Financial Results for the Fiscal Year Ended February 28, 2021
(Japanese GAAP, Consolidated)
April 7, | 2021 | ||||||||||||||||||||||||
Name of company: | DIP Corporation | Stock exchange listing: | Tokyo Stock Exchange | ||||||||||||||||||||||
Stock code: | 2379 | URL: | https://www.dip-net.co.jp/ | ||||||||||||||||||||||
Representative: | Hideki Tomita, Representative Director, President and CEO | ||||||||||||||||||||||||
Contact: | Haruhiko Arai, Corporate Officer, CFO, Head of Corporate Management Group | ||||||||||||||||||||||||
Phone: +81-3-5114-1177 | |||||||||||||||||||||||||
Scheduled date of general shareholders meeting: | May 26, 2021 | Dividend payment date: | May 27, 2021 | ||||||||||||||||||||||
Scheduled date of filing financial statements: | May 27, 2021 | ||||||||||||||||||||||||
Supplementary documents to the financial results: | Available | ||||||||||||||||||||||||
Financial results briefing: | Scheduled (for institutional investors and analysts) | ||||||||||||||||||||||||
(All figures are rounded down to the nearest million yen) | |||||||||||||||||||||||||
1. Consolidated Operating Results for FY2021 (from March 1, 2020 to February 28, 2021) | |||||||||||||||||||||||||
(1) Consolidated business performance | (Percentage figures indicate year-on-year change) | ||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||
Sales | Operating Income | Ordinary Income | Attributable to | ||||||||||||||||||||||
Owners of Parent | |||||||||||||||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||||||||||||||||||
FY2021 | 32,494 | - | 7,312 | - | 6,501 | - | 607 | - | |||||||||||||||||
FY2020 | - | - | - | - | - | - | - | - | |||||||||||||||||
(Reference) Comprehensive income: | FY2021 | ¥594 million (-%) | FY2020 | - million (-%) | |||||||||||||||||||||
Net Income | Diluted Net Income | Return on Equity | Return on Assets | Operating Income to | |||||||||||||||||||||
per Share | per Share | Sales Ratio | |||||||||||||||||||||||
¥ | ¥ | % | % | % | |||||||||||||||||||||
FY2021 | 11.09 | - | 2.0 | 18.1 | 22.5 | ||||||||||||||||||||
FY2020 | - | - | - | - | - | ||||||||||||||||||||
(Reference) Equity in earnings of affiliates: | FY2021 | ¥(741) million | FY2020 | - million |
Note: Figures for FY2020 and year-on-year changes are not shown since consolidated accounting has been adopted from FY2021. The calculations of Return on Equity and Return on Assets for FY2021 are based on year-end shareholders' equity and year-end total assets, respectively. Diluted net income per share for FY2020 is not disclosed due to the absence of dilution effects although dilutive shares exist.
(2) Consolidated financial position
Total Assets | Net Assets | Shareholders' Equity Ratio | Net Assets per Share | ||||
¥ million | ¥ million | % | ¥ | ||||
FY2021 | 35,869 | 31,178 | 84.4 | 547.13 | |||
FY2020 | - | - | - | - | |||
(Reference) Shareholders' equity: | FY2021 | ¥30,269 million | FY2020 - million |
Note: Figures for FY2020 are not shown since consolidated accounting has been adopted from FY2021.
(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 | |
FY2021 | 5,905 | (9,643) | (3,041) | 12,462 |
FY2020 | - | - | - | - |
Note: Figures for FY2020 are not shown since consolidated accounting has been adopted from FY2021.
2. Dividends
Annual Dividends | Total Dividend | Dividend | Ratio of | |||||||
Dividends to | ||||||||||
Payment | Payout Ratio | |||||||||
End of Q1 | End of Q2 | End of Q3 | Year-end | Total | Net Assets | |||||
¥ | ¥ | ¥ | ¥ | ¥ | ¥ million | % | % | |||
FY2020 | - | 27.00 | - | 29.00 | 56.00 | 3,138 | - | - | ||
FY2021 | - | 27.00 | - | 29.00 | 56.00 | 3,195 | 505.0 | 10.2 | ||
FY2022 (forecast) | - | 27.00 | - | 34.00 | 61.00 | 56.0 | ||||
~52.00 | ~79.00 | ~68.2 | ||||||||
Note: The dividend payout ratio and ratio of dividends to net assets for FY2020 are not shown since consolidated accounted has been adopted from FY2021.The ratio of dividends to net assets for FY2021 is based on year-end consolidated net assets per share since it is the first year of consolidation.
3. Consolidated Operating Results Forecast for FY2022 (from March 1, 2021 to February 28, 2022)
(Percentage figures indicate year-on-year change)
Net Income | Net Income | |||||||||
Sales | Operating Income | Ordinary Income | Attributable to | |||||||
per Share | ||||||||||
Owners of Parent | ||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||
1st Half | 18,050 | - | 2,000 | - | 1,800 | - | 1,200 | - | 21.69 | |
~20,000 | ~3,150 | ~2,950 | ~2,050 | ~37.05 | ||||||
Full-year | 42,800 | 31.7 | 7,700 | 5.3 | 7,300 | 12.3 | 4,950 | 714.6 | 89.47 | |
~49,000 | ~50.8 | ~11,800 | ~61.4 | ~11,400 | ~75.4 | ~7,800 | ~ - | ~140.99 | ||
Year-on-year changes for the first half forecast are not shown since consolidated accounting has been adopted from the third quarter of FY2021.
- Notes
-
Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes in scope of consolidation): Yes
Newly included: 1 (Company name: DIP Labor Force Solution Investment Business Limited Partnership)
Excluded: None
(2) Changes in accounting policies, changes in accounting estimates and restatements during the period under review
1. | Changes in accounting policies resulting from revisions to accounting standards: | None |
2. | Changes in accounting policies other than those in 1 above: | None |
3. | Changes in accounting estimates: | None |
4. | Restatements: | None |
(3) Number of outstanding shares (Common stock) | |||||
1. | Number of shares issued at end of period | FY2021 | 60,140,000 shares | FY2020 | 62,000,000 shares |
(including treasury shares) | |||||
2. | Number of treasury shares at end of period | FY2021 | 4,815,802 shares | FY2020 | 7,720,493 shares |
3. Average number of shares outstanding | FY2021 | 54,809,478 shares | FY2020 | 54,475,989 shares | |
during the period | |||||
Treasury shares include the number of Company shares owned by the ESOP trust account (1,718,935 shares at the end of FY2020; 1,644,240 shares at the end of FY2021) and the number of Company shares owned by BIP trust account (74,206 shares at the end of FY2020; 74,206 shares at the end of FY2021).
(Reference) Overview of non-consolidated operating results | |||||||||||||
Non-consolidated Operating Results for FY 2021 (from March 1, 2020 to February 28, 2021) | |||||||||||||
(1) Non-consolidated business performance | (Percentage figures indicate year-on-year change) | ||||||||||||
Sales | Operating Income | Ordinary Income | Net income | ||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||||||
FY2021 | 32,494 | (30.0) | 7,363 | (48.7) | 7,231 | (49.8) | 620 | (93.8) | |||||
FY2020 | 46,415 | 10.1 | 14,356 | 11.9 | 14,393 | 11.9 | 10,012 | 9.9 | |||||
Net Income | Diluted Net Income | ||||||||||||
per Share | per Share | ||||||||||||
¥ | ¥ | ||||||||||||
FY2021 | 11.32 | - | |||||||||||
FY2020 | 183.80 | 183.76 |
Diluted net income per share for FY2021 is not disclosed due to the absence of dilution effects although dilutive shares existed
(2) Non-consolidated financial position
Total Assets | Net Assets | Shareholders' Equity Ratio | Net Assets per Share | |||
¥ million | ¥ million | % | ¥ | |||
FY2021 | 36,471 | 31,749 | 84.6 | 557.76 | ||
FY2020 | 41,114 | 31,512 | 74.3 | 563.13 | ||
(Reference) Shareholders' equity: | FY2021 | ¥30,857 million | FY2020 ¥30,566 million |
- The Financial Results are not subject to audit by a certified public accountant or an audit firm.
- Explanation on the appropriate use of operating results forecasts and other notes
(Notes on forward-looking statements)
The forward-looking statements contained herein are based on the information currently available to the Company's management and certain assumptions the Company deems reasonable at the time of preparing Financial Results. Actual results may differ significantly from the forecasts due to a variety of factors. For assumptions regarding operating results forecasts and notes on the use of the forecasts, see the section "(5) Outlook" under "1. Qualitative Information" on page 5.
(Delivery of supplementary documents on the financial results)
Supplementary documents on the financial results are scheduled to be posted on the Company's website on April 7, 2021.
