated Report 2023

The three essences embodied in our company name－ “dream, idea, and passion,” are what drive us.

With dreams, ideas, and passion as our driving force,
we have overcome numerous hardships and achieved tremendous growth.
And now, with the labor market changing significantly due toadvances in AI and robotics,
dip has already begun working on initiatives with an eye to the future.
For the happiness of all people,
we will use AI to enter a new era and aim to realize a society
in which everyone can experience the joy and happiness of work.

The dip logo is an interactive design. When it istraced with a finger or mouse on smartphone or
PC screen, sparkling lights dance around thescreen before settling back into the original shapeof the logo. The logo’s white color is created by theblending together of blue, green, and red, which
are the three primary colors used to produce lightin digital media. Blue represents our dreams,
green our ideas, and red our passion, and themultitudes of light particles and colors symbolize
our abundantly diverse employees and theirdynamism. The ability to move those pinpoints oflight around and change them into different
shapes signifies the strength of dip’s adaptability
to change. The logo was designed by worldfamous ultra-technologist collective, teamLab.
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dip Integrated Report 2023

CONTENTS

05 Introduction

07 Philosophy-Based Management
09 Business Outline

11 History of Value Creation

15 Top Message

17 CEO MESSAGE—Ushering in a New Era with AI to Make People Happy—

23 Tripartite Discussion with Our CEO, COO and Professor
Yutaka Matsuo—Utilizing AI Makes the World a Place Where Everyone Can Enjoy
Working and Feel Happiness—

27 Sustainability

29 COO MESSAGE—Realizing Worker Happiness Through Strengths Cultivated
Based on Our Philosophy and AI/Pursuing Social Value andEconomic Value Simultaneously—
33 Sustainability

37 To Realize a Sustainable Society

47 Value Creation Process
49 Value Creation Process

51 Value Creation Process by Embodiment of Philosophy
55 Human Capital Connected with Our Philosophy

70 CHO MESSAGE—Bringing Out the Maximum Potential of Employees Throughthe Use of AI—

71 Growth Strategy
73 Business Overview

79 Medium-Term Management Plan “dip30th”

85 CBO MESSAGE—Promoting Our Growth Strategy based on the Theme of dip30th—“New Era”—to Realize the Vision of Becoming a “Labor Force
Solution Company”—

101 CFO MESSAGE—Aiming for the Sustained Enhancement of Corporate Value witha Comprehensive View of Economic and Social Value—

109 Governance

111 Structure of the Board

123 Corporate Governance

141 Data Section

141 Financial and Non-Financial Data

143 Evaluations from outside the Company

145 Corporate Information/Stock Information

Publication of the Integrated Report 2023

dip’s integrated report summarizes the different types of value the Company has provided to the community
to date through the strengths of its business model based on its philosophy and also the initiatives being
taken to realize the society that it aims to achieve.
Integrated Report 2023 sheds light on the impact of exponential advances in AI and other technologies in thelabor market, our strength in human capital that forms the core of value creation, our pathway to further
growth, and how we intend to achieve a sustainable increase in corporate value.
We hope to further engage in dialogue with diverse stakeholders based on this integrated report.
3● Reporting Period

March 1, 2022 to February 28, 2023

Note: Certain information outside this period is
also included.

● Scope of This Report

dip Corporation and Group companies● Reference Guidelines
IFRS Foundation, International Integrated
Reporting Framework.
Ministry of Economy, Trade and Industry,
Guidance for Integrated Corporate
Disclosure and Company-Investor
Dialogue for Collaborative Value Creation.
Global Reporting Initiative, GRI Standards.

● Caution Regarding Forward-Looking Statements
The results forecasts and forward-looking
statements in this report represent our assumptions based on information available at the timeof disclosure. Actual business performance may
differ significantly from forecasts due to futuresocial and economic conditions and other factors.
4

dip Integrated Report 2023

Introduction
This chapter begins with an explanation of ourphilosophy, which serves as the foundation for

management and guides how every officer andemployee makes decisions and acts. That isfollowed by our business outline and history.

CONTENTS
7

Philosophy-Based Management

11

History of Value Creation

9

5

Business Outline

6

dip Integrated Report 2023

Philosophy-Based Management

Nurtured by the history of dip’s various challenges and born in the course of overcoming
various hardships, dip’s philosophy forms the foundation of our management and thestarting point to which our officers and employees will return at all times.
The philosophy provides the driving force for dip’s rapid growth and has been the impetus
for a range of innovations.

Here at dip,
we want to tap into dreams,
ideas and passion
to create a better society.
Labor force solution company
Through the provision of human resource
services and DX services, and by working tosolve various problems in the labor market,
we aim to realize a society in which
everyone can experience the joy andhappiness of work.

One to One Satisfaction

We pursue ‘user-first’ services that are accessible
to each and every one of our customers.
We will achieve ‘No. 1 satisfaction’ foreveryone involved in our business.
Based on the belief that‘people are everything and people are assets,’
we aim to be‘No. 1 in employee well-being.’

7

Corporate
Philosophy
VisionBrand Statement
dip WAY(our code of conduct)
Founder’s Spirit(our behavioral philosophy)

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.

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

idea

Ideas are the source of growth and development.
We will create a free and vigorous corporate culture overflowing with diversity
and as innovators in the field, we will pursue the creation of valuable services.

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 a bird’s-eye view of things from every angle and thenpioneer your own way.

3. Never give up.

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

2. Continue to takeon new challenges.
4. Go beyond
expectations.

5. Enjoy your work,
enjoy your life.
6. Each employee
has a role to playin creating dip.

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

Do not just accept, “think” and drive value from your own ideas.
Exceed expectations. Propel your own growth.
It is our goal that every employee enjoys both work andprivate life, and leads a happy life,
fulfilled both physically and mentally.
Cultivate your individuality in the philosophy we share.
Make your mark in building our future.

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dip Integrated Report 2023

Introduction

Business Outline

Top Message

VisionThrough the provision of human resource services and DX services,and by working to solve various problems in the labor market,
we aim to realize a society in which everyone can experience the joy and happiness of work.

Personnel Recruiting Services Business

DX Business

Human workforce solution

Digital labor
force solution

Sales

FY’21/2

32.4 bn

FY’22/2

39.5 bn

FY’23/2

FY’21/2

7.3 bnFY’22/2

5.6 bnFY’23/2

FY’21/2

6.5 bnFY’22/2

5.3 bnFY’23/2

FY’21/2

0.6 bnFY’22/2

3.4 bnFY’23/2

FY’21/2

2.0%

FY’22/2

11.1%

FY’23/2

FY’21/2

FY’22/2

FY’23/2¥¥

Operating Income¥¥

Ordinary Income
¥

¥

¥

¥

¥

49.3 bn
11.5 bn
11.5 bn

Net Income Attributable to Owners of Parent

Business flow¥

ROE

Personnel Recruiting Services Business
Listing fee (posting fee*1)

Online job ads sites

Job posting
Listing fee (posting/application*2/adoption*3)

Online job ads site

Job ads/
career change support
Application

Recruiting service

Recruiting
Service use fee

Job ads

Equity Ratio

Application

Job posting

Recruiting fee*4

Job seeker

Career change support
Application

DX BusinessDX service

9

Value Creation
Process

Growth Strategy

Governance

Data Section

Financial & Non-Financial Highlights“Labor force solution company”

ClientSustainability*1. Posting fee: A model in which a job posting fee is paid based on the length of time a position is posted on our website.
*2. Application fee: A model in which job postings to our website are free and fees are paid when applications for the position are received.
*3. Adoption fee: A model in which job postings to our website are free and fees are paid when a candidate is hired.
*4. Recruiting fee: A model in which a commission is paid at the time of employment after the employment decision is made through our staffing service.

84.4%

¥

76.4%

¥

7.9 bn22.7%

Employees(including temporary and part-time employees)

3,210 (as of August 2023)
Sales Employees

1,995 (as of August 2023)
Engineers

178 (as of August 2023)
Female Employee Ratio(full-time employees)

47.1% (as of August 2023)
Number of Offices

36 (as of August 2023)

75.0%

Assessment of ESG
Management

Included in all six indexes adopted by
the Government Pension Investment
Fund (GPIF)

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dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

History of Value Creation

Dreams, ideas and passion. dip began with the desire to work for the benefit of workers and to makesociety a better place by harnessing these three driving forces. Since then, through the provision of job
listings via the internet, dip has supported the recruitment and use of human resources by client companies, and engaged in business with the aim of creating a society where every job seeker can work withvitality. Now dip’s business also supports corporate DX to enrich people’s work.

Mar. 1997

Oct. 2000

Oct. 2002

dip Corporation founded

In the beginning there was no money, no office, and no colleagues. Hideki Tomita started the business from scratch withjust “dreams, ideas and passion.” After happening to see a TV
program on Japan Incubation Capital, a fund established by
Yasuyuki Nambu of Pasona Group and Masayoshi Son of SoftBank to assist young entrepreneurs, Tomita submitted hisbusiness plan. It was approved and he was able to secure
funding and a workspace at Pasona’s office from which, at last,
he was able to establish dip Corporation.

Launched Hatarako.net

Listed on TSE Mothers

Oct. 2004

Launched Job Engine

Pasona Group CEO Yasuyuki Nambu (right) anddip CEO Hideki Tomita (left)

In an era when only around 18% of Japanese households had aninternet connection, dip negotiated with Lawson, Inc., which atthat time had about 7,500 convenience stores across Japan.
Utilizing Lawson’s network of storefront terminals Loppi, dip
was able to begin offering employment information services as adispatch agency. By using the convenience store terminals in
conjunction with the internet, dip was able to realize a society
where everyone was able to find employment.

Apr. 2006

Launched Baitoru

As part of Hatarako.net, which enabled employment information
to be speedily provided in just the right amount for job seekers
via the internet, dip began providing part-time and contract job
information in February 2001. That was subsequently spun off as
an online job-listing site for part-time positions under the nameof Baitoru.

Foundation
11

May 2004

Starting a challenge to make our dream come true

Development

Three days before the listing that wasscheduled for December 2003, Yahoo Japan
Corporation abruptly informed dip of thetermination of their partnership. Given thecircumstances, dip decided to postpone the
IPO. This decision, however, bolsteredinvestors’ confidence. As a result, dip wasable to go ahead with the IPO just five months
later, the fastest listing (after a postponement) ever at that time for a Japanese stock.
dip embarked on the challenge of offering thefirst search engine in the industry to find anddisplay the internal job postings of various
corporate websites. dip launched a service thatenabled people to view job postings automatically pooled from corporate websites.

Jan. 2009

Launched Baitoru Employee

Sep. 2009

Launched Nurse de Hatarako

May 2013

Launched

Started large-scale recruitingof new graduates

In the 10 years since being established, dip
had become a listed company and developed
a sound and independent business model.
During the period, dip had placed the focus
on the development of sales know-how. But
at this point, in order to recruit and nurture
the human resources who would create dip’s
unique corporate culture, management decided to undertake a large-scale recruiting of
new graduates. Although having only 350
employees at the time, approximately 200
new graduates were recruited to join the
Company. These employees who would
inherit the corporate DNA became the mostcritical assets that would drive the fantastic
path of growth on which the Company was
about to embark.

Turning difficulties into
opportunities througha change in mindset

Revolution(now, Baitoru NEXT)

dip launched an online job-listing site
for full-time positions with a view tohelping job seekers build on theirpart-time work experience and taketheir career to the next level.

Recognizing healthcare and nursing
care as the sectors less susceptible toeconomic conditions and more neededby society going forward, dip launcheda site specializing in job change
information for nurses. This new
business reflected the management
stance of considering social good overthe medium to long term.

Raise the Salary Campaign

dip conducted a large-scale campaign
to encourage its client companies toraise hourly wages when recruiting
new staff. dip conducted this campaign under the umbrella of Abenomics, aiming to make sure that thebenefit of government policies tobreak through deflation would extend
to fixed-term workers and allow all
working people to contribute to therevitalization of the Japanese
economy.

Overcoming a crisis
based on the belief that“people are everything
and people are assets”
12dip Integrated Report 2023

Dec. 2013

Jun. 2016

Listed on the TSE First Section
With the combined effort of all its
staff members, dip was able to see offmany difficult challenges, including
the Subprime Crisis, and reach thelong-cherished goal of listing on the
TSE First Section. dip made a newstart with a message from CEO
Tomita: “I think this is a valuable
stage on which we must aspire not
only to generate large sales andprofits but also to create a better
society.”

Launched AINOW

Focusing on artificial intelligence (AI)
as a key technology in tackling thefalling birth rate and aging population, dip began operating a media
platform specializing in AI.

Apr. 2019

Sep. 2019

Mar. 2020

Launched AI/RPA business
By expanding its business domain
centered on job advertisement
media, dip started providing recruitment support through job advertisements, and also launched a new
business to develop and provide
services using AI and robotic process
automation (RPA). Based on this, weestablished a new vision to be a
“Labor force solution company” tosolve various problems in the Japanese labor market.

Launched KOBOT

Because traditional DX services were
expensive and required specialists tooperate, the new service was designed to be easy for small andmedium-sized enterprises to introduce and continue to use. KOBOT was
launched under the concept that it
could be quickly and easily utilized byanyone.

Launched financial

assistance for fixed-term
workers during closures

dip provided half a month’s income(the period necessary for isolation
and recovery) to those who had
obtained employment through dip’s
services if they contracted COVID-19.
dip also advocated the need forsociety as a whole to improve thetreatment of fixed-term workers andprotect their employment.

13

Committing to move
forward as an entity thatstrives to create a better
society

May 2021

Jul. 2021

Sustainability

Launched Baitoru PRO

We launched Baitoru PRO, a job
information site for specialized jobs
that connects companies with job
seekers who
have qualifications andexperience orwant to workas new
professionals.

Formed dip BATTLES

Value Creation
Process

Growth Strategy

Feb. 2023
Apr. 2023

In a bold move that can be made only
by a company whose name represents dream, idea, and passion, dipjoined D.LEAGUE, Japan’s professional dance league, byforming a professional dancing
team that dazzles
and captivates
audiences.

Nov. 2021

Evolution

Launched dip Incentive
Project

Data Section

Launched dip DEI* ProjectAs a result of our efforts to lobby
client companies, the percentage ofcompanies not requiring job applicants to disclose their age jumped to62% (as of September 2023).
*Diversity, Equity & Inclusion

Began developing

an AI-Agent businessWe embarked on the new challenge
of innovating job creation by shiftingfrom the conventional search-based
platform to an interactive one byharnessing generative AI.

Institute

Launched Vaccine

By encouraging vaccination, we
promoted the creation of safe andsecure workplaces for job seekers
and client companies.

Governance

Established dip Technology

Incentive Project

due to COVID-19

Expansion

Top Message

Introduction

Aug. 2023

We launched a project in which
proposals from our sales staff toclient companies, such as increases inhourly wages, are posted on our
job-listing sites in order to improve
working conditions for fixed-term
workers.

To commercialize the AI-Agentbusiness as early as possible, we
invited Professor Kazuto Ataka, aleading data strategy expert, as anadvisor, and launched a joint research program with Matsuo Institute, Inc., an entity utilizing theresults of the University of Tokyo’s
Yutaka Matsuo Laboratory thatspecializes in AI strategy.

Launched dip AI Force,a company-wide
project team

We kicked off a company-wide
project team that works to raise
productivity using AI.

Continuing to create value under a new vision14

dip Integrated Report 2023

Top Message
What is our vision for the future that will enable
us to become an agent for change in society?

What are the challenges that accompany thisvision, and what changes do we hope to makebeyond that?

Here is a message from CEO Hideki Tomita.

CONTENTS
17
23

CEO MESSAGE—Ushering in a New Era with AI to Make
People Happy—

Tripartite Discussion with Our CEO,COO and Professor Yutaka Matsuo—Utilizing AI Makes the World a Place Where
Everyone Can Enjoy Working and Feel Happiness—

15

16

dip Integrated Report 2023

CEO MESSAGE
Ushering in a New Era with AI to
Make People Happy

To R e a l i z e a S o c i e t y i n W h i c h E v e r y o n e C a n
Ex p e r i e n ce t h e J o y a n d H a p p i n e s s o f W o r k
Hi dek i Tom ita

Representative Director, President and CEO

Social Issues dip Will Address

17

With a falling birth rate and a population that is aging
more rapidly than virtually any other country in thedeveloped world, Japan is facing a contraction in its
working population that is causing a serious labor
shortage. While labor shortages have traditionally been
influenced primarily by economic fluctuations, Japan ispresently facing a structural labor shortage caused bydemographics that are not influenced by economic
conditions. And the severity of the impact is expected tocontinue to intensify. Currently, there is a shortage of an
estimated 130,000 workers. By 2030, however, that number is expected to climb to around three million, and by
2040 it may very well surpass ten million.
Resolving this structural labor shortage will require us
to promote the creation of a mobile labor force as well

as take the steps required to maximize productivity.
Achieving this means that employment mismatches
must be eliminated, human resource capabilities must
be enhanced through improvements in worker skills andoperational efficiency, AI and other technologies mustbe fully leveraged, and DX must be implemented toheighten corporate productivity. It is also incumbent
upon us to foster an environment where people ofdiverse ages, genders, nationalities, and backgrounds
are able to work with vigor and enthusiasm.
Therefore, dip has set four issues as the Company’sbusiness materiality: “Creation of diverse employment
opportunities/Elimination of employment mismatch,”“Improvement of human resources and economic
productivity/Creation of rewarding workplaces bycompanies,” “Promotion of DEI*1/Respect for humanrights,” and “Response to the climate crisis,” which is anurgent global issue.
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dip Integrated Report 2023

Moreover, since ChatGPT was released in November
2022, the number of users of generative AI has skyrocketed worldwide to a degree unrivaled by previous AI
trends. The impact of the present wave of AI we arefacing will surpass the social changes caused by theInternet. Furthermore, AI innovations will result in thedramatic evolution of work and how it is accomplished,bringing a profound transformation to the labor market.
It is evident that jobs that require people with specialized knowledge in particular will be supplanted by AI
processing.
We have arrived at a crossroads in this evolution. Our
goal is not a future where people lose their jobs to AI,
but one in which AI exists to support people’s happiness.
Rather than viewing the evolution of AI as a risk, weshould regard it as an opportunity to resolve the issue oflabor shortages. We must consider how to improve thequality of work while employing technologies such as AI.
In the age of AI, maximizing the power of each individual
through technology is essential if we are to bolster
corporate competitiveness.
With this in mind, dip reviewed its materiality in lightof the impact AI’s evolution will have on its business. We
will work to resolve social issues by rapidly evolving ourbusiness based on having accurately ascertained theevolution of AI and changes in the world.

Create a Better Society
Since its founding in 1997, dip has transformed socialchanges into evolution, generated unique value, andgrown along with its stakeholders.

Around the time dip was established, the Internet wasin a nascent stage. We were convinced, however, that theInternet would trigger a dramatic change in the nature of
recruiting itself. Accordingly, we acted quickly, launchinga job information website. At the time, job magazines inpaper form were the mainstream, but they conveyed arelatively limited amount of information. The shift to the19Internet has greatly advanced the quantity, quality, andspeed of information, bringing benefits to both job
seekers (users) and client companies.
Since that time, we at dip have promoted management based on our philosophy, “Here at dip, we want to
tap into dreams, ideas and passion to create a better
society,” and commensurate with this, we have developed user-first services. Our commitment to offering the
freshest, richest job information available anywhere,
and surpassing the expectations of our users withservices such as videos that introduce workplaces and abarometer indicating application status—features notoffered by any other company—has made dip’s job site
considerably more appealing and transformed it into ahighly effective advertising platform for our clients.

In March 2020, following the simultaneous temporary
closure of schools due to the declaration of a state of
emergency associated with the COVID-19 pandemic,
many companies were forced to react to sudden personnel vacancies. In response, dip offered advertising space
to its clients at no cost to aid them in securing short-term
staffing. Moreover, in light of the situation where parttime and other non-permanent workers infected with
COVID-19 were faced with financial insecurity, we provided those employed through dip’s services with financial
assistance equivalent to a half month’s income to cover
the period during which they were recovering andunable to go to work.
Since December 2021, dip’s recruitment consultants
have been working on the dip Incentive Project. The aimof the project is to upgrade the treatment of fixed-term
workers by proposing initiatives to client companies suchas increasing hourly wages and providing incentive
payments upon employment. There was initially someconcern that client companies would object to negotiations concerning wage hikes. However, we were able togain the support of many of our clients who felt that it
would lead to improved recruiting and retention rates.
The number of cases in which we achieved hourly wage
increases and other improvements in compensation

exceeded 990,000*2, and the average hourly wages posted
on Baitoru were up 7.2%*3, a new high.

And now, we have launched the dip DEI Project as ameans to encourage our clients to integrate diversity,
equity, and inclusiveness into their corporate culturesand organizations. As Japan enters the era of the super-aging society, companies must create workplaces
where people of various generations can play activeroles if they are to remain viable. The ability to communicate with people of various ages provides workers
with the opportunity to grow individually. Thanks to thisproject, the number of jobs that allow users to apply
without providing their age exceeds 400,000. We willcontinue our efforts to eradicate biases related to age,gender, nationality, and other factors.

Applying the Power of People
as well as AI and Other Technology
to Solving the Labor Shortage Issue
To resolve the structural issue of labor shortages inJapan, it is vital to promote the creation of a mobilelabor force while also increasing productivity. The
application of AI and other technologies will serve as a
powerful driver behind this movement.
In 2015, dip formed an AI-related project team, and in2016 launched AINOW, one of Japan’s largest AI media
platforms. Furthermore, we have launched AI.Accelerator as an incubation business, and have interviewed andsupported more than 1,000 AI-related startup companies with this initiative.
And, in 2019, we launched a DX business in addition to
our existing Personnel Recruiting Services Business.
This was emblematic of the new vision we established of
becoming a “Labor force solution company.”
In Japan, mid-tier enterprises and SMEs are significantly lagging behind in the adoption of DX compared totheir larger counterparts. The major reasons behind thisinclude a lack of awareness of which operations can bestreamlined with DX, the cost and trouble associatedwith introducing DX tools, and concerns over the inability to fully utilize the functions after deploying the DX
tools. In response, dip developed KOBOT, a package DX
service specifically designed for mid-tier enterprises andSMEs. By offering products and price points that make iteasier to introduce and continue to use this service, wehave already delivered KOBOT to more than 12,000
companies*3. The adoption of DX will improve business
operational efficiency and, in turn, make it possible toassign to individual employees the tasks that will enable
them to demonstrate their respective abilities to thefull. Employees will be able to work with more vitality,
making the office environment a better place. When thishappens, employee retention rates will improve, skill
proficiency will be improved and productivity enhanced,
which will lead to stronger corporate competitiveness.
We want to realize a society in which everyone canexperience the joy and happiness of work by leveraging
AI and other technologies to support diverse humanresources in exercising their abilities and enjoying aricher work experience, thereby enhancing corporate
competitiveness. This is incorporated in our vision of
becoming a “Labor force solution company.”

Ushering in a New Era
with AI-Agent BusinessWe have recently formulated a medium-term management plan, dip30th, covering the period through thefiscal year ending February 2027, which marks the 30th
anniversary of dip’s founding. Under the theme “NewEra,” we have launched the AI-Agent Business, which
represents a major evolution to our existing humanresource services. To achieve this goal, we have established the dip Technology Institute and are developing
state-of-the-art technologies in collaboration with
Matsuo Institute, Inc., an entity that utilizes the results of
the Yutaka Matsuo Laboratory at the University of Tokyo.
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dip Integrated Report 2023

We offer two models of human resource services: job
advertisements (media), such as Baitoru and Hatarako.
net, which match job seekers with employers on thewebsite, and recruiting services (agents), such as Nurse
de Hatarako and Nursing Care de Hatarako, wherecareer advisors are present to assist users in their job
search. In general, recruitment services provide moredetailed services than job advertisements alone, andthere is a shift from job advertisements to recruitment
services in the area of permanent employee job change.
Meanwhile, when it comes to fixed-term workers such as
part-timers, the low unit cost per hire had made itchallenging to realize a human resource recruiting
service. Using AI, however, to approach and interact
with the user instead of a person, made it possible tocreate a recruiting service that proposes jobs matching
the user’s potential needs, dreams, special skills,
personality, and other attributes.
Generally, a relatively small percentage of job seekers
who access job ads web sites successfully find employment. The use of AI agents can improve matching
accuracy and boost the employment rate, thereby
creating a significant opportunity for revenue.
Data quantity and quality are vital in achieving highly
accurate matching by AI. In addition to the history of job
seeker and AI interaction and information concerning
applications, another strength of the service is theaccumulation of up-to-date, accurate, and unique job
information gathered by approximately 2,000 sales
personnel nationwide. Through this business, job
selection will evolve from the traditional search-and-select model involving a large volume of job information
to interaction using AI to find the most suitable job.

For employers, highly accurate matching based on AI
can dramatically enhance recruitment and retention rates.

Through the realization of our AI-Agent Business, wehope to create a society in which everyone can find a jobthat suits their aptitude, and that they derive joy andhappiness from their work. Technology that brings
happiness to people and companies. That is exactly
what AI should be.

21

The Philosophy Essential in the Age of AI
As AI-based services become increasingly available
around us, in the process of interacting with AI to findthe optimal information, we often wonder whether the
information AI proposes is trustworthy. We also worry
whether AI can safely be entrusted with our personal
information. Therefore, I am convinced that the differentiating factors that will enable more people to trust
the service and feel comfortable using it are the brandpower, trust, and corporate stance that dip has cultivated over many years.
dip has been providing services with a sense of
empathy for its users, including negotiation of wage
hikes and promotion of DEI to improve the treatment of
fixed-term workers. As a result, we have built strong
relationships of trust with many users and companies
and refined our corporate brand.
This is underpinned by a philosophy that is rooted ineach individual employee. Our philosophy comprises
our Corporate Philosophy of “Here at dip, we want to
tap into dreams, ideas and passion to create a better
society,” our Vision of becoming a “Labor force solution
company,” our Brand Statement of “One to One Satisfaction,” the “dip WAY,” which is our code of conduct for all
employees, and “the Founder’s Spirit,” which serves as
our behavioral philosophy. This philosophy is thestarting point to which executives and employees
always return, and it has been a source of strength thathas motivated and supported them through various
challenges.

Our philosophy—embodied in the daily work of ouremployees to strengthen their loyalty and their ability totackle social issues—has generated loyalty among numerous users and client companies, and has contributed tobuilding high brand power and trust. On the strength of
our philosophy—our single most significant differentiating
factor in the age of AI—we will usher in a new era.

To Realize a Society in
Which Everyone Can

Experience the Joy andHappiness of Work

Ushering in a New Era with Dreams,
Ideas, and Passion
Based on the belief that ‘people are everything andpeople are assets,’ dip has strived for an improvement in
human capital by creating an environment that allows
every single employee, each with their own diverse
characteristics, to refine their abilities and demonstratethem to the full, thus enhancing their sense of happiness. dip’s history of value creation is characterized by
all employees having worked as one based on ourphilosophy of using dreams, ideas, and passion to
overcome difficulties, thereby paving the way for ourpath forward. We will pass this attitude on to the next
generation as “the Founder’s Spirit,” and will continue
to generate new value for the labor market of tomorrow.

We are convinced that the embodiment of our philosophy will lead to the realization of a sustainable society
as well as dip’s sustainable business growth and enhancement of its corporate value, and we will take thelead in managing the company.
We at dip will continue working to rapidly grasp thechanges of the times and usher in a new era with our
dreams, ideas, and passion. I hope that our stakeholders
will hold high expectations of dip into the future andcontinue to support our endeavors.
November 2023

*1: DEI (Diversity, Equity & Inclusion)*2: As of March 2023
*3: As of August 2023

22

dip Integrated Report 2023

SPECIAL TALKHow AI Impacts the Labor Market
and Workers
Generative AI Will Facilitate Creation of
New Jobs and Stimulate the Labor Market

Tripartite Discussion with Our CEO, COO and Professor Yutaka Matsuo

The Future According to dip

Utilizing AI Makes the World a
Place Where Everyone Can Enjoy
Working and Feel HappinessYutaka Matsuo

Professor, Research into Artifacts, Center forEngineering, Graduate School of Engineering,
The University of Tokyo
Professor, Department of Technology
Management for Innovation, Graduate Schoolof Engineering, The University of Tokyo

23

Hideki Tomita

Representative Director, President
and CEO

Masatsugu Shidachi
Representative Director, COO

Tomita: Since the November 2022 release of theChat Generative Pre-trained Transformer(ChatGPT), the number of generative AI users has
exploded worldwide, and the scope of its use is
rapidly expanding in all areas. What kinds ofchanges do you think we can expect?
Matsuo: Although we have seen booms surrounding AI in the process of technological evolution,
generative AI—the latest iteration—is clearly more
impactful than past developments, and we view it
as a potential catalyst for social change.
Going forward, generative AI will find its way
into a wide range of industries and business sectors. Then, after a few years, it will become virtually unnoticeable despite being actively used all
around us.
Tomita: Amidst the global spread of AI utilization,
it is also true that people are becoming somewhat
concerned that AI will take their jobs from them.
We must be aware of the effect AI is actually having on the labor market.
Shidachi: Investors are also extremely interested
in structural changes to the labor market as aresult of AI and the possibility of contraction in thehuman resource services market. Professor Matsuo, what is your perspective on this?
Matsuo: We can’t deny there will be an impact, but
I don’t see the human resource services market
contracting. In the past, technological innovation
has always acted toward increasing labor demandby creating many new jobs while also promoting
automation. The nature of work will change, but
the world will not become a place where everyone
spends all of their time on enjoyable activities,
leaving everything to AI. Especially in Japan—with
the working population in decline—there is anurgent need to improve economic productivity, so
we should actually use AI actively.

dip’s Vision of the Direction of AI Use
AI Unleashes the Power of People andOpens up New Possibilities

Tomita: At dip, we believe that using AI to increase
productivity and improve the working environment will make us more competitive. Given this,
we began to clearly identify the tasks that can be
entrusted to AI and those that must be done byhuman beings. As long as people continue to do
those tasks that could be accomplished by AI, it
will be difficult to maintain and enhance competitiveness in the future. In August 2023, we launched
dip AI Force, a company-wide project team. We
have assigned 250 ambassadors trained in the useof AI to all departments to serve as leaders, and weare working together with front-line employees towrite ChatGPT prompts. Almost 60% of our approximately 3,000 total employees are alreadyusing AI as they perform their daily duties.
Matsuo: That’s remarkable! Generative AI is still in
its nascent stage, and in the business world, many
domestic and international companies are justbeginning to leverage this technology to streamline operations and develop related services. This
tells me that dip’s efforts are actually rather advanced.
It is difficult to forecast the direction in which
generative AI use by companies will expand, but
the technology is rapidly evolving and, for any
company, presents a host of opportunities in allareas. Given the importance of speed, I believethat the key to a company’s competitive advantage
will be the early adoption of the evolution ofgenerative AI and linking it to its own best practices through a high-speed trial and error process.
It will be of particular importance to clarify tasks
and duties, which will facilitate the assignment ofroles and personnel. The more tasks that can be
entrusted to generative AI, the better the performance per employee will be, thereby positively
affecting the creation of a rewarding workplace.
Shidachi: Generally speaking, when it comes to AI,
the discussion usually centers on objectives andgoals and how employees can make use of the24dip Integrated Report 2023

technology. At dip, however, we don’t take a
top-down approach; rather, we look at how we canutilize it to our advantage from the perspective of
the workplace. A second-year sales employee, forinstance, is now practicing business negotiations
through role playing and other activities—previously conducted with other team members—with
AI. This has resulted in growth at a faster rate than
we have seen previously. This is true even for moreexperienced employees. As it becomes increasingly difficult to simply follow traditional successstories, we are seeing AI being used to help employees reskill and acquire new skills. In doing so,
newcomers and veteran employees alike are not
only becoming more efficient through the daily
use of AI in their work, but there is an evolution in
the work itself beyond what we have previously
experienced.
Matsuo: I think dip is ahead of the curve in termsof anticipating the changes that are expected totake place at all companies. It is a foregone conclusion that, going forward, we will see a difference inthe division of duties between AI and humanbeings from what we had in the past. Development
is currently in progress in various industries andbusiness domains, and we should see the results
emerge in the form of various products in six totwelve months. When that happens, we will be in asituation where we are using AI without evenrealizing it. It is important that we get ahead of
this trend. It is crucial to raise awareness companywide by, for instance, having someone in-house
who is familiar with AI assume a leadership role indiscussions.
Shidachi: Right. To this point, the approach todigital transformation or DX has been to adapt
operations to the system with a focus on system
updates. Having said that, the advent of generative AI has made it possible to blend DX into daily
operations. It is now possible to move towardenhancing people’s power, which we liken tocontrolling a mobile suit, a humanoid robot in a
Japanese anime. Given this, how can we thenleverage AI to unleash the power of people? DX hascome to be regarded as human-centered, which tome seems like a significant change.

25

SPECIAL TALK
Matsuo: I couldn’t agree more. Generative AI isaffecting a major change in the paradigm. The key
question is what kinds of changes human interaction with AI and automating advanced processes
will create on a societal level. Many industries are
expected to see numerous changes going forward.
These changes are not only interesting; they
represent opportunity. If we do not change theway we do things, we will gradually lose markets
to global companies. Japan may, however, be able
to take a leadership role in unique, niche areas in
the global market. Achieving success requires aproactive stance.

Utilizing AI to Make People Happy
Creating Both Social and Economic Value
Through Rapid Establishment of
AI-Agent Business

Tomita: In response to these changes, we havelaunched the AI-Agent business and establishedthe dip Technology Institute to develop this business in cooperation with Matsuo Institute, Inc.*
Our goal for the AI-Agent business is to transform
our business model.
Many years ago, job seekers thumbed throughsmall ads in print media to determine where to
apply. Nowadays, internet media such as ours use
videos and other rich content to provide a large
volume of easy-to-understand information for job
seekers.
Furthermore, once the AI-Agent business is up
and running, in addition to each job seeker’s
personality and attributes, AI will be able to extract from dialogue the latent needs of each individual, such as the kind of work they would like todo and their preference for workplace type. Companies will then be able to provide unique, rich,and factual information, and to convey messages
that support the appeal of their workplace and thequality of the people who work there.
Achieving this would then facilitate the proposalof jobs that better match job seekers’ needs, inturn reducing the risk of mismatches resulting inquick job turnover. There would be fewer misconceptions about potential workplaces or unpleasant surprises, and this essential matching would
result in higher retention rates. We hope to realize
happy matching—in which both workers andcompanies are truly happy—through our AI-Agentbusiness.
Shidachi: Crucial to the effective operation of AI
are the quality and quantity of data used in training. dip has 1.3 million or more job offerings, thelargest number in the industry. Its strength lies in
the accurate, abundant company-side data accumulated by the company’s 2,000 sales employees.
We also possess a large volume of high-quality
data on users who search for employment throughdip’s recruiting media. Moreover, our collaboration
with Professor Matsuo, a leading AI researcher, has
proven vital in the development of our services.
Matsuo: Thank you. I am very grateful to be working with you on this endeavor. The reason is that I
believe human resource services will definitelychange going forward. Looking at various industry
domains, I believe that human resource services
may be the area where generative AI affects themost significant change. Until now, quantification
has been a challenge and there was a reliance on
relatively subjective methods, so a very precise
matching process was necessary. Given this, theimpact of AI utilization is expected to be rather
significant.

