Financial Results for the Fiscal Year Ended February 29, 2024
(Japanese GAAP, Consolidated)
April 12, 2024 | |||
Name of company: | dip Corporation | Stock exchange listing: | Tokyo Stock Exchange |
Stock code: | 2379 | Company website: | |
Representative: | Hideki Tomita, Representative Director, President and CEO | ||
Contact: | Haruhiko Arai, Corporate Officer, CFO, Head of Corporate Management Group; Phone: +81351141177 |
Scheduled date of filing financial statements: | May 23, 2024 | Dividend payment date: | May 24, 2024 | |||||||||||
Scheduled filing date of securities report: | May 24, 2024 | |||||||||||||
Supplementary documents to the financial results: | Available | |||||||||||||
Financial results briefing: | Scheduled (for institutional investors and analysts) | |||||||||||||
(All figures are rounded down to the nearest million yen) | ||||||||||||||
1. Consolidated Operating Results for FY'24/2 (the Period of March 1, 2023 to February 29, 2024) | ||||||||||||||
(1) Consolidated business performance | (Percentage figures indicate yearonyear change) | |||||||||||||
Net Income | ||||||||||||||
Sales | Operating Income | Ordinary Income | Attributable to | |||||||||||
Owners of Parent | ||||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | |||||||
FY'24/2 | 53,782 | 9.0 | 12,761 | 10.6 | 12,618 | 8.8 | 9,050 | 14.1 | ||||||
FY'23/2 | 49,355 | 24.9 | 11,538 | 106.0 | 11,599 | 118.0 | 7,935 | 127.5 |
(Note) Comprehensive income: FY'24/2 | ¥8,987 million (6.7%) | FY'23/2 | ¥8,424 million (138.7%) | |||||
Net Income | Diluted Net Income | Return on Equity | Return on Assets | Operating Income to | ||||
per Share | per Share | Sales Ratio | ||||||
¥ | ¥ | % | % | % | ||||
FY'24/2 | 163.44 | 163.15 | 23.5 | 25.0 | 23.7 | |||
FY'23/2 | 142.04 | 141.65 | 22.7 | 25.0 | 23.4 |
(Reference) Equity in earnings of affiliates: FY'24/2 ¥9 millionFY'23/2 ¥380 million
(2) Consolidated financial position
Total Assets | Net Assets | Shareholders' Equity Ratio | Net Assets per Share | ||||
¥ million | ¥ million | % | ¥ | ||||
FY'24/2 | 50,772 | 39,708 | 77.3 | 715.64 | |||
FY'23/2 | 50,167 | 38,242 | 75.0 | 673.93 | |||
(Reference) Shareholders' equity: | February 29, 2024 | ¥39,259 million | February 28, 2023 | ¥37,623 million |
(3) Consolidated cash flows
Cash Flows from | Cash Flows from | Cash Flows from | Balance of Cash and Cash | |
Operating Activities | Investing Activities | Financing Activities | Equivalent at End of Period | |
¥ million | ¥ million | ¥ million | ¥ million | |
FY'24/2 | 9,526 | (7,364) | (8,021) | 16,116 |
FY'23/2 | 13,203 | (4,121) | (3,680) | 21,974 |
2. Dividends
Annual Dividends | Dividend | Ratio of | |||||||
Total Dividend | Dividends to | ||||||||
Payout Ratio | |||||||||
End of Q1 | End of Q2 | End of Q3 | Yearend | Total | Payment | Net Assets | |||
(Consolidated) | |||||||||
(Consolidated) | |||||||||
¥ | ¥ | ¥ | ¥ | ¥ | ¥ million | % | % | ||
FY' 23/2 | - | 34.00 | - | 38.00 | 72.00 | 4,137 | 50.7 | 11.5 | |
FY'24/2 | - | 40.00 | - | 48.00 | 88.00 | 5,034 | 53.8 | 12.7 | |
FY'25/2 (forecast) | - | 40.00 | - | 48.00 | 88.00 | 53.6 |
3. Consolidated Operating Results Forecast for FY'25/2 (from March 1, 2024 to February 28, 2025)
Preface to the consolidated results forecast
(Percentage figures indicate year-on-year change)
Net Income | Net Income | ||||||||||
Sales | Operating Income | Ordinary Income | Attributable to | ||||||||