○Table of Contents | ||
1. Analysis of Operating Results and Financial Position ......................................................................................................................... | 2 | |
(1) | Operating Results............................................................................................................................................................................. | 2 |
(2) | Financial Position ............................................................................................................................................................................ | 3 |
(3) | Cash Flows ...................................................................................................................................................................................... | 4 |
(4) | Basic Policy on Profit Distribution and Dividends for the Current and Upcoming Fiscal Years ................................................... | 4 |
(5) | Outlook ............................................................................................................................................................................................ | 5 |
2. Situation of the Corporate Group .......................................................................................................................................................... | 7 | |
3. Basic Approach towards Selection of Accounting Standards ................................................................................................................ | 9 | |
4. Consolidated Financial Statements and Primary Notes ....................................................................................................................... | 10 | |
(1) | Consolidated Balance Sheet........................................................................................................................................................... | 10 |
(2) | Consolidated Statements of Income and Comprehensive Income ................................................................................................. | 12 |
Consolidated Statement of Income ................................................................................................................................................ | 12 | |
Consolidated Statement of Comprehensive Income ...................................................................................................................... | 13 | |
(3) | Consolidated Statement of Changes in Equity ............................................................................................................................. | 14 |
(4) | Consolidated Statement of Cash Flows.......................................................................................................................................... | 15 |
(5) | Notes on Consolidated Financial Statements ................................................................................................................................. | 16 |
16 | ||
16 | ||
18 | ||
(Additional Information) ................................................................................................................................................................. | 20 | |
(Consolidated Balance Sheet).......................................................................................................................................................... | 21 | |
(Consolidated Statement of Income) ............................................................................................................................................... | 21 | |
(Consolidated Statement of Comprehensive Income)...................................................................................................................... | 22 | |
(Consolidated Statement of Changes in Equity) .............................................................................................................................. | 23 | |
26 | ||
(Segment Information etc.).............................................................................................................................................................. | 26 | |
(Per share Information).................................................................................................................................................................... | 28 | |
(Significant Subsequent Events)...................................................................................................................................................... | 28 | |
(Reference Information) .................................................................................................................................................................. | 29 |
―1-
1. Analysis of Operating Results and Financial Position
A comparative analysis with FY2020 has not been made since the Group has adopted consolidated accounting from the third quarter of FY2021.
For year-on-year comparisons in the non-consolidated financial statements for FY2021, see "(Reference Information)" under "(5) Notes on Consolidated Financial Statements" of "4. Consolidated Financial Statements and Primary Notes."
The AI/RPA business has been renamed DX business, starting FY2022.
(1) Operating Results
Since its establishment in 1997, DIP Corporation (hereinafter, the "Company") has assisted its client companies with recruiting and the utilization of human resources by providing online job information sites, as well as creating an environment where each individual 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 FY2020, under a new corporate vision of becoming a "Labor force solution company," the Company has been striving to solve diverse labor-related issues as a "General Trading Company Dealing in Labor Force" that provides clients with personnel recruiting services and DX (digital transformation) services.
In FY2021, client companies' reduction in hiring activities and hiring budgets following the COVID-19 pandemic had a spillover effect on their job advertisements. As a result, sales for FY2021 ended at ¥32,494 million.
In terms of costs, the Company made investments in human resources such as in recruiting new graduates*1, while substantially cutting SG&A costs mainly by reducing advertising spending. As a result, for FY2021, operating income and ordinary income ended at ¥7,312 million and ¥6,501 million, respectively. In March 2020, the Company purchased investment securities as a financial hedge against an economic downturn to secure employees' jobs. It sold said securities in the fourth quarter for various reasons including the mitigation of economic uncertainty compared to when the securities were purchased. As a result, net income attributable to owners of parent came at ¥607 million. For details, please refer to the press release "Notice of Reversal of Loss on Valuation of Investment Securities and Posting of Loss on Sale of Investment Securities" dated January 27, 2021.
*1 The Company hired 399 new graduates in April 2020.
The following is an overview of results by segment.
(i) Personnel Recruiting Services Business
The personnel recruiting services business operates job advertising platforms, including Baitoru, a job information site for part-time workers, Baitoru NEXT, a job information site for regular employees and contract employees, and Hatarako.net, a comprehensive job information site. The Company aims to expand the user and customer base for these platforms through the vigorous efforts of its sales force and the award-winning quality of its websites.
During the fiscal year under review, the continued COVID-19 pandemic since April 2020 had an adverse impact on job advertisement placement by client companies as restaurants and retailers shortened their business hours or suspended business, forced by the government's declarations of a state of emergency*2. As a result, sales and segment profit for FY2021 were ¥31,671 million and ¥11,844 million, respectively.
Although market conditions were again affected by the declaration of a state of emergency in January 2021, mainly in the restaurant and retail sectors, they have recovered in March after bottoming out in February 2021.Amid these circumstances, the Company has been making efforts to increase the number of subscriber companies by holding online business meetings and utilizing sales tools developed internally, which enables us to capture clients' hiring needs on a timely basis. We will continue to strive to expand our customer base by strengthening the offering of proposals that differentiate us from competitors using a combination of personnel recruiting services and DX services, as well as aiming to increase job seekers' use of our services by advertising aggressively.
*2: A state of emergency was declared in April 2020 and January 2021.
(ii) AI/RPA Business
DX service has recently been attracting considerable attention as a technology with the potential to solve labor shortages and improve productivity. Furthermore, coupled with the proliferation of working from home and changes in work styles due to the COVID-19 pandemic, the need for business automation has been increasing rapidly.
The Company launched its AI/RPA business in the fiscal year ended February 2020 and since September 2019 has been offering KOBOT, a DX service that can be introduced easily and used at a low cost. The Company's uniquely packaged KOBOT, which combines existing DX tools, is offered in different formats such as a monthly payment model that includes maintenance and support.
―2-
During the fiscal year under review, sales of the KOBOT series increased (led by sales of Interview KOBOT, the services of which include the automatic setting of interview dates), due to a reinforced sales system featuring collaboration with sales staff from personnel recruiting services.
The enhancement of our product lineup saw steady progress with the launch of Sales Pack, a sales support tool for staffing agencies, the addition of services to Real Estate KOBOT, a work efficiency tool for real estate companies, and the commencement of sales of KOBOT Platform, a DX development and management tool. As a result, sales and loss of the segment for FY2021 ended at ¥823 million and ¥541 million, respectively.
The Company will strive to further expand its business by continuing to enhance its products, while at the same time ensuring stable stock revenue.
(2) Financial Position
(Current assets)
Total current assets recorded in the consolidated financial statements at the end of FY2021 were ¥17,782 million. Major components are cash and deposits of ¥12,462 million and accounts receivable - trade of ¥3,564 million.
(Non-current assets)
Total non-current assets recorded in the consolidated financial statements at the end of FY2021 were ¥18,087 million. Major components are property, plant and equipment of ¥1,698 million, intangible assets of ¥6,831 million, and investments and other assets of ¥9,557 million.
(Current liabilities)
Total current liabilities recorded in the consolidated financial statements at the end of FY2021 were ¥3,576 million. Major components are accounts payable - trade of ¥283 million and other current liabilities of ¥3,024 million.
(Non-current liabilities)
Total non-current liabilities recorded in the consolidated financial statements at the end of FY2021 were ¥1,114 million. Major components are asset retirement obligations of ¥480 million and other non-current liabilities of ¥438 million.
(Net assets)
Total net assets recorded in the consolidated financial statements at the end of FY2021 were ¥31,178 million. The major component is retained earnings of ¥28,270 million.
―3-
(3) Cash Flows
Cash and cash equivalents (hereinafter, "cash") amounted to ¥12,462 million at the end of the fiscal year under review. The breakdowns of cash flows are as follows:
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥5,905 million. This was mainly because inflows such as net income before income taxes of ¥1,139 million, depreciation of ¥1,999 million, loss on sales of investment securities of ¥5,724 million, and a decrease in trade receivables of ¥2,241 million exceeded outflows such as income taxes paid of ¥3,430 million and a decrease in accounts payable - other of ¥1,703 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥9,643 million. This was mainly because the purchase of intangible assets of ¥3,213 million and the purchase of investment securities of ¥9,869 million exceeded proceeds from sales of investment securities of ¥3,593 million.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥3,041 million. This mainly reflected dividends paid of ¥3,163 million.
(Reference) Trend of indicators for cash flows is as follows.
FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | |
Shareholders' equity ratio (%) | 69.6 | 72.4 | 74.0 | 74.3 | 84.4 |
Shareholders' equity ratio | 617.0 | 662.9 | 323.4 | 345.0 | 447.0 |
on a market value basis (%) | |||||
Ratio of cash flow to interest- | - | - | - | - | - |
bearing debts (annual) | |||||
Interest coverage ratio (times) | - | 36,689.5 | - | - | - |
Shareholders' equity ratio: Shareholders' equity/Total assets
Shareholders' equity ratio on a market value basis: Market capitalization/Total assets
Ratio of cash flow to interest-bearing debts: Interest-bearing debts/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments
(Note 1) The figures for FY2017 and FY2020 are based on the non-consolidated financial statements.
(Note 2) Operating cash flow is based on cash flow from operating activities according to the Statement of Cash Flows. Interest- bearing debts include all liabilities on which interest is paid that are recorded in the Balance Sheet. Interest payments are based on interest paid recorded in the Statement of Cash Flows.
(Note 3) The ratio of cash flow to interest-bearing debt is not stated, as there has been no interest-bearing debt since FY2017. (Note 4) The interest coverage ratio is not stated for FY2017 nor FY2019 through FY2021 since there were no interest payments.
(4) Basic Policy on Profit Distribution and Dividends for the Current and Upcoming Fiscal Years
The Company considers income distribution to shareholders to be one of its most important management responsibilities. We pay a regular dividend twice a fiscal year (an interim dividend and a year-end dividend), while maintaining the internal reserves necessary to invest in the future growth of the company and to address changes in the business environment.
The Company previously used the dividend payout ratio of 30% as a guide in determining its dividend payments, and from the fiscal year ended February 28, 2021 onwards, we will use the dividend payout ratio of 50% as a guide as well as take into consideration the dividend results in the prior fiscal year in determining dividend payments.
Guided by the above profit distribution policy, the Company paid an interim dividend of ¥27 per share in FY2021 after taking into account the dividend amount of the previous fiscal year. It plans to pay a year-end ordinary dividend of ¥29 per share, bringing the annual dividend to ¥56 per share.
For FY2022, the Company plans to pay an annual ordinary dividend of ¥61~79 per share, which is broken down into an interim dividend of ¥27 per share and a year-end dividend of ¥34~52 per share, after taking into consideration its outlook for full-year operating results, financial position, and other matters.
―4-
(5) Outlook
(i) Business risks related to COVID-19
In FY2021, client companies' reduction in hiring activities and hiring budgets following the COVID-19 pandemic had a spillover effect on their job advertisements. The Company has been making efforts to increase the number of subscriber companies by holding online business meetings and utilizing sales tools developed internally, which enables us to capture clients' hiring needs on a timely basis. It is also striving to establish a broad customer base to avoid being significantly affected by the operating performances of certain industries and clients. We will continue our efforts to further strengthen our direct marketing sales capabilities, as well as expanding our user and customer bases through new services and promotions.
In the AI/RPA business, the need for business automation has been increasing rapidly amid changes in work styles due to the pandemic, such as the spread of working from home. We will continue to strive to expand our customer base in the small and medium-sized company sectors, as well as increase the lineup of subscription-based products packaged for each workflow of the customer which can be introduced easily and continue to be used for an extended period. We will also make efforts to extend customers' subscription periods and boost upselling by strengthening our "customer success" system to offer continuous support after the introduction of products.
There is also a risk of employees contracting COVID-19 and causing hindrance to the Company's business and operations. However, since the end of January 2020 the Company has been managing its offices with a focus on preventing employees from being infected based on its "Guidelines for Preventing the Spread of COVID-19," as well as striving to ensure the safety of employees by recommending working from home, staggered commuting and work rotation. In addition, to prevent the spread of infection within and outside the company, we are striving to reduce the risks of infection such as by making it a rule to conduct business meetings with clients online. We will continue our efforts to prevent the spread of the virus and strive to achieve a quick recovery of earnings.
(ii) Outlook of FY2022
With regard to the macro environment in FY2022, we expect economic activities to normalize over late FY2022 and FY2023 due to the progress in vaccination combined with the easing of financial and monetary policies in Japan and other major economic zones, although the number of COVID-19 infections in Japan is expected to see modest rises and falls for the time being.
Amid such circumstances, we expect operating margins of the personnel recruiting services business to return to FY2020 levels in the second half of FY2022 as we continue our efforts to increase the number of subscriber companies through various sales measures.
In the DX business, we expect sales to significantly increase due to continued efforts to increase business activities by sales representatives of the personnel recruiting services business, as well as through the expansion of the product lineup.
The full-year consolidated operating results forecast for FY2022 based on the above is as follows.
Consolidated operating results forecast for FY2022 (from March 2021 to February 2022)
FY2021 | FY2022 | Change | Change | |||||
(Actual) | (Forecast) | (in amount) | (in percentage) | |||||
¥ | million | ¥ million | ¥ | million | % | |||
Sales | 32,494 | 42,800 ~ 49,000 | 10,305 ~ 16,505 | +31.7% | ~ +50.8% | |||
Operating Income | 7,312 | 7,700 | ~ 11,800 | 387 | ~ 4,487 | +5.3% | ~ +61.4% | |
Ordinary Income | 6,501 | 7,300 | ~ 11,400 | 798 | ~ 4,898 | +12.3% | ~ +75.4% | |
Net Income Attributable | 607 | 4,950 ~ 7,800 | 4,342 | ~ 7,192 | +714.6% ~ -% | |||
to Owners of Parent |
Please also refer to the charts on the following page indicating the results and forecasts of monthly sales and operating margin, which are the basis of the above forecasts.
―5-
―6-
2. Situation of the Corporate 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.
The AI/RPA business has been renamed DX business, starting FY2022.
(Personnel Recruiting Services Business)
In the personnel recruiting services business, the Company operates job information sites and a recruitment business specifically for the nursing field. In the operation of job information sites, the Company provides job seekers with job information by posting recruitment ads of its client companies.
(1) Baitoru | ………… Operation of website Baitoru, which focuses on offering part-time employment information. The main |
customers of the business are employment agencies and companies seeking part-time staff. We charge a | |
posting fee for posting job information on the website. |
- Baitoru NEXT……… Operation of website Baitoru NEXT, which focuses on regular employee job information. The main customers of this business are employment agencies and companies seeking regular employees. We charge a posting fee for posting job information on the website.
- Hatarako.net………… Operation of website Hatarako.net, which is a comprehensive job information website. The main
customers of this business are dispatch staffing agencies and companies seeking regular employees and part-time workers. We charge a posting fee for posting job information on the website.
In our recruitment business for nurses, the Company offers the following services:
Nurse de Hatarako…… Introduces the medical institution that best suits the needs of nurses and nurse assistants who seek a new
workplace and who have registered with our website, Nurse de Hatarako, through interviews and consultation with a career advisor.* The Company charges a brokerage fee from the medical institution when a successful employment contract is realized.
- A career advisor is a consultant specialized in matching nurses looking to change jobs with workplaces that best suits their employment needs.
(AI/RPA Business)
In the AI/RPA business, the Company has been supporting the DX of small and medium-sized companies since September 2019 through the provision of KOBOT, which can be conveniently introduced and used at an inexpensive price. KOBOT is a uniquely packaged service according to workflows and is mainly offered on a monthly subscription basis that includes maintenance and support.
―7-
Business flow chart
―8-
3. Basic Approach towards Selection of Accounting Standards
The company currently carries out business and fund procurement mainly in Japan and will adopt Japanese standards for the time being. Regarding the application of IFRS (International Financial Reporting Standards), we plan to deal with the matter as appropriate based on future business development and trends of domestic competitors.