Moreover, it is important to note that the labor
shortage issue is a structural one, not one causedby economic fluctuations. I am also participatingin the Council of New Form of Capitalism Realization.
We are now at a point where we are not talking
about weak demand, but rather insufficient supply
capacity. Increasing capacity, we should see moreof an economic turnaround. That is why we must
promote labor saving and the adoption of AI. At
the same time, the ability to acquire strong humanresources is directly correlated with a company’s
intrinsic competitive power, so companies mustget serious about their human resources.
Tomita: My hope is that we turn this business intoa solution to the structural labor shortage andsignificantly impact society in a positive way.
Matsuo: I believe that Japan’s human resource
service industry is at an extremely high level, yetheavily dependent on the skills of individual
consultants. That is why I am convinced that thisproject will have a notable impact on society. I feel
this service has the potential to be one of highsocietal value that brings happiness to people andmakes great strides as a business that responds tochanging needs. I find it extremely rewarding. Let’s
work together to be game changers!
*Matsuo Institute, Inc. is an entity that utilizes the results of the Yutaka
Matsuo Laboratory of The University of Tokyo.

26

dip Integrated Report 2023

Sustainability
For the future of the labor market—which isundergoing change as AI and robotics continue
evolving—how will dip transform its business,

and what kinds of social and economic value willit create to realize sustainable growth?

The message from our COO will provide a roadmap
and explain the details of our materiality andinitiatives.

CONTENTS
29

33
37

27

COO MESSAGE—Realizing Worker Happiness Through Strengths
Cultivated Based on Our Philosophy and AI/PursuingSocial Value and Economic Value Simultaneously—

Sustainability

To Realize a Sustainable Society

28dip Integrated Report 2023

Introduction

Top Message

Sustainability

Materiality to Achieve Our Vision
In 2019, dip adopted its new vision of becoming a “Labor
force solution company” as a part of its philosophy. By
providing personnel recruiting services and DX services, we
aim to solve various labor market issues and realize asociety where everyone can experience the joy and happiness of work.
Japan’s labor market faces numerous challenges,
including a growing labor shortage and continued low
productivity. Furthermore, the rapid evolution of AI,
robotics, and other new technologies—represented bygenerative AI, which is increasing its presence daily—isforecast to impact the labor market in a variety of ways.
Opportunities include significant improvements in productivity and operational efficiency, the creation of new
professions and occupations, and heightened job satisfaction as employees engage in value-added work that is moresuited for human beings to handle. Meanwhile, there arerisks, including the disappearance of traditional professions
and occupations and a widening economic gap owing tochanges in employment structure.
We recently reviewed our materiality in light of the
impact of advances in AI and other technologies on thelabor market in Japan. Then, we have established the social
value to be created and non-financial key performanceindicators (KPIs) related to this value under the mediumterm management plan, dip30th. The details of eachmaterial issue are as follows.

COO MESSAGE

Realizing Worker Happiness Through Strengths Cultivated
Based on Our Philosophy and AI
Pursuing Social Value and Economic Value Simultaneously

Masatsugu Shidachi Representative Director, Chief Operating Officer29

Our goal is to realize a society where everyone can experience the joy and happiness of work.
With this in mind, we have achieved business growth by solving social issues with our philosophy as the foundation. And with advances in AI and other technologies affecting majorchanges to the labor market, we have already begun to look forward with our new mediumterm management plan, dip30th. Our objective is to achieve sustainable growth by pursuingboth social and economic value by transforming our business in preparation for the era of
new work styles ushered in by the advent of AI.

Creation of Diverse Employment Opportunities/
Elimination of Employment Mismatch
To eliminate labor shortages, there needs to be greaterlabor participation by diverse human resources, a higher
degree of liquidity, and more choices in working styles byleveraging the power of technologies such as AI. Further, it
is becoming necessary to allow the abilities of individual
workers to be more fully demonstrated by eliminating
mismatches upon hiring. In our medium-term management
plan, we established new KPIs for our focus areas asfollows: 450,000 job offerings that welcome senior citizens,
800,000 job offerings that allow people to work whileraising children or caring for family members, 300,000 job
offerings for foreigners and international students, 150,000
job offerings that welcome high school students, and25,000 people employed in the medical and welfare fields inthe final year of the plan.

Value Creation
Process

Growth Strategy

Governance

Data Section

Improvement of Human Resources and Economic
Productivity/Creation of Rewarding Workplaces
It is becoming increasingly important to foster a rewarding
workplace by enhancing worker engagement and skills,
bolstering human resource capabilities by increasing
operational efficiency, and raising productivity and innovative power through technology. By the final year of our
medium-term management plan, we will raise the numberof companies where we introduce and charge for DX in theareas such as recruitment, human resources, and sales
promotion to 30,000 to contribute to the improvement of
the labor productivity of our client companies. Moreover,
we will support qualification acquisition by providing
opportunities for reskilling, and promote regional vitality
and the development of industry through labor mobility.

Promotion of DEI/Respect for Human Rights
If we are to realize a society where everyone can experience
the joy and happiness of work, it is of utmost importancethat we respect the human rights of all people and that weachieve mutual understanding and cooperation amongpeople with diverse personalities. Amidst the dramatic
spread of AI use, there is an urgent need to prevent themisuse of data and promote fair, equitable matching that
respects diversity. In addition, efforts are already underway
to increase the number of job offerings without age requirements at the time of hiring to 650,000 in the final year of our
medium-term management plan. We will also expand
employment opportunities for diverse human resources,
including middle- and senior-aged workers.

Response to the Climate Crisis
We will also continue to focus on addressing the climate
crisis, a serious global problem. We are currently working to
reduce Scope 1 and Scope 2 GHG emissions generated
through our business activities to zero by 2025. In the fiscal
year ended February 2023, we reduced GHG emissions by
49% compared with the fiscal year ended February 2020,
and we disclosed Scope 3 emissions for the first time. We
are also discussing how we can achieve carbon neutrality,
including Scope 3 emissions.
Strengthening Human Capital Connected with
Philosophy
To pursue economic value by raising the social value of ourbusinesses, it is essential that we strengthen “humancapital connected with our philosophy.” Our growth to datehas been the product of our philosophy which has created a30

dip Integrated Report 2023

evelopment ca
ed
pa
c
i
b
rv

Human capital connectedwith Philosophyty
ili

dream idea passion
DXbusinessNewbusinessescapaPersonnel
recruiting
servicesbusiness

i

y

ns

ab

lit

bi lity

gy

lity
abi
p
ca

ap

31

Value Creation System

Sales cOur strengths are our service development capability,
promotions capability, and sales capability, and these areproduced by human capital connected with our philosophy.
Since our founding, we have provided unique, highly
competitive services through the passion of our employees
united under the innovative ideas and outstanding leadership of CEO Tomita, earning the support of many users andclient companies and producing high business growth.
Our services are created and developed with ideas thatcome out of rigorous thinking about the needs of users,
starting with job seekers, and based on the “User First”
policy contained in our Philosophy Brand Statement. We
have been striving to improve the brand power of these
services by promoting them to a large number of people toheighten awareness, increase users, and maximize job
advertisement effectiveness.
What determines the satisfaction level of users visiting
the site is the quantity and quality of job information. Oursite not only boasts the largest number of job listings in theindustry but has also focused strongly on the quality of that

ot
m

io

Value Creation System Evolving
Through the Use of AI

Se

We remain determined to take on the challenge of generating high levels of social and economic value by helping tosolve social issues through our business activities centeringon these material issues.

tec
hn
ol
o

Strengthening GovernanceFor dip to grow by substantial margins, ensuring thetransparency and soundness of management is a must, andit will also be increasingly important to expedite decision
making and business execution. Moreover, it is necessary toenhance compliance and risk management by accurately
identifying risks involved in using AI and other cutting-edge
technologies in business operations. We will continue to
strive for further strengthened governance.

information It is our sales capability that enables us tocollect so many job listings, raise the quality of the information, and substantially increase advertising effectivenessand sales. We have over 2,000 sales representatives, who
are largely recent graduates, and they not only sell job ads
but also take the lead in ad production, provide expertiseon successful hiring, and raise retention rates for those
hired; they are required to be involved in everything
relating to the hired personnel to ensure the growth of ourclient companies.
Moreover, dip’s sales representatives also provide
DX-related services. Offering two services based on different business models requires different skill sets, whichmakes sales even more challenging. This was, however,made possible by our philosophy, which has fostered astrong commitment to workers and a strong sense of
mission with respect to the growth of client companies. As
a result of our efforts to solve our clients’ essential issues,
we have deepened our relationships of trust with them andformulated a very sturdy customer base.
Employees involved in service development, promotions,and sales, as well as their colleagues in the corporate
division who support them, refine and demonstrate theirrespective strengths to provide high value to users andclient companies through collaboration beyond organizational demarcations.

Data andstrong sense of organizational unity that raises individual
engagement and loyalty and allows us to fully demonstrate
our strengths. Going forward, we will continue working tomaximize “human capital connected with our Philosophy”
by strengthening the hiring of people that empathize withit, further polishing individual abilities, and increasinglevels of employee happiness.

Introduction

P ro

Top Message

Sustainability

The power of data and technology accelerates the speed
at which we are able to create value through our combined
capabilities of service development, promotions, and sales,
as all our employees, strongly connected with our philosophy, unite to work cooperatively.
In April 2023, we launched our AI-Agent business using
generative AI technology and established the dip Technology Institute with the aim of commercializing the business.
In collaboration with Matsuo Institute Inc., a company thatutilizes the research results of Yutaka Matsuo Laboratory of
The University of Tokyo, we are developing the technology.
We aim to enhance matching accuracy by utilizing theunique, up-to-date, accurate job information collected byour recruitment consultants to service the existing andpotential needs of each job seeker—which our advanced AI
engine ascertains through and extracts from naturaldialogue—and to put this information into practical use by
the end of 2023. Through the AI-Agent business, we will
evolve job selection from the traditional model where job
seekers search and select from a large volume of job
information to one in which job seekers find the job thatbest suits them while interacting with AI.
We are also actively promoting the company-wide use ofdata and technology. In 2020, we launched the Kakezan
Project, an internal DX project designed to transformcompany-wide communications and promote the use ofdata. We have enhanced communication quality and speed
through the introduction of three tools—Slack, Box, andZscaler—as well as the centralization of the interface bylinking Box and Slack. In August 2023, we launched dip AI
Force, a new company-wide project team. We have assigned 250 ambassadors trained in the use of AI to all
departments, including sales, planning, and development,
and we are working to write prompts for ChatGPT that canbe used in the workplace. By creating a database of over
200 prompts and making it available to all employees, wewill foster an environment where any employee canimmediately utilize AI for any purpose.
The development of a “Labor force solution platform” isindispensable in utilizing and evolving data and technology.
This platform will serve as a common, company-wide
foundation that will facilitate the linking and secureprovision of data. By using data from service development,
promotion, and sales in an integrated fashion, we create anenvironment that maximizes the potential of technology,
thereby dramatically increasing our competitiveness.

Value Creation
Process

Growth Strategy

Governance

Data Section

Formulation of New Medium-Term
Management Plan dip30th, Which
Charts a Course for the Future
In dip2025, the medium-term management strategy weannounced in 2019, we laid out a roadmap to realize ourvision of becoming a “Labor force solution company” andestablished targets of 100 billion yen for sales and operating income of 30 billion yen for the fiscal year ending
February 2025. Through the steady implementation of thestrategies and tactics under dip2025, we have transformed
the crisis that was the pandemic into an opportunity,
employed unique initiatives such as the dip Incentive
Project to expand our user and customer base, and significantly grew our share of the part-time and temporary
worker job advertising market. By accelerating productdevelopment and upselling through job ad sales, we haveachieved high growth in the DX business we launched in
2019. Meanwhile, the impact of the pandemic has lasted
longer than expected, and the job advertising market has
not yet recovered to pre-pandemic levels, making it challenging to reach the sales and profit targets established. We
recognize this as a serious issue and have come up with a
new medium-term management plan, dip30th, which willend in the fiscal year ending February 2027, the 30th
anniversary of our company’s founding. The plan takes into
account factors such as the normalization of the pandemic,
the impact of the rapid evolution of AI, and changes in themarket and competitive environment.
Advances in AI and other new technologies are beginning
to reveal solutions to issues that we previously found hard
to solve. We are committed to serving as pioneers in the useof AI for workers’ happiness and in addressing the structuralissue of the labor shortage head on. And, just as dip seizedon the popularity of the Internet to greatly expand its
business, we will strongly promote the strategy of dip30th
to transform the dramatic evolution of AI into a business
opportunity.
We will continue our pursuit of the simultaneous creationof social and economic value and do our utmost to contribute to the realization of a sustainable society. I want tothank all stakeholders for their continuing support.

32

dip Integrated Report 2023

Introduction

Sustainability

Top Message

Sustainability Promotion System
dip has established the Sustainability
Promotion Council, chaired by the Representative Director and COO and consistingof all executive officers, to engage inefforts toward the realization of a sustainable society.
The Sustainability Promotion Council
formulates strategies and measures
based on the sustainability policy decided
by the Board of Directors, and evaluates
the progress once a quarter. In addition,
the Board of Directors regularly receives
reports from the Sustainability Promotion
Council on the content of its discussions
and the progress of measures and gives
instructions as necessary.
In addition to proposals from theSustainability Promotion Council, ideas
from employees are also deliberated
when formulating sustainability-related
measures.

Step 333

Growth Strategy

Governance

Data Section

We have identified four items of business materiality and two items of management foundation materiality
to achieve our Vision. We will strive to create social and economic value and aim to continuously improve
dip’s corporate value with all employees working together under our Philosophy and contributing to resolving social issues based on materiality.

VISIONA society in which everyone can experience the joy and happiness of work

Board of Directors

Labor force solution company

Sustainability Promotion Council

Business materiality

Chairperson: COO
Members: Executive officers

Subcommittee
for Social
Contributions
through BusinessSubcommittee
for Achieving No.
1 in Employee
Well-Being

Environmental
Subcommittee

Internal andExternal
Communications
Subcommittee

NPO
Subcommittee

Creation of diverse
employment opportunities
Elimination of employment mismatch

Enumerate social issues and analyze risks and opportunities
Compile a list of social issues by reference to international guidelines,
macro trends in specialized fields, and so forth; then analyze risks andopportunities based thereon

Prepare draft (amendments to) materiality

Prepare draft (amendments to) materiality in keeping with dip’s
Philosophy by assessing the level of importance of each item fromtwo perspectives—elements of social issues and elements for raising
dip’s earning power—and taking stakeholders’ views into account

Adopt or amend materiality

Decide on materiality at a Board of Directors meeting following deliberation by the Sustainability Promotion Council

Improvement of human resourcesand economic productivity
Creation of rewarding workplaces

Promotion of DEI
Respect for human rights

Response to theclimate crisis

Management foundation materiality

Process for Identifying and Reviewing Materiality

Step 2

Value Creation
Process

Materiality

dip has identified materiality for continuous improvement of corporate value. Based on our Philosophy,
all employees work together to conduct business activities centered on this materiality, thereby creatinghigh social and economic value, and aiming to achieve sustainable improvement of corporate value.

Step 1

Sustainability

Strengthening human capitalconnected with Philosophy

Strengthening governance

COLUMNIn January 2023, we held a training session for all managers acrossthe Company. It was designed to deepen their understanding of dip’s
materiality presented in the integrated report. Toward that end,groups of participants discussed a variety of topics connected tomateriality, exploring potential measures that would help the Company grow sustainably in the years to come. The one-day training provided a great opportunity for individual managers to weigh various
ideas, inspire each other, and embark on new challenges for the
future, with the renewed awareness that their day-to-day work canlead to societal impacts and economic value.

▲Manager training34

dip Integrated Report 2023

Materiality

35

Introduction

Description of materiality

Creation of diverse
employment
opportunities
Elimination of
employment mismatch

Creating a diverse workforce and a variety ofwork styles by means of AI and other technologies, we will increase the mobility of humanresources while eliminating mismatches inhiring. In this way, we will allow each individual
to demonstrate their strengths to the fullest
and enjoy better working conditions, thusincreasing the number of employees who experience the joy and happiness of work.

Improvement of humanresources and economic
productivity
Creation of rewarding
workplaces

Utilizing technology to increase the engagement and skills of hired personnel and raise
their productivity and capacity for innovation,
we will help companies increase their profitability, improve the compensation of theirworkers, and create a workplace that is full ofjob satisfaction.

Promotion of DEI
Respect for human rights

We will strive to create workplaces andenvironments where people with different
personalities respect each other and work
together, and conduct business activities where
the human rights of all those involved, including
users and client companies, are respected. We
will prevent the misuse of data associated withthe utilization of AI and promote matching thatis fair and respects diversity.

Response to the climate
crisis

We will make efforts to reduce CO2 emissions
throughout our supply chain in order to curb
the climate crisis. We will provide employment
support for people who have been affected bydisasters and accidents resulting from theclimate crisis.

Strengthening humancapital connected with
Philosophy

We will leverage technology to hire, train, andmanage people who empathize with our
Philosophy, and strive for each person’s
strengths to be fully demonstrated by increasing their engagement, loyalty, and level ofhappiness.

Strengthening
governance

We will secure management transparency andsoundness, while working to speed up decisionmaking and business execution in order tocreate social and economic value and continue
sustained high growth. In particular, we will
endeavor to enhance compliance and risk
management by accurately identifying risks
involved in using AI and other cutting-edge
technologies in business operations.

Opportunities for dip
●

●
●
●
●

●

●

●

●
●

An increase in the labor force participation
rate (by helping create new occupations andjob types, diversify work styles, etc.)
Improvement of matching

Career development and skill building by workers●●

Acceleration of companies’ efforts to raiseeconomic productivity●

Creation of new services

Increased job satisfaction thanks to AI androbotics

Increase diverse employment opportunities

Create working environments where humanrights are respected

●

●

●

●

●
●

●

●

●
●
●

●

●

●

●

Contribute to the creation of a decarbonizedsociety
Provide employment opportunities forpeople who have been affected by climate
crisisEnhance human capital by hiring and developing talent
Create new businesses and services

Raise labor productivity and motivation

Strengthen the ability to adapt to change andseize business opportunities
Gain trust from the capital market and thewider society

●
●

●

●

●

Adapt appropriately to change and build a solid
foundation for growth●

Speed up decision-making and businessexecution●

Ensure sound and transparent decisionmaking

Sustainability

Risks for dip

Expansion of safety nets for workers

Increased need to improve compensation andworking conditions for workers and ensure
occupational health and safety

Top Message●

Greater risks associated with data management
owing to enormous amounts of personal information being gathered
Disruption of the existing business models

A deterioration in corporate competitiveness andprofitability due to delayed efforts to improve
human resources and productivity
Increased difficulty in personnel and organizational management and engagement
A widening gap in corporate competitivenessreflecting a varied degree of use of data andtechnology

A deterioration in corporate competitiveness andprofitability due to delayed efforts
Lower productivity and higher staff turnover inworkplaces where human rights are notrespected
Physical damage from disasters and extreme
weather events caused by climate change

Reputation harmed by not addressing climate crisis
Increased costs due to the implementation orchange of government policies, laws, and regulations including the introduction of carbon taxes
Miss business opportunities owing to delay inaddressing climate change

Value Creation
Process

Growth Strategy

Social value

●

●

●

●

●

●

●

●

●

Governance

Data Section

Relevant Sustainable
Development Goals (SDGs)

Increase options for jobs, workstyles, and careerand expand employment opportunities fordiverse people

Increase in the number of workers who demonstrate their abilities at work, work with a sense offulfillment and high levels of happiness

Strengthen human resources through worker
engagement and skill building

Improve working conditions of employees andcreate job satisfaction by improving corporate
productivity
Raise operational efficiency and facilitate
innovation through the use of AI and DX

Promote gender equality and increase employment
rates for people with disabilities and senior citizens
Reduce the number of workers whose humanrights have been violated

Contain the climate crisis and expand the share of
renewable energy

Reduce the loss of employment opportunities forpeople who have been affected by the climate
crisisA loss of talent, stagnant or lower employee
engagement, and diminished workforce productivity as a result of not taking sufficient measures
Lack of human resources capable of innovating

Damage (lose) trust from the capital market andthe wider society

Face business continuity risk due to dysfunctional
corporate governance
Damage trust (reputation) by misusing AI

36

Introduction

To Realize a Sustainable Society

dip supports people with diverse characteristics and abilities to find the best jobs where
they can create unique value that only humans can do, follow their dreams, and work with
passion while devising various ideas.
Under our Corporate Philosophy of improving society to a place where everyone can experience the joy and happiness of work, we aim to achieve our vision of becoming a “Labor
force solution company.”of diverse employment opportunities/
1 Creation
Elimination of employment mismatches

Increase options for jobs, workstyles, and careers and expand employment opportunities for diverse people
Increase the number of workers who can demonstrate their capabilities and work with a sense of reward
and a high degree of well-being

Increase the number of high-quality job offerings that meet the needsof diverse human resources and workstyles

At dip, we have increased the number of job offerings with an abundance of fresh information, to give diverse
people more options for a variety of workstyles. We also provide unique features and services such as workplace introduction videos and an application barometer to eliminate mismatches at the time of employment.
Workstyle values are becoming increasingly diverse. The kind of society that dip aims to realize is one inwhich everyone can do the work that they want to do whenever they want to. It is a society in which everyone
can pursue the challenge of their desired career and, by fully demonstrating their own abilities and receiving
better conditions, feel rewarded and experience the joy and happiness of work. We will continue to work on
increasing the number of job listings, developing user-first features, and improving matching accuracy.
●

Workplace Introduction Videos

These videos present, inan easy-to-understandway, the atmosphere of
workplaces and thecontent of the work
performed there, aspects
that are difficult toconvey with text or
photos alone. Videos
posted on job listings
help to increase theaccuracy of matching users with the right jobs.

●

Job Experience/Workplace Visit Application Function

Gives users a real sense of the workplace through hands-on job
experience prior to application. This is effective in the prevention of
mismatching.
Experience

37

Visit

●

Application Barometer

Applicants on
the rise!

●

Number of high-quality job offerings
that meet the needs of diverse
human resources and workstyles(FY’23/2)

1.33

Uniform Search Function

Around 60% of users are interested in what the uniforms worn inpart-time jobs are like. In addition to posting the images of uniforms, our uniform search function meets the needs of users whowant to work part-time in their preferred uniforms.

million

The number of job offerings
increased from 1.16 million (endof February 2022) to 1.33 million(end of February 2023).

Value Creation
Process

Sustainability

Growth Strategy

Governance

Data Section[Number of job offerings expanded beyond pre-pandemic levels]
Apr. ����
Impact of the COVID-��pandemic outbreakFeb. ����

�.��
millionMay ����
Launched Baitoru PRO
����

����

����

����

����

Began posting of “Message from dip-san”

In April 2022, we began posting messages from dip’s sales staff, which convey the appealing
points and factual information about the job and workplace from an objective perspective.
We promote efforts to help job seekers make better job selections, eliminate mismatches,and prevent early turnover.
Me ssage

Shuto Takeuchi

Message from dip-san

Media Sales GroupWe want to eliminate employment mismatches by providing factual
information from people working in the field

No small number of people leave their jobs early due to mismatches in conditions andenvironment after employment.
When we prepare job information postings for our client companies, including workplace introduction videos and “Message from dip-san,” we place great importance on
hearing directly from people who work there and providing factual information about theirjobs and workplaces. We hope that such information will allow users to get an idea of thework style and atmosphere of the workplace before they are hired, thus helping toeliminate mismatches upon hiring.

Application Barometer

Visualize the application status for listed jobs. This function is in
response to user needs, such as a preference for applying for
popular jobs or, alternatively, for jobs where there is less competition with other job seekers.

Top Message

Number of job oﬀerings

dip Integrated Report 2023

Detailed employment support for medical and nursing care personnel

In the permanent placement (recruiting) services, our dedicated career advisors help job seekers
find jobs and prepare for interviews, and even assist them when they leave the company, helping
them make career transitions so that they can continue to work with vigor and enthusiasm. Furthermore, in collaboration with Baitoru and Hatarako.net, we offer new career options to first-timeusers of recruiting services, thereby addressing the structural shortage of medical and nursing carepersonnel in an aging society with a declining birthrate.
Me ssage

Masami Miura

Department Manager, Permanent Placement Business Group

Our day-to-day work leads to jobs that improve society.

Number of job offeringsin the medical, nursing
care, and childcare fields(FY’23/2)

0.51

millionA medical institution entrusted us with a large project for its new opening. We introduced nurses through Nurse de Hatarako and 40 of them were hired. A year later, the director of nursing at the medical institution told me, “Thanks to you and thepeople at dip who helped 40 people find employment, we were able to save the lives of 10,000 patients.” I still vividly
remember how moved I was to know that my work had helped so many people.
We will continue to work closely with job seekers and client companies with the belief that our work delivers value not
only to job seekers but also to the many people who receive medical and nursing care services from them.

38dip Integrated Report 2023

Introduction

In recent years, interest in migrating to rural
areas has increased due to changing lifestyles
and diversifying work styles. This is particularly true among fixed-term workers, whomake up the majority of our users. According
to a user survey* conducted by Baitoru,
approximately 55% of respondents said they
were interested in migrating.
Since 2018, dip has hosted the Baitoru Migration Work Experience
Event and online seminars for users interested in migration, providingthem with opportunities to get an image of life and work in rural areas.
We offer users a variety of work style and career options and are committed to resolving the labor shortage in rural areas.
To eliminate the labor shortage in the nursing care field, we will workwith local governments to support the reskilling of inexperienced
caregivers and match them with local operators, thereby expanding
their job and career options.
*Conducted among 6,725 Baitoru members.

Employment support for young unemployed people

People in the generation that had difficulty finding jobs during the“employment ice age” continue to have unstable employment situations
and difficult lives. To improve their employment environment, dip has
undertaken various initiatives including publicity support for the“Re-engagement Support Programs for Workers with Unstable Employment” implemented by labor bureaus.
Using this insight, dip has been commissioned by the Ministry of
Health, Labour and Welfare for the Youth Independence Support Center
Business since 2022. Through the implementation of a variety of training
programs for counselors at regional youth support stations that provide
a collection of good practices and other employment support to unemployed people between the ages of 15 and 49, we aim to realize a society
in which young unemployed people can develop the ability to open up
their future and choose a rewarding job.
39

Value Creation
Process

Growth Strategy

Governance

Data Section

Improvement of human resources and economic

Career education support for elementary school children

Regional revitalization initiatives

Sustainability

2 productivity/Creation of rewarding workplaces

ColumnUtilizing the know-how on work gained through personnel recruiting services business, dip provides opportunities for the next generations to think about their future
work and to learn the meaning and value of working. This
career education support program called the “Baitoru
Kids Program” will help elementary school children
create a hopeful future and pursue the challenge of their
desired career.
During the program, employees of dip and cooperating companies
communicate the characteristics, social roles, and sense of fulfillment of
their jobs. In doing so, we aim to give children opportunities to learn
about different work styles and help them develop work-related attitudes and values.

Top Message

Cooperatingcompanies

Career education

Number of children
participated(As of August 31, 2023)

1,694

Users

Strengthen human resources through worker engagement and skill building

Improve working conditions of employees and create job satisfaction by improving corporate
productivity

Requests andcollaboration

Elementary
school students

Number of cooperatingcompanies(As of August 31, 2023)

33

Local
governments

RecruitCommission*

2 -1 Improving working conditions for fixed-term workers

dip has implemented a number of measures, including offering financial assistance for users who wereabsent from work due to COVID-19 infection, and a project to encourage client companies to raise hourly
wages and provide vaccine allowances for vaccinated users. We will continue to help companies increase
their profitability through improved productivity, further improve the compensation of their workers,
and create a workplace that is full of job satisfaction.

dip Incentive Project

Holding of
eventsParticipate

Building a technological infrastructure for operational efficiency and innovation

Partnercompanies

In December 2021, we launched the “dip Incentive Project,”
in which proposals from our sales staff to client companies,
such as increasing hourly wages and providing incentive
payments upon employment, are posted on dip’s job site.
The project has gained the support of many of our clients
who felt that it would lead to strengthened recruitment
capabilities and retention of personnel in the face of significant labor shortages due to the declining working population caused by the falling birthrate and aging population.
Me ssage*EitherNumber of events(As of August 31, 2023)

137

Attendance

Ministry of Commission
Health,Labour andWelfareSupportYoung
unemployedpeople, etc.

Employment
support Regional youth

supportstations(FY’23/2)

0.99

million● Highly evaluated by both users andclient companies

Client companies
Users

Like/Like somewhat

70%

69%

Neither like nor dislike

Dislike/Dislike somewhat

Business Division Head of Media Sales Group and dip Incentive Project Leader

Each individual’s efforts will lead to solutions to social issues

This project is driven by our desire to see client companies grow further by enhancing their recruiting capability andpromoting the retention and performance of their human resources, and to see more people working with vitality bycreating an environment in which they can work with greater satisfaction.
Getting client companies to accept wage hikes is not easy. Our recruiting consultants, who share the idea of this project,
have persistently reached out to client companies. This has led to improved working conditions for employees, especially
fixed-term workers.

(As of August 31, 2023)

4,526

Yuya Inahara

Number of job offerings
that have realized
improved working
conditions, including
increased hourly wages

2 - 2 Contributing to DX of mid-tier enterprises and SMEs

By helping mid-tier enterprises and SMEs to improve productivity through the adoption of DX and enabling people who work to engage in jobs where they can demonstrate their respective capabilities, we
aim to realize a society in which everyone can experience the joy and happiness of work. The time savings generated through operational efficiency improvements can then be put into the reskilling and otheractivities of workers. This will serve to strengthen human resources through the advancement of workers’ skills, and, in turn, create greater job satisfaction.
Me ssage

Ayumi Sato

Section Manager, Media Sales Group

Introduction of Interview Scheduling KOBOT helps improve employee engagement

A company with a low attendance rate at job interviews improved the rate threefold as a result of introducing Interview
Scheduling KOBOT. In addition, the company enhanced engagement by allowing recruiters to spend about an hour per day
interviewing and mentoring employees instead of spending that time setting up interviews.
KOBOT not only increases operational efficiency but also solves workplace problems and improves work.

40

dip Integrated Report 2023

Introduction

Reduce the number of workers whose human rights have been violated

3 -1 Realize a society in which people with diverse backgrounds canwork and play an active role in their own way

Elimination of age discrimination

To resolve labor
shortages, in addition to reviewing
compensation, it isalso important todiversify employment and work styles
by reviewing hiringconditions. In response, we areadvancing efforts toeliminate age discrimination in recruiting and hiring and to promote hiring based on
individual skills and aptitude.
As part of such efforts, we allow client companies to choose whether
to make the entry of “age” (date of birth) at the time of application
mandatory or optional when posting job information on dip’s job site.
This system has won the support of many of our clients; as of August
2023, more than 350,000 job offerings can be applied for without
entering an age.
M essage

Yui Suzuki(FY’23/2)

0.31

millionCampaign to support
the employment ofpeople with disabilities(FY’23/2)

Held in Augustand September● Highly evaluated even by users in their 20s

20s
30s
40s
50s

Like/Like somewhat

79 %

77%

79 %

80 %

Neither like nor dislike

Dislike/Dislike somewhat

Media Sales GroupAs a partner of client companies, we eliminate bias in hiring and help create a society where everyone cando the work they want to do

Unconscious biases in hiring, including gender and age, lead to lost employment opportunities. Focusing on skills andexperience is essential and can also help create employment opportunities for users.
As a partner of client companies, we identify unconscious biases and change them one by one. We hope to help create asociety where everyone can do the work they want to do.

Client company
recognition

41

Ms. Suzuki’s suggestions from different perspectives often lead me to new discoveries and clues about issues toaddress and actions to take. I look forward to continuing to work on new initiatives with Ms. Suzuki, who is looking
in the same direction.

Growth Strategy

Governance

Under its Corporate Philosophy of “Here at dip, we want to tap into dreams, ideas andpassion to create a better society,” dip remains committed to establishing working
environments where people of diverse personalities and backgrounds respect eachother and where there are no unreasonable differences in conditions or treatment
based on age, gender, race, employment type, or other factors, nor any unconscious or
implicit prejudice.
We have also established a human rights policy as a guideline for respecting thehuman rights of all people involved in our business and for fulfilling our responsibilities, making company-wide efforts to respect human rights.

Human rights due diligence●

Implementation process for human rights due
diligence

We have begun human rights due diligence in partnershipwith human rights specialists in accordance with the United
Nations Guiding Principles on Business and Human Rights.
After identifying risks concerning human rights throughout
dip’s value chain, and analyzing and evaluating their impact
and severity, we will continuously plan, implement, monitor,and make disclosures on prevention and correction measures.

●

Data Section

ACTION

Review andinformation
disclosure

PLAN

Formulate ahuman rights
policyIdentify andassess humanrights risks

Monitoring
Implement
mitigation andprevention
measures

CHECK

Our human rights
policy can beaccessed via
the QR code.

DO

Conducting a human rights survey

As part of our human rights due diligence process, we conducted a human rights survey in July 2023 for full-time, contract, andcasual employees to identify human rights risks in our business activities and consider preventive and responsive measures.
The survey was designed to understand any occurrences of privacy violations, discrimination and harassment, and intellectual property rights violations among others, and to identify human rights risks. Identified human rights risks will be mitigatedthrough measures including ongoing training and education.
●

Human rights risk mapping

We identify human rights issues
that may adversely affect ourbusiness activities and prioritize
them based on their impact andlikelihood of occurrence.
For high-priority human rights
risks, we plan, implement, andmonitor mitigation and prevention measures. The Board of
Directors regularly receives
reports from the Human Rights
Promotion Council on the progress of these initiatives and gives
instructions as necessary.
Mapping items will be reviewed
on an ongoing basis.
*Developed based on our risk assessment
criteria.

Privacy
Human rights issues related to technology and AI
Excessive work

(Impact)

Promote advancement of women in the workplace and increase employment rates for people withdisabilities and senior citizens

Number of job offerings
that welcome seniorcitizens (age 60s+)

Value Creation
Process

Sustainability

3-2 Human rights initiatives

3 Promotion of DEI/Respect for human rights

To help create a society in which people with diverse backgrounds
can work and play an active role in their own way, dip carries out dip
DEI (Diversity, Equity & Inclusion) Project and other various initiatives. We work with client companies to establish workplaces where
women, senior citizens, and people with disabilities can participate
more actively. In doing so, we are aiming to promote stability andsecurity in employment.

Top Message

Discrimination,
LGBTQ+ workers’ rights
Intellectual property rights,
consumer safety and right to know

Occupational
Unpaid wages health and safety
Excessive work
Forced labor

Risks related to the dip Group

Occupational
health and safety
Right tosocialsecurity

Priority
human rights
risks

Harassment

Unpaid wages

Harassment

Risks related to client companies(Likelihood)

Risks related to business partners

42dip Integrated Report 2023

Introduction

4 - 1 Progress toward reduction targets
To further reduce GHG emissions from ourbusiness activities, dip has set a goal of
reducing GHG emissions from all offices*and data centers by 100% by the fiscal year
ending February 2025.
In the fiscal year ended February 2023, in
addition to our head office, we started
making a transition to renewable energy
sources at 13 locations including data
centers, which account for approximately
12% of the entire company’s electricity
usage. As a result, approximately 55% of
the energy consumption* associated with
dip’s business activities has been converted to renewable energy.