per Share | |||||||||||
Owners of Parent | |||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | |||
Full year | 57,600 | 7.1 | 13,400 | 5.0 | 13,200 | 4.6 | 8,900 | (1.7) | 160.71 |
Notes on the consolidated operating results forecast:
- Notes
-
Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes in the scope of consolidation): None
Newly included: None
Excluded: None - Changes in accounting policies, changes in accounting estimates, and restatements during the period under review
1. | Changes in accounting policies resulting from revisions to accounting standards: | None |
2. | Changes in accounting policies other than those in 1 above: | None |
3. | Changes in accounting estimates: | Yes |
4. | Restatements: | None |
(3) Number of shares outstanding (Common stock)
- Number of shares outstanding at end of period (including treasury shares)
- Number of treasury shares at end of period
- Average number of shares outstanding during period
FY'24/2 | 60,140,000 shares | FY'23/2 | 60,140,000 | shares | |
FY'24/2 | 5,280,191 | shares | FY'23/2 | 4,313,065 | shares |
FY'24/2 | 55,377,903 | shares | FY'23/2 | 55,866,330 | shares |
Treasury shares include the number of Company shares owned by the ESOP trust account (1,477,075 shares at the end of FY'23/2; 2,100,905 shares at the end of FY'24/2) and the number of Company shares owned by the BIP trust account (91,462 shares at the end of FY'23/2; 73,817 shares at the end of FY'24/2).
(Reference) Summary of Non-consolidated Operating Results
1. Non-consolidated Operating Results for FY'24/2 (the Period of March 1, 2023 to February 29, 2024)
(1) Non-consolidated business performance | (Percentage figures indicate year-on-year change) | ||||||||||
Sales | Operating Income | Ordinary Income | Net Income | ||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||||
FY'24/2 | 53,782 | 9.0 | 12,828 | 10.5 | 12,796 | 21.3 | 9,317 | 28.1 | |||
FY'23/2 | 49,355 | 24.9 | 11,606 | 104.7 | 10,552 | 93.8 | 7,272 | 101.4 | |||
Net Income | Diluted Net Income | ||||||||||
per Share | per Share | ||||||||||
¥ | ¥ | ||||||||||
FY'24/2 | 168.25 | 167.96 | |||||||||
FY'23/2 | 130.18 | 129.82 |
Notes on the non-consolidated business performance:
(2) Non-consolidated financial position
Total Assets | Net Assets | Shareholders' Equity Ratio | Net Assets per Share | |||
¥ million | ¥ million | % | ¥ | |||
FY'24/2 | 50,880 | 39,819 | 77.4 | 717.96 | ||
FY'23/2 | 50,007 | 38,085 | 75.0 | 671.43 | ||
(Reference) Shareholders' equity: | February 29, 2024 | ¥39,386 million | February 28, 2023 | ¥37,483 million |
- The financial results report is not subject to an audit by a certified public accountant or an audit firm.
- Explanation on the appropriate use of operating results forecasts and other notes
(Notes on forward-looking statements)
The forward-looking statements contained herein are based on information currently available to the Company and certain assumptions the Company deems reasonable. The actual results may differ significantly from the forecasts due to various factors. For the assumptions underlying the operating results forecasts and cautionary statements regarding the use of the forecasts, see "1. Summary of Operating Results, etc., (5) Outlook" on page 5.
(Availability of supplementary materials for financial results)
Supplementary materials for the financial results will be posted on the Company's website on Friday, April 12, 2024.