―9-
4. Consolidated Financial Statements and Primary Notes
(1) Consolidated Balance Sheet
(Thousand Yen) | |||
FY2021 | |||
As of February 28, 2021 | |||
Assets | |||
Current assets | |||
Cash and deposits | 12,462,677 | ||
Notes and accounts receivable - trade | 3,564,913 | ||
Supplies | 5,421 | ||
Other | 1,862,167 | ||
Allowance for doubtful accounts | (113,149) | ||
Total current assets | 17,782,031 | ||
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 1,752,278 | ||
Accumulated depreciation | (575,256) | ||
Buildings and structures, net | 1,177,021 | ||
Tools, furniture and fixtures | 977,204 | ||
Accumulated depreciation | (686,393) | ||
Tools, furniture and fixtures, net | 290,810 | ||
Land | 227,782 | ||
Construction in progress | 2,455 | ||
Total property, plant and equipment | 1,698,070 | ||
Intangible assets | |||
Software | 6,155,008 | ||
Other | 676,615 | ||
Total intangible assets | 6,831,623 | ||
Investments and other assets | |||
Investment securities | ※ 5,663,928 | ||
Long-term prepaid expenses | 1,825,956 | ||
Long-term loans receivable | 300,000 | ||
Deferred tax assets | 619,641 | ||
Other | 1,159,593 | ||
Allowance for doubtful accounts | (11,455) | ||
Total investments and other assets | 9,557,664 | ||
Total non-current assets | 18,087,358 | ||
Total assets | 35,869,390 | ||
Liabilities | |||
Current liabilities | |||
Accounts payable - trade | 283,333 | ||
Provision for refund | 19,912 | ||
Provision for bonuses | 203,690 | ||
Asset retirement obligations | 44,715 | ||
Other | 3,024,936 | ||
Total current liabilities | 3,576,588 | ||
Non-current liabilities | |||
Provision for share-based remuneration | 78,260 | ||
Provision for share-based remuneration for directors | 116,840 | ||
Asset retirement obligations | 480,554 | ||
Other | 438,946 | ||
Total non-current liabilities | 1,114,601 | ||
Total liabilities | 4,691,190 |
―10-
(Thousand Yen) | |||
FY2021 | |||
As of February 28, 2021 | |||
Net assets | |||
Shareholders' equity | |||
Share capital | 1,085,000 | ||
Capital surplus | 3,234,282 | ||
Retained earnings | 28,270,725 | ||
Treasury shares | (2,287,095) | ||
Total shareholders' equity | 30,302,911 | ||
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | (33,575) | ||
Total accumulated other comprehensive income | (33,575) | ||
Share acquisition rights | 892,247 | ||
Non-controlling interests | 16,615 | ||
Total net assets | 31,178,199 | ||
Total liabilities and net assets | 35,869,390 |
―11-
- Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income
(Thousand Yen) | |||
FY2021 | |||
From March 1, 2020 | |||
To February 28, 2021 | |||
Sales | 32,494,768 | ||
Cost of sales | 3,303,654 | ||
Gross profit | 29,191,113 | ||
Selling, general and administrative expenses | ※ 21,878,955 | ||
Operating income | 7,312,158 | ||
Non-operating income | |||
Interest income | 3,891 | ||
Dividend income of insurance | 14,887 | ||
Insurance claim income | 5,353 | ||
Subsidy income | 4,265 | ||
Other | 10,491 | ||
Total non-operating income | 38,889 | ||
Non-operating expenses | |||
Share of loss of entities accounted for using equity method | 741,572 | ||
Loss on amortization of restricted share-based renumeration | 91,346 | ||
Other | 17,085 | ||
Total non-operating expenses | 850,005 | ||
Ordinary income | 6,501,042 | ||
Extraordinary income | |||
Gain on change in equity | 159,368 | ||
Gain on reversal of share acquisition rights | 203,006 | ||
Total extraordinary income | 362,375 | ||
Extraordinary losses | |||
Loss on sales of investment securities | 5,723,762 | ||
Total extraordinary losses | 5,723,762 | ||
Net income before income taxes | 1,139,655 | ||
Income taxes - current | 361,927 | ||
Income taxes - deferred | 169,826 | ||
Total income taxes | 531,753 | ||
Net income | 607,901 | ||
Income attributable to non-controlling interests | 230 | ||
Net income attributable to owners of parent | 607,671 |
―12-
Consolidated Statement of Comprehensive Income
(Thousand Yen) | ||||
FY2021 | ||||
From March 1, 2020 | ||||
To February 28, 2021 | ||||
Net income | 607,901 | |||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | (14,711) | |||
Share of other comprehensive income of entities accounted for using equity | 1,758 | |||
method | ||||
Total other comprehensive income | ※ (12,953) | |||
Comprehensive income | 594,948 | |||
(Breakdown) | ||||
Comprehensive income attributable to owners of parent | 594,717 | |||
Comprehensive income attributable to non-controlling interests | 230 |
―13-
(3) Consolidated Statement of Changes in Equity FY2021 (From March 1, 2020 to February 28, 2021)
(Thousand Yen) | ||||||||||
Shareholders' equity | ||||||||||
Share capital | Capital surplus | Retained earnings | Treasury shares | Total shareholders' | ||||||
equity | ||||||||||
Balance at beginning of period | 1,085,000 | 2,194,544 | 30,784,271 | (4,140,840) | 29,922,975 | |||||
Changes during period | ||||||||||
Dividends of surplus | (3,167,083) | (3,167,083) | ||||||||
Net income attributable to | 607,671 | 607,671 | ||||||||
owners of parent | ||||||||||
Purchase of treasury shares | (145) | (145) | ||||||||
Disposal of treasury shares | 2,209,854 | 663,677 | 2,873,531 | |||||||
Cancellation of treasury shares | (1,190,212) | 1,190,212 | - | |||||||
Increase due to | 45,865 | 45,865 | ||||||||
decrease in affiliates | ||||||||||
Change in ownership interest of | ||||||||||
parent due to transactions with | 20,096 | 20,096 | ||||||||
non-controlling interests | ||||||||||
Changes in items other than | ||||||||||
shareholders' equity (net) | ||||||||||
Total changes during period | - | 1,039,737 | (2,513,546) | 1,853,744 | 379,936 | |||||
Balance at end of period | 1,085,000 | 3,234,282 | 28,270,725 | (2,287,095) | 30,302,911 | |||||
Accumulated other comprehensive income | ||||||||||
Share acquisition | Non-controlling | |||||||||
Valuation difference | Total accumulated | Total net assets | ||||||||
other | rights | interests | ||||||||
on available-for-sale | ||||||||||
comprehensive | ||||||||||
securities | ||||||||||
income | ||||||||||
Balance at beginning of period | (20,621) | (20,621) | 946,142 | - | 30,848,497 | |||||
Changes during period | ||||||||||
Dividends of surplus | (3,167,083) | |||||||||
Net income attributable to | 607,671 | |||||||||
owners of parent | ||||||||||
Purchase of treasury shares | (145) | |||||||||
Disposal of treasury shares | 2,873,531 | |||||||||
Cancellation of treasury shares | - | |||||||||
Increase due to decrease in | 45,865 | |||||||||
affiliates | ||||||||||
Change in ownership interest of | ||||||||||
parent due to transactions with | 20,096 | |||||||||
non-controlling interests | ||||||||||
Changes in items other than | (12,953) | (12,953) | (53,895) | 16,615 | (50,233) | |||||
shareholders' equity (net) | ||||||||||
Total changes during period | (12,953) | (12,953) | (53,895) | 16,615 | 329,702 | |||||
Balance at end of period | (33,575) | (33,575) | 892,247 | 16,615 | 31,178,199 | |||||
―14-
(4) Consolidated Statement of Cash Flows
(Thousand Yen) | |||
FY2020 | |||
From March 1, 2020 | |||
To February 28, 2021 | |||
Cash flows from operating activities | |||
Net income before income taxes | 1,139,655 | ||
Depreciation | 1,999,686 | ||
Share-based remuneration expenses | 497,597 | ||
Share of loss (profit) of entities accounted for using equity method | 741,572 | ||
Interest and dividend income | (3,453) | ||
Insurance claim income | (5,353) | ||
Commission expenses | 14,928 | ||
Loss (gain) on sales of investment securities | 5,724,610 | ||
Loss (gain) on change in equity | (159,368) | ||
Gain on reversal of share acquisition rights | (203,006) | ||
Decrease (increase) in trade receivables | 2,241,001 | ||
Increase (decrease) in trade payables | 28,729 | ||
Increase (decrease) in unearned revenue | (32,902) | ||
Increase (decrease) in accounts payable - other | (1,703,879) | ||
Increase (decrease) in allowance for doubtful accounts | (16,447) | ||
Increase (decrease) in provision for bonuses | (52,005) | ||
Increase (decrease) in provision for refund | (5,362) | ||
Decrease (increase) in other assets | (118,518) | ||
Increase (decrease) in other liabilities | (794,427) | ||
Other, net | 37,624 | ||
Subtotal | 9,330,682 | ||
Interest and dividends received | 66 | ||
Proceeds from insurance income | 5,353 | ||
Income taxes paid | (3,430,261) | ||
Cash flows from operating activities | 5,905,840 | ||
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (155,438) | ||
Purchase of intangible assets | (3,213,099) | ||
Purchase of investment securities | (9,869,461) | ||
Proceeds from sales of investment securities | 3,593,469 | ||
Payments of leasehold and guarantee deposits | (4,246) | ||
Proceeds from refund of leasehold and guarantee deposits | 5,338 | ||
Cash flows from investing activities | (9,643,438) | ||
Cash flows from financing activities | |||
Purchase of treasury shares | (145) | ||
Proceeds from sales of treasury shares | 88,768 | ||
Proceeds from exercise of employee share options | 12,275 | ||
Dividends paid | (3,163,372) | ||
Proceeds from share issuance to non-controlling shareholders | 36,152 | ||
Other payments | (14,928) | ||
Cash flows from financing activities | (3,041,250) | ||
Increase (decrease) in cash and cash equivalents | (6,778,848) | ||
Cash and cash equivalents at beginning of period | 19,241,526 | ||
Cash and cash equivalents at end of period | ※ 12,462,677 |
―15-
- Notes on Consolidated Financial Statements (Notes on Going Concern Assumption)
Not applicable
(Bases of Presenting Consolidated Financial Statements)
The Company has adopted consolidated accounting from FY2021. The basis of presenting consolidated financial statements is as follows.