Our environmental policy can beaccessed via the
QR code.

49% reduction
648.9
t-CO2e334.2
t-CO2eFY’20/2
Base year

FY’23/2

100% reduction
FY’25/2(target)Total GHG emissions of Scope 1, 2 and 3:

��� t-CO�e

29,704 t-CO2e
Scope �� t-CO�e

Scope �Other than
Category ��,��� t-CO�e

To ensure the accuracy
and reliability of thecalculated emissions, wehave received third-party
verification from theSustainability Accounting Co., Ltd.

43

Governance

Data Section

dip’s Board of Directors deliberates and resolves on environmental policies and important related matters, including
climate change issues.
The Sustainability Promotion Council, chaired by the Representative Director and COO and consisting of all Executive Officers, identifies risks and opportunities related to climate change, sets measures and targets, and evaluates the
progress. In addition, the Sustainability Promotion Council is responsible for promoting measures related to climatechange, and the Board of Directors oversees the implementation of these measures.
The Board of Directors receives regular reports on the risks and opportunities related to climate change and theprogress of response measures, supervises the progress toward targets, and directs actions as appropriate. In formulating measures related to climate change, we consider not only proposals from the Sustainability Promotion Council,
but also ideas from employees and others.

Strategy

Assumptions in scenario analysis

t-CO�eOur environmental
data can be accessed
via the QR code.

<Assumption>
An increase of about 4°C compared
to preindustrial levels<Scenario used for analysis>
・RCP8.5 ・SSP5

The rise in average temperatures
will not be halted, and natural
disasters will become more
frequent and more severe.
Global warming will also increase
the risks associated with infectious
diseases.
<Assumption>
An increase of less than 2°C compared to preindustrial levels

Scenario in which

temperature
increases arecontrolled

Scope �Category � (Purchased goods and services)��,���

Growth Strategy

Governancetemperature
increases are
unstoppable

4 - 2 GHG emissions
Scope �Value Creation
Process

In October 2021, dip expressed its support for the TCFD recommendations. In
December of the same year, dip made disclosures in line with the disclosure
framework recommended by TCFD (governance, strategy, risk management,
metrics and targets related to climate change risks and opportunities). We
will continue to consider expanding the content of our disclosures and aim to further strengthen our governance and business strategies related to climate change based on the results of our scenario analysis.

Scenario in which*The calculation covers GHG emissions from business activities (Scope 1 + 2).

[FY’23/2 Results]

Sustainability

4 - 3 Addressing the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD)

4 Response to the climate crisis

If climate change causes the frequency and intensity of natural disasters tocontinue to increase, it will not only threaten the safety and security of workers
but also potentially take away their employment opportunities. dip considers
addressing the climate crisis to be an important management issue and has
been working to reduce the environmental impact of its business activities.
We have also established our environmental policy as a guideline for fulfilling
our responsibilities toward the realization of a sustainable society.

Top Message<Scenario used for analysis>
・RCP2.6 ・SSP1
・IPCC “Special Report on Global
Warming of 1.5°C”

Policies and regulations will bestrengthened to control the increasein average temperature.
This will keep the average temperature from rising, and the frequencyof natural disasters will not increasesignificantly from the current level.

Risk<Physical risks>Occurrence of natural
disasters
Occurrence of system failures
Spread of infectious diseases<Policy and legal risks>Strengthen policies to curb
GHG emissions<Market risks>
Transition to a low-carbon
society<Reputational risks>Occurrence of reputationalrisks

Responses and opportunities<Countermeasures>
Through our Business Continuity Plan (BCP), we
have formulated a response in the event of anatural disaster.
①Formulate guidelines for employee behavior
during disasters②Earthquake resistance measures for buildings,
systems, etc.
③Data backup systems④Implement a system to confirm the safety of
employees⑤Disaster prevention training⑥Stockpiling of disaster supplies<Countermeasures>
Our goal is to reduce GHG emissions from all
offices and data centers by 100% by the fiscal year
ending February 2025.
<Opportunities>①Expanding opportunities to provide humanresource services as a result of inter-industry
labor migration related to the government’s
Green Growth Strategy②Increase investment in venture companies
related to the above growth strategies③Expanding opportunities for the introduction of
DX services in line with the promotion of apaperless society due to stricter GHG emission
control policies④In line with the strengthening of the above
policies, the corporate value of venturecompanies in which dip has invested that solve
environmental issues will be enhanced

44dip Integrated Report 2023

Introduction

Risk management

At dip, the Sustainability Promotion Council reviews, evaluates and analyzes climate change risks and opportunities.
This information is reflected in the annual review of the risk map and is integrated into the company-wide risk management. In addition, the Sustainability Promotion Council examines countermeasures for identified risks and reports
to the Board of Directors.

Metrics and targets

dip has set a goal of reducing GHG emissions from all offices (Scope 1+2) and data centers by 100% by the fiscal year
ending February 2025. Scope 3 GHG emission reduction targets are under discussion and will be disclosed in the fiscal
year ending February 2025.

We proactively use electricity from renewableenergy sources while promoting power andenergy conservation in all of our offices.
In the fiscal year ended February 2023, in
addition to our head office, we started making atransition to renewable energy sources at 13
locations including data centers, which accountfor approximately 12% of the entire company’s
electricity usage. As a result, approximately
55% of the energy consumption (Scope 1+2)
associated with dip’s business activities has
been converted to renewable energy.

Ratio of renewableenergy(FY’23/2)

55%

Reduction of paper resource consumption – Going paperless

By operating an online job information service, we promote services that do not use paper resources. We are also promoting
the use of electronic applications, invoices, and contract documents, as well as sales activities using tablet PCs, in an effort to
reduce paper consumption by promoting paperless operations.

90.2%

●

Invoices
52.8%

Conservation of water resources – Use of LIMEX

Order forms
100%

Contract documents
66.0%

LIMEX, developed, manufactured, and marketed by TBM Co., Ltd., is a material that can
substitute for plastic and paper products. dip made an investment in TBM and has used
LIMEX for its business cards since 2019. Compared to paper business cards, one box (100cards) of LIMEX business cards can save about 10 liters of water.
In addition, LIMEX business cards that are no longer necessary are collected and recycled
at TBM to help create a zero-waste society.
45

Governance

Data Section

dip-NPO Collaborative Program

In September 2023, dip launched the dip-NPO Collaborative Program to address social issues that cannot be
solved by dip alone. dip has been working to solve various problems in the labor market through the provision of human resource services and DX services. By promoting new initiatives through collaboration with
NPOs, dip aims to create diverse working styles and realize a society in which everyone can experience the joy
and happiness of work.
We will provide NPOs that share our philosophy with appropriate funding for initiatives related to dip’s
material issues and the human resources to carry them out on a pro bono basis*. Mr. Daigo Sato, President of
the Japan Center for NPO Evaluation, will serve as an advisor to screen participating NPOs, formulate specificactivities, and review their efforts.

Daigo Sato

Everyone is a stakeholder in improving and resolving social issues. A common andnecessary element of “when the world moves” is that someone calls for action and thatmany people agree and cooperate with that call. The voice and power of the first
person who notices an issue may be small, but through continuous activities and calls
for action, the support of many people will eventually grow into a chorus that can movethe world and become a great power.
It is important for dip, stakeholders, and NPOs to work together to build partnershipsthat transcend sectors and thereby promote initiatives to create a better society.

Operation of SDGs CONNECT to link society with SDGs

Effective use of natural resources

Applications

Growth Strategy

President of the Japan Center for NPO Evaluation (JCNE)

Conversion to renewable energy

Rate of digitization (FY’23/2)

Value Creation
Process

ColumnStakeholder’s Message

Reduction of GHG emissions●

Sustainability*Offering one’s expertise for free from the perspective of sustainability

4-4 Main efforts toward reducing our environmental impact●

Top Message

dip believes it is necessary for all companies and individuals to cooperate together and create a new economic and social
framework in order to realize the sustainable society that SDGs aspire to. In
February 2021, we launched SDGs
CONNECT, a website that links society
and SDGs by distributing information forcorporate SDG managers, investors,
students, and others to take the first step
toward achieving the 2030 targets andput these into practice in their individual
jobs and lives. This website distributes
various information, covering efforts bymore than 100 companies, more than
10,000 news articles, and other topics,
themed on how companies are using
their strengths to address SDGs. The website reaches approximately 100,000 unique users per month (as ofFebruary 2023). Through our operation of SDGs CONNECT, we will continue to contribute to the creation of
the new society that SDGs aspire to.

46dip Integrated Report 2023

Value Creation ProcessThis chapter will describe the mechanism of how
human capital linked by philosophy plays a role

as a source of value creation. In addition to issues
and measures for human capital enhancement,
the chapter presents a message from the CHO,

which describes his thoughts on the evolution ofhuman capital management in the era of AI.

CONTENTS
49

Value Creation Process

55

Human Capital Connected with Our
Philosophy

51

70

47

Value Creation Process by Embodimentof Philosophy

CHO MESSAGE—Bring Out the Maximum Potential of Employees
through the Use of AI—

48

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Value Creation Process
Corporate Philosophy ｜ Here at dip, we want to tap into dreams, ideas and passion to create a better society.

Vision ｜ Labor force solution company—to realize a society in which everyone can experience the joy and happiness of work

Creation of diverse employment
opportunities
Elimination of employment mismatches

Improvement of human resourcesand economic productivity
Creation of rewarding workplaces

Human capital

Human capital connected with
Philosophy

Strengthening
governanceDXbusinessNewbusinesses

y

P ro

ti
mo

Sales know-how
Know-how for developing original
services and functions

Brand Statement
49

lit

i

Strengthening human capitalconnected with Philosophy

Intellectual capital

Personnel
recruiting
servicesbusinessab● Management Foundation Materiality

dream idea passion

ap

Response to theclimate crisis

Human capital connectedwith philosophy

Sales cPromotion of DEI
Respect for human rights

Highly diverse user base
Customer base supported bystrong relationships
External partners that makeco-creation possible

lity
abi
ap
c
gy
lo
evelopment ca
ed
pa
c
i
b
rv

ty
ili

Social and related capital

Value creation systembilityRobust financial base

→ P. 73sc
apa

Financial capitalBusiness Activitieson● Business Materiality

Source of Value CreationSe→ P. 34

Data andtechnoMateriality

Value to Be Created→ P. 79

Social value

・Increase options for jobs, workstyles, and career andexpand employment opportunities for diverse people
・Increase the number of workers who can demonstrate their capabilities and work with a sense of
reward and a high degree of well-being
・Strengthen human resources through worker engagement and skill building
・Improve working conditions of employees and create
job satisfaction by improving corporate productivity
・Promote operational efficiency and facilitate innovation through the use of AI and DX
・Promote gender equality and increase employment
rates for people with disabilities and senior citizens
・Reduce the number of workers whose human rights
have been violated
・Contain the climate crisis and expand the share of
renewable energy
・Reduce the loss of employment opportunities forpeople who have been affected by the climate crisis

Economic value

FY’27/2
Sales¥78.0–85.0 bn
Op. income ¥20.0–25.0 bn
ROE30%

dip WAY(our code of conduct)

Founder’s Spirit(our behavioral philosophy)

50dip Integrated Report 2023

Introduction

Value Creation Process by Embodiment of Philosophy
dip has adhered to a management approach that
centers on its Philosophy and is based on the
belief that “people are everything and people
are assets.” Our Philosophy comprises multiple
elements: the Corporate Philosophy, the Vision,
the Brand Statement, dip WAY, and the Founder’s
Spirit. Here we outline how dip’s Philosophy
facilitates its value creation process.

1
2

Corporate
Philosophy

VisionCorporate Philosophy

3

Brand Statement

2

4

5

Visiondip WAY(our code of conduct)
Founder’s Spirit(our behavioral philosophy)

Here at dip,
we want to tap into dreams,
ideas and passion to create a better society.
Labor force solution company

3

Brand
Statement

Sustainability

Value Creation
Process

Our Corporate Philosophy begins with “Here at dip,we” rather than simply with “dip.” The strength of diplies in the fact that individual employees channel their
dreams, ideas, and passion into making our Vision a
reality and achieving the ultimate goal of creating abetter society. The vision inspires a sense of enthusiasm of employees and is the foundation for the creation of various new business and service ideas.
Likewise, our willingness to tackle social issues headon has earned us trust and support from our users andclients, creating the basis for long-term loyalty. In
addition, our corporate culture that emphasizes social
missions has attracted talent and raised our staff
retention rate.
Here at dip, we will continue to provide businesses
and services that are beneficial to society, remainingtrue to our Corporate Philosophy and Vision while
adapting flexibly to changes in technology and society.

Growth Strategy

Governance

Data Section

One to One Satisfaction

We pursue ‘user-first’ services that are accessible to each and every oneof our customers.
We will achieve ‘No. 1 satisfaction’ for everyone involved in our business.
Based on the belief that ‘people are everything and people are assets,’
we aim to be ‘No. 1 in employee well-being.’

Our Brand Statement points to the essence of thevalue dip creates. Here we explain how the Brand
Statement functions in our personnel recruiting
services business. The business model of therecruiting services business requires that bothusers (job seekers) and clients (recruiting companies) be considered customers, and that the needsof each be met. Users seek quantity and quality ofjob postings, while clients seek quantity andquality of applications. Their values affect eachother, creating a virtuous cycle. Our revenue

comes from the job posting fee and the recruiting
fee contingent upon a successful placement paidby the client. Accordingly, providing greater value
to the user and the client will increase our sales
and profits.
At dip, we take on the challenge of creating
value in a way that is different from typical recruitment service activities. We are taking on thechallenge of creating new businesses and services
in response to problems within the labor market.

Through the provision of human resource services and DX services, and by working to solve various problems in the labormarket, we aim to realize a society in which everyone can experience the joy and happiness of work.

Society undergoes constant change as technology
advances at a rapid pace. In such a dynamic businessenvironment, if companies simply repeat what went
well in the past following the plan-do-check-act cycle,
they will have difficulty seizing future opportunities.
Swiftly responding to this change, dip has createdbusinesses and services that transcend traditionalboundaries. Our approach is to pursue new possibilities by tapping into dreams, ideas, and passion. For
example, we entered the digital transformation (DX)business in 2019 by expanding the scope of the existing
personnel recruiting services business. That was
because we anticipated significant labor shortages in
the near future. Thus, we set a new vision of being a“Labor force solution company,” and launched the new
business to provide services that automate manual
processes.
51

1

Top Message

Problems in thelabor market

Create social value

Clients

Matching

User-first services

Users

Increase sales(create economic value)52dip Integrated Report 2023

Introduction

The process begins with us detecting, and having a
deep understanding of, problems in the labormarket through conversations with users and sales
meetings with clients, as dictated by our Brand
Statement: One to One Satisfaction. The next stepis to clarify the situation and identify important
problems that need to be solved for society. With
that firsthand knowledge, we then refine theconcept of a new user-first business or service. Ourstrength lies in the fact that we work together withclients to develop businesses and services that arehighly valuable to users. Providing user-firstservices attracts more users and clients, creating avirtuous cycle. This will result not only in thecreation of economic value via increased sales

4

dip WAY

from fees paid by clients, but also in the creationof social value via solving social issues.
Such user-first businesses and services can becharacterized as an embodiment of dip’s
Corporate Philosophy. Our personnel recruiting
services business is aimed at providing value
simultaneously to users, clients, and the wider
society, thereby achieving “No. 1 satisfaction” foreveryone involved.
This applies to employees as well: our Brand
Statement declares that we aim to be No. 1 in
employee well-being, guided by the belief thatpeople are everything and people are assets.
That is exactly why dip has been achieving
success.

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 growth and development.
We will create a free and vigorous corporate culture overflowing
with diversity and as innovators in the field, we will pursue thecreation of valuable services.

passionBeing passionate about our work encourages the people around
us to be passionate. 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.

53

5

Top Message

Founder’s
SpiritSustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

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 a bird’s-eye view of things from every angle and then pioneer
your own way.

2. Continue to take on new challenges.

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.

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.

It is our goal that every employee enjoys both work and private
life, and leads a happy life, fulfilled both physically and mentally.

6. Each employee has a role to play in creating dip.

Cultivate your individuality in the philosophy we share. Make yourmark in building our future.

Serving as our code of conduct and behavioral
philosophy, the dip WAY and the Founder’s Spirit
were developed by dip founder Hideki Tomita as
he overcame a number of difficulties with
employees from the early days of the Company. To
create and maintain valuable businesses andservices, we must squarely face difficulties, smallor large, and overcome them by repeatedly trying,failing, and reflecting.
Over the years, dip has successfully overcome
many difficulties. What has made it possible is thatthe dip WAY and the Founder’s Spirit have firmly
taken root throughout the Company.
These code of conduct and behavioral
philosophy have been shared, helping not only
individual employees but also the entire Company
to evolve and grow. As such, they have played theessential role in dip’s continued development.
The dip WAY and the Founder’s Spirit haveguided, and will continue to guide, employees tothe next level as they take on new challenges everyday.
54Introduction

Number of Employees (Human Capital Connectedwith Our Philosophy) (Non-Consolidated)(People)Full-time employees

Trends in Employee Well-Being(%)

Employee well-being
is growing

Employee well-being
No, I disagree

No, I more or less disagree

Here at dip, we want to tap into dreams,
ideas and passion to create a better society.

Number of Hires(People) The number of new graduates

joining in 2021 was reduced
to 95 while those joining in
2023 increased to 612.

Yes, I more or less agree

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Data Section

Organization(development)

Economic value

Based on the economic value created, we will invest in human capital and strengthen
its foundation.

Can’t really say either way
Yes, I agree

Healthand productivity(management)

Human capital connectedwith our philosophy

GovernanceSocial value

Embodiment of Philosophy

Capacity(development)

Increased employee
well-being will further
drive resonance withthe philosophy.

Growth Strategy

Materiality

Realization of employee well-being
By embodying thephilosophy, each employee will experience
the joy and happiness ofwork and increase theirwell-being.

Value Creation
Process

Employees’ well-being is further enhanced when they gain a true sense of creating social value.

Leadership

Based on the belief that “people are everything
and people are assets,” dip continues to focus
firmly on and invest in human resources as thecore of our management. This belief is groundedin the philosophy that our founder Tomita hasdeveloped over many years of overcoming
difficulties and challenges together with his
employees. This is a philosophy of management
and a guiding principle for our employees.
Each employee’s resonance with, action
toward, and embodiment of the philosophy will
help create social and economic value and, inturn, realize “No.1 in employee well-being.” This
cycle is the backbone of dip’s human capitalmanagement.
Even though we are a large company ofaround 3,000 employees, we are able to adapt tochanges in the market with the agility of astartup company with only several dozen people
on staff. The reason is that this philosophy lives
in the heart of every single employee.
We will continue to hire and develop humanresources who resonate with our philosophy andwill enhance conditions and systems that allow
each employee to fully demonstrate their abilities and experience the joy and happiness ofwork.

Sustainability

Human rights

Human Capital Connected with Our Philosophy

Top Message

Diversity

dip Integrated Report 2023

Mid-career hires

New graduate hires

Voluntary Turnover Rate of Full-Time Employees(%)

Increased during
the pandemic,
but decreased thereafter

Voluntary turnover rate

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56

dip Integrated Report 2023

Introduction

Realizing “No.1 in Employee Well-Being” Throughthe Embodiment of Philosophy
Aiming for No.1 in employee well-being not only
fulfills our commitment to employee happiness,
as expressed in our Brand Statement, but is also
closely linked to the success of our business.
People perform best when they are happy.
According to a study by Oxford University, happy
employees are 13% more productive than unhappy employees. dip sees the same trend. Happy
employees are more focused, more creative, andbetter at solving problems, which leads to increased productivity.
It is also evident that happier employees areless likely to leave the company. Turnover comesat a high cost to companies. The impact can be

manifold, including recruiting and training new
employees, loss of knowledge and skills, andlower team morale. When employees are happy,
they want to stay longer, resulting in lower turnover. Employee happiness also leads to recruitment success. This is because whether or not theinterviewers themselves enjoy their work and feel
happy will greatly influence their decisions in thehiring process. Not surprisingly, employees are
increasingly referring talented friends and acquaintances to us. This naturally leads to a reduction in recruiting budgets and contributes
significantly to the recruitment of hard-to-hireprofessionals.

Factors That Increase Employee Well-Being

Employee Well-Being and Empathy with Philosophy

Sense of reward
Correlation coefficient
r=0.40

Sense of self-efficacy
Correlation coefficient
r=0.38

Sense of aptitude for a job
Correlation coefficient
r=0.38No, I disagree

No, I more or less disagree

Can’t really say either way
Yes, I more or less agree

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Sense of growth
Correlation coefficient
r=0.38

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Employee well-being

Growth Strategy

Value Creation
Process

Cross-referencing the employee well-being levels
with the ES survey* items reveals factors that
increase their well-being. Sense of reward, senseof self-efficacy, sense of aptitude for a job, andsense of growth have the greatest impact on
employee well-being.
Our employees identify with our philosophy andhave decided to join us with a strong desire to

Governance

Data Section

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*ES survey: Employee satisfaction survey

Around the time they are promoted from S1
to S2, their job responsibilities suddenly
become much greater. Taking care of newly
joined juniors is also an important task forthem. In such a situation, S2-level employees
face a difficult time as they are torn between
their growth and the high expectations of thecompany.
They will think about what they are working
for and how they can bring their dreams,
ideas, and passion to life in their work. This iscertainly a difficult time, but we believe it isnecessary in order for them to realize significant growth in the future.

Overcome Barriers after Joining
the Company

Employee well-being by grade shows that S2-level
employees are in the lowest state of well-being.
The S2 level corresponds to young employees whoare in their second to fourth year of employment
as new graduates.
Newly graduated employees must dedicate
themselves to learning their jobs at the beginningof their careers. The well-being of S1-level employees is not low because they have a sense of
growth and are generously mentored by many
senior employees.
Relationship between Employee Well-Being and Turnover*Percentage of stayers and leavers six months after ES survey
implementation(%)

Leavers (full-time employees)

Employee Well-Being (by Level)(%)

Employee well-being*

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improve society with their dreams, ideas, andpassion. For employees who have this strong
motivation to contribute to society, feel fulfilled,
and grow through their work, it is clear from the
ES Survey results that being able to embody thephilosophy in their work is the key to employee
happiness.

Issues and Initiatives

Yes, I agree

Employee well-being

Sustainability

Relationship Between Embodiment of Philosophy and Employee Well-Being

Reasons for Aiming to Be No.1 in Employee Well-Being(%)

Top Message

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Department Manager*Average of employee well-being on a scale of � (low) to � (high)58dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Initiatives to Promote the Embodiment of Philosophy
Priority issues
Organization(development)
Human rights

Penetration ofPhilosophy
Respect for
Human Rights

Diversity

Promotion of Diversity

Health andproductivity

Promotion of Healthand Productivity
Management(management)
Capacity(development)
LeadershipReskilling in the Age ofAI(Improving
Problem-Solving Skills)
Development of
Executive Management
TalentImportant measures

Evolution of the General
Meeting of Employees
Philosophy contests

Human rights risk mapping

Enhancement of the childcare
support system
Telework employment forpeople with disabilities
Strengthening measures for healthand productivity management

Reducing overtime and promoting
the use of paid holidays
Promoting the use ofgenerative AI

Enhancing problem-solving
training
Leadership Journey

Targeted promotion system

Our workforce continues to grow, and the numberof new hires is increasing accordingly. Under thesecircumstances, the headcount in the personnel
division is also expected to grow naturally. Seizing
this opportunity, we are actively promoting personnel DX.
Efforts are underway to thoroughly automate
routine tasks. For example, routine tasks such asdata entry, attendance management, and payroll
calculations have been systematized to improve
efficiency. This has freed up members of the59· Engagement score: 4.0 in FY’25/2· Turnover rate: less than 10% in FY’25/2

Materiality

Human rights surveys

The key to human capital management is how to
support employees who resonate with our philosophy and act and solve problems in their work inline with the philosophy. In the personnel division,
specialists in various fields are working together
to address these issues.

Promoting Personnel DX

Metrics· Percentage of women among new graduate employees
promoted to managerial positions: 50% in FY’25/2· Percentage of female managers: 40% in FY’25/2· Percentage of women who take childcare leave and return
to work: 100% in FY’25/2· Percentage of men who take childcare leave: 100% in
FY’25/2· Percentage of people with disabilities employed: Statutory
employment rate or higher in FY’25/2· Percentage of paid holidays taken: 80% in FY’25/2· Average extra hours worked: Not more than 20 hours/
month in FY’25/2· Training time: Continue to expand in FY’25/2· Attitude evaluation score in the personnel system· Promotion rate

Social value

Embodiment of Philosophy

Here at dip, we want to tap into dreams,
ideas and passion to create
a better society.

Economic value· Number of employees promoted to department managers· Percentage of new graduate hires among department
managers· Age of promotion to department manager

personnel division from the simple tasks of thepast, allowing them to focus on more strategic
activities.
At the same time, there has been an accelerated
shift toward work that can only be done by people
and that increases value through human intervention. Specifically, we focus on roles that unlock
the true potential of human resources, such as
helping employees develop career plans, optimizing internal communications, and designing
employee education and training programs.
The promotion of personnel DX has significantly
increased the expertise in the personnel division.
The division has evolved into a key strategic
partner in supporting the company’s growththrough data-driven analysis of labor productivity,
promotion of DEI (Diversity, Equity & Inclusion),and reform of employee benefits to improve
employee satisfaction.

Trends in Personnel Division Headcount(People)Organizational development

Skills Matrix for Managers in the Personnel Division
Entry
route

HR development
Recruiting

Personnel planning

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60

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

dip emphasizes the penetration and practice of
our Corporate Philosophy and vision, in otherwords, the cultivation of philosophy. This is because all employees should share a common
philosophy and vision and work together torealize them in order to solve society’s problems
and create a society in which people can experience the joy and happiness of work.
With the belief that “people are everything andpeople are assets,” dip encourages each employee
to have their own dreams, create ideas, and takeon challenges with passion. To achieve this, it isimportant that they deeply understand our Corporate Philosophy and vision and use them as guiding principles.

Connection with Company-WideStrategies and Business Policies

The first important step in bringing our philosophy to life is to connect it to our business policies.
Based on the philosophy, all employees must havea firm understanding of what issues the company
will address and how it will grow its business, andmust be in a position to always go back to thephilosophy and think about it.
Engagement Score(%)

Average*

No, I disagree

No, I more or less disagree

Evolution of the General Meetingof Employees

Initiative

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*Average of engagement scores (maximum �)Strengthening Recruitment andOnboarding

In creating an organization based on the philosophy, it is important to select people who have astrong sense of empathy with the philosophy andensure that they deeply understand and identify
with it before and after they join.

Engagement Score (by Age Bracket)

Philosophy and Productivity*Anonymous survey; score out of 5(%)

Average*

No, I disagree

No, I more or less disagree

Initiative

Philosophy-Based Recruitment

In order to select people who have a strong senseof empathy with the philosophy, we spare neither
time nor effort. Many employees participate in thehiring process and vividly discuss their real work
experiences with applicants. For senior employees, involvement in the hiring process is an opportunity to think about the meaning of their own
work at the Company and to reexamine themselves in light of the philosophy, so the hiring
process also helps retain existing employees.
Initiative

Onboarding Program

Our philosophy is at the heart of new employee
education. We are particularly focused on the
onboarding program that takes place in the first
week. This program is an important step in(Thousand yen)Can’t really say either way
Yes, I more or less agree

Yes, I more or less agree

�.��

Issue

Employees from around the country gather for the
General Meeting of Employees, where CEO Tomita
goes over activities and results of the past year
and announces goals and management policies
for the new fiscal year based on the philosophy. At
the meeting, which lasts approximately five hours,
there are a variety of creative performances andpassionate presentations.
Celebrities featured in our television commercials also make an appearance. Surprise bonuses
may be announced as well. Our employees gethighly excited and further motivated.
The theme announced
at the general employee
meeting is immediately
incorporated into thestrategies of each division and business unit
and shared with all
Satisfaction with General Meetingof Employees: Score of 4.6
employees via video.

Can’t really say either way
Yes, I agree

Governance

Data Section

Embodiment of
Philosophy

Penetration of Philosophy

Issue

Growth Strategy

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Third year

Fourth year

Fifth year

helping new employees gain a deeper understanding of our organization and philosophy.
In the program, Board Directors and Executive
Officers, starting with CEO Tomita, talk directlywith the new employees.
They detail the history of dip and the future towhich it aspires. Through these presentations,
new employees will deepen their understandingof dip’s vision, mission, and underlying philosophy.
Issue

Connecting Day-to-Day Work
with Philosophy

A company’s philosophy should guide the way
employees conduct themselves in their day-to-day
work. However, some employees may find it
difficult to relate it to their specific work because
the company’s Corporate Philosophy and vision
are abstract. As a result, the philosophy tends tolose some of its substance among employees.
Initiative

Philosophy Contest

The philosophy contest was established as a stage
for individual reflection, sharing, and mutual
admiration of the work that embodies our philosophy. In the contest, each employee will present
how their dreams, ideas, and passion have been
specifically reflected in their work and how they
have benefited users, customers, and society as awhole.
This contest is more than just an awards ceremony; it is an opportunity for each individual to
speak proudly of theirachievements and tocelebrate the accomplishments of others.
Top performers are
rewarded with an incentive trip to Hawaii, andNumber of entries tothe philosophy contest: 1,249
their achievements arerecognized both internally and externally.

Sixth year62

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Growth Strategy

Value Creation
Process

Governance

Embodiment of
Philosophy

Promotion of Diversity
By promoting diversity, the opinions and ideas of
employees with different perspectives and experiences create new value that will enhance thecompany’s competitiveness. As we aim to be No.1
in employee well-being in our Brand Statement, it
is essential to create an environment that allows
all employees to demonstrate their abilities to thefullest.
Issue

An Environment Where Female
Employees Feel Comfortable andThriveWe are working to expand our childcare support
system to help female employees balance workand family life. This will create an environment
where female employees feel comfortable andplay an active role over the long term without
having to give up their careers due to childbirth orchildcare.
Initiative“F Pro” Project for Self-Directed
Career Development

The Full of Work Project (F Pro) was launched at
dip in 2015 as an initiative to support self-directed
career development by women employees. In its
third term, 100 people participated. We also hold
Number of Female Managers (New Graduate Hires)(People)Percentage offemale managers

Managers (female)Managers (male)a program called “BOSS F Pro” to enhance theability of male managers to develop female employees. The activities of our many women employees are introduced in the Career Share Book.
The “F Café” is also held regularly for women tointeract with one another in a casual atmosphere.
In this way, dip is actively working to develop an
environment where female employees take aneven more active role at the Company.
Initiative

Childcare Leave System

As a general rule, employees are eligible to use
this system until a baby turns one year old. It may
be extended until the baby turns two years old incertain circumstances, such as no vacancy being
available at a day care center when the baby turns
one year old. In July 2022, dip expressed its support for the “Declaration on 100% Childcare Leave
Acquisition by Male Employees” promoted byWork-Life Balance Co., Ltd., and makes efforts tocreate an environment in which it is easy to takechildcare leave. Such efforts include promoting
diverse working styles for men and allowing men
to take childcare leave even if they have been
employed for less than one year.

Number of Male and Female Employees by Age Bracket(People)Percentage of female
full-time employees

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Full-time employees (female)
Full-time employees (male)

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Initiative

Spousal Maternity Leave System

Initiative

Short Working Hours for Childcare

Up to seven days of leave may be taken at any
time during the 30 days before and after the
expected date of birth.

Only those with children under three years of age
are granted statutory eligibility to use this system.
However, at dip, employees can use the system foran unlimited period by taking advantage of inhouse flexible working programs.
Initiative

��.�%

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��.�%
��-��
-����-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-����-(years old)

mentoring system. This system is designed toensure that experienced senior managers support
younger female employees and encourage theircareer development.

Creating a Comfortable Work
Environment for People with
Disabilities

Issue

We strive to provide an environment that allows
all employees, including those with disabilities, todemonstrate their abilities to the fullest. Specifically, we employ people with disabilities in a
teleworking style. This removes barriers in thework environment and allows them to work
according to their abilities.
Initiative

Telework Employment for People
with Disabilities

dip places great importance on the developmentof female managers and has introduced a

We promote the employment of people with disabilities who can telework if it is difficult for them tocommute or come to work. For those with disabilities who work in the teleworking style, dedicatedemployees act as supporters, talking to them on adaily basis, managing their work progress, andproviding consultation on their concerns as needed,
to ensure that they can work comfortably.

Gender Wage Gap

Percentage of Men Who Take Childcare Leave

Initiative

Mentoring System for Female Managers

(%)

��
��.�%
��.�%

Child Nursing Care Leave System

We have established a child nursing care leavesystem to allow employees to take up to ten daysof leave annually in case of unexpected illness of achild or doctor’s appointments for a medical
check-up or vaccination. At dip, the first five days
taken are treated as paid holidays, with the salarypaid as usual. Employees remain eligible to use
this system until their children have completed
the third grade of elementary school.

���

��
���

Data Section

���% ���% ���%Gender ratio

���% ���%��%

Average base salary (female)
Average base salary (male)

��%
��%

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Percentage of childcare leave taken

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(years old)�

FY’��/�

FY’��/�

FY’��/�

FY’��/�

FY’��/�

64

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Trends in the Overall Health Score(%)

Average*E (Needs immediate action)
D (Needs action)

A (Good)

�.��

�.��

C (Below average)
�.��
���
��
��
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65

�

B (Above average)

�

�

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FY’��/�

FY’��/�

FY’��/�

*Average of all employees where A (Good)=�,B (Above average)=�, C (Below average)=�,D (Needs action)=�, and E (Needs immediate action)=�

performance. By enhancing and effectively implementing measures to improve the health of ouremployees, we are one step ahead in the field ofhealth and productivity management.

Chronic Long Working Hours ofSome Employees

Issue

One of the issues at dip is that some employees
are chronically working long hours.

Reducing Overtime andPromoting the Use of Paid
Holidays

Initiative

Each business division sets targets and strategies
for reducing overtime and promoting the use of
paid holidays to address its own issues. As aheads-up, a sheet is distributed every month tohighlight employees who have worked long hours
or who have taken fewer paid holidays. Eachorganization proactively reviews its members’
work styles, assigns tasks appropriately, andbuilds efficient business processes.

Framework for Health and Productivity
Management Promotion

We have established the Health and Productivity
Promotion Committee (Operation Manager: Executive Officer and CHO) to promote health and productivity management initiatives, directly under our
Representative Director, President, and CEO as the
Health and Productivity Manager and ourOverall Health Risks (by Age Bracket)
Average*

Respondents answering (E)Health and Productivity Promotion
Manager: COO
Health and Productivity Promotion
Committee

Health and Productivity Promotion
Committee Operation Manager: CHO
Personnel & General Affairs Group

Health and Productivity
Promotion Leadersconcurrently serve as
hygiene managers andhygiene promoters.

���

�.�

�.�

�.�

�.�

�.�

�.�

�.�

�.�

Head
Shibuya Shinjuku Osaka Nagoya
officeSecretariat: Koiwa (Committee facilitator)
Industrial doctor andhealth nurses

Respondents answering (B)Employee representatives(Advice on health questions)

Employees and their families

�.�

�.�

�.�

Provide information

Kanto IT Software Health
Insurance Society
Information provider

�.�

Message from CEO‘Health’ to realize dreams and ideas with passion.

