financial results for fy2016 ending february 29, 2016 · pdf filefinancial results for fy2016...
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Financial Results for FY2016 Ending February 29, 2016
(Japanese standard, Non-consolidated)
April 13, 2016 Name of Company: DIP Corporation Listed on: First Section of the Tokyo Stock Exchange. Code No.: 2379 URL http://www.dip-net.co.jp Representative: Hideki Tomita, President and CEO Contact: Eiji Watanabe, Executive Officer, General Manager of Management Planning Division (TEL)03-5114-1177 Scheduled date of general shareholders meeting: May 28, 2016 Dividends to be paid from: May 30, 2016 Scheduled date of filing financial statements: May 30, 2016 Complementary documents to the financial results: Prepared Reference documents pertaining to financial results: Prepared with investors and analysts in mind
(All figures are rounded down to the nearest million yen)1. Operating Results for FY 2016 ended February 2016 (from March 1, 2015 to February 29, 2016) (1) Operating results (Percentage of change from previous year)
Sales Operating Income Ordinary Income (Current) Net Income ¥ million % ¥ million % ¥ million % ¥ million %
FY2016 26,798 37.2 7,162 49.0 7,170 48.8 4,675 63.7 FY2015 19,530 49.7 4,806 180.3 4,817 182.9 2,856 203.7
(Current) Net Income per Share
Fully Diluted (Current) Net
Income per Share ROE ROA Operating Income to
Net Sales Ratio
¥ ¥ % % % FY2016 84.44 84.17 55.7 54.4 26.7 FY2015 51.59 - 52.3 51.4 24.6
(Note) Equity in earnings of affiliates: FY2016 ¥ - million FY2015 ¥ - million
The Company conducted a stock split at the ratio of 1 common share to 5 shares effective as of September 1, 2015. Net income per share for the period and net income per share, fully diluted are calculated as if the said stock split was conducted at the beginning of the previous fiscal year.
(2) Financial Position
Total Assets Net Assets Equity Ratio Net Assets per Share ¥ million ¥ million % ¥
FY2016 15,326 10,384 66.4 183.76 FY2015 11,021 6,643 60.0 119.41
(Reference) Equity: FY2016 ¥10,174 million FY2015 ¥6,611 million
The Company conducted a stock split at the ratio of 1 common share to 5 shares effective as of September 1, 2015. Net asset per share for the period are calculated as if the said stock split was conducted at the beginning of the previous fiscal year.
(3) Cash Flow
Cash Flow from Operating Activities
Cash Flow from Investment Activities
Cash Flow from Financing Activities
Balance of cash and cash equivalents at the end of
period ¥ million ¥ million ¥ million ¥ million
FY2016 4,991 -802 -1,109 7,219 FY2015 3,877 -1,347 -1,358 4,141
2. Dividends
Dividends per year Total
dividends (annual)
Dividend payout ratio
Ratio of dividends to
net assets End of 1Q End of 2Q End of 3Q End of fiscal year In Total
¥ ¥ ¥ ¥ ¥ ¥ million % % FY2015 - 26.00 - 52.00 78.00 893 30.2 15.8 FY2016 - 45.00 - 17.00 - 1,489 30.8 17.2
FY2017 (forecast) - 12.00 - 19.00 31.00 30.4 DIP Corporation carried out the stock split at the ratio of 1 common share to 5 shares effective as of September 1, 2015 as the disclosure on July 10, 2015 “Note of the stock split, partial changes on Articles of Incorporation and correction of dividends forecast”. Per share dividend for FY2016 end of Q2 was calculated before the stock split and the FY2016 (forecast) was calculated after the stock split. If dividend was not considered, Fy2016 could be calculated as ¥ 9.00 at the end of 2Q, ¥17.00 at the end of FY and ¥ 26.00 in total.