○Table of Contents | ||
1. Summary of Operating Results, etc. .................................................................................................................................................... 2 | ||
(1) | Operating Results | 2 |
(2) | Financial Position | 3 |
(3) | Cash Flows | 4 |
(4) | Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Upcoming Fiscal Year | 4 |
(5) | Outlook | 5 |
2. Situation of the Corporate Group | 6 | |
3. Basic Approach towards Selection of Accounting Standards | 7 | |
4. Consolidated Financial Statements and Notes | 8 | |
(1) | Consolidated Balance Sheet | 8 |
(2) | Consolidated Statements of Income and Comprehensive Income | 10 |
Consolidated Statement of Income | 10 | |
Consolidated Statement of Comprehensive Income | 11 | |
(3) | Consolidated Statement of Changes in Equity | 12 |
(4) | Consolidated Statement of Cash Flows | 14 |
(5) | Notes to Consolidated Financial Statements | 15 |
(Notes on Going Concern Assumption) | 15 | |
(Bases of Presenting Consolidated Financial Statements) | 15 | |
(Changes in Accounting Policies) | 18 | |
(Changes in Accounting Estimates) | 19 | |
(Additional Information) | 19 | |
(Consolidated Balance Sheet) | 22 | |
(Consolidated Statement of Income) | 23 | |
(Consolidated Statement of Comprehensive Income) | 24 | |
(Consolidated Statement of Changes in Equity) | 25 | |
(Consolidated Statement of Cash Flows) | 28 | |
(Segment Information, etc.) | 29 | |
(Revenue Recognition) | 33 | |
(Per share Information) | 34 | |
(Significant Subsequent Events) | 34 |
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1. Summary of Operating Results, etc.
(1) Operating Results
Since its establishment in 1997, dip Corporation (hereinafter, the "Company") has assisted its client companies with the recruiting and deployment of human resources by providing online job information sites, as well as creating an environment where each job seeker can work with enthusiasm and energy, based on its corporate philosophy of 'Here at dip, we want to tap into dreams, ideas and passion to create a better society'.
Since FY'20/2, under the corporate vision of becoming a 'Labor force solution company', the Company has been striving to solve diverse labor-related issues and realize a society in which everyone can experience the joy and happiness of work through the offering of personnel recruiting services and DX (digital transformation) services.
Thanks to the steady expansion of the personnel recruiting services business and the high growth of the DX business, sales for FY'24/2 ended at 53,782 million yen (up 9.0% year on year).
Regarding costs, the Company invested in human resources, such as recruiting new graduate employees in 2023 to boost its sales capabilities. As a result, operating income, ordinary income, and net income attributable to owners of parent came to 12,761 million yen (up 10.6% year on year), 12,618 million yen (up 8.8% year on year), and 9,050 million yen (up 14.1% year on year), respectively.
An overview of the results by segment is detailed below.
Effective FY'24/2, the presentation of the breakdown information of revenue generated from contracts with customers has been changed from "Baitoru, Baitoru NEXT, Baitoru PRO, Hatarako.net, DX, Other" to "Media (job advertising) services, Permanent Placement services, DX services, Other services" due to a revision of the Company's sales management categories according to service type.
There are no changes to reported segments due to the above change.
(i) Personnel Recruiting Services Business
The personnel recruiting services business operates the following platforms as media (job advertising) services: Baitoru, a job information site for part-time workers; Baitoru NEXT, a job information site for regular employees and contract employees; Hatarako.net, a comprehensive job information site; and Baitoru PRO, a comprehensive job information site for specialized jobs. The Company also operates the following platforms as Permanent Placement services: Nurse de Hatarako, a job agency service for medical professionals, and Nursing Care de Hatarako, a job agency service for nursing jobs. The Company aims to expand the user and customer bases for these services through the vigorous efforts of its sales force and its service development and promotional capabilities.
During FY'24/2, sales of the personnel recruiting services business saw steady progress. As a result, segment sales and segment profit came to 47,801 million yen (up 7.2% year on year) and 17,175 million yen (up 15.7% year on year).
(ii) DX Business
Since September 2019, the DX business has been supporting the digital transformation (DX) of small and medium-sized enterprises (SMEs) through the offering of the KOBOT series. This SaaS DX product series is priced for SMEs, features simple functions, and is easy to introduce as it is designed for SMEs.