��
��
��
-��

・Sharing health issues with employee
representatives at all 36 locations
・Hearing opinions about policies
・Jointly formulating and discussing
policies(Medical examination data, health information)

���Advisor: Dr. Wataru Sasakura…

*Representatives are selected from all 36 offices, including
those with 50 or fewer employees.
Respondents answering (A)Respondents answering (D)Respondents answering (C)Representative Director and COO as the Health andProductivity Promotion Manager. The Board of
Directors, Executive Officers Meeting, and othermeeting bodies receive reports regularly from thisCommittee on the content of its discussions. Eachoffice appoints a Health and Productivity Promotion
Leader as a member of this Committee to ensurethat health and productivity management initiatives
reflect opinions from employees.

Health and Productivity Manager:
CEO

Health and Productivity Promotion Leaders(%)

Data Section

Embodiment of
Philosophy

Promotion of Health and Productivity Management
Based on the belief that “people are everything
and people are assets,” dip considers the healthmanagement of our employees as an important
theme that directly leads to greater work productivity and employee well-being. This is not only
about preventing illness, but also about acquiring
greater vitality and well-being. With this in mind,
dip promotes health and productivity management based on the concept of “conditioning themind and body.”
In March 2022, our initiatives for health andproductivity management were recognized, anddip was certified as a “2022 Certified Health &Productivity Management Outstanding Organization (large enterprise category)” jointly selectedby the Ministry of Economy, Trade and Industry
and the Nippon Kenko Kaigi. This certification is atestament to dip’s commitment to and success inhealth and productivity management.
In March 2023, dip was recognized for the firsttime as a “2023 Certified Health & Productivity
Management Outstanding Organization in thelarge enterprise category (White 500).” This
demonstrates our continued excellence in healthand productivity management and sustainable

Governance��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-�� ��-*Average of all employees where A (Good)=�,B (Above average)=�, C (Below average)=�,D (Needs action)=�, and E (Needs immediate action)=�

(years old)

What inspires us at dip are the “dreams, ideas andpassion” embodied in our company name. When you havea dream that you want to achieve with all your heart,
ideas will naturally come to you, and you will be filledwith the passion to give shape to those ideas.
Health is an essential factor in maintaining dreams, ideas
and passion.

At our company, which is based on the principle that“people are everything and people are assets,” we not
only aim to prevent illness, but also to optimize ourphysical and mental condition so that we can create andprovide better services that will inspire dreams, ideas,
and passion. In this way, we will realize the happiness of
all of our employees and their families.

Hideki Tomita,
Representative Director, President and CEO, dip Corporation

66

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

67*Promotion Target

15 Skills Training

To help employees acquire and improve theseskills, we offer a variety of elective training programs. We offer these programs on an elective
basis because we understand that there is noone-size-fits-all training program as everyone has
different ways of practicing the philosophy anddifferent abilities. Through goal-setting interviews, assessment interviews, and one-on-one
meetings, each training program plays a part in
identifying skills that need to be improved andsupporting the development of those skills.
Issue

Enhancing Managers’ Managerial
Ability

The presence of managers is what supports astrong organization that embodies our philosophy. We are particularly focused on developing
new managers.
dip grows its workforce every year, and some
employees are promoted to managerial positions
as quickly as three and half years after joining theCompany. We invest sufficient time and resources
to help these young managers acquire the skills
necessary to lead and develop their teams basedon dip’s philosophy.
Initiative

New Manager Training

New managers begin with a program to learn
management principles, and then take time tolearn the basics, such as labor and complianceFostering a Learning Culture

It is important to have a sense that “each employee has a role to play in creating dip.” What drives
employee growth is a learning culture in which
employees not only
participate in the learning
opportunities offered tothem, but also voluntarily
learn and continue tolearn.

Total New Manager Training Time

36 hours (FY’22/2)

Training System
Required/Elective

Business
division head
Department
manager
Sectionmanager

Onboarding

New department
manager training

New manager training

S3

Knowledge and skill
development

Leadership Journey
PT training

S4/S5

15 skills training

Introductory training for new
graduates/mid-career hires

Role and behavioral
development

Critical reflection training(section managers)
Critical reflection training(S4)
Critical reflection training(S3)

Problem-solving
training

S2
S1

Problem-solving training

Self-education support

Manabiba!

It is important to acquire problem-solving skills
for the age of AI, and participation in problem-solving training lays the foundation for this.
The program is available to employees who havebeen with dip for at least one year, subject to therecommendation of the supervisor and the individual’s willingness to participate.
In the training, participants learn the basics oflogical thinking, set specific work-related agendas, structure the problem, identify the root
problem, formulate and select solutions, anddevelop an implementation system. We placeparticular emphasis on problem-solving based on
our philosophy, asking each participant about the
dream: what you want to achieve, the idea: whatkind of idea you will use to achieve it, and thepassion: what kind of passion you will have for thetask.
The PT training is designed as a three-monthproblem-solving project for manager candidates.

Initiative

Issue

SCHOO

Problem-Solving Training andPT* Training

Our new personnel system, with dip’s philosophy
at its core, identifies 15 skills necessary to embody
the philosophy and improve society, and defines
the level of skills required at each position level.

Manabiba!

Manabiba! is a company-wide initiative thatprovides a forum for employees to learn about
specific topics on a voluntary basis. By creating anenvironment where employees can interact andlearn from one another beyond organizational andage demarcations, we increase opportunities forinternal communication.

GLOBIS

Initiative

Strengthening Basic Skills to
Support the Embodiment of
Philosophy

Initiative

Learning support

As AI technology advances and automates manytasks, the ability to solve problems is one of themost important skills that only humans can possess. dip’s Corporate Philosophy “Here at dip, wewant to tap into dreams, ideas and passion tocreate a better society” expresses our commitment to identifying, addressing and improvingsocial issues through the dreams, ideas andpassion that are unique to human beings. Of course,
AI will be used to collect and analyze data to solve
problems, but only humans can creatively set
agendas and develop solutions. We believe thatthe accumulation of such human-specific agenda
setting and solution development will makecompanies more competitive.

Issue

training, MBO training, and coaching training. In
the first few months after their appointment, theyreceive critical reflection training, in which theyreflect on practical issues and consider how toaddress them. After one year, they participate inleadership development training based on a
360-degree survey. These step-by-step and ongoing training programs provide new managers with
an important foundation for effective leadershipin achieving organizational goals and building
teams.

Managerial position

Improving Problem-Solving Skills

Several Executive Officers will advise on details of
the initiatives and provide leadership throughout
the process to help the candidates develop the
problem-solving and leadership skills required for
managers.

General position

Issue

Data Section

Embodiment of
Philosophy

Reskilling in the Age of AI
Amid the rapid changes fueled by AI and digitaltransformation (DX), we are evolving our capacity
building efforts by considering the perspectivefrom which we should approach human resource
development.

GovernanceIntroductory practicaltraining

68dip Integrated Report 2023

Introduction

Embodiment of
Philosophy

Development of Executive Management Talent
dip focuses on developing executive management
talent because we believe that in order to realize
our vision of becoming a “Labor force solution
company,” we need leaders who are full of
dreams, ideas, and passion and who can strongly
drive the vision forward.

Busy Leaders

Issue

As dip continues to grow, leaders’ responsibilities
are increasing both in terms of quality and quantity. They often find themselves buried in the daily
grind and unable to fully exercise their leadership.

Leadership Journey

Initiative

An elective training program called Leadership
Journey is held to develop the next generation of
executives. This program selects future management talent from across the Company to participate in an eight-month leadership development
program. In FY’21/2, 15 people were selected as
executive candidates, and in FY’22/2 and FY’23/2,
21 and 30 people were selected respectively.
Participants use their own dreams, ideas andpassion to set a theme related to transformation,
and work with their colleagues on that theme. In a
Number and Age of Department Managers andOffice Heads
(%)

���

Age
(mid-career hires)Age(new graduate hires)

Number of department managers(mid-career hires)
Number of department managers(new graduate hires)

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people69����
FY’��/�

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FY’��/�

FY’��/�

Sustainability

Executive Officer, CHO (Chief Human Officer)
Head of Personnel & General Affairs Group andHead of dip Research InstituteMaximizing Employee Potential
through AI(%)

Age (Executive Oﬃcers)

Age (business division heads
and division heads)

Number of Executive Oﬃcers
Number of business division
heads and division heads

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people��FY’��/�

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Growth Strategy

Governance

Data Section

we aim to use AI not only as a tool to improvebusiness efficiency, but also as a partner to build abetter society. With the introduction of AI, we are
already seeing how employees have been freed
from routine tasks and are now able to focus on
more advanced and creative work. We are working
to solve a broader range of social issues by making
full use of AI in areas from personnel recruitment
to marketing. We believe that the true powers of
AI lie in these changes.
With the arrival of the era of AI, it has also
become necessary to update our personnel system. We are increasing employee satisfaction andmotivation by shifting from relativism to a new
evaluation method and compensation system that
focuses on the potential of each individual.
Nobuaki Kitou

Number and Age of Business Division Heads,
Division Heads, and Executive Officers

Value Creation
Process

CHO MESSAGE

monthly full-day training session, they share
progress on leadership skills learning and transformation themes, and discuss how to solve
problems.
Each learning class of approximately 10 members is assigned an Executive Officer as a facilitator who provides training and holds regular
one-on-one meetings to support the participants.
Past participants also join the training and offer
practical advice to younger participants. The
program culminates in a leadership conference
where they present the results of their efforts.
They give their presentations in front of CEO
Tomita and other executives.

����Top Message

The emergence and rapid development of generative AI is significantly transforming our work
environment. With the rise of technologies such as
OpenAI’s ChatGPT, there are concerns that AI willtake away human jobs. However, our goal is torealize our vision by making maximum use of thepower of AI and bringing out the maximum potential of employees.
Just as the internet brought major changes to ourdaily lives and businesses, AI is also creating newvalue. What is important to note is that AI will not
eliminate jobs, but rather enhance expectations
regarding jobs and services.
As dip employees work, they always keep inmind our Corporate Philosophy, which states that
“we want to tap into dreams, ideas and passion tocreate a better society.” Based on this philosophy,

dip’s vision is to realize a society in which everyone can experience the joy and happiness of work.
To achieve this, we must, first and foremost, givethe employees working at dip a strong sense of
meaning in their work. As well as establishing thefact that we are relevant to the times and that ouremployees are making a contribution to society,this also requires that we be a company thatenables employees to gain a true sense of that
contribution in their day-to-day work. Our newly
established philosophy contest received over
1,000 applications, and work that embodies ourphilosophy was announced. At the contest, we
saw employees who truly embodied dip’s philosophy and found joy in working under said philosophy.
We are riding the new wave brought about by theevolution of AI, and in doing so, maximizing thetrue value of our employees and pursuing sustainable growth. Together with its employees, dip istaking a new step towards the future.

70dip Integrated Report 2023

Growth Strategy
We will explain the Company’s targets for social andeconomic value creation and the management andbusiness strategies to achieve them under dip30th,
the medium-term management plan, which wasformulated to realize a society in which everyone
can experience the joy and happiness of work.

The CFO Message will explain financial strategies toachieve the enhancement of corporate value with acomprehensive view of economic and social value.

CONTENTS
73
79
85

101

71

Business Overview

Medium-Term Management Plan
“dip30th”
CBO MESSAGE—Promoting Our Growth Strategy based on
the Theme of dip30th—“New Era”—
to Realize the Vision of Becominga “Labor Force Solution Company”—

CFO MESSAGE—Aiming for the Sustained Enhancement ofCorporate Value with a Comprehensive
View of Economic and Social Value—72dip Integrated Report 2023

Introduction

Business Overview
Business Description

Growth Strategy

GovernanceLaunched in
October 2002
Launched in
January 2009
Launched in
October 2000
Launched in
May 2021

Data Section

Sales and Segment Profit of the Personnel Recruiting Services Business*(Million yen)

Quickly connects job seekers and client companies
with the kind of freshness of information and richvariety of content that only the internet can offer.
Japan’s largest portal websites forpart-time employees

Assists job seekers in advancing to the next stage intheir careers by helping them maximize experience
gained in part-time jobs.
Job site for full-time and contract workers
seeking a career change

Connects client companies with job seekers who
are looking for full-time, temporary and part-time
work.
Japan’s largest comprehensive
job information platforms

Leverage qualifications and experience or aspire to
be professionals in fields such as healthcare,nursing care, beauty care, and childcare.

��,���

Launched in
September 2009
Launched in
September 2022

Recruiting services specialized innursing care workers

Recruiting services specialized in nurses

��,���

FY’��/�

Segment proﬁt��,���

��,���

FY’��/�*Baitoru, Baitoru NEXT, Baitoru PRO, Hatarako.net, and Nurse de Hatarako

��,���

�,���

FY’��/�

FY’��/�

Note: The figures for FY’22/2 and prior are estimates based on the revenue recognition standard.

Key KPI Progress■ Trends in Number of Contracted

Companies

As a result of efforts to expand the customer baseby increasing the number of contracted companies during the pandemic, the number of suchcompanies in the fourth quarter of the fiscal year
ended February 2023 was 14,904—a YoY gain of
8.7%—and exceeded pre-pandemic levels.

Trends in Media Service Number of Contracted Companies(Unique*)(Companies)��,���

Comprehensive job information site
for specialized jobs

Career advisors assist job seekers with career
moves and changes by providing them with job
information that matches their individual preferences.

Sales��,���

��,���

Services73

Value Creation
Process

In the fiscal year ended February 2023, sales rose by 29.4% YoY to ¥44,577 million as the personnel recruiting
services business grew steadily, outpacing market recovery and increasing the Company’s market share.
Moreover, we invested in human resources, such as new graduate hiring in 2022, and also invested aggressively in advertising. Segment profit totaled ¥14,849 million—up 57.4% YoY—as increased sales productivity
and more efficient advertising operations led to improvement in profit margins.

In the personnel recruiting services business, we support the recruitment and utilization of humanresources that underpin core corporate activities through the provision of job advertisements andrecruiting services. Based on our “user-first” management policy, we have developed a variety of unique,industry-first functions to respond to the job selection needs of job seekers, and we help clientcompanies to match with potential employees in view of ensuring the retention and active participationof those new employees after they are hired. In this way, we are pursuing solutions to the labor shortage
issues that companies face and contributing to the creation of an environment in which each and every
employee can work with vitality.

Permanent Placement Service

Sustainability

Business Progress

Personnel Recruiting Services BusinessMedia Service

Top Message

FY’��/�Q���,���

FY’��/�Q���,���

FY’��/�Q���,���

FY’��/�Q�

*Companies subscribing to multiple media (Baitoru, Baitoru NEXT,
Baitoru PRO and Hatarako.net) are counted only once.

■ Trends in Unit Price per Contract per

Company (Unique*)Through efforts to improve the unit price—including the promotion of cross-selling of our four main
media—the unit price per contract in the fourth
quarter of the fiscal year ended February 2023
recovered to the pre-pandemic level of ¥244,000, a
YoY rise of 6.6%.
Trends in Unit Price per Contract per Media Service
Subscribing Company (Unique*)(Thousand
yen)

���

FY’��/�Q����FY’��/�Q����FY’��/�Q����FY’��/�Q�

*Companies subscribing to multiple media (Baitoru, Baitoru NEXT,
Baitoru PRO and Hatarako.net) are counted only once.

74

dip Integrated Report 2023

Introduction

Trends in Number of App Downloads

Thanks to the success of unique promotions
relating to the dip Incentive Project, dip held onto
the top spot in the industry in the number of app
downloads. Applications via the app are growing
steadily.
Trends in Number of App Downloads*

Baitoru

Trends in Number of Applications

Even though the human resources supply-demand
gap widened as the COVID-19 pandemic subsided, thenumber of applications received was approximately
1.3 times that received prior to the pandemic. We
made steady progress in expanding our user base.
Quarterly trends in the Number of Applications in
the Media (Job Information) Service*

Competing media AQ�Q�FY’��/�

Q�

Q�

Q�

Q�

FY’��/�Q�

*Baitoru, Baitoru NEXT, Baitoru PRO, and Hatarako.net

Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q� Q�

FY’��/�

FY’��/�

FY’��/�

FY’��/�

FY’��/�*Baitoru, Baitoru NEXT, Baitoru PRO, and Hatarako.net

FY’24/2 Strategy

1Plan and develop
proprietary functions andservices based on ideas
from a user-first perspective

Increase the value provided to users andclient companies through measures such as
promoting hourly wage hikes and elimination of age bias, as well as using the“Message from dip-san” function.

Permanent Placement Service

1

Significantly increase thenumber of career advisors

Allocate 87 new graduate hires, increase thenumber of career advisors by 1.7 times.
Conduct training rapidly and improve
productivity of new graduates through aspecialized educational organization.

75

Improve sales productivity

2 with data-driven sales andcross-selling

Promote sales efficiency through utilizationof AI-based drafting of manuscripts andtools developed in-house. Facilitatecross-selling of our four media* in line withcustomer needs.

*Baitoru, Baitoru NEXT, Baitoru PRO, and Hatarako.net

2

Value Creation
Process

Growth Strategy

Governance

Data Section

DX BusinessBusiness Description

To contribute to the greater adoption of DX among mid-tier enterprises and SMEs, in September 2019, welaunched “KOBOT,” packaged DX services designed with selected functions that make it easier to introduce and continue to use the service. The automation of tasks that do not require human hands will help
our clients to improve their productivity and enhance employees’ sense of reward in their work by assigning tasks that will allow them to demonstrate their abilities. This is part of our aim to realize a society
in which everyone can experience the joy and happiness of work.

Bolster customer acquisition via
existing media in the healthcare
and nursing care areas

Launch the new website Nursing Care deHatarako service.
Increase registrations by leveraging thecustomer acquisition power of all existing
media.

3

Streamlining of recruiting and personnel administration
Stock Product

FY’��/�

In Media Service, we implemented hybrid promotions related to the dip DEI Project in addition to the dip
Incentive Project. We aim to further expand our market share by leveraging AI to improve sales productivity
and optimize advertising operations, among other efforts.
In the Permanent Placement Service, we aim to realize high medium-term profitability by training 87 newgraduates in 2023, quickly launching the new Nursing Care de Hatarako service, and controlling customer
acquisition costs by sending customers from existing media.
Media Service

Sustainability

Product Lineup

Competing media B
Q�Top Message

Continue to expand ourmarket share through optimal promotion according toareas and job types

Significant room for market share expansion exists in urban, suburban, and regional
areas. Advertise efficiently through a hybrid
integration of in-person meetings anddigital media.

3 Improve service quality
Earned the No. 1 position in Oricon CS
Ranking for 2022. Maintain close relationships with job seekers to further refine
service skills.

Stock ProductFlow Product

Stock Product

Sales support
Stock ProductMarketing support

No need to create recruiting webpages in-house.
Quickly creates original pages featuring Baitoru’s uniquefunctions, such as workplace introduction videos.
Launched in June 2021, from ¥20,000/month

Automatically schedules recruitment interviews withapplicants (automatic response by chatbots).
Launched in November 2019, from ¥30,000/month
Provides paperless solutions for part-time worker
onboarding and labor management.
Launched in July 2021, from ¥20,000/month

Automatically creates a list of target companies forsales activities of temp agencies.
Calls companies on sales list on behalf of temp
agencies.

Launched in September 2019, from ¥40,000/month

Stock Product

Issues membership certificates on LINE app, offers
store visit reward points and coupons. Supports
sales activities by restaurants and retailers.

Stock Product

Provides map engine optimization (MEO) services toboost ranking in map searches, supporting customer
acquisition.

Stock ProductReservations can be made from social media accounts.
A reservation log function helps restaurants manage
their bookings.

Launched in December 2021, from ¥9,800/month

Launched in March 2023, from ¥30,000/month

Launched in October 2023, from ¥20,000/month76

dip Integrated Report 2023

Introduction

Business Progress

In the fiscal year ended February 2023, sales of products in the areas of recruiting and personnel
administration grew as personnel recruiting services sales staff expanded sales of DX products, resulting insales of ¥4,778 million, a YoY increase of 61.7%.
Moreover, the above sales structure requires minimal investment in promotion, resulting in a high segment
profit margin of 45%, and segment profit of ¥2,132 million, a 136.1% YoY increase.
DX Business Sales & Segment Profit(Million
yen)

Sales

�,���

Segment proﬁt

�,���

��

(���)

FY’��/�

FY’��/�

FY’��/�

Key KPI Progress■ Number of Companies Charged Monthly Payments

The number of companies charged monthly payments increased to 11,162—a 24% increase YoY—in the
fourth quarter of the fiscal year ended February 2023 as we expanded sales to our 150,000-strong personnel
recruiting services customer base.
Trends in Number of Companies Charged Monthly Payments* (Quarterly Average)(Companies)

�

+��%

�,���

�,���

Q�

Q�

FY’��/�

�,���

Q�

�,���

Q�

FY’��/�

�,���

Q�

�,���

Q�

*Number of companies using paid services (Number of unique counted companies)

77

�,���

Q�

�,���

Q�

FY’��/�

�,���

Q�

�,���

Q�

��,���

Q�

Growth Strategy

Governance

Data Section

FY’24/2 Strategy

We will facilitate churn rate reduction and up-selling through quality enhancement and function expansion
for existing products, and launch new products in the area of marketing toward building a sales expansion
structure. Moreover, simplifying installation and setup support operations lightens the sales staff workload
and makes sales more efficient.

1

Improve quality, expand
functions of existing products

Reinforce the CS structure and conduct
product planning that satisfies customer needs
to curb churn rate and promote up-selling.

FY’��/�

Note: The figures for FY’22/2 and prior are estimates based on the revenue recognition standard.

Value Creation
Process

2 Bolster product lineup

Launch new products in marketing domain.
Step up development of products for new
industries.

3 Improve sales efficiency

Simplify installation and setup support operations
to reduce sales workload, while augmenting
combined sales with job advertisements.

In July 2023, we revised the planned KPI targets upward in light of recent strong progress.
Going forward, while raising ARPU, we will continue to strive for robust sales growth by increasing the numberof companies charged monthly payments.

���
(���)

Sustainability

Key KPI Targets for the Fiscal Year Ending February 2024

�,���

���

Top Message

��,���

FY’��/�Q���,���

Q�

FY’23/2 Q4
ActualFY’24/2 Q4
Initial PlanFY’24/2 Q4
Revised Plan

Monthly sales(Quarterly average)¥420 million¥520 million¥580 million

No. of companies charged
monthly payments(Quarterly average)

11,162

13,40014,000Quarterly average*1 ARPU

¥38,000¥38,000¥42,000

Stock sales ratio*2

70%(Year round)
Maintain about 65%(Year round)
Maintain about 65%*1: Quarterly average sales divided by the quarterly average number of companies charged payments.
*2: Stock product sales (automatic renewal or long-term contract) divided by total sales.

78dip Integrated Report 2023

Introduction

Overview ofthe Medium-Term Management Plan “dip30th”
Creation of diverse employment
opportunities
Elimination of employment mismatch●

Value to Be CreatedSocial Value●

Economic ValueBusiness Strategies

1.68 million high-quality job offerings thatmeet the needs of diverse occupations, job
types, and work styles.
Create more hiring in the area of fixed-term
employment than anyone in the industry
through optimal matching.
〈Focus Areas〉
450,000 job offerings that welcome seniorcitizens
800,000 job offerings that allow flexibility forchildcare/nursing care
300,000 job offerings available to foreign
workers/foreign students
150,000 job offerings accepting high school
students

Eliminate mismatches in hiring and address theshortage of human resources in the healthcare
and social welfare areas, at a time when theseissues are becoming more serious due to thedeclining birthrate and aging population.
〈Jobs Created〉
Healthcare/nursing care/welfare workers:
25,000 per year

Company-wide sales:
Personnel Recruiting
Services BusinessFirst choice・Best result
Sales Capability

Management Strategies

Functional Strategies

Strengthening

the Management Foundation
79

Promoting hybrid sales to accelerate
improved productivity
Leverage the latest technology and data
Strengthen the customer base by efficiently
implementing optimal proposals
Human Capital Connectedwith Our Philosophy

Developing measures to maximize
the potential of human resources

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

To realize our vision of becoming a “Labor force solution company,” we have formulated our medium-term management plan dip30th, which will end in February 2027, the 30th anniversary of our founding. Based on the materiality addressed by dip and the social value it creates—formulated by backcastingfrom the desired vision and society—we have defined the social and economic value we wish to realize
during the period of this medium-term management plan, and formulated business and functional strategies to achieve the value. By steadily putting these strategies into practice, we aim to drive our businessgrowth forward and realize a society in which everyone can experience the joy and happiness of work.

FY’25/2–FY’27/2

Materiality to Achieve Our Vision

Top Message

Improvement of human resourcesand economic productivity
Creation of rewarding workplaces

●

●

●

Raise the number of companies where we
introduce and charge for DX in the areas ofrecruitment, human resources, and sales
promotion to 30,000, contributing to
improved labor productivity in mid-tierenterprises and SMEs.

●

Support workers to obtain qualifications byproviding reskilling opportunities andpromote regional revitalization and industrial stimulation through labor mobility.
Promote the improvement of working
conditions by posting 1.25 million job
offerings with improved compensation,
including higher hourly wages.

Promotion of DEI
Respect for human rights●●

Introduce dip Workplace Diagnostics* toimprove the workplace environment. Support
to ensure the retention and active participation of new employees after employment.
* Service that identifies workplace attractions
and challenges and provides proposals for
improvement●●

Increase the number of job openings without
age bias at the time of hiring to 650,000.
Expand employment opportunities for adiverse workforce, including middle-aged
and senior workers.
Support the employment of people withdisabilities through a year-round campaign(sponsored by the Ministry of Health, Labourand Welfare) to help people with disabilities
take on the challenge of employment.
Promote a workplace environment that
respects diversity by posting LGBTQ+
friendly job offerings.

Prohibit the posting of job offerings that may
violate laws and regulations or infringe
human rights. Educate client companies on
how to create a workplace environment freeof human rights violations.

Response to
the climate crisis●●●

Contribute to the realization of a carbon
neutral society by reducing Scope 1 and Scope
2 GHG emissions to net zero by FY2025 throughmeasures such as the introduction of renewable energy.

Utilize our nationwide network of sales
offices to collaborate with local governments
immediately after any major disaster. Set up
a special page for recruiting disaster relief
volunteers on the Company’s website toprovide prompt and effective support for
hard hit areas.
Collect and post job information on each site
to meet the diverse employment needs ofthose who have lost their jobs due todisasters caused by the climate crisis.
Provide job opportunities to help workers
overcome economic hardship. Contribute to
the economic recovery of affected areas.

¥78.0 billion–¥85.0 billion, operating income: ¥20.0 billion–¥25.0 billion, ROE: 30%
High-quality, unique job informationcollected by direct marketing sales staff
and cutting-edge technology to ensure
optimal job matches.
Service Development
Capability

Establishing an elite
400-person scrum team tomaximize the value provided
Realize high productivity andaugment added value througha cross-sectoral, in-house-centered development system

DX Business“DX for everyone, all the time”
Promotions Capability

Establishinga No. 1 user-first brand

Develop unique, large-scale
hybrid promotions to improveadvertising effectiveness andinvestment efficiency

Achieve No. 1 in employee well-being by
utilizing people analytics to develop andleverage the diverse talents of employees

Support for improved labor productivity
with high-quality solutions utilizing dataobtained from recruitment, humanresources, and sales promotion services

Data and Technology
Capability

Develop a data platform that
supports all aspects ofstrategy implementation
Establish a “Labor force solution
platform,” a data platform
shared by all businesses, toaccelerate business speed

GovernanceImproving management capability
through dialogue with stakeholders

Business Development
Capability

Strengthen mechanisms
for generating innovation

Create new social and economic
value with the “dip Innovation
Engines” that generate new
businesses and services

Maximize corporate value by expanding
communication with shareholders and otherstakeholders—including dialogue with thestock market—and utilizing it in management80dip Integrated Report 2023

Introduction

Non-Financial KPIs related to Social Value to
Be Created under dip30th
Materiality

Creation of diverse
employment
opportunities

Elimination of
employment mismatch

Non-financial KPIs

Creation of rewarding
workplaces

Number of high-quality job
offerings that meet the needsof diverse occupations, job
types, and work styles※1

FY’25/2

1.33 million*1

Remain No. 1 in theindustry

1.68 million*1

Number of job offerings thatallow flexibility for childcare/nursing care

0.31 million*1

0.4 million*1

0.45 million*1

0.51 million*1-

0.8 million*1

0.14 million*1-

0.3 million*1

0.15 million*1-

10,000-25,00012,000*1-

30,000*1

Number of job offerings thatwelcome senior citizens

Number of job offerings
available to foreign workers/
foreign students

Number of job offerings
accepting high school students

Number of companies where
we introduce and charge for
DX in the areas of recruitment,
human resources, and sales
promotion
Number of job offerings thathave realized improved
working conditions,
including increased hourly
wages※3

Number of job offerings
without age bias in hiring(number of job offerings with
optional age input)

Promotion of DEI

Respect for human rights

Response to the climate
crisisEmployment opportunities
for people with disabilities
Certificate of Good
Recruitment/Candidate
Information Provider

Number of incidents
violating labor laws andregulations

Prohibition of the posting ofofferings that are thought tobe violating human rights
GHG emissions of all offices
and data centers: Non-financial KPI items expanded in FY’24/2

81

Targets

FY’23/2

Number of workers in thehealthcare and welfare
industry※2

Improvement of humanresources and economic
productivity

ActualFY’27/2

0.15 million*1

0.99 million*1

1 million*1

1.25 million*1

0.13*1-0.65*1One-off campaign

Year-roundcampaign

Year-roundcampaign

Certificate received

Certificate received/
maintained0

Maintain 0

Implemented

Continue
implementation

Scope 1+2
49% reduction(Compared with
FY’20/2)

Scope 1+2 and data
centers
Effectively 0*2

Certificate
received/
maintained
Maintain 0

Continue
implementation
Scope 1+2 anddata centers
Effectively 0*2

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

For each materiality item, we have defined the social value to be created during the period of this medium-term management plan as well as non-financial KPI targets based on the defined value. The number ofmateriality KPIs presented in dip Integrated Report 2022 has been expanded this year to a total of 32.
We will report on our progress toward these targets to stakeholders annually.
Please refer to the CFO MESSAGE (P. 101) for details on progress made in the fiscal year ended February
2023 toward the targets for the fiscal year ending February 2025 we announced last fiscal year.
Materiality

Non-financial KPIs

FY’25/2

FY’27/2

4.0 (maximum 5)

4.2 (maximum 5)

43.5%

50%

50%

Percentage of female
managers

34.4％

40%

Percentage of women who return
to work after childcare leave

98.3%

100%

40%

100%

100%

92.5%*3100%※4Percentage of women among
employees hired as new
graduates and promoted to
managerial positions later
Percentage of women who
take childcare leave

Percentage of men who takechildcare leave
Percentage of people withdisabilities employed

Percentage of paid holidays
taken

Average extra hours worked
Turnover rate

100%
100%
100%

Statutory
employment
rate*4 or higher

Statutory
employment
rate*4 or higher

Not more than
20 hours/month

Not more than
20 hours/month

52 hours

Continue toexpandContinue toexpandNot less than 2/3

3.0%*459.4%
23.0 hours/month
12.6％

80%

10.0%

80％

10.0％

New graduate training

326 hours

Next generation leadersdevelopment training

143 hours

Percentage of female Board
Directors

2/3*5

Not less than 2/3

55.6%*550%

Percentage of employees
who completed compliancetraining and testing0

Maintain 0

Maintain 0

100%

Maintain 100%

Maintain 100%

367

500

550

New manager training

Percentage of independent
officers

Strengthening
governance

FY’23/2

Targets

3.84

Engagement indexes

Strengthening humancapital connected withphilosophy

ActualNumber of serious violationof laws and regulations

Number of investor
interviews50%※1: Videos, work experience functions, posting of “Message from dip-san,” etc. Measures will be taken to further increase quality※2: Total number of workers who obtained a job by Permanent Placement Service and the number of workers by Media Service (in-house estimate)※3: Increased hourly wages, bonus for continued service, incentive payments upon employment※4: Indexes in our ES (Employee Satisfaction) surveys*1: As of end of February*2: Scope 1 and Scope 2 (city gas and electricity in all offices. Recreation facilities and data centers are included in the scope of calculation for Scope 1 and 2
from the FY’23/2.)*3: Based on the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members, thepercentage of employees taking childcare leave, etc. and leave for childcare purposes as stipulated in Article 71-4, Item 2 of the Ordinance for Enforcementof the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members is calculated.
*4: As of June 1 (as of the Ministry of Health, Labour and Welfare’s report on the status of employment of people with disabilities), the statutory employment
rate for private companies is 2.3% (revised in March 2021)*5: As of May 31, 2023

82

dip Integrated Report 2023

Economic Value to Be Created by dip30th

We set our economic value targets for the fiscal year ending February 2027 as sales of ¥78.0 billion–¥85.0
billion, operating income of ¥20.0 billion–¥25.0 billion, and return on equity (ROE) of 30%. By working toachieve these targets in tandem with non-financial KPIs related to social value, we will bring to life ourvision of becoming a “Labor force solution company” and improve society.

Introduction

Top Message

Sustainability

Financial Targets
Planned SalesCAGR ��%❶ Transforming the business structure with AI-Agent��.�

・Expand functions of existing businesses to accelerate growth・Expand business into new areas

Growth Strategy

Governance

Planned Operating Income(Billion yen)

Pillars of Management Strategies based on dip30th Theme “New Era”

Value Creation
Process

��.�

��.�
-��.�

Operating (Billion yen)
IncomeMargin��.�%CAGR ��%
��.�

��.�%

��.�

CAGR ��%Data Section

��.�%-��.�%
��.�
-��.�

CAGR ��%❷ Improving sales productivity

・Use AI technology and data to establish sales structure and infrastructure
・Promote cross-selling of media (job advertisements) and DX products❸ Introducing new services to expand business (announcement planned for FY’25/2)

FY’��/�
FY’��/�Actual Performance Forecast

FY’��/�Plan

ROE

Market Assumption
��.�%

83

FY’��/�Plan

Assumptions about Plans

��.�%“New Era”

FY’��/�
FY’��/�Actual Performance Forecast

��.�%

��.�%

Staffing Plans

・Recruitment of new graduates: 300 in FY’25/2,
340 in FY’26/2, 400 in FY’27/2(Breakdown)
Media: 215 in FY’25/2, 215 in FY’26/2, 215 in FY’27/2
Permanent Placement: 50 in FY’25/2, 15 in FY’26/2, 40 in
FY’27/2
DX: 20 in FY’25/2, 90 in FY’26/2, 120 in FY’27/2

��.�%・Mid-career recruitment: 150 in FY’25/2, 130 in
FY’26/2, 155 in FY’27/2

�.�%FY’��/� FY’��/� FY’��/� FY’��/� FY’��/�
Expectation

Assumption of continued moderate economic
expansion

FY’��/�
Plan*70 each year in engineering, planning, etc.; 30–50 each year in
Permanent Placement and DX; corporate divisions only
replacing retirements

Investment Plans

・Software investment in existing services
grows by about 15% annually
・Separately, AI-related investments are
expected to total approximately ¥2.0 billion
over three years
・Assume that capitalization rate will remain atcurrent level(Note) These are current assumptions and are subject to change.