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3. Operating Results forecast for FY 2017 (March 1, 2016 to February 28, 2017) (Percentage of change from previous year for full year, or from the corresponding period of previous year for the first half)
Sales Operating Income Ordinary Income Net Income Net Income per Share
¥ million % ¥ million % ¥ million % ¥ million % ¥ First Half 14,850 20.0 3,319 13.6 3,321 13.4 2,210 21.1 39.93 Full year 32,000 19.4 8,500 18.7 8,502 18.6 5,640 20.7 101.89
* Others
(1) Significant changes and corrections in accounting 1. Changes resulting from revisions in accounting standards: No 2. Changes except for the above: No 3. Changes in accounting estimation: No 4. Correction shown: No
(2) Number of outstanding shares (common stock)
1. Number of outstanding shares at the end of period (including treasury stocks):
At the end of FY 2016 62,000,000 shares At the end of FY 2015 62,000,000shares
2. Number of treasury stocks at the end of period:
At the end of FY 2016 6,634,145 shares At the end of FY 2015 6,633,670shares
3. Average number of shares during the fiscal year
At the end of FY 2016 55,366,070 shares At the end of FY 2015 55,366,330shares
* Audit Procedures
These Financial results are not the subject to audit procedures according to Financial Instruments and Exchange Law. At the moment when these
financial results are disclosed, the audit procedure by the Financial Instruments and Exchange Law has not been completed yet.
* Explanations on the appropriate use of forecasts and other special instructions:
(Notice of the description of the forecast)
The forecasts stated herein are based on information available as of the date of release.
Actual results may differ from the forecast depending on a variety of factors going forward.
For assumptions regarding the above forecast, see Section 1, “Analysis of the Operating Results”
(To obtain complementary documents on accounting results)
Regarding the complementary documents on accounting results, see corporate website on/after April 14, 2016
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Contents
1. Analysis of Operating Results and Financial Position ............................................................. 4
(1) Analysis of the Operating Results ......................................................................... 4
(2) Analysis of the Financial Position ......................................................................... 5
(3) Basic Policy on Profit Sharing and Dividends for the Current and Upcoming Fiscal Years .............................. 7
(4) Risks ................................................................................................ 7
2. Overview of DIP Corporation .............................................................................. 10
3. Management Policies ..................................................................................... 11
(1) Basic Management Principles ........................................................................... 11
(2) Target Management Benchmark .......................................................................... 11
(3) Medium- and Long-Term Corporate Management Strategy ..................................................... 11
(4) Challenges Facing the Company ......................................................................... 11
(5) Other Significant Issues ................................................................................ 12
4. Basic Concept for Selection of the Accounting Standards ......................................................... 12
5. Financial Statements ..................................................................................... 13
(1) Balance Sheets ....................................................................................... 13
(2) Statement of Income .................................................................................. 15
(3) Statement of Changes in Net Assets ....................................................................... 16
(4) Cash Flow Statement .................................................................................. 18
(5) Notes on Financial Statements ........................................................................... 19
(Conditions of the existence of a company) .................................................................. 19
(Significant methods in accounting) ....................................................................... 19
(Additional information) ................................................................................ 20
(Notes for the Balance Sheet) ............................................................................ 20
(Notes for the Statement of Income) ....................................................................... 20
(Notes for the Statement of Changes in Net Assets) ........................................................... 21
(Notes for the Cash Flow Statement) ....................................................................... 23
(Segment information and others) ......................................................................... 23
(Equity in net income of affiliates) ........................................................................ 25
(Per share information) ................................................................................. 26
(Significant subsequent events) ........................................................................... 26
6. Others ................................................................................................ 27
(1) Redeployment of Executives ............................................................................ 27
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1. Analysis of Operating Results and Financial Position (1) Analysis of the Operating Results
During this fiscal year, the Japanese economy has generally recovered somewhat and the export industry has been achieving an
improvement in profits with the continued assistance of various economic policies implemented by the Japanese government, the
flexible monetary policy promoted by the Bank of Japan, and the weaker yen. On the other hand, with intensifying concern about
the downturn of the economies of China and other emerging nations and resource-rich countries, uncertainty over the outlook of the
Japanese economy has been increasing.
Regarding the environment surrounding the personnel placement business, the ratio of job openings to applicants (adjusted for
seasonal reasons) in February 2016 increased to 1.28, an improvement of 0.13 point from the end of the previous fiscal year.