1. Scope of consolidation
-
Number of consolidated subsidiaries: 1
Name of consolidated subsidiary: DIP Labor Force Solution Investment Business Limited Partnership ("DIP Labor Force Solution Fund")
DIP Labor Force Solution Investment Business Limited Partnership has been newly established during the fiscal year under review and included in the scope of consolidation. - Non-consolidatedsubsidiaries
Name of non-consolidated subsidiary: DIP America, Inc. Reason for exclusion from scope of consolidation:
The non-consolidated company has been excluded from the scope of consolidation since it is minor in size and its total assets, sales, net income/loss (amount proportional to the equity share) and retained earnings (amount proportional to the equity share), etc., do not have a significant impact on consolidated financial statements.
2. Application of equity method
(1) Number of affiliates accounted for using the equity method: 5
Names of affiliates: | JOLLY GOOD Inc. |
GAUSS, inc. | |
hachidori, inc. | |
Marketing-Robotics INC. | |
TRUNK Co., Ltd. |
Due to a third-party allotment of shares, SpeakBUDDY Ltd., which was an affiliate accounted for using the equity method, has been excluded from the scope of application of the equity method due to a decrease in the Company's ownership.
(2) Non-consolidated subsidiaries and affiliates not accounted for using the equity method
Names of non-consolidated subsidiaries and affiliates not accounted for using the equity method: DIP America, Inc.
Bioworks Corporation
Reason for not applying the equity method:
These companies have been excluded from the scope of application of the equity method since they have a minor impact on consolidated financial statements in terms of net income (amount proportional to the equity share) and retained earnings (amount proportional to the equity share), etc., and have no significance as a whole if they are excluded from the target of the equity method.
(3) Matters deemed necessary to be stated regarding procedures for application of the equity method
The most recent financial statements have been used for companies accounted for using the equity method that have a different fiscal year-end date.
The consolidated statements have been adjusted to reflect significant transactions that took place between their fiscal year- end dates and the consolidated fiscal year-end date.
3. Fiscal periods of consolidated subsidiaries
The fiscal year-end date of consolidated subsidiary DIP Labor Force Solution Investment Business Limited Partnership is November 30. The financial statements as of its fiscal year-end date have been used in the preparation of consolidated financial statements. The consolidated statements have been adjusted to reflect significant transactions that took place between its fiscal year-end date and the consolidated fiscal year-end date.
―16-
4. Significant Accounting Policies
- Valuation standards and methods for significant assets
- Securities
Available-for-sale securities
Securities without market value……The moving-average cost method
(ii)Valuation standards and methods for inventories Supplies……Last purchase cost method
(Balance sheet amounts are determined by writing down the book value according to the decrease in profitability.)
- Depreciation methods for major depreciation assets
- Tangible fixed assets
Depreciation of buildings is calculated by the straight-line method, and depreciation of tangible fixed assets except for buildings is based on the declining-balance method. However, depreciation of facilities attached to buildings and structures acquired on or after April 1, 2016 is based on the straight-line method.
Useful lives of major assets are as follows:
Buildings: | 3 to 47 years |
Structures: | 15 to 40 years |
Tools, furniture and fixtures: | 2 to 20 years |
- Intangible fixed assets
Depreciation of intangible fixed assets is calculated by the straight-line method. However, depreciation of software for internal use is based on the usable period (5 years) in the Company.
- Reporting basis for significant allowances
- Allowance for doubtful accounts
To prepare for bad debt losses from accounts receivable, loans receivable, etc., the Company provides for the estimated uncollectible amount of normal receivables based on historical loss ratios. Specific claims including doubtful receivables, etc. are individually evaluated for the likelihood of recovery and the estimated uncollectible amount is provided.
-
Provision for refund
To prepare for future refunds of recruitment fees in the human resources introduction service for nurses, the estimated amount
of future refunds in recorded.
(iii) Provision for bonuses
To provide for payment of bonuses to employees, an estimated amount of bonuses to be paid is recorded at the end of the fiscal year.
(iv) Provision for employee benefit trust
To provide for stock-based incentives for employees pursuant to the Stock Granting Regulations, an estimated amount according to points allotted to employees is recorded at the end of the fiscal year.
(v) Provision for management board benefit trust
To provide for stock-based compensation to directors pursuant to the Stock-based Compensation Regulations, an estimated amount according to points allotted to directors in office at the end of the fiscal year is recorded.
―17-
(4) Scope of cash and cash equivalents in the statement of cash flows
Cash and cash equivalents in the statement of cash flows comprise cash in hand, demand deposits, and short-term investments with maturities of three months or less from the date of acquisition, that are liquid, readily convertible into cash and are subject to minimum risk of price fluctuation.
-
Other important matters related to the preparation of the financial statements Accounting for consumption taxes
Consumption taxes are accounted for using a tax-exclusive system.
(Notes on Accounting Standards, etc. not yet Applied)
1. Accounting Standard for Revenue Recognition, etc.
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30; March 31, 2020)
(1) Overview
They are comprehensive accounting standards for revenue recognition. Revenue is recognized after applying the following five steps:
Step 1: Identify contract with the customer.
Step 2: Identify performance obligations within a contract.
Step 3: Calculate the transaction price.
Step 4: Allocate the transaction price to performance obligations within a contract.
Step 5: Revenue is recognized when performance obligations are fulfilled or as they are fulfilled.
- Scheduled date of application The beginning of FY2023
- Impact of application of the accounting standards, etc.
The impact is being assessed as of the time of preparation of these financial statements.
2. Accounting Standards for Fair Value Measurement, etc.
・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31; July 4, 2019) ・Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9; July 4, 2019)
・Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19; March 31, 2020)
(1) Overview
The Accounting Standard for Fair Value Measurement and the Implementation Guidance on Accounting Standard for Fair Value Measurement (hereinafter, "Accounting Standards for Fair Value Measurement, etc.") were developed to improve comparability with international accounting standards, and guidance, etc. on the method of fair value measurement were set forth. The Accounting Standards for Fair Value Measurement, etc. will be applied to the fair value of the following items: ・Financial instruments in the Accounting Standard for Financial Instruments
・Inventories held for trading purposes in the Accounting Standard for Measurement of Inventories
In addition, the Implementation Guidance on Disclosures about Fair Value of Financial Instruments was revised to set forth notes such as the breakdown for each fair value level of financial instruments.
- Scheduled date of application The beginning of FY2023
- Impact of application of the accounting standards, etc.
The impact of the application of the Accounting Standard for Fair Value Measurement and others on consolidated financial statements has not yet been determined at present.
―18-
3. Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections
Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (ASBJ Statement No. 24; March 31, 2020)
(1) Overview
It is aimed at indicating the outline of the accounting principles and procedures that were adopted when the provisions of related accounting standards, etc. are not clear.
- Scheduled date of application The end of FY2022
4. Accounting Standard for Disclosure of Accounting Estimates
Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No. 31; March 31, 2020)
(1) Overview
It is aimed at disclosing information that contributes to the understanding of users of financial statements on the details of accounting estimates that were the basis of amounts recorded in the financial statements of the current fiscal year and were in items that may have a significant impact on the financial statements of the following fiscal year.
- Scheduled date of application The end of FY2022
―19-
(Additional Information)
(Employee Stock Ownership Plan (ESOP) Trust)
In May 2012, the Company introduced an employee stock ownership plan trust ("ESOP trust") to enhance corporate value in the medium and long term by motivating Company employees to work harder and creating a greater awareness of participation in management and by further promoting management aimed at increasing the value of Company shares.
(1) Summary of plan
By contributing funds for the acquisition of Company shares, the Company established a trust with employees who satisfy certain requirements as the beneficiaries. Over a predetermined acquisition period, the trust acquires from the stock market Company shares in the number expected to be delivered to Company employees in accordance with pre-established Stock Granting Regulations. Subsequently, the trust delivers or pays to employees without compensation, either whilst in employment or on retirement, Company shares or the proceeds from their sale according to the rank and years of service of employees during the trust period in accordance with the Stock Granting Regulations.