84

dip Integrated Report 2023

Introduction

CBO MESSAGE
Promoting Our Growth Strategy
based on the Theme of dip30th—“New Era”—to Realize
the Vision of Becoming a“Labor Force Solution Company”
Kazuhisa Iwata

Senior Managing Executive Officer, Chief Business Officer

With the vision of becoming a “Labor force
solution company,” dip aims to tackle various
issues in the labor market through the provision of personnel recruiting services and DX
services, toward a society in which everyone
can experience the joy and happiness ofwork. To realize this vision, we have formulated dip30th, our new medium-term management plan which runs through the fiscal
year ending February 2027, which marks theCompany’s 30th anniversary.
The theme of dip30th is “New Era,” andwith our AI-Agent business, we will greatly
evolve our personnel recruiting services
business to accelerate growth in sales andprofit and expand our business into newareas. By shifting from the conventional“search-based” to an “interactive” job selection process, we believe we can significantly
change the current situation in which only afew percent of job seekers generally findemployment after accessing the site, thereby
increasing the employment rate and subsequently creating significant revenue opportunities. We further hope to create new
personnel recruiting services businesses in avariety of areas such as fixed-term employment.
In anticipation of this change in our business structure, we have adopted the slogan,“abundant choices, matching jobs quicker
than anywhere else” for our personnel recruiting services business. We leverage ourstrengths in direct marketing sales to gather
a considerable volume of unique information
only available through us. Job informationrich in both quality and quantity and thepower of AI technology enhance matching85

accuracy. We are also committed to supporting users and client companies so that diverse individuals can maximize theirstrengths and enhance their engagement andskills even after they are employed, andthereby bringing our slogan, “abundant
choices, matching jobs quicker than anywhere else,” to fruition.
We have adopted the slogan, “DX for everyone, all the time” for our DX business. Mid-tier enterprises and SMEs have not made as
much progress with DX-related initiatives as
has been made at large companies due to thewidespread perceptions that they are unable
to identify the operations where efficiency
can be enhanced, that implementation iscostly and time-consuming, and that theycannot make full use of the improved functionality after implementation. As a result,economic productivity of mid-tier enterprises
and SMEs has not improved so much. In theinterest of contributing to digital transformation at mid-tier enterprises and SMEs, dipoffers KOBOT, a DX service that is easy tointroduce and then use on an ongoing basis,to promote DX for daily business operations.
Moreover, through high-quality solutions
leveraging data obtained from recruitment,
human resources, and sales promotion
services, we will realize “DX for everyone, all
the time.” This will enhance labor productivity and bolster the Company’s competitive
position.
As we move toward the 30th year of ourexistence, we will aim for further growth bytransforming AI’s dramatic evolution into abusiness opportunity and pressing forwardwith our medium-term management plan.

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Personnel Recruiting Services Business Strategies
Media Service
Create Diverse Employment Opportunities through Optimal Matching using AI

Service Officer MESSAGE

Utilizing AI and Pursuing User First to Resolve
Labor Shortages

In addition to the application of AI technology, a
key aspect of resolving labor shortages—theseverity of which is continuing to rise—is the
pursuit of a “user-first” approach that places toppriority on the satisfaction of service users. Whileencouraging client companies to create an environment in which a diverse workforce can thrive,
as a medium dealing in employment opportunities, we believe we also play a key role in clearly
conveying to our users the fact that such an environment exists. We will continue to work together
with client companies to change society for the
better and bring “abundant choices, matching jobs
quicker than anywhere else” to fruition.

Market Environment

The number of part-time and temporary workers temporarily declined due to the pandemic
but is now once again trending upward. With the
declining birthrate, aging population, and thedecrease in working population continuing toaccelerate and, accordingly, a continued
widening of the gap between supply-demand in
human resources, it is assumed that the employment of fixed-term workers—particularly
women, senior citizens, and foreign workers—
will continue to accelerate.
Moreover, the spread of side jobs and multiple jobs is also expected to serve as a tailwind
supporting the steady growth of the market for
fixed-term worker job advertisements.

Takatsune Inoue

Executive Officer, Media Business Service Officer
Head of Media Sales Group

Yearly Changes in Number of Fixed-Term Employees(Million
people)��.�

��.�
��.� ��.�

��.�

��.�

��.�

��.�

��.� ��.� ��.����� ���� ���� ���� ���� ���� ���� ���� ���� ����Source: “Labour Force Survey” by the Ministry of Internal Affairs andCommunications (until FY2022)

����

86

dip Integrated Report 2023

Introduction

Personnel Recruiting Services Business Strategies
Competitive Advantages

Planned number of media sales
staff (excluding managers)

Unique services and promotions based on “user first”

Consulting and sales capabilities of direct sales force connected by philosophy

Service development capability in tune with the voices of workers gathered through direct marketing sales
Customer base of 150,000 companies and a unique repository of customer information❷ Strengthen consulting sales with a user-first focus

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

❸ Increase sales staff (direct marketing sales and agents) and improve productivity
through the use of AI

Improve sales efficiency and closing rates by utilizing AI in sales activities such as creating job ads, listingsales targets, and making proposals to customers.

❹ Unique services based on “user first” x promotions

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

��.�

FY’��/�Actual87

CAGR �%FY’��/���.� or more

FY’��/�
Plan

���

���

Segment Profit/Profit Margin

Segment
proﬁt
margin(Billion
yen)

��.�％

CAGR ��%FY’��/����New
graduates

FY’��/�Plan

As a result of efforts to improve society byproviding services and conducting promotions tailored to users and client companies, such as the dip Incentive Project
during the COVID-19 pandemic, the expansion of our market share has accelerated.
Our market share in the fiscal year ended
February 2023 was 26.4%. This represents
a steady expansion from the figure of
23.7% for the fiscal year ended February
2022.
(Prepared by dip based on the latest independent market survey results)

��.�% or more��.� or more

Temp
Large
agencies enterprises
��%
��%

��.�

FY’��/�ActualFY’��/�Market share: Steadily expanding

Sales Composition
by Company Size

FY’��/�
Plan

Mid-tier enterprises
and SMEs��%

Data Section

��*FY’23/2 Actual

FY
’15/2

FY
’16/2

FY
’17/2

FY
’18/2

Third year
or above

FY
’20/2

FY
’21/2

FY
’22/2

FY
’23/2

*Prepared by dip based on independent market size survey

Three majorurban centers

Suburbs of threemajor urban centers

Regional
areas

¥��.�
billion¥��.�
billion¥��.�
billiondip ��%dip ��%■dip’s market share* ■Market size**1: Media Business・Three major urban centers: Tokyo 23 wards, Nagoya City, Osaka City・Suburbs of three major urban centers: Tokyo metropolitan area – 7 prefectures, Tokai area – 3
prefectures, Kinki area – 6 prefectures, excluding the areas that fall under “major urban centers”
・Regional areas: Other areas outside of the major urban centers and suburbs*2: Independent market size survey (FY2022)
�

26.4%

Increased market share
during the pandemic
Acquisition of market share
due to the termination of‘an’ service

FY
’19/2

Share of the Part-Time and Temporary Worker
Job Information Market by Region
dip ��%Secondyear

Trends in Our Share of the Part-Time andTemporary Worker Job Information Market*

Reference Data related to Client Companies

���

Governance

Productivity of Sales Staff
by Years of Service (Annual sales*)Percentageof those with��％ two years ofservice andbeyond��％(Reference)
Number of new graduates (Media sales)
FY’23/2: 355, FY’24/2: 430

Improve the accuracy of AI based on dip’s proprietary data on client companies and users (employees
and job seekers) to significantly improve application and hiring rates and increase the capability to
attract users.

Growth Strategy(Millionyen)

Approx. 1,200

Approx. 1,400❶ Improve matching accuracy using AI(Billionyen)

FY’24/2 Forecast

Value Creation
Process(Reference)
Percentage of Sales Staff
by Years of Service

FY’27/2 (Plan)

Business Strategies

Sales

Sustainability

Key KPI Targets

Broad user base due to high brand recognition

Sales and Segment Profit Targets

Top Message

�Composition of Job
Offerings by Job Type

Service
Manufacturing, �%
Otherconstruction and�%civil engineering�%Education
�%

Sales
��%

Light work
��%

Food
��%

Oﬃce
��%

Healthcare��%88dip Integrated Report 2023

Introduction

Personnel Recruiting Services Business Strategies

Create Diverse Employment Opportunities through Optimal Matching using AI
Service Officer MESSAGE

Growth Strategy

Governance

Data Section

User base (both actual and potential) for existing media in the healthcare and nursing care areas
Customer base of healthcare and nursing care facilities cultivated through Media Service
Customer development capability through Media Service sales staff

Business Strategies

through Optimal Matching using AI

We will strategically increase the number of job
offerings and fortify relationships with the aim ofbuilding a more well-rounded customer base.
Furthermore, by coordinating closely with existing media such as Baitoru and Hatarako.net, we
will maximize our company-wide marketing
capability and bolster our customer acquisition
capability. In this process, we have introduced anadvanced AI-based matching system using information acquired by career advisors (in charge ofusers) and recruiting advisors (in charge of clientcompanies). The optimal integration of thisinformation will enhance productivity and create
new employment opportunities. Through these
efforts, while responding quickly to market
changes and bolstering our competitiveness, we
aim to secure a leading position in the industry.

89

Value Creation
Process

Optimal matching using cutting-edge AI and other technologies

Create Diverse Employment Opportunities

The job opening-to-application ratios in thehealthcare and welfare
areas are high relative toother industries, and thestructural labor shortageis ongoing.
Assuming that thehuman resources supply-demand gap will
widen further, and thatthe need for recruiting
services in these areas
will grow, we estimate amarket CAGR of 4%.

Sustainability

Competitive Advantages

Permanent Placement Service

Market Environment

Top Message❶ Create diverse employment opportunities through optimal matching using “people(career advisors)” + “AI”

In line with the needs of job seekers, we propose diverse work styles with people + AI. Utilize AI-Agent
services to improve matching accuracy, boost employment rates, and reduce short-term turnover rates.

Tomohiro Kitazato

Executive Officer, Permanent Placement Business
Service Officer
Head of Permanent Placement Business Group❸ Expand customer base and strengthen relationships with healthcare and nursing care facilities
Develop customers through sales that combine Media and Permanent Placement Services. Expand salesof DX products for healthcare and nursing care to increase the number of recruiting establishments andstrengthen relationships. Promote the development of sales offices.
Improve productivity by strengthening CA hiring, controlling the turnover rate (continued to be about12%), and continuously improving the workflow through the use of AI/DX.

Propose an optimal combination of job advertisement and recruiting services to site users

Approx. ¥���.� billion

Approx. ¥���.� billion

����

Expand the number of full-time registrants by rebranding existing media. Promote employment for
inexperienced workers through qualification support services.

❹ Expand career advisor (CA) structure and increase productivity

Recruiting Services Market Size for Healthcare and Welfare Fields*+approx. ¥��.� billion (CAGR +�%)❷ Increase the number of registered candidates for recruitment by referring customers
from existing media

I want to finda job on my own.

Existing Media Users(job seekers)

Media Service(job advertisement)

I want to be
introduced toa job thatsuits me.

Permanent Placement
Service(recruitment)����*Prepared by dip based on independent market size survey

90dip Integrated Report 2023

Introduction

Personnel Recruiting Services Business Strategies
Sales and Segment Profit Targets
Sales(Billionyen)

CAGR ��%�.� or more

Segment Profit/Profit Margin

Segment
proﬁt
margin(Billionyen)�.�
FY’��/�ActualFY’��/�

Key KPI Targets

Planned number of staff

MESSAGE�.�

FY’��/�
Plan

FY’24/2 Forecast

��.�％FY’��/�ActualApprox. 140

CAGR ��%��.�% or more�.� or more

FY’��/�Plan

Approx. 240 or more

91

Growth Strategy

Governance

Data Section

We aim to enhance matching accuracy by utilizing the unique, up-to-date, accurate job information collectedby our recruitment consultants to service the existing and potential needs of each job seeker—which ouradvanced AI engine ascertains through and extracts from natural dialogue—and to put this information into
practical use by the end of 2023.
AI-Agent Services Business Model

Job
seekerBy presenting thebest job opportunities to each job
seeker, recruitment
rate is greatly
improved.

Masanori Kawabe

Executive Officer, Deputy Head of Permanent
Placement Business Group

While there has been a shift from job advertisements to the personnel recruiting business—primarily with regard to permanent employees—this trend has
not spread to fixed-term workers. We believe that the use of AI can create a new personnel recruiting business in the fixed-term employment domain, and assuch have begun the commercialization of AI-Agent. With the advent of ChatGPT, we hope to accelerate the launch of the business and create new employment opportunities by shifting from the conventional “search-based” to an “interactive” job selection process.
Generally, only a few percent of job seekers who access the site successfully find employment. The use of AI-Agent can improve matching accuracy and boost
the employment rate, thereby creating a significant opportunity for revenue.
dip’s strengths are the latest, accurate, and high-quality job information gathered by our sales staff and our extensive user base. We believe that we canleverage these strengths, which none of our competitors have, to create a highly accurate AI engine, and in April 2023, we began development of an AI-Agentbusiness utilizing cutting-edge AI technology.
We will turn the dramatic evolution of AI into business opportunities, just as we have greatly expanded our business by capturing the spread of the internet.

By inputting unique,up-to-date, accurate,and high-quality
information into AI, it
is possible to create AI
with higher accuracy
than competitors.

Baitoru App

Specify your preferredarea of work anddesired conditions by
typing in the chat.

By eliminating
application mismatches, increase
recruitment andretention rates ofclient companies.

AI-Agent Services
Background of AI-Agent Business Launch

Value Creation
Process

dip’s direct
marketingsales staff

Input into AI high-quality job informationacquired throughdirect visits to clients

AI presents open
positions with a highdegree of matching.

Construct a Business Foundation and Achieve Significant
Growth with the Aim of Resolving the Shortage ofNursing Caregivers, a Serious Social Issue
The nursing caregiver shortage is forecast to peak in the year 2040
when baby boomers’ children will reach the age of 75. In September
2022, dip began offering recruiting services in the nursing care area.
In October 2023, we launched the Nursing Care Business Division toreinforce our business foundation. We will strive to strengthen sales
and expand our service areas to reach as many customers as
possible. Moreover, as we understand the rewarding and specialized
nature of the nursing care profession, we will improve service quality
and upgrade information systems to evolve to optimal matching,
thereby realizing “abundant choices, matching jobs quicker thananywhere else.” This will allow us to grow our business markedly by
the final fiscal year of our medium-term management plan and to
make further improvements with regard to addressing social issues.

Sustainability

AI-Agent Services Business Model

FY’��/�

FY’27/2 Plan

Top Message〈Display image〉

Competitive Advantages
Broad and diverse user base

Wealth of proprietary information collected by direct marketing sales staff in close contact with customers

Strong technological capability and AI development system through collaboration with Matsuo Institute, Inc.
Superior development capability of a 400-person scrum team

Deep insight into the AI domain cultivated through the operation of AINOW, one of Japan’s largest AI information websites

Direction of Business Development

We will evolve both Media and Permanent Placement Services through AI-Agent services. The flow of thebusiness development process is as shown below.

Install AI-Agent services as one of the functions of the existing site to improve the recruitment and employment rates of job seekers. By increasing the number of applications, we will achieve an increase in sales
and a reduction in the cost of acquiring applications.
After fully improving matching accuracy, we will introduce a recruiting fee model. By introducing highly matchedpersonnel, the recruitment and employment rates are increased, and the retention rate is also improved.
Expand the implementation area.
92

dip Integrated Report 2023

Introduction

DX Business Strategies“DX for Everyone, All the Time”—Realizing On-Time, Data-Driven Digital
Transformation of Daily Operations
Service Officer MESSAGE

Market Environment

Mid-tier enterprises and SMEs have notmade as much progress with DX-related
initiatives as has been made at large companies due to the widespread perceptions thatthey are unable to identify the operations
where efficiency can be enhanced, that
implementation is costly and time-consuming, and that they cannot make full use of
the improved functionality after implementation. As a result, economic productivity of
mid-tier enterprises and SMEs has not
improved so much, which indicates there ismuch room for them to implement DX.

Governance

Data Section❶ Accelerate service development in the areas of recruiting, human resources, and sales
promotion
Expand product lineup to include business communications, nursing care DX, robotics, and other areas❸ Strengthen collaboration with media sales and expand DX-dedicated sales force

Increase the rate of orders received and reduce the churn rate by improving media sales proposal
capability. Also focus on developing new customers.

❹ Provide optimal solutions with acquired data and AI technology

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

Shoji Fujiwara

Executive Officer, DX Business Service Officer
Head of DX Business Group and Head of Product
Planning Division

Sales and Segment Profit Targets
Sales＋約���億円
Percentage ofCompanies Deploying DX by Company Size
（CAGR＋�%）��％*Total sales staff of personnel recruiting services and DX businesses

Growth Strategy❷ Promote product development in new areas

Segment Profit/Profit Margin

�.�

�.�

CAGR ��%FY’��/�
FY’��/�Actual Performance Forecast��％

Key KPI Targets
SMEs

Major Companies

Source: dip, based on “Annual Report on the Japanese Economy and Public Finance 2021”
by the Ministry of Economy, Trade and Industry

Simple, easy-to-implement product designed specifically for mid-tier enterprises and SMEs
Packaged products developed in-house and with partner companies (e.g., start-ups) are provided at low
cost with excellent UI/UX.
A customer base of 150,000 companies built up through more than 20 years of media operations
Sales structure with 2,000* media sales staff (for job advertisements)

93

Value Creation
Process

Business Strategies(Billionyen)Competitive Advantages

Sustainability

Improve quality of existing products and develop new products in each area

Supporting Enhanced Labor Productivity with High-Quality
Solutions Utilizing Data Obtained from Recruitment,
Human Resources, and Sales Promotion Services

In the interest of contributing to the improvement of laborproductivity in Japan, we are promoting the development of a DX
service. KOBOT is a DX service easy to introduce and to use on an
ongoing basis—not only for larger companies that have made progresswith their digital transformation efforts, but also for mid-tierenterprises and SMEs. In our medium-term management plan, we aim
to increase the number of client companies charged monthly
payments to 30,000—approximately twice the current number—by
providing high-quality solutions leveraging data obtained from sales
expansion of products in the areas of recruitment, human resources,
and sales promotion, as well as from expansion of product lineups in
new areas such as business communication and nursing care services.
Aiding in the digital transformation of daily operations will bring tofruition “DX for everyone, all the time” and support new work styles.

Top Message

Plan for No. of Companies
Charged Payments

��,��� or more(Companies)

Segment
proﬁt
margin(Billionyen)

��.� or more

��.�％

�.�

FY’��/�
Plan

�.�

��.�% or more
CAGR ��%FY’��/�
FY’��/�Actual Performance Forecast

ARPU Plan(Thousand
yen)

��.�％

�.� or more

FY’��/�
Plan

Stock Ratio Plan���� or more

FY’��/�
Performance Forecast

FY’��/�
Plan

(%)

��％

Maintain ��%

FY’��/�
Performance Forecast

FY’��/�
Plan��,���

FY’��/�
Performance Forecast

FY’��/�
Plan94dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Functional Strategies
Sales Capability

Service Development Capability

Promoting Hybrid Sales to Accelerate Improved Productivity

MESSAGEStrengthening our Customer Base by Making Optimal andEfficient Proposals Using the Latest Technology and Data

We are aiming for a new sales approach that allows customers
and users to have more comfortable and satisfying experiences.
By quickly identifying customer needs and making optimal
proposals, we will improve sales productivity and promote sales
that use BtoB marketing at both online and in-person contact
points. Moreover, we aim to improve long-term customer satisfaction by leveraging data and technology to provide tailoredcustomer experiences and build trusting relationships withcustomers.

Jun Nobuyama

Head of Business Promotion Division,Media Sales Group

Improve Sales Productivity through the Use of AI
We will make full use of AI in a series of sales activities, including drafting manuscripts for media sales,
listing sales targets, making proposals to customers, picking out job offers and providing role-playing
practice opportunities for registered career advisors of agent services. Core system replacement and CRM
system construction will also be implemented to improve sales efficiency and closing rates.
Develop New Sales Techniques Using Technology and Data
In addition to promoting inbound sales using BtoB marketing, we have established a lead acquisition
model that can efficiently approach customers with a high probability of placing orders
Promote Utilization of AI by Front Line Staff to Realize
Improved Productivity

Chief Information Officer

95

MESSAGE

Achieving High Productivity and High Value-Added Services
with an Employee-Centered, Cross- Departmental Scrum
Development System

Strategy Outline

Takatomo Suzuki

Establishing an Elite 400-Person Scrum Team to Maximize the Value Provided

One great thing about dip is the attitude of our employees, who all take on
new challenges with a sense of responsibility. Concerning AI utilization, allof our employees think about and experiment with how to use AI toachieve results in their own work. As a result, we have not only improved
efficiency by reducing the time taken to create materials and hold meetings, but also increased sales by improving our appointment acquisition
rate. Going forward, we will realize a society where humans and AI collaborate in order for workers to feel more satisfaction and joy in their work.

In order to quickly realize user-first ideas, we have hired 178
people to build a system with 200 engineers based on our medium-term management strategy dip2025. On the technical side,
we are also embarking on high-quality, rapid development with
AI development tools such as GitHub Copilot, which we havealready implemented.
Under the new medium-term management plan “dip30th”, wewill achieve high productivity and high value-added services
using a scrum development system with 400 employees from awide range of professions, including not only engineering but
also planning, design, CRM, data, marketing, and more.

Kei Shinto

Executive Officer,
Head of Service Development Group,
Head of Media Production Division

Strategy Outline
Establish a Scrum Development System Consisting of 400 Employees
We will have a development system with seamless cooperation among a team of 400 employees fromvarious professions including engineering, planning, design, CRM, data, marketing, and more.
Hire 200 Engineers during the Period of the Medium-Term Management Plan
We will strengthen recruitment for engineers and hire 200 people during the period of the medium-term
management plan. We will constantly innovate our services and continue to provide the highest quality.
Increase the Ratio of In-House Production to 50% or More
We aim to efficiently develop products by building a development system with external partners andassigning the right people to the right projects through an optimal combination of in-house and outsourced production.
Significantly Shorten the Development Process through AI/Automation
Through the use of already introduced AI development tools such as GitHub Copilot, we have significantly
streamlined the development process. This makes rapid development of high quality systems possible.
Update the Development Infrastructure
We have renewed our legacy development infrastructure and built a new infrastructure to increase development efficiency. We have significantly improved QCD: enhanced development quality, reduced cost, andshortened delivery time.
96

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Functional Strategies
Promotions Capability

Data and Technology Capability

Establishing a No. 1 User-First Brand

Developing a Data Platform that Supports All Aspects of Strategy Implementation

Developing Unique Hybrid Promotions to Improve
Advertising Effectiveness and Investment Efficiency

Over the course of the medium-term management plan
“dip30th”, we will continue to develop unique hybrid promotions that integrate large-scale mass media, digital, and social
media for each user-first measure, including the dip Incentive
Project and the dip DEI Project. Moreover, by using a data platform and AI, we will realize efficient distribution of advertisingand the optimization of advertising investment. Through this,
we aim to have the No. 1 usage rate in Japan for our job information services.

Accelerating the Speed of Business by Using AI and Building
the “Labor force solution platform,” a Data Platform Sharedby All Businesses

Kazuomi Hori

Head of Marketing Division,
Service Development GroupThe use of AI and the construction of the “Labor force solution
platform,” a data platform that connects the entire company, areessential for the achievement of each of the targets set forth in
the medium-term management plan “dip30th”. The data platform will be shared by all business divisions and link all dataobtained from our service development capability, promotions
capability, and sales capability in order to utilize it for all services including AI-Agent in an environment that ensures information security.
By building this data platform and using AI in a company-wide
effort, we will improve the speed of decision-making and realize
user-first services.

Yoshinobu Toyohama

Executive Officer,
CTO (Chief Technology Officer)
Head of System Development Division,
Service Development Group

Strategy Outline

Unique Hybrid Promotions that Create User-First Services
By developing hybrid promotions that integrate mass media, digital, and social media, we are developinguser-first projects and contributing to the creation of services.

AI/Automation for Improved EffectivenessWe have already introduced AI tools for creating advertising content and forecasting effectiveness. We will
provide high quality and immediate value by significantly streamlining the marketing process.
Data-Driven Marketing
We will use marketing mix modeling to build a model that can predict and learn tactics and budget allocation to match the strategy. We will strive to improve quality of awareness and sales efficiency.
Improve Customer Satisfaction through Effective Management of Our Job Advertisement Website
We analyze the factors that affect customer lifetime value and operate a job advertisement website that
accurately matches users with job advertisements. We will improve customer satisfaction and reduce
advertising expenses.

97

Strategy Outline

Build a Data Platform that Connects the Entire Company
We will build a “Labor force solution platform” to connect company-wide data in an environment that
ensures information security. We will shorten lead time, reduce costs, and improve service quality.

Proactively Introduce AI/Automation Tools
Through the activities of the company-wide AI utilization project team “dip AI Force,” we are actively introducing AI/automation tools. We are also significantly streamlining our business processes.
Automate Portions of Business Operations
AI has already been introduced throughout the Company. AI has replaced and automated some of theclerical work of the sales team. This contributes to reducing sales man-hours and improving productivity.
Increase the Number of Job Advertisement Applications through AI-Agent
We will develop AI-Agent to improve the accuracy of matching users with job advertisements. We will
increase the number of applications to job advertisements, thereby boosting sales and reducing costs.

98dip Integrated Report 2023

Introduction

Functional Strategies
Business Development Capability
Strengthening Mechanisms for Generating Innovation
Creating New Social and Economic Value with the “dip Innovation Engines” that
Generate New Businesses and Services

We will develop a mechanism for innovation that
Four Functions that Promote Business Creation
creates businesses. Internally, the Dream ConferExecutive Dream
Employeeence was newly established with the participation
Conference
Acceleratorof all internal Board Directors and Executive
Business Creation
Business Creation
Officers. We are also working to create new busiwith Managementwith Participation
nesses through the dip Accelerator, which allows
Participation
by Allany employee to propose a business idea. In
collaboration with external parties, we are investdip Innovation
ing in startup companies through CVC to searchEngines
for new businesses and technologies, and we arealso promoting collaborative creation with acaCo-creation
Startupdemia at the dip Technology Institute and the dip
with Academia
Investment
Research Institute. These four functions are
positioned as the “dip Innovation Engines” anddip Technology InstituteCVC
are designed to enhance our innovation capability
and dip Research Instituteand build the foundation for business creation.

● Overview of the “dip Technology Institute”

Mr. Kazuto Ataka, a leading expert on data strategy,
has been appointed as an advisor for the early practical application of the “AI-Agent business.” In addition,
we are conducting joint research in collaboration with
Matsuo Institute, Inc., a company that utilizes theresults of the Yutaka Matsuo Laboratory of the University of Tokyo, which specializes in AI strategy.

MESSAGE● Overview of the “dip Research Institute”

Using our experience and know-how in personnel
recruiting services that we have cultivated for over
20 years through job information services such as
Baitoru, we conduct multifaceted research andshare research results and survey information withthe aim of creating a society where all workers canrealize better ways of working.

99

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Strengthening the Management Foundation
Human Capital Connected with Our Philosophy

Developing Measures to Maximize the Potential of Human Resources
Aiming to be No. 1 in Employee Well-Being by Developing and Utilizing the Diverse
Talents of Employees

For the success of the medium-term management plan “dip30th”, it is essential that we respect, develop
and utilize the diverse talents of all employees. Our philosophy is at the core of promoting the development of these talents, and by collecting and analyzing people’s data and providing support based onthat data, we will maximize the potential of each and every employee.

GovernanceImproving Management Capability through Dialogue with Stakeholders
Maximizing Corporate Value by Expanding Communication with Shareholders andOther Stakeholders, Including Dialogue with the Market, and Utilizing it in Management

For the enhancement of corporate value, we believe that it is important to give the stock market a better
understanding of our sustainable strengths that support high sales growth and profit margins, as wellas our growth potential, business risks and others. We aim to realize sustainable management by developing the following three areas: strengthening of monitoring and execution functions; disclosure of
non-financial information; and dialogue with stakeholders.

MESSAGE

Balancing Value Creation and Governance

Solving Issues in the Labor Market with Technology

The dip Technology Institute is working on issues such as resolving labor shortages through in-house technology development
and service innovation through external collaboration.
For example, the AI-Agent currently under development uses thelatest AI to draw out the needs of job seekers through naturaldialogue and proposes carefully selected job listings based onlearning data, along with reasons for the recommendations. In
doing so, we aim to create a society where many people can work
for long periods of time in jobs that are compatible with them.

Top Message

Chikashi Okamoto

General Manager of dip Technology
Institute and General Manager of
CTO Office

In order for dip to create value over the long term and growsustainably, we need to improve management efficiency andconduct highly transparent business operations, which will
enable us to fulfill our responsibilities to our many stakeholders.
Without reducing the speed of value creation, we will strengthenrisk management, adhere to compliance requirements, develop
corporate governance, and promote sustainability initiatives.

Toshikazu Yamaguchi
Executive Officer, Deputy Head ofCorporate Management Group100

dip Integrated Report 2023

CFO MESSAGE

Introduction

Aiming for the
Sustained Enhancementof Corporate Value
with a Comprehensive
View of Economic andSocial Value
Haruhiko Arai

Executive Officer, CFO (Chief Financial Officer)
Head of Corporate Management GroupAs CFO, I Am Working Towards
the Sustained Creation of Economic
and Social Value

In order to improve corporate value over the medium to long term, we believe that it is extremely
important to increase both economic and social
value and meet the expectations of our stakeholders. As CFO, I will work to achieve sales, operating
income, and return on equity (ROE) targets toimprove economic value, while contributing to theresolution of social issues based on materiality(material issues) to create sustainable social
value.

Enhancing Economic Value andImproving Corporate Value throughPhilosophy Management

Under our Corporate Philosophy “Here at dip, wewant to tap into dreams, ideas and passion tocreate a better society,” employees who sympathize with our philosophy have worked to create
employment opportunities for many and diverse
job seekers and to eliminate employment mismatches by taking on social issues in the labormarket, thereby enhancing the recruiting andhuman resources capabilities of client companies
and supporting their growth.
The social value thus created is helping dip to
expand its economic value, that is, to achieve highgrowth in sales and profits and generate ample
101

cash flow. By reinvesting this in the developmentof “user-first” services and unique promotions, weare able to greatly enhance the appeal of media,
attract many new users, increase the number of
job advertisements from client companies, and as
a result, increase sales. The repetition of thisvirtuous cycle has allowed us to build user andcustomer bases that are highly loyal to dip. Thesebases, along with our non-financial capital, namely, our human capital that supports them, are thevery strengths of dip, and they are contributing to
the creation of economic value, that is, the sustained enhancement of corporate value.

Review of the Fiscal Year Ended
February 2023

Sales in the personnel recruiting services businessgrew steadily, outpacing the rate of market recovery, while the DX business saw high growth YoY. As
a result, sales increased by 24.9% YoY to ¥49,355
million.
In addition, we are investing in human resources, including hiring new graduates in 2022, andactively investing in advertising to further
strengthen our sales capability. Both the ratios of
personnel costs and advertising expenses decreased due to improved productivity of sales staff
and efficient management of advertising investments, and as a result, operating income increased by 106.0% YoY to ¥11,538 million,
achieving profit growth that far exceeded thesales growth rate.

Top Message

Sustainability

While the personnel recruiting services business
continues to see gradual market recovery, themarket has not returned to pre-pandemic levels.
Under these circumstances, the number of contracted companies steadily increased due to the
expansion of our customer base, and the unit
price per company also increased due to thepromotion of cross-selling of our four main media:
Baitoru, Baitoru NEXT, Baitoru PRO, and Hatarako.
net. The sales growth rate of our personnel recruiting services business was 21.5%, exceeding
the market growth rate of 14.2% (*), and we steadily gained market share.
Due to large-scale hybrid promotion of the dip
Incentive Project, the number of job offers withhigher hourly wages, etc. has increased, and whilelabor shortages are increasing as the COVID-19
pandemic subsides, applications via the app areparticularly strong. Our growth has reached apoint where we have surpassed competing media
in terms of app downloads and monthly active
users (MAU), and as a result, the number of applications has increased by more than 1.3 times
compared to pre-pandemic times.
In the DX business, sales of our Interview Scheduling KOBOT, Recruiting Page KOBOT, and Temp
Agency KOBOT were strong. Moreover, the numberof companies charged monthly payments and
ARPU both increased, leading to significant
growth in sales.
As personnel recruiting services sales staff sell
these DX products, there was no need for muchinvestment in promotions, and we achieved a highsegment profit of 44.6%.
While ROE in the fiscal year ended February2020 stood at 36.0%, it fell to 2.0% in the fiscal
year ended February 2021 on the impact of the
COVID-19 pandemic. Due to subsequent expansionof business performance, ROE recovered to 22.7%
in the fiscal year ended February 2023. As I will
explain later, we are aiming for an ROE of 30% by
the fiscal year ending February 2027, the final yearof the medium-term management plan, by implementing the medium-term management plan
“dip30th” and promoting various financial strategies.
I will now explain the achievement status of ournon-financial KPIs. Progress towards our targets
for the fiscal year ending February 2025 set forthin last year’s integrated report has generally beensteady. In particular, we were able to achieve theValue Creation
Process

Governance

Growth Strategy

Sales(Million yen)��,���

��,���

��,���

FY’��/� FY’��/�* FY’��/���,���

FY’��/�Data Section

��,���

FY’��/�

*As consolidated accounting was not performed for the fiscal year ended February
2020, the figures for that fiscal year are from non-consolidated accounting.

Operating Income/Operating Income Margin(Million yen)

��.�%

��.�%

��,���

��,���

��.�%
�,���

FY’��/� FY’��/�* FY’��/�

��.�%
�,���
FY’��/�

��.�%��,���

FY’��/�

*As consolidated accounting was not performed for the fiscal year ended February
2020, the figures for that fiscal year are from non-consolidated accounting.