Unemployment (adjusted seasonally) became 3.3%, which was 0.2 point worse than the end of the previous fiscal year.
Under these circumstances, in April 2015 the Company welcomed 300 new graduates, the largest number of new employees since
its foundation, and established seven new sales offices during the current fiscal year (27 offices in all) to strengthen the basis of the
sales structure. The mainstay Media Division focused on increasing and improving content and enhancing the quality of the site for
recruitment, as well as investing heavily in advertising to increase the number of site users and members. The agent division
strengthened its customer base and invested positively in advertising in order to increase the number of new nursing job registrants.
As a result, fiscal year sales were ¥26,798million (37.2% more than a year earlier), operating income ended at ¥7,162million (49.0%
more than a year earlier) and ordinary profit ended at ¥7,170million (48.8% more than a year earlier). Net income was
¥4,675million (63.7% more than a year earlier), partly affected by exemption from the accumulated earnings tax of a specified
family company for the current fiscal year (corporate, inhabitant and enterprise taxes of ¥186million based on the assumption of
application to the current year).
The operating results by division are as follows:
1. Media division
The media division is a job information advertising business comprised of Baitoru.com and Hatarako.net.
Baitoru invested heavily in advertising to increase recognition and acquire users, and sought to meet diverse user demands.
Regarding advertising, the AKB48 groups continued to be used for TV commercials, etc. of Baitoru, and specifically, the TV
commercial featuring mother and daughter to increase the number of part time job registrants and the TV commercial highlighting
the top ranking of overall user satisfaction evaluation (Note 1) were aired. In addition, the Company independently sponsored the
TV program “ATSUSHI X PARURU no ○○PART-TIME JOB!” which introduces employees via a video showing the workplace,
one of the characteristics of Baitoru. On “Baitoru memorial day” on August 10, 2015, the “Baitoru Memorial Day Special Live” was
held, inviting 8,100 Baitoru users. In addition, the project “Baito AKB” was carried out to recruit the official members of the
AKB48 groups on a part-time basis, and other topical unique promotion activities were conducted. Moreover, the Company
provided users with useful information by using the official account of the free communication application “LINE” (Note 2)
operated by LINE Corporation to promote the recruitment application and distributed the Baitoru original stamp to users registered
with official accounts in May and September 2015 to promote user registration. Moreover, to meet diverse user demands, the
Company launched an application providing job information for full-time and contract employees, “Baitoru employees (iOS
version),” an application for searching for part-time jobs based on uniform, “snap Baitoru,” and the new function “Baitoru push”
using “iBeacon” (Note 3) in the area of Shibuya and Shinjuku wards, Tokyo.
For Hatarako.net, given an increase in demand following the revision of the worker dispatching act in September 2015, the TV
commercial featuring the actress Aya Ueto continued to be aired as in the previous fiscal year, promoting the advantages of working
as temporary staff. Meanwhile web advertising, which is highly effective for recruitment, was actively used with a focus on boosting
recognition of the Company’s services and users. In addition, the application form on the site was revised to improve usability.
In addition to the strategy described above, an expanded sales force and the concentration to grow the client base and the total
number of job postings, allowed us to post total sales figure for this division of ¥23,956 million (41.0% more than a year earlier) and
operating profit of ¥8,781 million (49.5% more than last year).
(Note 1) Results of survey by Rakuten Research in December 2014
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(Note 2) “LINE” is a trademark of LINE Corporation
(Note 3) “iBeacon” is a trademark of Apple Inc.
2. Agent division
“Nurse de Hatarako” introduces medical workplaces to nurses who register on the site.
We place importance on personnel and training through the recruitment of career advisors, and opened the Sapporo office to expand
our business presence with a new office. In addition, we invested in effective advertising plans and improved content that is helpful
for job changes in order to increase the number of nursing job registrants. Since the launch of “Nurse de Hatarako,” we have
continued to provide a diligent service to support nurses in their work with the aim of helping them enjoy greater job satisfaction.
Under the “program for the certification of companies to provide excellence in recruiting services” that was established in March
2015, the Company was certified as one of the first “companies to provide excellence in recruitment services.” Rakuten research
also showed that we attained first prize for service in the field of recruitment for nurses in April 2015. These things are confirmation
of our high standard of service.