(2) Company shares remaining in the trust
Company shares held in the ESOP trust account are recorded as treasury shares under net assets at book value to the trust (excluding ancillary expenses). The book value and number of treasury shares are ¥105,409 thousand and 1,644,240 shares, respectively, at the end of FY2021.
(Board Incentive Plan (BIP) Trust)
In August 2016, the Company introduced a Board Incentive Plan (BIP) trust for directors (excluding outside directors and overseas residents; the same applies hereinafter) to increase their motivation to contribute to improving corporate value in the medium to long term and to share a common sense of interest with the shareholders.
(1) Summary of plan
By contributing funds for the acquisition of Company shares, the Company established a trust with directors who satisfy certain requirements as the beneficiaries. The trust acquires, by way of third-party allotment from the Company, Company shares in the number expected to be delivered to Company directors in accordance with pre-establishedStock-based Compensation Regulations. Subsequently, the trust delivers to directors who meet certain beneficiary requirements on the fixed date of the beneficiary right such as their retirement Company shares or the cash equivalent of the proceeds from their sale determined according to performance indicators, etc. each fiscal year in accordance with the Stock-Based Compensation Regulations.
(2) Company shares remaining in trust
Company shares held in the BIP trust account are recorded as treasury shares under net assets at book value to the trust (excluding ancillary expenses). The book value and number of treasury shares are ¥221,950 thousand and 74,206 shares, respectively, at the end of FY2021.
(Accounting estimates following the COVID-19 pandemic)
The weakening of companies' motivation to hire due to the COVID-19 pandemic has impacted the Company's business activities as job advertisement from client companies has been affected.
Although we expect the situation to begin to recover as the second state of emergency declared in January 2021 was lifted in late March, it is extremely difficult to accurately forecast when the pandemic will abate.
Accounting estimates for impairment loss on fixed assets and the collectability of deferred tax assets are based on information available at the time of the preparation of financial statements under the assumption that the impact of the pandemic will continue for a certain period of time.
―20-
(Consolidated Balance Sheet)
Amounts related to non-consolidated subsidiaries and affiliates are as follows. (Thousand yen)
FY2021
(As of February 28, 2021)
Investment securities (shares) | 686,235 |
Overdraft agreements and commitment line agreements
To facilitate efficient procurement of operating capital, the Company has entered into overdraft agreements with three banks.
In addition, to ensure flexibility and stability in financing, the Company has entered into commitment line agreements with three financial institutions. The unused balance of loans under these agreements as of the end of the fiscal year under review is as follows.
(Thousand yen)
FY2021 | |
(As of February 28, 2021) | |
Total of overdraft limits | 10,000,000 |
Total of commitment line | 30,000,000 |
Used loans | - |
Available | 40,000,000 |
The above commitment line agreements are subject to the following financial covenants. If the Company violates all of the following covenants, a lump sum repayment of the loan will be required at the lender's request.
FY2021 (As of February 28, 2021)
- The total amount of net assets on the consolidated balance sheet as of the last day of each fiscal year must be maintained at ¥0 or more.
- The amount of operating income or loss (or net income or loss after income taxes) on the consolidated statement of income as of the last day of each fiscal year must not be in the red for two consecutive years.
(Consolidated Statement of Income)
Major items and their amounts included in "selling, general and administrative expenses" are as follows. (Thousand yen)
FY2021 | |
(From March 1, 2020 | |
To February 28, 2021) | |
Salaries and allowances | 8,990,002 |
Advertising expenses | 2,919,166 |
Provision of allowance for doubtful accounts | 11,788 |
Provision for bonuses | 193,540 |
Provision for share-based renumeration | 6,281 |
Provision for share-based renumeration for | 16,734 |
directors | |
Retirement benefit expenses | 24,371 |
Research and development expenses | 158,439 |
―21-
(Consolidated Statement of Comprehensive Income)
Amount of reclassification adjustment and tax effect relating to other comprehensive income (Thousand yen)
FY2021 | |
(From March 1, 2020 | |
To February 28, 2021) | |
Valuation difference on available-for-sale | |
securities | |
Valuation difference arising during the year | (5,744,960) |
Reclassification adjustment | 5,723,762 |
Before tax-effect adjustment | (21,198) |
Tax effect | 6,486 |
Valuation difference on available-for-sale | (14,711) |
securities | |
Amount equivalent to equity share in entities | |
accounted for using equity method | |
Amount arising during the year | 1,758 |
Total other comprehensive income | (12,953) |
―22-
(Consolidated Statement of Changes in Equity) FY2021 (March 1, 2020 to February 28, 2021)
1. Type and total number of outstanding shares and of treasury shares
Number of shares at | Number of shares | Number of shares | Number of shares at the | ||||
Type of shares | the beginning of the | increased during the | decreased during the | ||||
end of the fiscal year | |||||||
fiscal year | fiscal year | fiscal year | |||||
Shares issued | |||||||
Common stock (Notes 1) | 62,000,000 | - | 1,860,000 | 60,140,000 | |||
Total | 62,000,000 | - | 1,860,000 | 60,140,000 | |||
Treasury shares | |||||||
Common stock (Notes 2, 3) | 7,726,205 | 35,053 | 2,945,456 | 4,815,802 | |||
Total | 7,726,205 | 35,053 | 2,945,456 | 4,815,802 | |||
Notes: 1. Outline of reason for changes in shares issued | |||||||
The number of shares decreased can be broken down as follows. | |||||||
Decrease due to retirement of treasury shares: | 1,860,000 shares | ||||||
2. Outline of reason for change in treasury shares | |||||||
The number of shares increased can be broken down as follows. | |||||||
Increase due to purchase of restricted shares without consideration: | 35,000 shares | ||||||
Increase due to request for purchase of odd-lot shares: | 53 shares | ||||||
The number of shares decreased can be broken down as follows. | |||||||
Decrease due to disposal by an affiliate accounted for using equity method | 5,712 shares | ||||||
Decrease due to exercise of stock options: | 4,500 shares | ||||||
Decrease due to sale or delivery of shares in the ESOP trust account: | 74,695 shares | ||||||
Decrease due to retirement of treasury shares: | 1,860,000 shares | ||||||
Decrease due to delivery of restricted shares: | 1,000,549 shares |
3. The number of shares of Company stock held in the ESOP trust account that are included in the number of treasury shares at the beginning and end of the consolidated fiscal year is 1,718,935 shares and 1,644,240 shares, respectively, and the number of shares of Company stock held in the BIP trust account is 74,206 shares and 74,206 shares, respectively.
―23-
2. Share acquisition rights
Type of | Number of shares subject to share acquisition rights | |||||||
shares | ||||||||
Balance at the end | ||||||||
subject to | At the | |||||||
Company name | Breakdown | At the end | of the fiscal year | |||||
share | beginning | |||||||
Increase | Decrease | of the | (thousand yen) | |||||
acquisition | of the | |||||||
fiscal year | ||||||||
rights | fiscal year | |||||||
6th series of stock options | ||||||||
based on resolution of the | - | - | - | - | - | 273,972 | ||
Board of Directors on June | ||||||||
28, 2016 | ||||||||
7th series of stock options | ||||||||
based on resolution of the | - | - | - | - | - | 331,760 | ||
Board of Directors on | ||||||||
The Company | September 15, 2017 | |||||||
8th series of stock options | ||||||||
based on resolution of the | - | - | - | - | - | 244,840 | ||
Board of Directors on June | ||||||||
21, 2018 | (Note 1) | |||||||
9th series of stock options | ||||||||
based on resolution of the | - | - | - | - | - | 41,674 | ||
Board of Directors on June | ||||||||
21, 2019 | (Note 2) | |||||||
Total | - | - | - | - | 892,247 | |||
(Notes) 1. The exercise period for the 8th series of stock options based on the resolution of the Board of Directors on June 21, 2018 has not yet commenced.
2. The exercise period for the 9th series of stock options based on the resolution of the Board of Directors on June 21, 2019 has not yet commenced.
3. Dividends
(1) Dividend payments
Resolution | Type | Total dividends | Dividend | Record date | Effective date | Source of |
(thousand yen) | per share (yen) | dividends | ||||
Meeting of Board | ||||||
of Directors on | Common stock | 1,626,106 | 29 | February 29, | May 27,2020 | Retained |
April 7, 2020 | 2020 | earnings | ||||
(Note 1) | ||||||
Meeting of Board | ||||||
of Directors on | Common stock | 1,540,976 | 27 | August 31, | November 12, | Retained |
October 8, 2020 | 2020 | 2020 | earnings | |||
(Note 2) |
(Notes) 1.Total dividends based on the resolution of the annual general meeting of shareholders on April 7, 2020 include dividends of ¥49,849 thousand in relation to 1,718,935 shares of Company stock held in the ESOP trust account and dividends of ¥2,151 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.