Cash Flow��,���

(Million yen) ��,���

-�,���Cash ﬂows from operating activities
Cash ﬂows from investing activities
Cash ﬂows from ﬁnancing activities�,���-�,��� -�,���-�,���
-�,���

FY’��/�

FY’��/�*��,���

��,���

-�,��� -�,��� -�,���

FY’��/�

FY’��/�-�,��� -�,���
FY’��/�

*As consolidated accounting was not performed for the fiscal year ended February
2020, the figures for that fiscal year are from non-consolidated accounting.

targets for the number of job offerings that haverealized improved working conditions, including
increased hourly wages, as well as for the percentages of independent directors and women on the
Board of Directors, ahead of schedule. On theother hand, progress towards achieving ourtargets for the percentage of female managers andpercentage of paid holidays taken has been slow,
but we will make sure that we achieve thesetargets by strengthening our efforts this fiscal
year.
(*) dip’s estimate based on the calculation results by a third-party
organization102dip Integrated Report 2023

Materiality

Creation of diverse
employment
opportunities

Elimination of
employment mismatch

Improvement of humanresources and economic
productivity
Creation of rewarding
workplaces

Promotion of DEI
Respect for human rights

Response to the climate crisis

Introduction

KPI

Number of high-quality*1 job offerings thatmeet the needs of diverse human resources
and workstyles
Number of job offerings in the medical,
nursing care, and childcare fields that
support the social infrastructure
Number of job offerings that have realized
improved working conditions, including
increased hourly wages*2

Engagement indexes*3

Percentage of female managers

Percentage of women who take childcare
leave
Percentage of women who return to work
after childcare leave

Percentage of men who take childcare leave

Percentage of people with disabilities
employed
Percentage of paid holidays taken
Average extra hours worked
Turnover rate
Trainingtime

New graduate training
New manager training

Development Training for next
generation leaders

Percentage of independent officers

Strengthening governance

Percentage of female Board Directors

Number of serious violation of laws andregulations
Percentage of employees who completedcompliance training and testing
Number of investor interviews

103

FY’23/2
Actual1.33 million
offerings†1

FY’25/2
TargetRemain No. 1
in the industry

0.5 million†1(No. 1 in the industry)

0.51 million†1

Remain No. 1
in the industry

0.85 million†10.99 million†1

1 million†1Year-round
Enhancement of “Campaign to Support the
One-time activity One-time activity
activity
Employment of People with Disabilities”
Increase in the number of job offerings that
0.21 million†10.31 million†1
0.4 million
welcome senior citizens (age 60+)
Certificate of Good Recruitment/Candidate
Prior to the start
Certificate received/
Certificate received
Information Providerof the system
maintained
Number of incidents violating labor laws and00
Maintain 0
regulations
Prohibition of the posting of offerings that
Continue
Implemented
Implemented
are thought to be in violation of human rights
implementation
567.7 t-CO2e/334.2 t-CO2e/
GHG emissions of all offices and data centers
Effectively 0
year†2year†2
Percentage of women among employees
hired as new graduates and later promoted
to managerial positions

Strengthening humancapital connected withphilosophy

FY’22/2
Actual1.16 million
offerings†1(No. 1 in the industry)

3.82

3.84

4.0 (maximum 5)

34.4%

40%

41.3%

43.5%

100%

98.3%

33.2%
100%

100%

-

92.5%†3

56.6%

59.4%

2.6%†4

3.0%†425.4 hours/month 23.0 hours/month
15.2%

326 hours
36 hours

143 hours
50%

†5

1/3†5
0

100%
245

12.6%

326 hours
52 hours

143 hours

50%

100%

100%

80%

Not more than
20 hours/month
10.0%

Continue toexpand0

Maintain 0

100%
367

50%

Maintain 100%500

*1: Videos, work experience functions, posting of “Message from dip-san.” Measures will be taken to further increase quality in the future*2: Increased hourly wages, bonus for continued service, gift payment for joining company *3: Indexes in our ES surveys†
1: As of end of February †2: Scope 1 and Scope 2 (city gas and electricity in all offices. Recreation facilities and data centers are included in the scope of calculation for
Scope 1 and 2 from the FY’23/2.) †3: Based on the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members, the percentage of employees taking childcare leave, etc. and leave for childcare purposes as stipulated in Article 71-4, Item 2 of the Ordinance for
Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members is calculated.
†
4: As of June 1 (time of the Ministry of Health, Labour and Welfare’s report on the status of employment of people with disabilities), the statutory employment rate forprivate companies is 2.3% (revised in March 2021) †5: As of May 31, 2022 †6: As of May 31, 2023

Value Creation
ProcessMoreover, after updating our value creation
story and conducting an annual review of materiality, we redefined the social value we would like tocreate in “dip30th” and significantly expanded ournon-financial KPI items in accordance with this.
We will comprehensively consider economic
and social value, work to achieve financial andnon-financial KPI targets, and share our progresswith stakeholders.

Performance Outlook for the
Fiscal Year Ending February 2024

For the fiscal year ending February 2024, we plan
for record-high sales of ¥56.3 billion and operating
income of ¥14.5 billion, under the assumption of amoderate recovery in the labor market and job
advertising market.
In the personnel recruiting services business,sales are expected to increase by 13.5% YoY to¥50.6 billion and segment profit is expected toincrease by 21.9% YoY to ¥18.1 billion due tomarket recovery as well as an increase in ourApproach to Performance Forecasts(Billion yen)

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100%

Not less than 2/3

55.6%†6

Sustainability

Statutory employment
rate†4 or higher

2/3

†6

Top Message

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Governance

Data Section

share in the industry caused by unique promotions and improved sales productivity.
In the DX business, we are aiming to increase
sales by 19.3% YoY to ¥5.7 billion and increase
segment profit by 7.9% YoY to ¥2.3 billion by
expanding sales of DX products in the areas of
personnel and recruitment and by starting sales of“MEO KOBOT” and “Social Media Booster KOBOT”
in the area of sales promotion.
During the COVID-19 pandemic, we steadily
worked to improve society by providing services
that are accessible to users and client companies.
As a result, we were able to significantly increase
our share in the job advertising market for parttime and temporary workers. In addition, we havebeen implementing new initiatives such as expanding sales of DX products, increasing sales at
Baitoru PRO, and strengthening agent services.
In the fiscal year ending February 2024, we will
significantly expand human capital by welcoming
612 new graduates who sympathize with ourphilosophy. We will also accelerate businessgrowth by promoting unique initiatives such as
our dip DEI Project and making full use of rapidly
evolving AI technologies such as ChatGPT.

��.�%

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Growth Strategy

Note: The figures for periods prior to FY’22/2 are estimates based on the revenue recognition standard.

Formulated under the assumption of a moderate recovery in
the labor market and job advertisement market

Advertising/sales promotion expenses:
While making aggressive
investments to expand ourmarket share, we promoted
efficient operations, resulting
in a 3.6% pt. decrease in theratio of these expenses tosales.
Personnel costs:
Increase due to 612 new
graduates joining in 2023,
and mid-career hiring

Cost of sales/
other SG&A expenses:
Increase in system costs, newoffice opening and other
costs
104

dip Integrated Report 2023

Formulation of New Financial Strategies
in the Medium-Term Management Plan
“dip30th”

Holding Discussions regarding
Financial Strategies with Investors

In last year’s integrated report, we announced thefollowing concerning ROE: “we will work on therecovery of ROE to 25% as early as possible, andon achieving 30% in the medium term.” However,
we did not provide the basic financial approachbehind this target, nor the specific timing andpath to achievement of this target. Moreover, as
stated in our medium-term management plan
“dip30th”, we expect continued profit growth fromnext fiscal year onward, and therefore believe that
there is an increased need to work on balance
sheet management. Accordingly, we have formulated new financial strategies. Since the announcement of the medium-term ROE target lastyear, we have held discussions regarding financial
strategies with many investors and refined thecontent of said strategies. We appreciate yourunderstanding and hope you look forward tofurther improvements in corporate value andshareholder value going forward.

Maximizing Equity Spread to Increase
Corporate Value and Shareholder Value

In order to increase corporate value and shareholder value, it is extremely important to continue
to generate a return on the capital entrusted to us
by our shareholders that exceeds the cost ofequity. Therefore, we aim to maximize equity

Introduction

spread by improving ROE and reducing the cost ofshareholders’ equity.
Equity spread

＝

ROE

−

Cost ofequityIncreased corporate value
and shareholder value

Aiming to Achieve ROE of 30% in
the Final Year of the Medium-Term
Management Plan by Increasing Profits
and Improving Capital Efficiency

Prior to the COVID-19 pandemic, ROE stood at
36.0%, but it fell to 2.0% in the fiscal year ended
February 2021 due to the impact of the COVID-19
pandemic. Subsequently, profits expanded due tosuch factors as the end of the pandemic, ourincreased share in the media services market, andhigh growth in the DX business, and as a result,
ROE is expected to increase to 23.4% in the fiscal
year ending February 2024. While this is alreadywell above the average of 9.24% (FY2022) forcompanies listed on the Prime Market of the Tokyo
Stock Exchange, and well above dip’s cost ofequity of approximately 10%–11%, we have set an
ROE target of 30% for the fiscal year ending February 2027, the final year of the medium-term management plan, in order to maximize equity spread

Prior to the COVID-19 pandemic, ROE was over 35%, payout ratio was 30%, and DOE
remained over 10%. Moreover, by setting our dividend policy as “a payout ratio of
50% with the dividend paid in the previous fiscal year as the lower limit” in FY2020,
DOE remained above 10% even in fiscal years when profits decreased due to the
COVID-19 pandemic, and this fiscal year’s DOE is expected to be 12.1%. Generally,
once a payout ratio target has been raised, it is difficult to lower it, but in the case of
DOE, the payout ratio automatically increases if ROE is lower than expected, which
has the advantage of making the payout ratio variable. In addition, this avoids adecline in liquidity associated with the repurchase of company shares. Meanwhile,
we also listen to the opinions of investors who are concerned about tax burdens
associated with dividends. While adhering to our policy of setting the dividend paidin the previous fiscal year as the lower limit, we will carefully consider the advantages and disadvantages of introducing a DOE target.

(%)
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FY’��/� FY’��/�* FY’��/� FY’��/� FY’��/� FY’��/�Forecast*As consolidated accounting was not performed for the fiscal year ended February 2020, the figures for that fiscal year are from non-consolidated accounting.

105

Sustainability

and further improve corporate value and shareholder value.
While striving for profit growth to achieve theoperating income target for the fiscal year ending
February 2027 in the medium-term management
plan “dip30th”, we are aiming to achieve our ROE
target by working on balance sheet management
and increasing capital efficiency based on the cash
allocation policy below.

Value Creation
Process(%)

Growth Strategy

Governance

ROE Outlook
��.�

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Data Section

��.�

FY’��/� FY’��/�* FY’��/� FY’��/� FY’��/� FY’��/� FY’��/� FY’��/� FY’��/�
Expectation
Medium-term
management plan

*As consolidated accounting was not performed for the fiscal year ended February
2020, the figures for that fiscal year are from non-consolidated accounting.

Cash Allocation Policy

Initiatives towards Improving ROE

Whether or Not to Introduce a Dividend on Equity Ratio (DOE)
Target is a Matter for Future Consideration

Top Message“Cash allocation with an emphasis on growth investment and shareholder returns”
Growth investments
Investments for the growth of existing businesses and the creation of new businesses (human resource investments, system investments, promotional investments, etc.)
Investments in research and development related to AI and other advanced technologies and theiruse in business
M&A and other investments to accelerate business growth
Shareholder returns
In principle, the Company will maintain a payout ratio of 50%, with the dividend paid in the previous
fiscal year as the lower limit. Dividends are paid twice a year. Aim for a total payout ratio of 65%(newly established this time).
Consider additional shareholder return measures, taking into account cash position and other BS
conditions, prospects for achieving financial targets, stock price levels, and other factors.
The funds necessary for business operations are called Maximum Cash (*), and in principle, excessive cash and deposits beyond that limit are not held. However, we do not make decisions basedon a single fiscal year, but carefully assess medium-term investment opportunities, and if there areany excess cash and deposits, we return them to shareholders.
In a situation where it may be difficult to achieve the medium-term profit target, we will consider
additional shareholder returns to bring ROE closer to the target, taking into account the BS situation, stock price levels, and other factors.

(*) Maximum Cash Concept
To avoid financial difficulties even in the event of an unprecedented disaster or epidemic that reduces sales to zero, it isnecessary to hold a certain amount of cash and deposits. Assuming that the period required for borrowing fromfinancial institutions or issuing bonds is approximately three months, Maximum Cash is the sum of three months of
payments, plus tax and dividend payments. Based on the above concept, Maximum Cash for the fiscal year ending
February 2024 is ¥18.0 billion.
(Reference) March 2023–May 2023 payments ¥12.0 bn + taxes ¥4.0 bn + dividend payment ¥2.0 bn = ¥18.0 bn

Continuing to Actively Invest in Growthand Accelerate Business Growth

To date, we have worked to expand human capital byincreasing our sales staff through large-scale recruitment of new graduates and improving sales productivity through the enhancement of training systems,
the use of AI, and the promotion of DX. We also
actively recruit employees in a variety of fields,
including engineers who enhance service development and promotions capabilities, as well as highly
specialized planning staff. Moreover, we have invested a total of ¥24.0 billion in systems development forservices and ¥80.0 billion in promotional activities
to attract users and increase their loyalty.
In order to further accelerate business growth, wewill actively invest in the development and promotion of unique services and functions, as well as
continuously strengthening human capital. In
addition to AI-related systems development andresearch and development investments of ¥2.0
billion (total for the period of the medium-term
management plan), we are expecting investments
in systems development for existing services togrow at an annual rate of approximately 15%.

106

dip Integrated Report 2023

Introduction

Initiatives to Reduce Cost of Equity

Due to Growing Structural Labor Shortages
Caused by Japan’s Declining Birthrate and Aging
Population, the Job Market Itself Has Become
Less Susceptible to Economic Fluctuations

The job advertisement market for fixed-term
workers such as part-time and temporary workers
is often considered to be susceptible to economic
cycles. In the future, however, as structural labor
shortages are expected to become increasingly
serious due to a continuing decline in the workingage population, we believe that the structure of themarket will shift into one that is less susceptible toeconomic fluctuations.
Even if demand for employment in industries
that are highly sensitive to the economy decreases,
demand will increase in industries with structurallabor shortages (such as healthcare and nursingcare), which will reduce the impact of economic
fluctuations on the market as a whole.
In this way, as the market itself becomes more
resilient to the effects of economic conditions, we
expect that beta (risk), which constitutes the cost ofequity, will decline over the medium to long term.

Further Expanding Equity Spread byStrengthening Initiatives to Reduce Cost of Equity
Assuming that the current cost of equity is around
10%–11% (*), we will lower beta (risk) and reducethe cost of shareholders’ equity over the medium
term through the initiatives listed below.

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

Building a Business Portfolio That Is Less
Susceptible to Economic Fluctuations
Over the past four years, we have successfullylaunched and expanded businesses and services
Initiatives to Reduce Cost of Equity
Building a Business Portfolio
That Is Less Susceptible to
Economic Fluctuations

107

that are less susceptible to economic fluctuations,which has steadily strengthened our profit structure.
One of these new launches, the DX business,
had a successful early start by leveraging ourexisting customer base and by the bundled marketing of job advertisements and products toclients by our sales staff. The adoption of a monthly billing model has made this business less susceptible to economic fluctuations.
Some of our other launches include Nurse deHatarako and Nursing Care de Hatarako, which arerecruiting services in the healthcare and nursing
care sectors, as well as Baitoru PRO, which is acomprehensive job information site for specialized jobs. The targeted healthcare and nursing
care sectors are expected to see a further rise injob advertisement needs, due to extremely highjob opening-to-application ratios and structurallabor shortages in these sectors, and their lower
susceptibility to economic fluctuations. We willcontinue to work aggressively to create more new
businesses and services and press ahead withbuilding a business portfolio that is less susceptible to economic fluctuations.

Promotion of ESG-Related Initiatives

We are working to reduce the cost of equity
through various measures to advance ESG management.
In the Environment area, we announced ourendorsement of the TCFD recommendations in
October 2021, and since then, we have beentransitioning to renewable energy at our head
office, sales offices, and data centers. Moreover,
we have completed calculation and disclosure of
Scope 3 emissions and are currently considering
setting targets that include Scope 3 during 2024.
In the Social area, as mentioned above, we havebeen strengthening our efforts to achieve themateriality KPI targets related to strengthening
human capital.

Promotion of ESG-Related
Initiatives

Introduction of an Investment
Decision-Making Process
Based on Hurdle Rates

Strengthening Engagementwith Stakeholders throughIR Activities

Introduction of a Business
Management System That
Uses ROIC by Business

Top Message

Sustainability

In addition, dip strongly promotes health andproductivity management and was certified as a
“Tokyo Sports Promotion Company” (Tokyo
Metropolitan Government) in December 2022 andas a “Sports Yell Company” (Japan Sports Agency)
in February 2023. In March of the same year, dip
was certified as a “2023 Certified Health & Productivity Management Outstanding Organization in
the large enterprise category (White 500)” under
the Certified Health & Productivity Management
Outstanding Organizations Recognition Programof the Ministry of Economy, Trade and Industry
and the Nippon Kenko Kaigi.
Regarding Governance, dip transitioned to acompany with an audit and supervisory committee in May 2023, increasing the ratio of independent Outside Board Directors to two-thirds of theBoard of Directors, creating a highly independent
board composition, and ensuring gender diversity
by having women account for over half of theBoard of Directors. In addition, as a measure tostrengthen governance based on the evaluation ofBoard effectiveness, we have set an upper limit on
the term of office of Outside Board Directors (eight
years) and plan to disclose the individual remuneration of Board Directors this fiscal year.
As a result of these efforts, dip has been selected for all six of the ESG indexes adopted by GPIF,
including the “Morningstar Japan ex-REIT Gender
Diversity Tilt Index,” which was newly adopted by
GPIF in April 2023.
We will continue to work towards reducing thecost of equity by further developing ESG management to achieve financial and non-financial KPIs.
Assessment of ESG Management

Value Creation
Process

Growth Strategy

Governance

Data Section

sustainable strengths and growth potential, which
support high growth and profitability, as well as of
the business risks.
In the fiscal year ended February 2023, we held
367 interviews with investors, and opinions,requests, and ideas from investors were reported
in detail to the Board of Directors and the Meetingof Executive Officer on a quarterly basis. This
feedback was put to use in management andbusiness operations.
In addition to the contents of financial results,
we also broadcast videos to employees on aquarterly basis, explaining expectations, requests,
and evaluations from the stock market. Moreover,
we held roundtable discussions and other similar
meetings with employees at each sales office,engaged in interactive dialogue with employees,
and provided opportunities for front-line employees to learn management perspectives by creating
opportunities for them to attend interviews withinvestors and interact directly with investors.
Going forward, we will continue to strengthen
engagement by further deepening our dialogues
with stakeholders.

“Manabiba,” where CFO Arai sharesinformation on quarterly financial
results and evaluations frominvestors with employees

Front-line sales staff attending an
IR meeting with investors

Introduction of an Investment DecisionMaking Process Based on Hurdle Rates
Introduction of a Business Management
System That Uses ROIC by Business(Both Under Consideration This Fiscal Year)

Strengthening Engagement with
Stakeholders through IR Activities

For the enhancement of corporate value, we
believe that it is extremely important to give thestock market a better understanding of the

To date, in the process of considering investments,
we have been working to improve the quality of
due diligence and speed up decision-making using
CVC funds. In line with the recent establishment of
a medium-term ROE target, we would like to aim
for a hurdle rate of 30% when making future
investment decisions. Moreover, after calculating
ROIC by business, we will work alongside frontline workers to consider a system that manages
and promotes business.

108dip Integrated Report 2023

GovernanceOur governance system and initiatives to achieve
highly transparent management are centered on

our philosophy and aim for sustainable improve-

ment in corporate value. This section will provide

messages from Outside Board Directors regarding
their perspectives on current issues, solutions to
said issues, and the roles they intend to play.

CONTENTS
111
123

109

Structure of the Board

Corporate Governance110dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Finance/accounting

Risk management

Sustainability/
ESG

Finance/accounting

Risk management

Sustainability/
ESG

Finance/accounting

Risk management

Sustainability/
ESG

Structure of the Board
List of Board Directors (as of May 24, 2023)

Board Directors

Hideki Tomita

Representative Director,
President and Chief
Executive Officer
Years served as a Board
Director:
26 years
Attendance at the Boardof Directors’ meetings
in FY’23/2:
100%(13/13)Masatsugu Shidachi

Representative Director,
Chief Operating Officer
Years served as a Board
Director:		4 years
Attendance at the Boardof Directors’ meetings
in FY’23/2:
100%(13/13)

April 1990 Joined Chisan Co., Ltd.
May 1992 Joined Forum Corporation
March 1997 Established the Company, Representative
Director, President
Representative Director, President and Chief
March 2006
Executive Officer of the Company (present)
May 2018 President of DIP America, Inc. (present)

April 1991
November 1998
April 2012
April 2017
April

May

2019
2019

October 2019
July 2020
March 2022
February 2023
April
May

2023
2023

Joined TOPPAN PRINTING CO., LTD.
Joined Yahoo Japan Corporation*1
Corporate Officer of Yahoo Japan Corporation*1
President and Representative Director of IDC
Frontier Inc.
Corporate Group CIO of Yahoo Japan Corporation*1
Advisor to woman innovation association*2 (present)
Outside Board Director of the Company
Advisor to Adaptive, Inc. (present)
Advisor to RadarLab Inc. (present)
Board Director, COO of the Company
Representative Director, COO, CIO (Chief Information Officer)and Head of Service Development Group of the Company
Representative Director, COO, CIO, Head of Service Development
Group, and Head of DX Business Group of the Company
Representative Director, COO, and CIO of the Company
Representative Director, COO of the Company(present)*1 LY Corporation (former trade name: Z Holdings Corporation)*2 Currently HAPPY WOMAN Association

OutsideIndependent

Kuniyoshi Mabuchi
Outside Board Director

Years served as a Board
Director:		
2 years
Attendance at the Boardof Directors’ meetings
in FY’23/2:
100%(13/13)111

April 1995 Joined Sapient Corporation
June 1998 Representative Director and President of DOE
Co., Ltd.
February 2009 Director of DDB Japan
March 2012 Representative Director and President of
OgilvyOne Japan*
Representative Director and President of neo@
Ogilvy*February 2016 Joined FleishmanHillard Japan K.K.
July 2018 Director of Facebook Japan K.K.
September 2018 Outside Director of PORT INC.
December 2019 Outside Director of Makuake, Inc. (present)
May 2021 Outside Board Director of the Company (present)
March 2022 Co-Representative Director of Metaverse Japan(present)
June 2022 Outside Director (Audit and Supervisory
Committee Member) of PORT INC. (present)*Currently Geometry Ogilvy Japan GK▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Hideki Tomita, as founder of the Company, has been involved in the establishment and operation of every facet of the businesses
in which the Company is engaged. As the person most familiar with the Company’s business, Tomita has extensive experience inbusiness execution at the Company. Tomita specifically focuses on ways to obtain job information that is both fresh and uniquelyabundant and develops original services such as workplace introduction videos to achieve measures that will exceed the expectations of users. In particular, since December 2021, Tomita has proposed and strongly promoted the “dip Incentive Project” in whichsales employees suggest measures to client companies such as raising hourly wages and paying sign on bonuses and such measures are posted on our website. In this way, as Representative Director, President and Chief Executive Officer of the Company,
Tomita has led its growth and demonstrated strong leadership.
The Company has judged that Tomita is appropriately qualified for our aim of continuing to sustainably increase corporate valueand has therefore appointed him as a Board Director of the Company.

▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Having been in charge of multiple digital business divisions centered around online advertising and other marketing fields at Yahoo Japan
Corporation (LY Corporation (former trade name: Z Holdings Corporation)), which develops its business multilaterally, Masatsugu Shidachi
has extensive knowledge related to the internet, which is critical for the Company’s business development. The Japanese labor market
faces issues such as declining labor productivity due to delays in the utilization of digital technology, but Shidachi has made use of thisextensive knowledge to leverage the latest technology, thereby significantly enhancing the accuracy and speed of matching job seekers
and client companies as well as promoting more efficiency in sales activities and promotional investment. Shidachi also provided timely
and appropriate advice as Outside Board Director of the Company beginning in May 2019, and since being appointed Board Director andChief Operating Officer in July 2020, has demonstrated strong leadership while engaging in general oversight of management.
The Company has judged that Shidachi is appropriately qualified for our aim of continuing to sustainably increase corporate value andhas therefore appointed him as a Board Director of the Company.

▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Kuniyoshi Mabuchi has promoted the strengthening of the corporate governance system based on a wealth of management
experience and extensive knowledge gleaned as a manager of several businesses, including global companies. Mabuchi also hasabundant experience in and extensive knowledge of digital marketing and the latest technologies such as AI, the metaverse, andWeb3. In addition to the oversight and supervisory roles exercised as an Outside Board Director, it is anticipated that Mabuchi willcontinue to utilize his wealth of corporate management experience to ensure the transparency of management systems, andprovide advice and suggestions related to the fields of marketing and technology.
The Company has judged that Mabuchi is appropriately qualified for our aim of continuing to sustainably increase corporate
value and has therefore appointed him as an Outside Board Director of the Company.

112dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Board Directors
OutsideIndependent

Kanae Takeuchi

Outside Board Director
Years served as a Board
Director:
1 yearAttendance at the Boardof Directors’ meetings
in FY’23/2:
100%(10/10)OutsideIndependent

Yuka Shimada

Outside Board Director

Years served as a Board
Director:		－ years
Attendance at the Boardof Directors’ meetings
in FY’23/2:－%

April 2001
November 2012
June 2020
May 2022

Joined Tokyo Broadcasting System, Inc.*
Became freelance announcer
Outside Director of SBI Holdings, Inc. (present)
Outside Board Director of the Company (present)*Currently Tokyo Broadcasting System Television, Inc.

HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Risk manage- Risk management
ment

Sustainability/
ESG

Finance/accounting

Sustainability/
ESG

Kanae Takeuchi has extensive knowledge in a broad range of social issues, including the promotion of women’s active participation in
the workplace, gained through considerable experience in serving as announcer for news programs and interviewing business executives. At meetings of the Board of Directors, Takeuchi provides guidance and suggestions related to compliance and risk managementfrom an objective perspective cultivated through considerable experience, thereby contributing to stimulating discussion at meetings ofthe Board of Directors. In addition to the oversight and supervisory functions of an Outside Board Director, Takeuchi is also expected tocontinue to utilize an abundant knowledge related to social issues to provide effective advice related to the social issues that we strive
to address, and provide advice and suggestions aimed at strengthening compliance and risk management.
The Company has judged that Takeuchi is appropriately qualified for our aim of continuing to sustainably increase corporate valueand has therefore appointed her as an Outside Board Director of the Company.
As Takeuchi was newly elected as a Board Director at the 25th Annual General Meeting of Shareholders held on May 24, 2022, andassumed office on that day, her attendance at Board of Directors’ meetings during the fiscal year from that day onward is stated.
April 1996
June 2002
August 2008
April 2014
February 2017
November 2020
October 2021
April
July

2022
2022

May

2023

November 2022

Joined Pasona Inc.
Joined GE Japan Holdings Limited*1
Joined Unilever Japan K.K.*2
Director and General Manager of HR & General
Affairs Division of Unilever Japan Holdings K.K.
Jointly established YeeY Inc., Representative
Director (present)
Established dialogue, Inc., Representative
Director (present)
General Manager of HR & General Affairs
Division of Unilever Japan Holdings G.K.
Representative Partner of NOTONO G.K. (present)
CWO (Chief Well-being Officer) of Asteria
Corporation (present)
Representative Director of Promotion Council
for Well-being in Japan (present)
Outside Board Director of the Company (present)*1 Currently General Electric Japan Holdings Limited*2 Currently Unilever Japan Holdings G.K.

113

▶ Areas in which the person has a high level of expertise▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Risk management

Yuka Shimada has promoted support for establishing organizational culture as the head of human resources and general affairs at
a global company. In addition, as a manager, Shimada has been involved in promoting the spread of well-being (a state of healthyand sound mind and body) to Japanese companies and society and has a wealth of experience and extensive knowledge in thefield of well-being. In addition to oversight and supervisory functions as an Outside Board Director, Shimada is expected to provide
effective advice and recommendations regarding health management and the Company’s efforts to enhance employee wellbeing
in order to recruit more people and continue sustainable growth now and in the future.
The Company has judged that Shimada is appropriately qualified for our aim of continuing to sustainably increase corporate
value and has therefore appointed her as an Outside Board Director of the Company.

114

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Finance/accounting

Risk management

Sustainability/
ESG

Finance/accounting

Risk management

Sustainability/
ESG

Finance/accounting

Risk management

Sustainability/
ESG

Board Directors
OutsideIndependent

Eriko Tanabe

Outside Board Director(Audit and Supervisory
Committee Member)Years served as a Board
Director:		4 years
Attendance at the Boardof Directors’ meetings
in FY’23/2:
100%(13/13)
Attendance at the Board of
Corporate Auditors’
meetings in FY’23/2: －%OutsideIndependent

Yukiko Imazu

Outside Board Director(Audit and Supervisory
Committee Member)Years served as a Corporate
Auditor:		1 year
Attendance at the Boardof Directors’ meetings
in FY’23/2:
100%(10/10)Attendance at the Board of
Corporate Auditors’
meetings in FY’23/2: 100%
(10/10)OutsideIndependent

Misae Maruyama

Outside Board Director(Audit and Supervisory
Committee Member)Years served as a Corporate
Auditor:		－ years
Attendance at the Boardof Directors’ meetings
in FY’23/2:－%

April 1988 Joined Nihon Takuken Co., Ltd.
November 1991 Joined TEMPSTAFF CO., LTD.*
April 2011 General Manager of Internet Planning Office, IT
Head Office of TEMPSTAFF CO., LTD.
May 2019 Outside Board Director of the Company
May 2023 Outside Board Director (Audit and Supervisory
Committee Member) of the Company (present)*Currently PERSOL TEMPSTAFF CO., LTD.

April 1996 Joined Anderson Mori*
January 2005 Partner at Anderson Mori & Tomotsune(present)
April 2007 Associate Professor of Keio University Graduate
School of Law
March 2014 Director of Ishibashi Foundation (present)
June 2018 Outside Audit & Supervisory Board Member of
DAIICHI SANKYO COMPANY, LIMITED (present)
May 2022 Outside Corporate Auditor of the Company
June 2022 Outside Director of ALCONIX CORPORATION(present)
May 2023 Outside Board Director (Audit and Supervisory
Committee Member) of the Company (present)*Currently Anderson Mori & Tomotsune

October 1993 Joined Tohmatsu & Co.*
December 2011 Established Maruyama CPA Office (present)
August 2021 Outside Corporate Auditor of 3-shake Inc.
External Full-Time Auditor of Yappli, Inc.
March 2022
(present)
Outside Board Director (Audit and Supervisory
May 2023
Committee Member) of the Company (present)*Currently Deloitte Touche Tohmatsu LLC▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Having engaged in multiple projects centering on the IT field at TEMPSTAFF CO., LTD. (currently PERSOL TEMPSTAFF CO., LTD.), including
the construction of websites and online systems provided by the said company, Eriko Tanabe has extensive experience related to management and risk management. Since May 2019, as Outside Board Director of the Company, Tanabe has provided advice and suggestions
concerning all aspects of corporate management, including technology, risk management, and the promotion of women’s active participation in the workplace, in addition to exercising oversight and supervisory functions. It is expected that Tanabe will continue to utilize thebroad range of knowledge developed through the experience gained in various roles to date to supervise the management of the Company
from an independent standpoint, while also strengthening the decision-making function of the Board of Directors, and audit and supervisory functions.
The Company has judged that Tanabe is appropriately qualified for our aim of continuing to sustainably increase corporate value andhas therefore appointed her as an Outside Board Director who is an Audit and Supervisory Committee Member.

▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

As a lawyer, Yukiko Imazu has abundant experience and extensive knowledge in corporate legal affairs and risk management, including thepersonnel, labor, and governance areas. As a partner at a law firm, Imazu is also involved in the promotion of women’s active participationin the workplace. Since May 2022, as Outside Corporate Auditor of the Company, Imazu has exercised oversight and supervisory functions
in relation to all aspects of corporate management, based on accumulated experience and extensive knowledge. It is expected that Imazu
will continue to provide advice and suggestions related to corporate governance, risk management, and the promotion of women’s active
participation in the workplace from an independent standpoint and strengthen audit and supervisory functions.
The Company has judged that Imazu is appropriately qualified for our aim of continuing to sustainably increase corporate value and has
therefore appointed her as an Outside Board Director who is an Audit and Supervisory Committee Member.
As Imazu was newly elected as a Corporate Auditor at the 25th Annual General Meeting of Shareholders held on May 24, 2022, andassumed office on that day, her attendance at Board of Directors’ meetings and Board of Corporate Auditors’ meetings during the fiscal
year from that day onward is stated.

▶ Areas in which the person has a high level of expertise
HR development/
Corporate
promotion of women’s
management
active participation

Sales

Servicedevelopment

Marketing/promotion

Technology

Misae Maruyama always maintains a fair and unbiased stance as a certified public accountant and has a high level of expertise and practical experience. In addition, Maruyama possesses a deep familiarity with corporate finance, accounting, and taxation obtained throughauditing experience at an auditing firm and while serving as an outside corporate auditor at other companies. Maruyama is expected toutilize the broad range of knowledge developed through the experience gained in various roles to date to provide advice and suggestions
related to corporate finance, accounting, and taxation, and to supervise the management of the Company, while also strengthening thedecision-making function of the Board of Directors, and audit and supervisory functions.
The Company has judged that Maruyama is appropriately qualified for our aim of continuing to sustainably increase corporate value andhas therefore appointed her as an Outside Board Director who is an Audit and Supervisory Committee Member.

*Board Director and Full-Time Audit and Supervisory Committee Member Tsuneyo Otomo resigned as Board Director and Full-time Audit andSupervisory Committee Member as of October 30, 2023 for personal reasons.

115

116

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Criteria for selecting each item in the skill matrix

117

Masatsugu
ShidachiRepresentative Director
and Chief Operating
Officer

Kuniyoshi
Mabuchi

Outside Board Director

●

●

●

●

Outside Board Director

Yuka
ShimadaOutside Board Director

Eriko
TanabeOutside Board Director(Audit and Supervisory
Committee Member)

●

●

●

●

YukikoImazu

Outside Board Director(Audit and Supervisory
Committee Member)

●

●

●

●

Misae
Maruyama

Outside Board Director(Audit and Supervisory
Committee Member)

●

●

●

●

●

●

●

●

●

●

●

●

●

Risk
management

●

●

●

●

●

●

●

●

●

●

●

Sustainability/
ESG

Finance/accounting

Servicedevelopment

Sales

●

●

Kanae
Takeuchi●●Technology●

HR development/
promotion of women’s
active participation●

Marketing/promotion

Diversity (female/internationality)

Corporate
management

Representative Director,
President andChief Executive Officer

Nomination andCompensation Committee

HidekiTomitaIndependent Officer

Positions

Outside Officer

Name

Areas in which the person has a high level of expertise

●

●

●

●

●

Corporate
Management

Selection Reasons
In possession of a wealth of experience and knowledge related to all aspects of corporate
management in order to achieve innovation towards the vision set forth in our philosophy and medium-term management plan, even as the business environment undergoes
major changes such as structural changes in the labor market and rapid technologicaladvances.

In possession of experience and knowledge in the fields of HR development/promotion of
women’s active participation because in order to achieve our medium- to long-term
vision based on the belief that “people are everything and people are assets,” it isimportant to have strategies that support the securing, training, and utilization of
executive management, managers, and members based on our philosophy, as well as
strategies that support female employees’ ability to autonomously develop their careers.

●

HR Development/
Promotion of
Women’s Active
Participation

●

Sales

In possession of experience and knowledge in the sales field, including the ability todevelop and execute strategic sales plans based on an understanding of market trends
and competitive analysis, understand customer needs, negotiate, and build long-term
customer relationships.

Service
Development

In possession of the experience and knowledge to develop innovative services that standout from competitors, based on deep customer understanding and creativity, even as thebusiness environment undergoes major changes such as rapid technological advances.

Marketing/
Promotion

In possession of the experience and knowledge to utilize their extensive experience andexpertise in marketing, understand the evolution of digital marketing and measures
including promotions, and implement personalization strategies that make full use ofdata analysis, even as the business environment undergoes major changes such as
structural changes in the labor market and rapid technological advances.