During FY'24/2, the business saw an increase in sales of its products, including Interview Scheduling KOBOT, which automatically schedules interviews with job applicants, Temp Agency KOBOT, which supports dispatch companies' sales activities with automated sales list creation services, and Corporate Recruiting Page KOBOT, which creates client recruiting pages featuring Baitoru's unique functions, such as workplace introduction videos. As a result, segment sales and segment profit ended at 5,981 million yen (up 25.2% year on year) and 2,837 million yen (up 33.1% year on year).
- 2 -
(2) Financial Position
(Current assets)
Total current assets recorded at the end of FY'24/2 were 28,146million yen, a decrease of 669 million yen from the end of the previous fiscal year. The major factors were a decrease of 2,857 million yen in cash and deposits and an increase of 1,932 million yen in other current assets.
(Non-current assets)
Total non-current assets stood at 22,625 million yen, an increase of 1,274 million yen from the end of the previous fiscal year. This mainly reflected an increase of 1,097 million yen in intangible assets and a decrease of 14 million yen in investments and other assets.
(Current liabilities)
Total current liabilities recorded at the end of FY'24/2 were 9,239 million yen, a decrease of 1,236 million yen from the end of the previous fiscal year. The major factors were a decrease of 1,470 million yen in income taxes payable an increase of 263 million yen in contract liabilities, and a decrease of 302 million yen in other current liabilities.
(Non-current liabilities)
Total non-current liabilities were 1,824 million yen, an increase of 376 million yen from the end of the previous fiscal year. This mainly reflected increases of 208 million yen in provision for share awards and 151 million yen in asset retirement obligations. (Net assets)
Total net assets recorded at the end of FY'24/2 were 39,708 million yen, an increase of 1,465 million yen from the end of the
previous fiscal year. The major factors were increases of 2,297 million yen in capital surplus following the extension of the ESOP trust, the additional granting of restricted stock, etc., 4,573 million yen in retained earnings, and 5,175 million yen in treasury shares due to market purchases, the extension of the ESOP trust, etc.
- 3 -
(3) Cash Flows
Cash and cash equivalents ("cash") stood at 16,116 million yen at the end of the fiscal year under review. The breakdown of cash flows is as follows:
(Cash flows from operating activities)
Net cash provided by operating activities was 9,526 million yen (a decrease of 3,676 million yen year on year). This was mainly attributable to net income before income taxes of 11,984 million yen and depreciation of 3,066 million yen, which offset an increase in other assets of 2,562 million yen and the payment of income taxes amounting to 4,698 million yen.
(Cash flows from investing activities)
Net cash used in investing activities totaled 7,364 million yen (an increase of 3,242 million yen year on year). This was mainly attributable to payments into time deposits amounting to 5,000 million yen and the purchase of intangible assets totaling 3,849 million yen, offsetting proceeds from withdrawal of time deposits of 2,000 million yen.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 8,021 million yen (an increase of 4,341 million yen year on year). This was mainly attributable to the purchase of treasury shares amounting to 6,459 million yen and a dividend payment totaling 4,471 million yen, which offset proceeds from the sale of treasury shares mainly to the ESOP trust amounting to 2,683 million yen.
(Reference) The trend of cash flow-related indicators is as follows:
FY'20/2 | FY'21/2 | FY'22/2 | FY'23/2 | FY'24/2 | |
Shareholders' equity ratio (%) | 74.3 | 84.4 | 76.4 | 75.0 | 77.3 |
Shareholders' equity ratio | 345.0 | 447.0 | 445.3 | 391.7 | 283.0 |
on a market value basis (%) | |||||
Ratio of cash flow to interest- | - | - | - | - | - |
bearing debts (annual) | |||||
Interest coverage ratio (times) | - | - | - | - | |
Shareholders' equity ratio: Shareholders' | equity/Total assets |
Shareholders' equity ratio on a market value basis: Market capitalization/Total assets
Ratio of cash flow to interest-bearing debts: Interest-bearing debts/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments
Notes: 1. The figures for FY'20/2 are based on the non-consolidated financial statements.