2. Total dividends based on the resolution of the annual general meeting of shareholders on October 8, 2020 include dividends of ¥45,428 thousand in relation to 1,682,525 shares of Company stock held in the ESOP trust account and dividends of ¥2,003 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.
―24-
(2) Dividends with a record date in the fiscal year but an effective date in the following fiscal year
Resolution | Type | Total dividends | Source of | Dividend per | Record date | Effective date |
(thousand yen) | dividends | share (yen) | ||||
Meeting of Board of | Common | Retained | ||||
Directors on April 7, | 1,654,236 | 29 | February 28, 2021 | May 27, 2021 | ||
stock | earnings | |||||
2021 (Note) |
(Note) Total dividends include dividends of ¥47,682 thousand in relation to 1,644,240 shares of Company stock held in the ESOP trust account and dividends of ¥2,151 thousand in relation to 74,206 shares of Company stock held in the BIP trust account.
―25-
(Consolidated Statement of Cash Flows)
Reconciliation of cash and cash equivalents as of the end of the fiscal year and the accounts reported in the balance sheet (Thousand yen)
FY2021 | |
From March 1, 2020 | |
To February 28, 2021 | |
Cash and deposits account | 12,462,677 |
Cash and cash equivalents | 12,462,677 |
(Segment Information etc.) [Segment information]
1. Overview of reported segments
(1) Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among the constituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation of management resources and for assessing business performance.
-
Types of products and services included in each reported segment
The Company's reported segments are the personnel recruiting services business, which consists of online job information
advertising and the recruitment of nursing staff, and the AI/RPA business, which develops and provides services that use AI or RPA.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in "Bases of Presenting Consolidated Financial Statements."
The income figures stated in the reported segments are based on operating income.
3. Information on amounts of sales and profit or loss by reported segment Fiscal year 2021 (March 1, 2020 to February 28, 2021)
(Thousand Yen)
Reported segment | Amount recorded in | ||||
Adjustment | |||||
statement of income | |||||
Personnel recruiting | (Note 1) | ||||
AI/RPA business | Total | (Note 2) | |||
services business | |||||
Sales | |||||
Sales ― outside | 31,671,534 | 823,233 | 32,494,768 | - | 32,494,768 |
customers | |||||
Sales and transfer | - | - | - | - | - |
- inter-segment | |||||
Total | 31,671,534 | 823,233 | 32,494,768 | - | 32,494,768 |
Segment profit (loss) | 11,844,100 | (541,326) | 11,302,774 | (3,990,615) | 7,312,158 |
Other items | |||||
Depreciation | 1,844,070 | 46,809 | 1,890,879 | 108,806 | 1,999,686 |
(Notes) 1. Adjustment of segment profit (loss) of (¥3,990,615 thousand) is corporate expenses not allocated to any reported segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to reported segments.
2. Segment profit (loss) was adjusted with operating income on the statement of income.
3. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decision by the highest decision-making body, such information was not allocated to each segment.
―26-
[Related information]
FY2021(March 1, 2020 to February 28, 2021) 1. Information by product and service
(Thousand yen) | ||||||
Baitoru | Hatarako.net | Nurse de Hatarako | AI/RPA | Others | Total | |
Sales to outside | 24,462,807 | 5,672,602 | 1,526,429 | 823,199 | 9,730 | 32,494,768 |
customers | ||||||
2. Regional information
- Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information on main clients is omitted.
[Impairment loss on fixed assets by reported segment] Not applicable
[Goodwill amortization and unamortized balance by reported segment] Not applicable
[Information on gain from negative goodwill by reported segment] Not applicable
―27-
(Per Share Information)
FY2021 | |
From March 1, 2020 | |
To February 28, 2021 | |
Net assets per share | ¥547.13 |
Net income per share | ¥11.09 |
Notes: 1. Diluted net income per share is not shown due to the absence of dilutive shares with dilution effects. 2. The basis for calculation of net income per share is as follows.
FY2021 | |
From March 1, 2020 | |
To February 28, 2021 | |
Net income attributable to owners of parent (thousand yen) | 607,671 |
Amount not attributable to common stock shareholders | - |
(thousand yen) | |
Net income attributable to owners of common stock of parent | 607,671 |
(thousand yen) | |
Average number of shares of common stock outstanding | 54,809,478 |
during the fiscal year (shares) | |
Note: The number of Company shares held in the ESOP trust account (1,687,691 shares) and the number of Company shares held in the BIP trust account (74,206 shares) are excluded from the average number of shares of common stock outstanding during the fiscal year that was used in the calculation of per share information for FY2021.
(Significant Subsequent Events)
None
―28-
(Reference Information)
(1) Statement of Income
(Thousand Yen) | |||||
FY2020 | FY2021 | Change | Change | ||
From March 1, 2019 | From March 1, 2020 | ||||
(in amount) | (in percentage) | ||||
To February 29, 2020 | To February 28, 2021 | ||||
Sales | 46,415,333 | 32,494,768 | (13,920,565) | (30.0) | |
Cost of sales | 3,036,482 | 3,303,654 | 267,171 | 8.8 | |
Gross profit | |||||
43,378,851 | 29,191,113 | (14,187,737) | (32.7) | ||
Selling, general and administrative | |||||
29,022,516 | 21,827,205 | (7,195,311) | (24.8) | ||
expenses | |||||
Operating income | 14,356,334 | 7,363,908 | (6,992,426) | (48.7) | |
Non-operating income | |||||
Interest income | 3,483 | 3,453 | (30) | (0.9) | |
Dividend income of insurance | 2,145 | 14,887 | 12,742 | 593.9 | |
Insurance claim income | 17,766 | 5,353 | (12,413) | (69.9) | |
Subsidy income | 4,034 | 4,265 | 230 | 5.7 | |
Other | 13,795 | 10,491 | (3,303) | (23.9) | |
Total non-operating income | |||||
41,225 | 38,450 | (2,774) | (6.7) | ||
Non-operating expenses | |||||
Loss on investments in investment | - | 62,628 | 62,628 | - | |
partnerships | |||||
Loss on amortization of restricted | - | 91,346 | 91,346 | - | |
share-based payment | |||||
Other | 3,864 | 17,085 | 13,221 | 342.2 | |
Total non-operating expenses | |||||
3,864 | 171,061 | 167,197 | 4,326.8 | ||
Ordinary income | |||||
14,393,695 | 7,231,297 | (7,162,397) | (49.8) | ||
Extraordinary income | |||||
Gain on reversal of share | 43,284 | 203,006 | 159,722 | 369.0 | |
acquisition rights | |||||
Total extraordinary income | 43,284 | 203,006 | 159,722 | 369.0 | |
Extraordinary losses | |||||
Loss on valuation of investment | 2,758 | - | (2,758) | - | |
securities | |||||
Loss on sales of investment | - | 5,723,762 | 5,723,762 | - | |
securities | |||||
Loss on sales of shares of | 152,600 | - | (152,600) | - | |
subsidiaries and associates | |||||
Loss on valuation of shares of | - | 810,040 | 810,040 | - | |
subsidiaries and associates | |||||
Total extraordinary losses | 155,358 | 6,533,802 | 6,378,444 | 4,105.6 | |
Net income before income taxes | |||||
14,281,622 | 900,502 | (13,381,119) | (93.7) | ||
Income-taxes - current | |||||
4,380,319 | 361,927 | (4,018,392) | (91.7) | ||
Income taxes - deferred | (111,144) | (81,667) | 29,476 | (26.5) | |
Total income taxes | |||||
4,269,175 | 280,259 | (3,988,916) | (93.4) | ||
Net income | |||||
10,012,446 | 620,242 | (9,392,203) | (93.8) | ||
―29-
(2) Statement of Cash Flows
(Thousand Yen) | ||||
FY2020 | FY2021 | |||
From March 1, 2019 | From March 1, 2020 | |||
To February 29, 2020 | To February 28, 2021 | |||
Cash flow from operating activities | ||||
Net income before income taxes | 14,281,622 | 900,502 | ||
Depreciation | 1,693,153 | 1,999,686 | ||
Share-based remuneration expenses | 224,808 | 497,597 | ||
Interest and dividend income | (3,483) | (3,453) | ||
Insurance claim income | (17,766) | (5,353) | ||
Commission expenses | 968 | 14,928 | ||
Gain on reversal of share acquisition rights | (43,284) | (203,006) | ||
Loss (gain) on valuation of investment securities | 2,758 | - | ||
Loss (gain) on sales of investment securities | - | 5,724,610 | ||
Loss on valuation of shares of subsidiaries and associates | - | 810,040 | ||
Loss on sales of shares of subsidiaries and associates | 152,600 | - | ||
Loss on investments in investment partnerships | - | 62,628 | ||
Decrease (increase) in trade receivables | (1,018,169) | 2,241,001 | ||
Increase (decrease) in trade payables | 27,426 | 28,729 | ||
Increase (decrease) in unearned revenue | 36,723 | (32,902) | ||
Increase (decrease) in accounts payable - other | 381,585 | (1,703,879) | ||