●

In possession of the ability to understand and utilize digital marketing and the latest
technologies such as AI, the metaverse, and Web3, as well as promote innovation to
improve operational efficiency and create new businesses. Moreover, in possession ofexperience and knowledge to formulate appropriate technology strategies while ensuring information security, based on experience in system development and IT infrastructure construction.

●

Technology●●

Finance/
Accounting

In possession of the experience and knowledge necessary to formulate and execute
financial strategies in order to build a solid financial foundation that supports sustainable increases in corporate value, promote aggressive growth investments such as CVC
investments and M&As, and realize appropriate shareholder returns, etc.

●●

Risk Management

In possession of experience and knowledge in fields that can accurately address risk
factors in a rapidly changing business environment, specifically law, compliance, and risk
management, in order to continuously increase corporate value.

Sustainability/ESG

In possession of experience and knowledge related to long-term business continuity andsocial contribution through management from a sustainability/ESG perspective in order
to increase corporate value and achieve sustainable growth over the medium to longterm, based on our sustainability policy and environmental policy.

●●

Skill Item118

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Outside Board Directors Messages

Realizing Both Speed andFairness of Management in
the Era of AI

Aiming to Be“No. 1 in Employee Well-Being,”
We Will Contribute to the Realizationof Diverse Working Styles

Kuniyoshi Mabuchi

Kanae Takeuchi

Outside Board Director

Looking back on the past year, dip has definitely
succeeded in strengthening its governance. As of
March 2022, in addition to the founder, CEO Tomita, COO Shidachi, who has a high level of knowledge concerning technology, is also in possessionof representative rights, creating a structure inwhich they both play important roles. As a result of
this, dip has further strengthened its system forpromoting business transformation using AI andtechnology, and the speed of strategy implementation has increased over the past year.
Moreover, on the business side, dip has begun
development of an “AI-Agent business” that uses
generative AI to improve matching accuracy.
Internally, the Company is also promoting the useof generative AI to improve employee productivity.
At the same time, dip is working to strengthen thecore systems that support these efforts, and I
highly commend the steady progress of these
concrete initiatives.
In order for dip, which has pioneered a variety of
personnel recruiting services businesses based ona user-first philosophy, to aim for further growth
going forward, it must achieve discontinuous
growth that is not a mere extension of what it hasdone thus far. To achieve this, it is essential todevelop new businesses that incorporate AI. With
the advent of generative AI, which is said to be aonce-in-decades technology, there is no doubt thatsignificant work style changes will occur, and it islikely that everyone will be forced to reconsider
the way they work as well as the way they communicate. While some jobs will be affected, productivity will increase dramatically, just like when the
119

Outside Board Director

internet came about. As the work process itself
changes, there is also a high possibility that newjobs and new business types will arise. Amidst
these significant changes, dip must consider inwhat ways employees can make full use of AI tochange their jobs and advance their careers, aswell as pioneer new ways of working in the era of
AI and use AI to make people happy.
The most important challenge going forward isensuring that dip does not miss out on this wave ofchange. The extent of dip’s success will depend onwhether the Company is capable of quickly developing systems and making investments to take thelead in competition on new platforms. Of course, it
is also necessary to balance this with addressing
new risks that arise from the spread of AI, such asdata governance and security. However, unlike inthe past, it is now easier to build systems on thecloud, so even though various discussions areunderway both domestically and internationally, it
is quite possible to flexibly implement this into thesystems in accordance with the rules. I believe thatthe key is to find a balance between speed andflexibility.
In addition, I will be serving as Chairperson of
the Nomination and Compensation Committee asof this fiscal year, and I will work even more responsibly to ensure that management’s philosophy is implemented fairly and accurately, leading
to non-continuous growth. The speed of strategy
implementation is accelerating now that dip has a
two-person structure with CEO Tomita and COO
Shidachi, and my role is to support this from an
objective and fair perspective.

In the one year since I was appointed as an Outside
Board Director, I have strived to actively communicate
and gather information in order to maintain objectivity
and deepen my understanding of dip. During regularmeetings with COO Shidachi and Executive Officers, I
have repeatedly shared my opinions about the Company’s business. Moreover, I value opportunities to interact directly with employees, and have participated in
informal job offer ceremonies and induction ceremonies, as well as general meetings of employees andexecutive training presentations, deepening my interactions with people from a wide range of levels, fromyoung employees to executives.
The Board of Directors receives excellent support fromthe secretariat, and has a system in place that allows
members to thoroughly understand the outline of the
proposed agenda, including explanations on backgroundinformation, and this leads to lively discussions every
time. I myself have endeavored to make proactive
suggestions based on social trends concerning themesthat I have been interested in for many years, including
the promotion of women’s active participation, theformation of diverse careers, and balance between workand life events. In terms of member composition, womenaccount for more than half of the Board Directors, andsince there are a variety of members with different
backgrounds and areas of expertise, we are able toensure diversity in the decision-making process, which I
believe leads to an open and comfortable environment.
Of course, this idea is not limited to top management.
dip has set “Promotion of DEI/respect for human rights”
as a materiality, and in addition to focusing on thedevelopment of female managers and women in top
management, we are working to realize flexible anddiverse working styles for all employees, including men,by expanding the short working hours system andencouraging men to take childcare leave. On the business side, dip will provide job listings to accommodate avariety of working styles and improve the accuracy ofmatches between users and jobs. Through this, I believethat dip contributes to the promotion of diversity andthe active participation of women.
Based on my experiences in the United States, Brazil,
and Argentina, I have found that there are a variety ofworking styles and employment styles that workaround the ability to balance family life and work. In
Japan, there is still a deep-rooted gender bias in whichhousework and childcare are considered women’s roles.
Therefore, going forward, it is important that we createa system in which people, regardless of gender, canchoose a working style that allows for their individual
circumstances, such as childcare, nursing care, or
medical treatment, as well as foster a culture in which
we support each other. dip actively promotes initiatives
for diverse working styles, and I believe that, going
forward, the Company must take on the challenge offurther developing an environment that makes it easierfor employees to balance work with childcare. dip has avery young workforce as well as many young managers,
therefore we must create and manage an environmentthat allows employees to work to the best of theirability with energy and purpose no matter what life
choices they make, be it to get married or stay single, tohave children or remain childless.
Based on the belief that “people are everything andpeople are assets,” dip is aiming to be “No. 1 in employee well-being.” I have also renewed my desire to do myvery best to contribute to the realization of this goal.
120

dip Integrated Report 2023

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Outside Board Directors Messages

Accelerating a Positive Cycle inwhich the Happiness of Each andEvery Employee Leads to
dip’s Growth
Yuka Shimada
Outside Board Director

While engaging in personnel work at multiple
companies for many years and striving to create asociety where each person can be themselves anddemonstrate their full potential, I have been
focusing on three themes. These themes are:“Working Styles,” “Regional Revitalization,” and“Well-Being.” I believe that these three themes areinterconnected and closely related to dip’s business.
With this background in mind, I was approachedabout serving as an Outside Board Director at dip,
and by speaking directly with CEO Tomita, I realized that the Company’s Corporate Philosophy ofwanting to “tap into dreams, ideas and passion tocreate a better society,” a philosophy from which
the Company derives its name, resonated withme. Therefore, I accepted the offer with the hopethat my experience would benefit the Company.
I am still in the process of deepening my understanding of dip, but my impression thus far is that
it is a company where everyone works together tomove things forward without fear of failure. I havebeen involved in purpose-driven management forover 20 years, and the reason why companies thatpractice purpose-driven management are strong
is because, based on the vision set forth by top
management, all employees are able to understand why they are there, so even when they are
unsure of a decision or need to make changes,
they are able to support each other and move
forward. At dip, the vision rooted in CEO Tomita’s
philosophy is expressed in words and actions, andfront-line leaders who understand this vision put
it into practice in their own unique ways, which
121

then leads to the vision being spread to teammembers through daily interactions. I believe that
this is what gives dip unwavering strength as anorganization. I truly feel that at dip a philosophy
connects individuals and organizations in a flexible way.
Based on the belief that “people are everything
and people are assets,” dip has aimed to improve
human capital by increasing the level of happinessof every single employee. I believe that the improvement of employee well-being links directly
to improved creativity and productivity and has apositive impact on human relationships, and that
individual happiness leads to the growth of theorganization. When everyone feels psychologicallysafe and secure in saying what’s on their mind,
engagement levels increase and employees feel
more committed to their missions, not just for
their own sake, but for the sake of everyone else
as well.
However, what makes a person happy varies
depending on the situation and the individual. In
order to clarify what “well-being” is for the employees of dip, I would like to help individuals goback to their roots and think about what theywork for and why they chose this company. I
would like to work alongside employees in orderto promote their motivation and brighten theworkplace.

122dip Integrated Report 2023

Introduction

Corporate Governance

Ensuring and improving effective corporate governance is essential to sustainably increase corporate
value and realize dip’s vision of becoming a “Labor force solution company.” Under an appropriate corporate governance system, we aim to increase corporate value over the medium to long term while fulfilling
our responsibilities to all stakeholders by enhancing management efficiency and conducting transparent
business operations.

Basic Governance Policy
Through the provision of human resource services
and DX services, and by working to solve various
problems in the labor market, dip aims to realize asociety in which everyone can experience the joy
and happiness of work, based on our vision of
becoming a “Labor force solution company”
under the Corporate Philosophy of “tapping into
dreams, ideas and passion to create a better

society.” Ensuring and improving effective corporate governance is essential to realize this vision.
Under an appropriate corporate governancesystem, we aim to increase corporate value overthe medium to long term while fulfilling our
responsibilities to all stakeholders by enhancing
management transparency and conducting efficient business operations.

123

dip has also established the voluntary Nomination
and Compensation Committee comprised of independent Outside Board Directors in the majority to increase
impartiality and transparency in the process of selecting Board Director candidates and deciding individualcompensation.
In addition, dip has introduced an executive officer
system to expedite decision-making and ensure smooth
execution. Executive Officers Meetings are held weekly
to share and discuss important matters relating to the
execution of operations delegated by the Board of
Directors to Executive Officers. As a framework forsupporting swift management decision-making, dip has
also established the Strategy Promotion Council, a bodythat conducts preliminary reviews of Executive Officers
Meeting agenda items. Outside Board Directors who are
Audit and Supervisory Committee Members attend
Executive Officers Meetings and Strategy Promotion
Council meetings as observers.
The Board of Directors obtains and reports opinionsfrom lawyers and other outside professionals as appropriate when deliberating and making important business execution decisions in order to ensure lawful andsound management judgment.

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

History of Governance Enhancements
2004

2005
2006

Overview and Characteristics of the Governance System
Upon resolution by the 26th Annual General Meeting of
Shareholders held on May 24, 2023, dip transitioned from acompany with a board of corporate auditors to a company
with an audit and supervisory committee. The aim was tostrengthen the audit and supervision of Executive Board
Directors and make the corporate governance system evenmore effective by including, as members of the Board of
Directors, Audit and Supervisory Committee Members whoare primarily tasked with auditing the execution of duties
by Board Directors. Also, dip has created a support system
for Outside Board Directors and for Outside Board Directors who are Audit and Supervisory Committee Members.
The system is designed to enable them to fully play theirrole of auditing or supervising management, for example
through extensive prior briefings on agenda items for
Board of Directors meetings.
By promoting DX in operations, dip has built a framework that enables Board Directors to keep abreast of
the information necessary for real time decision-making
at meetings of the Board of Directors and promotes
livelier discussions.
The Audit and Supervisory Committee conducts effective audits by cooperating with the Accounting Auditor, theInternal Audit and Control Office, and the department
responsible for internal control to enhance audit functions.

Top Message

2013
2014
2015
2016

2018

Separation of decision-making andsupervision from execution
The executive officer system introduced▶ Invigorate the Board of Directors
Listing on TSE Mothers
Creation of a personal information
protection system
The right to display the PrivacyMark
obtained
Strengthening of the information
management system
Basic Policy for Information Security
established and ISMS certification
obtained
The Companies Act comes into force
Division of functions in the executive
structure
The CEO and COO system adopted▶		Create efficient decision-making
and executive structures by dividing
functions
Establishment of councils
The Management Council andExecutive Officers Meeting launched▶		Ensure prudent yet agile decisionmaking
Creation of internal control andcompliance systems
Basic Policy for the Development ofInternal Control Systems, and Basic
Policy on Compliance, established
Listing market change to the TSE First
SectionJapan’s Stewardship Code laid down

Japan’s Corporate Governance Codecomes into effect
Increase in the number of Outside
Board Directors▶		Ensure transparent management
and stronger corporate governance
Establishment of Standards on
Independence of Outside Officers▶ Ensure outside officers’ independence
Adoption of and disclosure pursuant toJapan’s Corporate Governance CodeThe first female officer appointed;
and independent Outside Board
Directors accounting for more than
one-third of the Board Directors
Ensure diversity and transparency in
the Board of Directors

2018
2019
2020

2021
2022

2023

Japan’s Corporate Governance Code revised
Disclosure pursuant to the revised
Japan’s Corporate Governance CodeCreation of a unit dedicated to ESG matters
ESG Promotion Office established▶		Formulate and advance plans aimed
at fulfilling the Company’s social
responsibility
Enhancement of the corporate governancesystemNomination and Compensation Committee
created▶		Enhance the fairness, transparency,
and objectivity of the Board of
Directors’ decision-making process
Recognition as meeting global ESG standards
Selected as a constituent of the FTSE
Blossom Japan Index for the first time
Japan’s Corporate Governance Code revised
Establishment of a policy for ensuring
the diversity of managers
Appointment of another Representative
Director
Speed up decision-making and businessexecution
Listing market change to the TSE Prime
MarketSelection as a constituent of major
ESG indexes for the first time
Selected as a constituent of the MSCIJapan ESG Select Leaders Index, andthe MSCI Japan Empowering Women
Index (WIN), for the first timeIssuance of the first integrated report
Setting of the maximum term of officefor Outside Board Directors at eight years▶		Ensure the independence of Outside
Board Directors

Transition to a company with anaudit and supervisory committee▶		Strengthen the Board of Directors’audit and supervisory functions

Female Board Directors accounting
for the majority, and independent
Outside Board Directors more than
two-thirds, of the Board Directors
The eight-member Board comprises
five female Board Directors and six
independent Outside Board Directors(as of October 31, 2023)▶ Ensure diversity and transparency
in the Board of Directors

124dip Integrated Report 2023

Introduction

1

dip’s Corporate Governance System

Determination of compensation
for individual Board Directors
Sustainability
Cooperation ❹ Promotion Council
Rights❺ HumanPromotion Council
and Risk❻ComplianceManagement Promotion Council

ReportAppointment/
Dismissal❶Board of Directors

Executive Board
Directors

Submission/
ReportStrategy Promotion
CouncilReport on resultsof discussion on
business execution
matters

Submission/
Report125

Supervision/
AdviceOutside Board
Directors

Outside Audit and Supervisory
Committee Members: 3 of 3
Female Audit and Supervisory
Committee Members: 3 of 3

Cooperation

Accounting
Auditor

Audit/Supervision

Appointment/
Dismissal
Representative
Director,
President and CEO

Representative
Director and COO

Senior Managing
Executive Officer and
CBO
Executive
Officers

Audit/
Supervision

Cooperation

Appointment/
Dismissal❸ Three-way
audit

Group
Group
Group
Group

Growth Strategy

Data Section

Governance

Board of Directors’ Initiatives① Matters concerning theGeneral Meetings of Shareholders② Matters concerning financial results③ Matters concerning Board Directors

CO LU M N

Audit

Cooperation

Internal Audit andControl Office
Report
Audit

Discussion

Instruction/
Supervision

Supervision

Value Creation
Process

The main items on the agenda at Board of Directors meetings are as follows.

Outside Board Directors who
are Audit and Supervisory
Committee Members

Attendance as observers

Report on resultsof discussion on
important matters
Consultation on
business execution
matters, and attendanceAppointment/ Appointment/
Dismissal
Dismissal

Audit and Supervisory
Committee

Outside Board Directors: 6 of 8
Female Board Directors: 5 of 8

Attendanceasobservers

AttendanceConsultation
on importantmatters
Executive Officers
Meeting

Appointment/
Dismissal

Sustainability

The Board of Directors meets monthly in principle, and convenes extraordinary meetings as necessary, todiscuss and resolve important management issues. dip specifies in its Board of Directors Regulations whichmatters must be decided by a resolution of the Board of Directors, and these are decided by a resolution of
the Board of Directors.

General Meetingof Shareholders
Inquiry/
Nomination and
Reply❷ Compensation Committee(voluntary committee)

Top Message④ Matters concerning shares and bonds⑤ Matters concerning basic management
policy⑥		Matters concerning human resources andthe organization⑦		Matters concerning
assets and funds⑧		Matters concerning
subsidiaries⑨ Other matters

dip ranks first in the percentage of female directors among
the 500 largest companies by market capitalization on TSE Prime

In the 2023 ranking of the percentage of female directors released in August 2023 by Nikkei Cross Woman, an
information site operated by Nikkei Business Publications, the Company ranked first with 55.6% (five female
Board Directors of the total nine). At the Annual General Meeting of Shareholders held in May 2023, two new
female Board Directors were elected: Yuka Shimada, Outside Board Director; and Misae Maruyama, Outside
Board Director who is an Audit and Supervisory Committee Member. As this demonstrates, we have been
actively placing women with diverse expertise and experience in directorship positions.

Composition of the Board of Directors

Giving consideration to the diversity and appropriate sizeof the Board of Directors, the Company is governed by
the Board of Directors that consists of two types ofmembers: Executive Board Directors, who promote
speedy business execution based on their wealth ofknowledge in the Company’s businesses, operations, andother aspects; and independent Outside Board Directors,
who can be expected to properly advise on and supervise
management by drawing on their specialized expertise
as well as extensive knowledge and experience.
Our basic policy for appointing Executive Board Directors dictates that we select persons who possess,among other things, the broad knowledge and experience necessary for making corporate managerial
decisions. In appointing Outside Board Directors, weselect persons who are capable of overseeing andsupervising management through important decision-making at Board of Directors meetings; of overseeing whether there is any conflict of interest between the
Company and its management, controlling shareholders, and other stakeholders; and of actively making
recommendations on management policies and improvements in order to increase corporate value overthe medium to long term.

The candidates are then determined after considering
the appropriate balance of individuals with diverse
knowledge and experience, and in line with the basic
policy that independent Outside Board Directors accountfor at least two-thirds, and female Board Directors
account for one half, of the Board of Directors.
As of October 31, 2023, the Board of Directors consistsof eight members, of which six are independent Outside
Board Directors that include five women. As such, itmaintains a highly independent and diverse composition.

Percentage of independent
Outside Board Directors
Internal
Board
Directors: �Independent
Outside Board
Directors: �� of �

��.�%Percentage of female
Board Directors
Male Board
Directors: �Female Board
Directors: �� of �

��.�%126

dip Integrated Report 2023

Introduction

Roles Played by Outside Board Directors● Outside Board Directors’ Actions
Name

Kuniyoshi Mabuchi

Outside Board Director

Kanae Takeuchi

Outside Board Director

Yuka Shimada

Outside Board Director

Eriko Tanabe

Outside Board Director who
is an Audit and Supervisory
Committee Member

Yukiko Imazu

Outside Board Director who
is an Audit and Supervisory
Committee Member

Misae Maruyama

Outside Board Director who
is an Audit and Supervisory
Committee Member

127

Value Creation
Process

Growth Strategy

Governance

Data Section

Actions and suggestions

The Company conducts an annual evaluation of the Board of Directors with the objective of improving theeffectiveness.
In FY’23/2, based on individual interviews conducted with all Board Directors and Corporate Auditors, weanalyzed the current issues regarding Board effectiveness, considered actions to take, and worked primarilyon the issues listed below. In FY’24/2, we will expand these actions further to make the Board of Directors
even more effective.
Issue

Kanae Takeuchi possesses a wealth of experience in serving as a newscaster and interviewing
business executives. Drawing on these assets, she has performed her supervisory duties, forexample by providing advice and recommendations on agenda items pertaining to complianceand risk management from the perspective of promoting diverse work styles and women’s
active participation in the workplace at Board of Directors meetings and by actively participating in informal job offer ceremonies and other internal events.

Yuka Shimada possesses a wealth of experience and knowledge in the field of well-being as asenior executive of multiple corporations where she has worked to deliver well-being tosociety. Drawing on these assets, she has performed her supervisory duties, for example byproviding advice and recommendations on well-being and other matters at Board of Directors
meetings, and by actively participating in philosophy contests.

Corporate governance forsustainable growth

FY’23/2

Eriko Tanabe possesses a wealth of experience in corporate and risk management that she hasdeveloped through numerous IT and other projects at a human resources service company.
Drawing on these assets, she has performed her audit and supervisory duties, for example byproviding advice and recommendations at Board of Directors meetings on the need for the
AI-Agent business to ensure data security measures and personal information protection fromthe perspective of technology and risk management.

Issue

Misae Maruyama possesses a wealth of experience and knowledge in corporate finance,accounting, and tax affairs that she has developed through years of experience as a certified
public accountant. Drawing on these assets, she has performed her audit and supervisory
duties, for example by providing advice and recommendations on finance and accounting
when the Board of Directors receives reports on or resolves investments.

and past development of each agenda item, thereby
increasing their understanding of respective items
and invigorating discussion at the meeting. Newly
elected Board Directors are separately briefed prior
to a meeting where business performance is to bereported or budget-related agenda items discussed.
In addition, a system is in place that allows Outside
Board Directors to gather information using aninternal communication tool.
Outside Board Directors are also provided with
opportunities to participate in the Company’s internal training sessions (harassment training in FY’23/2)
and external seminars on corporate governance sothat they can gain new knowledge and refine theexisting one to help the Company grow sustainably.

Approach to, and support toinvigorate, discussions at
Board of Directors meetings
Effective operation of
succession plans

Yukiko Imazu possesses a wealth of experience and knowledge in corporate legal affairs andrisk management, including the personnel, labor, and governance areas, that she has developed through years of experience as a lawyer. Drawing on these assets, she has performed her
audit and supervisory duties, for example by providing advice and recommendations on
corporate governance and risk management at Board of Directors meetings. In addition, she
has helped our officers and employees raise compliance awareness by serving as a lecturer atharassment and LGBTQ training sessions.

Each year, the Company arranges meetings between
Outside Board Directors and Executive Officers in themonths of June and July subsequent to the Annual
General Meeting of Shareholders. During the meetings, Outside Board Directors are briefed about eachGroup’s direction so that they can discuss businessstrategies, service development, and other mattersbased on a good understanding of the relevantbusiness operations.
Sharing information with Outside Board Directors
is the responsibility of the secretariat of the Board of
Directors. When convening a Board of Directors
meeting, the secretariat briefs Outside Board Directors around two business days prior to the meeting.
The briefing is designed to explain the background

Sustainability

Evaluation of Board of Directors’ Effectiveness

Kuniyoshi Mabuchi possesses a wealth of management experience and insights developed
through years of experience as a corporate executive, as well as abundant experience in andknowledge of digital marketing and the latest technologies such as AI. Drawing on these assets,
he has performed his supervisory duties, for example by posing objective questions and making
recommendations regarding the positions of the outsourced entities and other matters whenthe Board of Directors discussed the proposed establishment of the dip Technology Institute.

● Support for Outside Board Directors

Top Message

Approach to corporate
governance to achievesustainable growth

FY’24/2

Approach to, and support toinvigorate, discussions at
Board of Directors meetings

Action・Transitioned to a company with an audit and supervisorycommittee to further enhance the corporate governancesystem・Increased the percentages of independent Outside Board
Directors and female Board Directors; set the maximum
term of office for Outside Board Directors; and raised thepercentage of independent Outside Board Directors in the
Nomination and Compensation Committee
・		Increased the depth and breadth of agenda items

・Nurtured candidates for future executive officer positions
through Leadership Journey, an elective training program
designed to develop leadership capable of innovating
businesses and services and to implement organizationaltransformation
Action・Discuss sustainability more deeply; formulate and announce a policy on diversity; strengthen collaboration
between Outside Board Directors and Outside Board
Directors who are Audit and Supervisory Committee
Members by launching a council; review the authority of
the Board of Directors; and increase the depth and breadthof matters examined by the Nomination and Compensation Committee
・Encourage Outside Board Directors to propose agenda
items, and review how Outside Board Directors are briefed
on agenda items prior to Board of Directors meetings

Development of a sound・Disclose compensation for individual Board Directors andcompensation system toward
systematize policies for officer compensation
sustainable growth
Creation of an environment
conducive to internal control
and risk-taking

・Enhance the disclosure of the whistleblowing system andchange the contact points for whistleblowers

Dialogue with investors andshareholders

・Arrange meetings between Outside Board Directors andinvestors

Effective operation of
succession plans

・Consider a medium- to long-term succession plan128

dip Integrated Report 2023

2

Introduction

Nomination and Compensation Committee’s Initiatives

In order to strengthen the functional independence, objectivity, and accountability of the Board of Directors,
the Company has established the Nomination and Compensation Committee as a voluntary advisory body to
the Board of Directors.
The Committee consists of the Representative Director, President and CEO, and independent Outside
Board Directors. To ensure independence, the Committee comprises independent Outside Board Directors in
the majority and is chaired by an independent Outside Board Director.

Matters concerning Nomination

Delegated by the Board of Directors, the Nomination and Compensation Committee deliberates andreports on matters related to the nomination of candidates for Board Director in response to consultationfrom the Board.
① Determination of appointment and dismissal policy for Board
Directors②		Determination of appointment and dismissal procedures for
Board Directors③		Determination of draft proposals to the General Meeting of
Shareholders for appointment and dismissal of Board Directors

Actions and discussions made in FY’23/2

・Appointment of Board Director Masatsugu
Shidachi as Representative Director and COO
・Maximum term of office for Outside Board
Directors④ Determination of draft proposals forappointment and dismissal of Representative Directors⑤ Matters concerning succession plans⑥		Other inquiries from the Board of Directors
concerning nomination of Board Directors

・Composition of the Board of Directors for FY’24/2
・Determination of the draft proposal for the appointment of Board Directors to be submitted to
the 26th Annual General Meeting of Shareholders● Appointment

Candidates for Board Director or for Board Director who is an Audit and Supervisory Committee Member are
decided by a resolution of the Board of Directors, after the Representative Director, President and CEO oranother Board Director refers the candidates for the Board of Directors following confirmation that thecandidates meet the basic policy for appointment outlined on page 126. The candidates are then appointed
by a resolution of a General Meeting of Shareholders. The selection of candidates for Board Director takes
into account recommendations from the Nomination and Compensation Committee.
Proposals for the appointment of Audit and Supervisory Committee Members are submitted to a General
Meeting of Shareholders after consultation and consent of the Audit and Supervisory Committee.

● Succession Plan

When selecting a successor to the Representative Director, President and CEO, the incumbent recommends
candidates, after which the Board of Directors selects from the candidates a suitable person as a potential
successor, and inquires to the Nomination and Compensation Committee. After deliberation and reporting
back, the Board of Directors decides on the successor. Based on the succession plan established by theCompany in advance, the incumbent recommends individuals who meet certain objective criteria for recommendation, such as management ability, aptitude, and character, and who can realize the Corporate Philosophy of “Here at dip, we want to tap into dreams, ideas and passion to create a better society.”129

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Matters concerning Compensation
Delegated by the Board of Directors, the Nomination and Compensation Committee determines compensation(base amount and coefficient for each position) for individual Board Directors, and deliberates and reports on
matters related to Board Director compensation in response to consultation from the Board of Directors.
① Determination of Board Director compensation policy②		Determination of procedures for deciding Board Director
compensation③		Determination of draft proposals to the General Meetingof Shareholders for Board Director compensation④ Determination of individual Board Director
compensation amounts (including calculation
method)⑤ Other inquiries from the Board of Directors
concerning Board Director compensation

Actions and discussions made in FY’23/2

・Determination of individual Board Director compensation for FY’23/2
・Determination of the draft proposal for Board Director compensation to be submitted to the 26th
Annual General Meeting of Shareholders
・Determination of the draft proposal for Board Director compensation policy● Officer Compensation System

・Basic Policy

In regard to the compensation system for management
and Board Directors (excluding Outside Board Directors
and Outside Board Directors who are Audit and Supervisory Committee Members, as they are expected to fulfill
their audit and supervisory duties from an independent
perspective), the Company’s basic policy is to create amechanism that helps share value with shareholders,allows for objectivity and transparency ensuring fullaccountability, considers a sufficient level for employing
and retaining talent, encourages sound entrepreneurship, and thereby enables the Company to grow sustainably and increase corporate value over the medium tolong term.
The policy for determining individual Board Director
compensation. etc. has been set based on the above
basic policy as summarized below. This determination
policy has been decided by a resolution of the Board of
Directors based on recommendations from the Nomination and Compensation Committee, an advisory body to
the Board of Directors which comprises independent
Outside Board Directors in the majority and is chaired byan independent Outside Board Director.
Furthermore, the Board of Directors has confirmedthat the method of determining individual Board Director compensation, etc. for FY’23/2 and the content of thedetermined compensation, etc. conform to the determination policy, and has judged that these are in line withthe determination policy.

・Executive Board Directors

The compensation system for Executive Board Directors
consists of cash compensation as the base compensation and performance-linked compensation, which is
aimed at emphasizing the link with dip’s share value andbolstering Executive Board Directors’ awareness toward
contributing to medium- and long-term performanceand corporate value improvement.
Base compensation for the different managerial
positions is derived by multiplying the base amount,which is the base compensation for the Representative
Director, President and CEO, by a coefficient for eachmanagerial position as prescribed by internal rules.

・Outside Board Directors and Outside Board Directors
who are Audit and Supervisory Committee Members

Compensation for Outside Board Directors and Outside
Board Directors who are Audit and Supervisory Committee Members consists solely of cash compensation as thebase compensation, in principle, to ensure the effectiveness and independence of audits and supervision.

・Policy for Each Managerial Position

Compensation for the different managerial positions isderived by multiplying the base amount, which is thebase compensation for the Representative Director,
President and CEO, by a coefficient for each managerial
position as prescribed by internal rules. The Board of
Directors delegates the determination of the baseamount and the coefficient for each managerial position
to the Nomination and Compensation Committee.
130dip Integrated Report 2023

Introduction

・Policy on Performance-Linked (NonCash) Compensation, and Its Percentage
Relative to Base Compensation

The Company has established a Board Incentive
Plan (BIP) trust for Executive Board Directors as
performance-linked compensation and also grants
restricted shares to Executive Board Directors.
Decisions regarding the levels of performancelinked compensation, and its percentage relative
to base compensation, are taken based on a comprehensive review of the medium- to long-term
ratio of performance-linked compensation toannual compensation and the difficulty of achieving performance targets, after conducting an
objective benchmark comparison that takes into
account the scale of dip’s business, etc. and utilizes a remuneration database aggregated andanalyzed by an external specialist institution.
The BIP trust adopts sales and operating income, which are dip’s key managerial indicators,
at a 1:1 ratio as performance indicators. The
number of shares granted ranges between 0% and150% based on the achievement of performancetargets.
The restrictions will be lifted upon the expiry of
the restriction period for all or part of the sharesallotted in accordance with the performance
conditions that the Board of Directors set forthbased on consolidated sales, consolidated operating income, and other indicators.

・Policy on the Timing and Conditions of
Paying Compensation, etc.
Timing for Payment of Compensation, etc.
Type of compensation

Base compensation
Performancelinked
compensation

131

BIP trust

Restricted sharecompensation

Timing of payment
Annual salary(paid monthly)

Upon retirement

When restrictions
are lifted

Conditions for Compensation, etc.
(BIP trust)In regard to the BIP trust, eligible persons who have met
the prescribed requirements receive the Company’s
shares equivalent to 50% of the share delivery points as
the performance-linked share compensation. The
remaining 50% of the share delivery points are converted within the trust and paid in cash in an amountequivalent to the conversion value.
The trust agreement includes a malus provision, which
stipulates that an eligible person who commits a serious
breach of duties, internal rules, and other regulations
while in office forfeit their right to receive performancelinked share compensation, etc. It also contains a clawback provision that allows the Company to demand thereturn of the performance-linked share compensation
granted if it turns out after the granting thereof that theeligible person committed such a serious breach.
(Restricted share compensation)
Restricted share compensation is subject to tenure andperformance-linked conditions until the lifting of therestrictions.
The agreement contains a clawback provision thatallows the Company to demand the return of the restricted
share compensation granted if the eligible person committed a serious breach of duties, internal rules, and otherregulations while in office.

・Matters concerning the Delegation of
the Determination of Compensation, etc.

Determination of Officer Compensation Policy
The Company’s officer compensation policy is determinedby the Board of Directors based on recommendations fromthe Nomination and Compensation Committee.
Determination of Base Compensation
Base compensation is determined by the Nomination andCompensation Committee upon delegation from theBoard of Directors, comprehensively taking into consideration the officer’s managerial position (including thecoefficient for each managerial position prescribed byinternal rules), responsibilities, and contribution tofinancial results, within a range of compensation approvedby a resolution of a General Meeting of Shareholders fromthe perspective of increasing objectivity and transparency.
Determination of Performance-Linked Compensation
The BIP trust is determined separately from base compensation by a resolution of the Board of Directors
within a range approved by a resolution of a General
Meeting of Shareholders.
Restricted share compensation is determined separately from base compensation by a resolution of theBoard of Directors within a range approved by a resolution of a General Meeting of Shareholders.

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Data Section

Governance・Procedure for Determining Officer Compensation

Dates and Details of Resolutions by General Meetings of Shareholders regarding Officer Compensation
The dates and details of resolutions by General Meetings of Shareholders regarding officer compensation,etc. are as follows:
Type of compensation Date of resolution
Base compensation

May 24, 2023

Base compensation

May 24, 2023

Performance-linked
compensation(BIP trust)May 24, 2023

Performance-linked
compensation(Restricted sharecompensation)

Amount, etc.

Board Directors(excluding Audit and Supervisory
Committee Members)

675,000 thousand yen per year(including up to 100,000 thousand yen
per year for Outside Board Directors)

Board Directors(excluding Outside Board Directors
and Audit and Supervisory
Committee Members)

Up to 125,000 thousand yen per year4

Up to 400,000 thousand yen every
five fiscal years and up to 40,000
shares per year

2

Audit and Supervisory Committee Members

Board Directors(excluding Outside Board Directors
and Audit and Supervisory
Committee Members)

May 24, 2023

Number of
persons eligible
at time ofresolution

Eligible persons

5

Up to 900,000 thousand yen and up
to 350,000 shares every six fiscal
years

2

・Content of Officer Compensation

Total Amount of Compensation for Each Officer Category, Total Amount by Compensation Type, andNumber of Eligible Officers
Officer compensation for dip’s Board Directors and Corporate Auditors in FY’23/2 was as follows:
Officer category

Total amount by compensation type (thousand yen)
Total amount of
Number ofcompensation
eligible
Base
compenStock
Retirement BIP trust Restricted share officers(thousand yen)
Bonusessationoptions
benefits
compensation*

Board Directors(excluding Outside Board 399,010
Directors)

223,800−−−

30,784144,426

4

25,50034,50025,500

−

−

−

−

−

2

Corporate Auditors(excluding Outside
Corporate Auditors)

34,500Outside officers

−

−

−

−

−

6

*		The above restricted share compensation for Board Directors is the amount of stock compensation expense recorded in the financial statements for FY’23/2. For the
allocation of restricted shares, monetary compensation claims totaling 541,600 thousand yen were paid as compensation in FY’22/2, but this amount was paid in a lumpsum as compensation for the execution of duties over the four fiscal years starting in FY’22/2.