- The ratio of cash flow to interest-bearing debt is not stated, as there have been no outstanding balances for interest-bearing debt.
- The interest coverage ratio is not stated since there has been no interest payment.
- Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Upcoming Fiscal Year
The Company considers profit distribution to shareholders to be one of its most important management responsibilities and pays dividends twice a year, at the interim and the year end, while retaining the necessary earnings to invest for future growth of the Company and respond to changes in the business environment. It has been using a dividend payout ratio of 50% as a guide as well as taking into consideration the dividend results of the prior fiscal year in determining dividend payments.
Based on the above profit distribution policy, the Company will pay an ordinary year-end dividend of 48 yen per share for FY'24/2.
For FY'25/2, the Company also plans to pay an annual ordinary dividend of 88 yen per share, which is broken down into an interim dividend of 40 yen per share and a year-end dividend of 48 yen per share, after taking into consideration its full-year operating results, financial position and other matters.
- 4 -
(5) Outlook
Our consolidated earnings forecast for FY'25/2 is based on a conservative projection of growth in the part-time job advertising market and assumes a market growth rate of "±0%".
Advertising and sales promotion expenses will continue to be managed efficiently through independent promotions, and the ratio of personnel expenses to net sales is planned to be controlled.
The details are as follows.
Consolidated operating results forecast for FY'25/2 (from March 2024 to February 2025)
FY'24/2 | FY'25/2 | Change | Change | ||
(Actual) | (Forecast) | (in amount) | (in percentage) | ||
¥ | million | ¥ million | ¥ million | % | |
Sales | 53,782 | 57,600 | 3,818 | 7.1 | |
Operating Income | 12,761 | 13,400 | 639 | 5.0 | |
Ordinary Income | 12,618 | 13,200 | 582 | 4.6 | |
Net Income Attributable | 9,050 | 8,900 | (150) | (1.7) | |
to Owners of Parent |
- 5 -
2. Situation of the Corporate Group
The main businesses of the Company are the personnel recruiting services business, which provides human work force, and the DX business, which provides digital labor force.
(Personnel Recruiting Services Business)
In the personnel recruiting services business, the Company has assisted its client companies with the recruiting and deployment of human resources by providing online job information sites, as well as creating an environment where each job seeker can work with enthusiasm and energy.
The major services provided by the personnel recruiting services business are as follows:
Name of service | Description |
Baitoru | A website offering part-time employment information |
Baitoru NEXT | A job information website for those seeking regular or contract employee posts |
Hatarako.net | A comprehensive job information website |
Baitoru PRO | A comprehensive job information website for specialized jobs |
Nurse de Hatarako | A recruitment service for nurses |
Nursing Care de Hatarako | A recruitment service for caregivers |
(DX Business)
In the DX business, since September 2019, the Company has been supporting the digital transformation (DX) of SMEs through the offering of DX services packaged to facilitate the introduction and continued use of the product. The product is designed specifically for small and medium sized companies and is packaged with a limited number of functions.
The major services provided by the DX business are as follows:
Name of service | Description |
Corporate Recruiting Page KOBOT | Creates websites for recruiting activities featuring Baitoru's unique functions such as |
workplace introduction videos | |
Interview Scheduling KOBOT | Automatically sets interview dates with applicants |
Personnel Administration KOBOT | Part-time worker onboarding and labor management |
Temp Agency KOBOT | Supports the sales activities of temp agencies |
Patronage KOBOT | Supports marketing activities by restaurants and retailers |
MEO KOBOT | MEO (Map Engine Optimization) services to support customer attraction by displaying |
higher rankings in map searches | |
Social Media Booster KOBOT | Reservations can be made from SNS accounts. Reservation ledger function to support |
customer management for restaurants. | |
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The business flow chart is as follows:
- 7 -
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Disclaimer
DIP Corporation published this content on 12 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 06:08:25 UTC.