Increase (decrease) in allowance for doubtful accounts | (6,702) | (16,447) | ||
Increase (decrease) in provision for bonuses | 27,817 | (52,005) | ||
Increase (decrease) in provision for refund | (19,060) | (5,362) | ||
Decrease (increase) in other assets | (149,895) | (118,079) | ||
Increase (decrease) in other liabilities | 659,962 | (796,627) | ||
Other, net | 113,833 | 37,844 | ||
Subtotal | 16,344,895 | 9,380,451 | ||
Interest and dividends received | 95 | 66 | ||
Proceeds from insurance income | 17,766 | 5,353 | ||
Income taxes paid | (3,971,222) | (3,430,261) | ||
Cash flow from operating activities | 12,391,533 | 5,955,610 | ||
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (200,147) | (155,438) | ||
Purchase of intangible assets | (2,245,474) | (3,213,099) | ||
Purchase of investment securities | (671,498) | (9,519,461) | ||
Proceeds from sales of investment securities | - | 3,593,469 | ||
Purchase of shares of subsidiaries and associates | (380,490) | - | ||
Proceeds from sales of shares of subsidiaries and associates | 200,000 | - | ||
Payments for investments in capital of subsidiaries and | - | (414,084) | ||
associates | ||||
Payments of leasehold and guarantee deposits | (82,716) | (4,246) | ||
Proceeds from refund of leasehold and guarantee deposits | 18,625 | 5,338 | ||
Payments for asset retirement obligations | (14,240) | - | ||
Cash flows from investing activities | (3,375,942) | (9,707,523) | ||
Cash flow from financing activities | ||||
Purchase of treasury shares | (1,805,344) | (145) | ||
Proceeds from sales of treasury shares | 83,970 | 88,768 | ||
Proceeds from exercise of employee share options | 199,474 | 12,275 | ||
Dividends paid | (2,992,653) | (3,163,372) | ||
Other | (968) | (14,928) | ||
Cash flow from financing activities | (4,515,520) | (3,077,402) | ||
Increase (decrease) in cash and cash equivalents | 4,500,071 | (6,829,315) | ||
Cash and cash equivalents at beginning of period | 14,741,455 | 19,241,526 | ||
Cash and cash equivalents at end of period | 19,241,526 | 12,412,211 | ||
―30- |
(3) Selling, general and administrative expenses
The breakdown of SG&A in accordance with the categories stated in the presentation materials is disclosed below.
(Thousand Yen) | ||||
FY2020 | FY2021 | Change | Change | |
From March 1, 2019 | From March 1, 2020 | |||
(in amount) | (in percentage) | |||
To February 29, 2020 | To February 28, 2021 | |||
Personnel expenses (Note) | 12,667,492 | 12,856,167 | 188,674 | 1.5 |
Advertising and sales | 11,855,457 | 4,981,074 | (6,874,383) | (58.0) |
promotion expenses | ||||
Rent expenses on land and | 1,075,328 | 1,159,718 | 84,390 | 7.8 |
buildings | ||||
Other | 3,424,238 | 2,830,245 | (593,992) | (17.3) |
Total | 29,022,516 | 21,827,205 | (7,195,311) | (24.8) |
(Note) Personnel expenses include salaries, welfare benefits, etc., as well as recruitment-related expenses and educational expenses.
―31-
(4) Segment Information
- FY2020 (March 1, 2019 to February 29, 2020)
1. Overview of reported segments
(1) Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among the constituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation of management resources and for assessing business performance.
(2) Types of products and services included in each reported segment
The Company's reported segment is the personnel recruiting services business, which consists of online job information advertising and the recruitment of nursing staff.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in "Significant Accounting Policies." The income figures stated in the reported segments are based on operating income.
3. Information on amounts of sales, profit or loss, assets, liabilities, and other items by reported segment
(Thousand yen) | |||||||
Reported segment | Others | Adjustment | Amount recorded in | ||||
Total | statement of income | ||||||
Personnel recruiting | (Note 1) | (Note 2) | |||||
(Note 3) | |||||||
services business | |||||||
Sales | |||||||
Sales | - | outside | 46,369,290 | 46,043 | 46,415,333 | - | 46,415,333 |
customers | |||||||
Sales | and | transfer | - | - | - | - | - |
- inter-segment | |||||||
Total | 46,369,290 | 46,043 | 46,415,333 | - | 46,415,333 | ||
Segment profit (loss) | 18,809,768 | (535,595) | 18,274,173 | (3,917,838) | 14,356,334 | ||
Other items | |||||||
Depreciation | 1,576,377 | 2,227 | 1,578,605 | 114,547 | 1,693,153 | ||
(Notes) 1. The "Others" segment includes businesses not included in the reported segment, the AI/RPA Business.
2. Adjustment of segment of profit (loss) of (¥3,917,838 thousand) are corporate expenses not allocated to any reported business segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to reported segments.
- Segment profit (loss) was adjusted with operating income on the statement of income.
- Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decision by the highest decision-making body, such information was not allocated to each segment.
―32-
[Related information]
1. Information by product and service
(Thousand yen) | |||||
Baitoru | Hatarako.net | Nurse de Hatarako | Others | Total | |
Sales to outside | 37,008,556 | 7,790,636 | 1,561,762 | 54,379 | 46,415,333 |
customers | |||||
2. Regional information
- Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information on main clients is omitted.
[Impairment loss on fixed assets by reported segment] Not applicable
[Goodwill amortization and unamortized balance by reported segment] Not applicable
[Information on gain from negative goodwill by reported segment] Not applicable
-
FY 2021 (March 1, 2020 to February 28, 2021)
1. Overview of reported segments - Method of determining reported segments
The reported segments of the Company are those units for which separate financial statements can be obtained among the constituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation of management resources and for assessing business performance.
-
Types of products and services included in each reported segment
The Company's reported segments are the personnel recruiting services business, which consists of online job information
advertising and the recruitment of nursing staff, and the AI/RPA business, which develops and provides services that use AI or RPA.
2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment
The accounting methods used for reported segments are generally the same as those described in "Bases of Presenting Consolidated Financial Statements."
The income figures stated in the reported segments are based on operating income.
―33-
3. Information on amounts of sales and profit or loss by reported segment
(Thousand Yen)
Reported segment | Amount recorded in | ||||
Adjustment | |||||
statement of income | |||||
Personnel recruiting | (Note 1) | ||||
AI/RPA business | Total | (Note 2) | |||
services business | |||||
Sales | |||||
Sales ― outside | 31,671,534 | 823,233 | 32,494,768 | - | 32,494,768 |
customers | |||||
Sales and transfer | - | - | - | - | - |
- inter-segment | |||||
Total | 31,671,534 | 823,233 | 32,494,768 | - | 32,494,768 |
Segment profit (loss) | 11,844,100 | (541,326) | 11,302,774 | (3,938,865) | 7,363,908 |
Other items | |||||
Depreciation | 108,806 | ||||
1,844,070 | 46,809 | 1,890,879 | 1,999,686 | ||
(Notes) 1. Adjustment of segment profit (loss) of (¥3,938,865 thousand) is corporate expenses not allocated to any reported segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to reported segments.
2. Segment profit (loss) was adjusted with operating income on the statement of income.
3. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decision by the highest decision-making body, such information was not allocated to each segment.
[Related information]
1. Information by product and service
(Thousand yen) | ||||||
Baitoru | Hatarako.net | Nurse de Hatarako | AI/RPA | Others | Total | |
Sales to outside | 24,462,807 | 5,672,602 | 1,526,429 | 823,199 | 9,730 | 32,494,768 |
customers | ||||||
2. Regional information
- Sales
Not applicable, since there are no sales to overseas customers.
(2) Tangible fixed assets
Not applicable, since the Company has no tangible fixed assets located overseas.
3. Information on main clients
Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information on main clients is omitted.
[Impairment loss on fixed assets by reported segment] Not applicable
(Note) English documents are prepared as a courtesy to our stakeholders. In the event of any inconsistency between English-language documents and the Japanese-language documents, the Japanese-language documents will prevail.
―34-
Attachments
- Original document
- Permalink
Disclaimer
DIP Corporation published this content on 07 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 April 2021 06:31:02 UTC.