Total Amount of Compensation, etc. for Officers Whose Compensation Totals 100 Million Yen or More
Officer category
Board
Directors

Name
HidekiTomitaMasatsugu
ShidachiTotal amount by compensation type (thousand yen)
Total amount ofcompensation Base compenRetirement(thousand yen)
Stock options Bonuses
BIP trustsationbenefits

1 1 6 ,721
185,540

78,80083,750

−

−

−

−

−

−

10,841

11,523

Restricted sharecompensation*

27,07990,266*		The above restricted share compensation for Board Directors is the amount of stock compensation expense recorded in the financial statements for FY’23/2. For the
allocation of restricted shares, monetary compensation claims totaling 440,050 thousand yen were paid as compensation in FY’22/2, but this amount was paid in a lumpsum as compensation for the execution of duties over the four fiscal years starting in FY’22/2.

132dip Integrated Report 2023

3

Introduction

Three-Way Audit Initiatives

The Company has adopted a three-way audit system
in which the Audit and Supervisory Committee, the
Accounting Auditor, and the Internal Audit andControl Office collaborate to achieve their respective
audit purposes following their respective protocols.
The three-way audit system is designed to allow for
more efficient auditing through deeper collaboration
between Board Directors who are Audit and Supervisory Committee Members, the Accounting Auditor,
and internal auditors.
The three parties meet regularly to exchange views
on audit plans and results. This helps them proceedwith their respective tasks effectively. In addition,
they attend other party’s audits as observers to see
how they are conducted firsthand. This initiative has
enabled each party to avoid overlap among, andshare information outside, their respective audit
scopes, thereby gaining even more insights.

Company
Collaborate andexchange views
Accounting
AuditorBoard Directors
who are Audit andSupervisory
Committee Members
Collaborate
and exchange
viewsInternal Audit andControl Oﬃce

Collaborate
and exchange
views● Status of Audits by the Audit and Supervisory Committee

The Audit and Supervisory Committee consists of three Outside Board Directors who possess specialized
expertise and extensive knowledge backed by a wealth of experience. The Committee meets monthly inprinciple, and convenes extraordinary meetings as necessary. In accordance with the audit policy it has
adopted, the Committee deliberates on matters prescribed by laws, regulations, and the Articles of Incorporation and on important audit work while endeavoring to enhance the audit and supervisory system. Board
Directors who are Audit and Supervisory Committee Members attend Board of Directors meetings and otherimportant councils, audit the legality of business execution by Board Directors, and supervise its validity.
Board Directors who are Audit and Supervisory Committee Members hold meetings with the Accounting
Auditor or the Internal Audit and Control Office on a timely basis to exchange views and share information,
as well as request a report from the Accounting Auditor or the Internal Audit and Control Office where
necessary. During and after an audit by the Accounting Auditor, Board Directors who are Audit and Supervisory Committee Members receive reports on the audit results. They also audit and verify the validity of the
Accounting Auditor’s audit.
The main agenda items for Audit and Supervisory Committee meetings are as follows:①		Appointing or removing the chairperson of the Audit and Supervisory Committee②		Appointing or removing Full-Time Audit and Supervisory Committee Members③		Appointing selected Audit and Supervisory Committee Members④ Formulating a code of Audit and Supervisory Committee auditing and supervising standards⑤		Matters concerning audit policies, audit plans, audit and investigation methods, sharing of audit
affairs, and the like; and preparing audit reports⑥ Formulating policies for deciding the dismissal or non-reappointment of the Accounting Auditor⑦ Deciding the appropriateness of reappointing the Accounting Auditor⑧		Deciding the contents of a proposal regarding the dismissal or non-reappointment of the Accounting Auditor that will be submitted to a General Meeting of Shareholders⑨		Deciding the contents of a proposal regarding the appointment of the Accounting Auditor that will
be submitted to a General Meeting of Shareholders
133

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section⑩		Deciding the opinion of the Audit and Supervisory Committee regarding the appointment, dismissal, or resignation of Board Directors (excluding Audit and Supervisory Committee Members)⑪		Deciding the opinion of the Audit and Supervisory Committee regarding compensation, etc. for
Board Directors (excluding Audit and Supervisory Committee Members)⑫		Deciding to request that the appointment of Audit and Supervisory Committee Members (including substitute Audit and Supervisory Committee Members) be included in the agenda of a General
Meeting of Shareholders⑬		Other matters found necessary by the Audit and Supervisory Committee in relation to the performance of the Committee’s duties

Three-way audit

Audit andSupervisory
Committee

Top Message● Status of Internal Audits

Internal audits are the responsibility of the Internal Audit and Control Office, which directly reports to theRepresentative Director, President and CEO. Staffed by four employees, the Office conducts internal audits
on a regular basis in accordance with the Internal Audit Regulations and the annual internal audit plan, withthe aim of ascertaining whether business is properly conducted and providing necessary advice. The Officeactively exchanges views regarding these audit results, and otherwise cooperates, with Audit and Supervisory Committee Members and the Accounting Auditor.
Its internal audit reports are submitted from the Head of the Internal Audit and Control Office to the Representative Director, President and CEO. Moreover, the Office reports its summarized internal audit results to
the Audit and Supervisory Committee every month and to the Board of Directors on a quarterly basis.

● Status of Accounting Audits

The Company is subject to accounting audits by KPMG AZSA LLC in compliance with the Companies Act andthe Financial Instruments and Exchange Act. KPMG AZSA LLC has expressed that, in its opinion, the Company’s financial disclosure documents, including balance sheets and statements of income, were prepared inaccordance with corporate accounting principles generally accepted in Japan and present fairly the businessperformance and financial position of the Company.

● Strengthening the Internal Control System

In line with the Internal Control Reporting System based on the Financial Instruments and Exchange Act, theCompany has established and operates internal control over financial reporting in accordance with the basic
framework for internal control indicated in the standards and regulations of the Financial Services Agency,
and assesses and improves the effectiveness of such control. With respect to the internal control report
prepared in accordance with the said system for the most recent fiscal year in which the internal control overfinancial reporting was deemed effective, the auditor has expressed an opinion that the report fairly presents important points including the following:•		System for ensuring that Board Directors and employees execute their duties in accordance withlaws, regulations, and the Articles of Incorporation• System for saving and managing information relating to Board Directors’ execution of duties• Rules and other systems for managing risk of loss
• System for ensuring that Board Directors execute their duties efficiently•		System for ensuring the appropriateness of operations in the corporate group comprising dip and its
subsidiaries• System for ensuring the appropriateness of financial reporting134

dip Integrated Report 2023

4

Introduction

Human Rights Initiatives

The Company has established the Human Rights
Promotion Council, chaired by the Representative
Director and COO, to deliberate and decide on
initiatives relating to human rights in line with its
human rights policy. In addition, the Board of
Directors regularly receives reports from thisCouncil on the content of its discussions and theprogress of initiatives, and gives instructions asnecessary. Regarding human rights initiatives, inaddition to proposals from the Council, ideas from
employees are also deliberated.

6

Human Rights
Promotion Council
Chairperson: COO
Members: Executive Officers
Business
Officer andSubcommittee forpartners
Investee
Employee
Client Companies(suppliers andSubcommittee
Subcommittee(including agents)
contractors)

Users

FY’21/2

100%

Compliance verification test participation rate

Compliance and Risk Management System

135

Value Creation
Process

The Company has established the Basic Policy on
Compliance to ensure that Board Directors andemployees adhere to laws, regulations, and the
Articles of Incorporation, fulfill their social responsibility, and respect corporate ethics in the execution of their duties. In an effort to instill the Basic
Policy, we post it on the internal bulletin board
and explain it during training sessions.
We also conduct a quarterly compliance verification test for all employees. The test covers issues
related to general compliance, knowledge ofPercentage of employees who took compliance tests

Board of Directors

Compliance and Risk Management Initiatives

To enhance compline and risk management, theCompany has newly created a Compliance andRisk Management Promotion Council, which ischaired by the Representative Director and COO
and consists of all Executive Officers. The Council
meets four times a year to present and discussmatters related to compliance and risk management, and reports the results to the Board of
Directors.
Based on reports from the Council, the Board of
Directors obtains and examines an overview ofcompliance violations and company-wide risks,and decides what actions to take to prevent
recurrence.
In April 2023, we created a Compliance Section, aunit specializing in compliance and risk management, within the Sustainability Promotion Department of the Corporate Management Group to
reinforce our compliance and risk management
system. The Section has built and operates a system
whereby, if a compliance or risk management

Sustainability

Promoting Compliance

Sustainability Promotion Initiatives

The Company has established the Sustainability Promotion Council, chaired by the Representative Director
and COO and consisting of all Executive Officers, to engage in efforts toward the realization of a sustainable
society.
The details and system are presented on page 33.

5

Top Message

Growth Strategy

Governance

Data Section

information security, our regulations and policies,
reporting systems, etc., in order to raise complianceawareness. Other issues related to bribery prevention
and human rights are incorporated as appropriate.
Furthermore, we work to raise compliance awarenessaccording to the attributes and grades of individual
employees. To that end, we provide internal workshops for Board Directors and Audit and Supervisory
Committee Members, compliance training for new
employees and new managers, and thematic training
for all employees (LGBTQ training in FY’24/2).
FY’22/2

100%

FY’23/2

100%

Whistleblowing System

We have a whistleblowing system in place. To familiarize employees with the system, we have provided
every employee with a card that contains contact points and posted information about where to report on
the corporate website. We encourage a broad range of stakeholders to consult with respective contact
points, whether officers, employees, temporary staff, or business partners. In collaboration with an outside
law firm, we take due care to protect whistleblowers from disadvantageous treatment while conducting
thorough fact-checking and implementing remedial and other measures. In FY’23/2, we received sevenconsultation requests: five on harassment and two on labor issues.

Whistleblowing systemproblem arises, Executive Board Directors andExecutive Officers are swiftly informed. It also serves
as the secretariat of the Compliance and Risk Management Promotion Council.
In addition, the Company has a system in place
where, should a serious incident affecting business activities occur, we set up an emergency
response team headed by the CEO to quickly andaccurately address the situation and keep losses
and damage to a minimum.
Board of Directors

Compliance and Risk Management Promotion Council
Chairperson: COO
Members: Executive Officers
Secretariat of the Compliance and Risk Management Promotion Council
Relevant departments

Business partners

Reportorconsult

Investigate

InformWhistleblowers or persons seeking consultation

Officers and employees

Reports or consultations onwhistleblowing disclosure

Reports or consultations onwhistleblowing disclosure

Reports or consultations oncompliance issues

Reports or consultations on
harassment

Contact point forbusiness partners to report

Contact points to report or consult
on whistleblowing disclosure
External contact
Internal
point:
contact point
Outside law firm

Contact points to consult
on compliance issues
External contact
Internal
point:
contact point
Outside law firm

Contact points to consult
on harassment
External contact
Internal
point:
contact point
Outside law firmCompliance Manager

Personnel Planning Manager

Contact points forwhistleblowing disclosure

External contact point:
Outside law firmCompliance Manager
Compliance Promotion Council

Board of Directors and Audit and Supervisory Committee

136dip Integrated Report 2023

Strengthening Risk Management

With regard to business and other risks, the Company has established a system for managing such risks inaccordance with its regulations. To keep track of the status of risks, each year we update the risk map thatvisualizes business and other risks, and report the results to the Board of Directors.
Primary risks and control measures

Of our business and other risks, the primary ones are as listed below. Recognizing the possibility that theserisks may materialize, the Company makes every effort to prevent them from materializing and will takeappropriate measures if they do.
(1) Commercial systems failure, virus infection, and cyberattacks

The Company’s business relies on communications networks that link the computer systems providing
online information sites with end-user devices. If these computer systems are down for unforeseeable reasons, etc., our business activities may be disrupted.
To prevent such an eventuality, we have been making consistent efforts to strengthen our backup systems
and information security practices with the aim of avoiding grave incidents and mitigating the impact on
business operations if they occur.
(2) Information leakage

The Company’s website uses the Secure Sockets Layer (SSL) protocol to protect all connections against
eavesdropping, tampering, and spoofing by third parties. We also continue to implement security measures
to prevent unauthorized access and other unlawful online activity. Nevertheless, in the event of a serious
problem such as the leakage of personal information in the course of business activities, we may be subject
to legal liability, lose the trust of client companies and job applicants, and may deteriorate our brand image,which may affect our business performance and financial position.
As part of our efforts to ensure strict management of personal information, we have obtained and maintain the right to display the PrivacyMark, and have acquired and retain ISO 27001 (JIS Q 27001) certification
for information security management system.

(3) Violations of applicable laws and regulations(Applicable regulations)
The Company’s business activities involve the provision of services that utilize the internet and digital technologies. At present, statutory regulation over these services is limited. However, in the event that the establishment or revision of laws and regulations impacts them or that costs to comply with laws and regulations
increase, our business operations and performance may be affected.
The Company’s business is governed by various laws: the Act on Equal Opportunity and Treatment between Men and Women in Employment, the Employment Security Act, and the Labor Standards Act, to namea few. We give due attention to these laws in the conduct of business activities. Still, in the event that a fact
conflicting with these laws arises or that these laws are amended and statutory regulation tightened, there isa probability that our business activities may be restricted while costs may increase to comply with the new
statutory regulation. In that event, our business performance and financial position may be affected. Moreover, as we offer services for nurses and other qualified professionals, amendments to the Act on Public
Health Nurses, Midwives, and Nurses and other laws that govern these qualifications might affect our business operations and performance.
The Company is licensed as a provider of paid employment placement services by the Minister of Health,Labour and Welfare. Continuing these services requires the license. Thus, if the license is rescinded for somereason, our business operations and performance may be affected. To the best of our current knowledge,
there is no fact that constitutes a reason for the rescission of the license.

137

Introduction

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section(Intellectual property rights)
If an entity in the same business as the Company obtains a patent, utility model, or other intellectual property
right that relates to our business, we may suffer from diminishing competitive advantage or be sued. In thatevent, our business performance and financial position may be affected.
Furthermore, whether in Japan or elsewhere, it is impossible to ignore the risk that a third party may havealready obtained a patent, utility model, or other intellectual property right relating to part or all of ourbusiness operations and that we may incur expenses due to the infringement of that right; or to disregard
the possibility that our own intellectual property rights may be infringed by a third party. At present, we are
not aware of a specific case that fits these descriptions.

(4) Market shrinkage
The personnel recruiting services business, the mainstay of the Company, is susceptible to the hiring plans ofcompanies that place job advertisements. Therefore, if the business environment changes significantly owing, forexample, to economic trends, employment conditions, job market, and other economic factors, or the outbreakand spread of infectious diseases, our business operations and performance may be substantially affected.
In regard to the DX business, as people are increasingly working from home and otherwise changing theway they work, the need to automate business processes continues to grow among companies. Nonetheless,if the business environment changes significantly owing to economic trends and other factors, the DX business operations and performance may be substantially affected.
(5) Changes in the industry landscape
The Company’s personnel recruiting services business has numerous competitors, whether those operating
online job-listing sites for part-time jobs, temporary work, full-time positions, or specialized professionals,
or providing placement services for nurses.
We make active efforts to build user loyalty, such as by introducing new services ahead of the competitionand continuously adding new functionalities. Nevertheless, if we are unable to address more intensifying
competition or the competition with new entrants in a timely, effective, and efficient manner, our business
operations and performance may be affected.
Our DX business has been built on our unique strengths—namely, the extensive customer base and direct
sales force that have been developed through job information services. However, in the event that there
emerges a competitor with strengths similar to ours or ones we do not have and that we are unable to respondin a timely, effective, and efficient manner, our business operations and performance may be affected.

(6) Natural and other disasters
The Company has endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures(TCFD), and makes disclosures in accordance with the framework it recommends.
If the geographical regions in which we operate are impacted by the worsening of climate change, ourbusiness operations and performance may be affected. In preparation for such an eventuality, we have taken
a number of measures, such as establishing guidelines on what employees should do in the event of a disaster, applying seismic retrofitting to buildings and systems, creating data backup systems, introducing asystem to confirm the safety of employees, conducting disaster drills, and stockpiling emergency supplies.

(7) Reliance on the personnel recruiting services business
The personnel recruiting services business accounted for 90.3% of the Company’s sales for FY’23/2, indicating
our heavy reliance on the business. Thus, there is a possibility that fluctuations of sales caused by such factors
as intensifying competition against other media in the job advertising market may substantially affect ourbusiness operations and performance. To address the situation, we have diversified our business portfoliowith a view to building a stable earnings base. Specifically, by expanding the business domain centered on job
advertisement media, we have launched recruiting services for the healthcare and nursing care sectors, whichface a structural shortage of labor and are less susceptible to economic fluctuations, as well as the DX business that features a monthly subscription software-as-a-service (SaaS) model.
The DX business posted steady growth in sales for FY’23/2. However, if this business does not grow as
originally projected, we may continue to rely on the personnel recruiting services business.
138dip Integrated Report 2023

Introduction(8) Infectious disease outbreaks
The outbreak and spread of infectious diseases cannot be controlled by the Company’s risk management
efforts alone. Still, we do our utmost to ensure employee safety, for example by allowing for telework, andthoroughly communicating what employees should do if they feel sick or think they may have been exposed
to a virus.
In terms of communication with clients, too, we engage in sales activities with due care to prevent infectious diseases in the interest of business continuity.

Information Security Initiatives

At dip and its subsidiaries (“the dip Group”),
personal information and other various information obtained from all stakeholders is recognized
as one of the most important assets in business
management. We have formulated a basic policy
for information security with the aim of developinga system to continuously protect this information.
The dip Group complies with the basic policy for
information security, and has developed an information security management system (ISMS) as

well as established various internal regulations
and guidelines. We also work to enhance and raiseawareness through efforts such as regular information security education and cyberattack training.
The dip Group is committed to the continuous
maintenance and improvement of these information security management systems and to therealization of a healthy information society while
preparing for changes in the environment and new
threats that may emerge.

Basic Policy for Information Security

Ⅰ		dip will comply with laws, regulations, standards, and other contracts and social norms regarding
information security, formulate a compliance program to establish and thoroughly implement an
information security management system, and make company-wide efforts to maintain and continuously improve this system.
Ⅱ		Considering improvements in technology, changes in social environment, and other factors, dip
will regularly perform a risk assessment of information assets and work to ensure their confidentiality, completeness, and availability.
Ⅲ		dip will continuously educate all employees and raise awareness regarding information security.
Ⅳ		dip will regularly audit the handling of information assets and strive for early discovery of problems and timely improvements.
Ⅴ		In order to achieve early resolution of various problems that arise in the course of operation of theinformation security management system, dip will regularly review operations and work to build aframework for continuous development of the system.
In keeping with this basic policy, the Company
has obtained ISO 27001 (JIS Q 27001) certification
for the development and operation of online
job-listing sites, provision of job listings, planningof paid employment placement services and DX
services, and sales services. We make proactive

139

efforts to ensure information security, which
include setting rules to protect information assets,
providing thorough education on information
security, addressing cybersecurity risks, promptly
responding to information security incidents, andconducting internal audits of information security.

Top Message

Sustainability

Value Creation
Process

Growth Strategy

Governance

Data Section

Personal Information Protection Initiatives

The dip Group recognizes personal information(including individual numbers and other specificpersonal information) entrusted by all stakeholders as one of the most important assets in business
management. To create a system whereby suchinformation is consistently safeguarded, we haveestablished a Privacy Policy and handle customers’
personal information strictly in compliance with

the Act on the Protection of Personal Information,
and Guidelines for the Act on the Protection of
Personal Information. We strive to make dip
Group’s officers and employees familiar with, andto properly handle and mange personal information pursuant to, this policy. The Privacy Policy isavailable for your perusal on our website athttps://www.dip-net.co.jp/en/privacy_policy.

Personal information protection management system

The Company makes a continuous effort to enhance its capability to protect the personal information
it holds so that it can consistently protect such information to the best of its ability in tune with thesocial context, technological advancements, the changing business environment, and other factors.
Toward that end, we have established, operate, maintain, and upgrade a personal information protection management system (PMS). We have also been granted the right to display the PrivacyMark. We
have set internal rules for protection of personal information, and familiarize our Group officers andemployees with them. By handling personal information pursuant to these rules while auditing andreviewing the handling process on a regular basis, we strive to continuously improve the way, and theprecision with which, personal information is handled.

Initiatives for Stakeholders

The Company’s efforts to meet the needs of all
stakeholders are guided by its Brand Statementthat promises “One to One Satisfaction.” The
Brand Statement is posted on our corporatewebsite and elsewhere.
We believe that two-way communication withshareholders and investors—our important stakeholders—is indispensable to our sustainablegrowth and medium- to long-term increase incorporate value. Based on this belief, we haveestablished an IR Policy and published it on our
corporate website in hopes that it will facilitate
constructive dialogue with shareholders andinvertors. We also work to increase their understanding by proactively disclosing information
about our management strategy and businessenvironment, and otherwise enhancing disclosures on our corporate website. In addition, wehold quarterly results briefings for and have
one-on-one meetings with investors, where ourbusinesses and strategies are explained by the
Representative Director, President and CEO, theRepresentative Director and COO, and the Executive Officer and CFO. In FY’24/2, we plan to arrange
meetings between Outside Board Directors andinstitutional investors to foster mutual understanding from an objective perspective. The
opinions and suggestions provided by shareholders and investors at these occasions are compiled
and reported to management by the IR division ona regular basis while also being shared with
employees.
We also have ongoing dialogue with shareholders and investors regarding the officer compensation system. A prime example was when we
submitted a proposal for officer compensation to
the Annual General Meeting of Shareholders in
2023. With regard to this proposal titled “Determination and Revision of Remuneration for the
Allotment of Restricted Shares to Board Directors(excluding Board Directors who are Audit andSupervisory Committee Members and Outside
Board Directors),” we engaged in prior dialogue
with shareholders and investors to exchange
views and gain their understanding. Moving
forward, we will continue to have dialogue withshareholders and investors to understand theirviews and incorporate them into our decision-making process regarding officer compensation and other matters.
140

dip Integrated Report 2023

Introduction

Financial and Non-Financial Data
Non-consolidated Non-consolidated Non-consolidated Consolidated Consolidated Non-consolidated Consolidated Consolidated Consolidated

Gross profit

Operating income

MillionYen

Ordinary income

MillionYen

Gross profit margin

Operating income
marginOrdinary income
margin%%%FY’15/2

FY’16/2

FY’17/2

FY’18/2

FY’19/2

FY’20/2

FY’21/2

FY’22/2

FY’23/2

17,677

24,66930,88635,88339,46843,37829,191

34,96944,082

19,530
90.5

4,806
24.6

4,817
24.7

26,798
92.1

7,162
26.7

7,170
26.8

33,178
93.1

9,119
27.5

9,141
27.6

38,062
94.3

10,79928.4

10,79428.4

42,17693.6

12,74530.2

12,57729.8

46,41593.5

14,35630.9

14,39331.0

32,494
89.8

7,312
22.5

6,501
20.0

39,515
88.5

5,602
14.2

5,320
13.5

49,355

23.4

11,599
23.5

%

14.6

17.4

18.6

19.8

21.1

21.6

1.9

8.8

16.1

MillionYen
MillionYen

6,643

11,021

10,384

15,32615,193

21,13920,99028,01625,701

31,512

31,17832,98938,242

%

52.3

55.7

49.6

38.5
37.2

40.9

38.5

18.1

13.6

25.0

Net income margin/
Margin of net income
attributable to ownersof parent

Net assets

Total assets

Return on assets (ROA)

Return on equity (ROE)
Equity ratio%%

Cash flows fromoperating activities

MillionYen

Cash flows fromfinancing activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodNet assets per share

Net income per share
Payout ratio

51.4
60.0

54.4
66.4

50.1
69.6

7,531

72.4

8,910

33,51039.6
74.0

10,012

41,114

36.0
74.3

607

35,869

2.0

84.4

3,487

42,454

11.1
76.4

7,935

50,167

22.7
75.0

3,877

4,991

8,105

9,729

10,926

12,391

5,905

10,482

13,203(1,347)(802)(2,307)(4,364)(6,360)(3,375)(9,643)(3,850)(4,121)MillionYen(1,358)(1,109)(1,700)(1,965)(4,356)(4,515)(3,041)(2,524)(3,680)Million
Yen

4,141

7,219

11,317

14,717

14,927

19,241

12,462

16,56921,974Yen

119.41*2

183.76264.76363.47448.83563.13547.13581.26673.93

%

30.2

30.8

32.4

31.8

31.1

30.5

505.0

97.2

50.7

Million
Yen

Yen

51.59

84.44

111.16135.40160.86183.80

11.09

62.77

142.04*1 As consolidated accounting was not performed for the 18th, 19th, 20th and 23rd fiscal years, figures for these fiscal years are from non-consolidated accounting.
*2 Effective September 1, 2015, the Company conducted a 5-for-1 stock split.
Therefore, the amounts of net assets per share and net income per share were calculated on the assumption that the stock split was conducted at the beginning of
the previous fiscal year.
*3 Regarding the percentage of men who take childcare leave, based on the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers
Caring for Children or Other Family Members, the percentage of employees taking childcare leave, etc. and leave for childcare purposes as stipulated in Article
71-4, Item 2 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or
Other Family Members is calculated.
*4 As of June 1, 2023 at the time of reporting the status of employment of people with disabilities to the Ministry of Health, Labour and Welfare.
*5 No emissions under categories 8 through 15.

141

Total GHG emissions

11,538

2,856

6,167

Total energy consumption Scope 1
Scope 2
Ratio of renewable energy
Emission intensity (Scope 1+2/Sales)

89.3

Net income/Net
income attributable to Million
Yenowners of parent

4,675

Value Creation
Process

Growth Strategy

Governance

Data Section

22nd fiscal year 23rd fiscal year 24th fiscal year 25th fiscal year 26th fiscal year

18th fiscal year*1 19th fiscal year*1 20th fiscal year*1 21st fiscal year 22nd fiscal year 23rd fiscal year*1 24th fiscal year 25th fiscal year 26th fiscal year
MillionYen
MillionYen

Sustainability

Non-Financial Data

Financial Data

Sales

Top Message

Full-time employees
Number of hires*Scope 2: Market based

Scope 1
Scope 2 *Market based
Scope 2 *Location based
Scope 3 Total*5
Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel- and energy-related activities
not included in Scope 1 or Scope 2
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Emission intensity (Scope 1+2/Sales)*Scope 2: Market based

New graduates
Mid-career
Including temporary and part time
employees

Percentage of female
employees
Percentage of female
Total full-time employees
managers
Percentage of women among new
graduate employees promoted to
managerial positions
Voluntary turnover rate offull-time employees
Average extra hours
workedPercentage of paid
holidays taken
Percentage of employees
Total
who take childcare leave*3
Men
Women
Percentage of people with4
disabilities employed*
Gender wage gap
Total employees
Total full-time employees
Managers
Employees in general positions
Fixed-term employees
DonationsBoard Directors
Percentage of independent
Outside Board Directors
Female Board Directors
Percentage of female
Board Directors

MWh
MWh
%

MWh/
Million Yen
t-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2et-CO2e/Million Yen

FY’19/2

FY’20/2

FY’21/2

FY’22/2

FY’23/2

0.04010.03280.04430.03850.034851.4
1,641.6
9.2
704.8
758.4
-

-

-

-

-

8.6
559.1
638.4
-

-

49.5
1,668.6
54.8
8.9
325.3
724.2
29,36926,589
1,126
112

29
1
969
544

0.01840.01440.0068

50.0

49.6

48.8

49.8

50.4

%

29.6

%

-

8.2
590.4
620.3
-

48.0
1,474.3
12.9

0.0100persons

persons

10.2
638.7
876.1
-

45.6
1,393.9-0.0169
1,635
296
47

persons

57.0
1,467.3
-

1,873
362
76

31.1

2,110
399
71

32.4

1,969
95
69

33.2

2,316
414
210
34.4

%

36.8

38.4

40.6

41.3

43.5

%

12.1

11.0

10.9

15.2

12.6

56.9

51.8

44.9

56.6

59.4

38.1
100.0

69.0
100.0

64.3
100.0

61.1
100.0

92.5
98.2

1.5
8

1.5
6

6

1.3
6

80.4
85.4
83.4
97.9
116.9
6

1

2

hour/
month

25.0

%

62.3

%

%
%
%
%
%
%
%
%

Million Yen
persons

1.9

23.1

83.5
1.9

24.1

81.7
1.7

25.4

80.4
2.6

%

37.5

50.0

33.3

33.3

%

12.5

33.3

33.3

16.7

persons

1

2

2

23.0

95.4
3.0

50.0
33.3

142

dip Integrated Report 2023

Introduction

Evaluations from outside the Company

Top Message

Selected for the MSCI Japan ESG
Select Leaders Index for thesecond year in a row. The ESG
index is composed by selecting
stocks of companies that havehigh ESG ratings relative to theirpeers in each sector among the
top 700 Japanese stocks bymarket capitalization.

Selected for the Group 1, thehighest rating in the Morningstar
Japan Equity Gender Diversity
Tilt Index (excluding REITs). The
ESG index is designed to emphasize companies in the Japanesemarket that have strong gender
diversity policies embedded intheir corporate culture and that
ensure equal opportunities to
employees, irrespective of theirgender.

Selected for the S&P/JPX Carbon
Efficient Index. The ESG index
measures the performance ofcompanies in the Tokyo Stock
Price Index (TOPIX), while
overweighting or underweighting the companies by looking attheir disclosure status of environmental information and levelof carbon efficiency (carbon
emissions per unit of revenue).
Selected for the MSCI ESG
Leaders Indexes. The indexes arecomprehensive ESG indexes
formulated by MSCI in US andcomposed of companies thathave high ESG ratings relative totheir peers in each sector.
Selected for JPX-Nikkei 400 for
the eighth year in a row. This
stock index is composed ofcompanies with high appeal forinvestors, which meet requirements of global investment
standards, such as efficient use
of capital and investor-focusedmanagement perspectives.

The Nikkei 500
Stock Average

Selected for the Nikkei 500 Stock
Average for the fifth year in arow. This price-weighted equity
index, comprised of 500 stocks
in the Prime Market of the Tokyo
Stock Exchange, is calculatedwith the method under the Dow
Jones Industrial Average, thesame method used for the
Nikkei Stock Average.

THE INCLUSION OF dip Corporation IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF dip Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

143

Growth Strategy

Governance

Data Section

Recognized as “White 500” in the large
enterprise category of the 2023
Certified Health & Productivity
Management Outstanding Organizations, which is granted to organizations
particularly outstanding in conducting
health and productivity management,
under the large enterprise category of
the Certified Health & Productivity
Management Outstanding Organizations Recognition Program organizedby the Ministry of Economy, Trade andIndustry and the Nippon Kenko Kaigi.

Given the three star rating, thehighest ranking under thecertification system of “Eruboshi
Certification” based on the Act on
the Promotion of Women’s Active
Engagement in Professional Life.

Certified as a “DX Certified
Operator” by the Ministry of
Economy, Trade and Industry for
its efforts to promote theadoption of DX among clientcompanies, in addition to thepromotion of DX within dip itself.

Support expressed by dip inAugust 2022 for the “Declaration
on 100% Childcare Leave
Acquisition by Male Employees”
promoted by Work-Life BalanceCo., Ltd., in order to promote
diverse working styles for men as
well as further promote creating
an environment in which it iseasy to take childcare leave.

Certified as a “Sports Promotion
Company” by the Tokyo Metropolitan Government with its
recognition of the Company’s
activities such as a walking
program to encourage moderate
exercise for conditioning the
body and mind as well as an
on-line stretch program.

Selected for the MSCI Japan
Empowering Women Index (WIN)for the second year in a row. The
ESG index is composed of stocksof Japanese companies that areleading within sectors in termsof initiatives on gender diversity
among the top 700 Japanesestocks by market capitalization.

Selected for the FTSE Blossom
Japan Sector Relative Index forthe second year in a row. The ESG
index is designed to measure
Japanese company performance
demonstrating relatively strong
ESG practices in each sector.

Value Creation
Process

External Certificates Received and Participation in Initiatives

Incorporated into Stock Indexes: Included in All Six ESG Indexes Adopted by GPIF
Selected for the FTSE Blossom
Japan Index for the third year in arow. The ESG index is formulated
by FTSE Russell, a global index
provider, and designed to selectJapanese companies that
demonstrate strong ESG practices.

Sustainability

Support expressed by dip in
October 2021 for the recommendations of the Task Force on
Climate-Related Financial
Disclosures (TCFD), which was
created by the Financial Stability
Board. Joined the “TCFD Consortium,” a forum for discussions
among supporting companies
and financial institutions.

External Evaluations

The 47th Keizai-kai Grand Awards
Venture Management Award

Efforts under the dip Incentive Project, an initiative to increase
hourly wages motivated by dip’s philosophy-based management recognized and awarded the Venture Management Award
under the 47th Keizai-kai Grand Awards, which is granted toindividuals and companies that demonstrate outstanding
performance in the fields of economy and business.

Under the certification system
based on the Act on Advancementof Measures to Support Raising
Next-Generation Children, given a“Kurumin” certification as achild-rearing support company
introducing various measures forchild rearing, by the Minister of
Health, Labour and Welfare.

CDP is an international project,asking companies to disclose
information such as theirstrategy for climate change andgreenhouse gas emissions,through coordination among
institutional investors in theworld. Response to the CDPquestionnaire on climate changecommenced from fiscal 2021.

2023 Oricon Customer Satisfaction® Survey
No.1 in the Ranking of Temp Staffing Recruiting Sites
Hatarako.net, a comprehensive job posting website, ranked
No. 1 in the ranking of temp staffing recruiting sites in the2023 Oricon Customer Satisfaction® Survey, with all four
assessment criteria ranked top: ease of use of app andwebsite, ease of search, job postings, and ease of applying.

144

dip Integrated Report 2023

Introduction

Corporate Information/Stock Information
Company Profile
Company name
FoundedRepresentative
Location
CapitalSales

Employees

dip Corporation
March 1997

TOMITA Hideki, Representative Director, President & CEO
3-2-1 Roppongi, Minato-ku, Tokyo¥1,085 million (As of end of February 2023)¥49,355 million (For the fiscal year ended February 2023)
2,925 (Full-time employees as of April 1, 2023)

Main business

Online job information provision services
Provision of DX services

Listed market

Prime Market of the Tokyo Stock Exchange (code: 2379)

URL:

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

Consolidated subsidiaries
Equity-method affiliates

Value Creation
Process

Growth Strategy

Governance

Data Section

Stock Information
Business year

March 1 to the end of February of the following year

Annual General Meeting of
Shareholders

May every year
Record date: Last date of February

Method of public noticeElectronic public notices will be posted on the Company website.
However, if electronic public notice is not possible due to unavoidable
circumstances, the notice will be posted in the Nihon Keizai Shimbun.

Administrator of shareholder
register
Mitsubishi UFJ Trust and Banking Corporation
Account management
institution of special accounts
Contact information of
the institution

Stock Transfer Agency Department, Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu-shi, Tokyo
0120-232-711 (toll free)

P.O. Box No. 29, Shin-Tokyo Post Office, 137-8081
Destination of the institution Stock Transfer Agency Department, Mitsubishi UFJ Trust and Banking
Corporation

Stock Price Data
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145

Sustainability(Yen)

Company Profile
Number of offices

Top Message

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146