As a result, sales for this division were ¥2,841,million (11.6% more than a year earlier) and profit was ¥450 million (12.8% less than
a year earlier).
Outlook for the next fiscal year FY2017
The forecast for the Japanese and global economies requires careful evaluation because of the high uncertainty that remains,
including the financial policies of each central bank and the slowdown in the growth rate of Chinese and other emerging economies.
However, the ratio of job openings to applicants in February 2016 was 1.28, the highest level since December 1991, and it is
expected to remain at that level under the domestic employment environment for the following fiscal year.
Under these conditions, DIP Corporation will invest further in the sales force for our Media division. Regarding the job information
business for part time workers, as the transition of the media for job information searches used by users continues from free paper
and other paper media to smartphones and other Internet media, we will enhance content and load more movie content as well as
focusing on improving services to secure part-time workers and elderly workers, among which the ratio of smartphone holdings and
recruitment is expected to increase, and to meet demand for the employment of full-time workers.
In accordance with the increase in demand for workers, the market for part time jobs will expand. At the same time, it is assumed
that competition in our business will be severe. DIP Corporation continues to invest in advertising, including TV commercials and
web advertising, so that we can improve the recognition of our brand and grow the number of users.
For the agent division, we will focus on effective advertising to capture new nurse registrants as well as enhancing the productivity
of career advisors for greater satisfaction among nurses and more growth and profitability in this division.
The forecast for FY2017 based on the above information is expected as;
Sales amount ¥32,000 million
Operating income ¥8,500 million
Ordinary income ¥8,502 million
Genuine profit ¥5,641 million
(2) Analysis of the Financial Position 1. Assets, liabilities, and net assets
(Current Assets)
Current assets at the end of FY2016 amounted to ¥12,012 million which is ¥3,748 million more than at the end of FY2016. The
increase was mainly due to an increase in cash/deposits amounting to ¥2,578 million and to an increase in sales of ¥1,076 million.
(Fixed Assets)
Fixed assets at the end of FY2016 amounted to ¥3,313 million, which is ¥555 million more than at the end of FY2016. The
increase was mainly due to software expense for redesigned sites valued at ¥255 million.
(Current Liabilities)
Current Liabilities at the end of FY2016 amounted to ¥4,552 million, which is ¥427 million more than at the end of FY2016.
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The increase is mainly due to a ¥342 million increase in outstanding payment.
(Fixed Liabilities)
Fixed liabilities at the end of FY2016 amounted to ¥388 million, which is ¥135 million more than at the end of FY2016. The
increase was mainly due to a ¥33 million increase in deferred tax liability and a ¥65 million increase in asset retirement
obligations.
(Net assets)
Net assets at the end of FY2016 amounted to ¥10,384 million, which is ¥3,741 million more than at the end of FY2016. The
increase was mainly caused by a ¥3,563 million increase in genuine profit.
2. Cash Flow
For the current fiscal year, cash and cash equivalents (hereinafter called “funds”) amounted to ¥7,219 million, an increase of
¥3,078 million from the end of the previous fiscal year.
The cash flow breakdown is as follows:
(Cash Flow from operating activities)
For the current fiscal year funds from operating activities amounted to ¥4,991 million increased by ¥1,113 million. This was
mainly because of the ¥7,170million in genuine profit before tax, the ¥835 million in depreciation and an increase of ¥514 million
in other liabilities exceeding the ¥2,693 million in income taxes paid and an increase of ¥1,075 million in notes and accounts
receivable.
(Cash Flow from investment activities)
For the current fiscal year, investment activities consumed ¥802 million in funds (¥544 million less than a year earlier). This is
mainly due to the expenditures for the acquisition of tangible fixed assets amounting to ¥206,000,000, the expenditures for the
acquisition of intangible fixed assets amounting to ¥936 million, and the expenditures for deposits and guarantee money
amounting to ¥172 million exceeding the proceeds from the withdrawal of time deposits amounting to ¥500 million.
(Cash Flow from financing activities)
For the current fiscal year, financing activities consumed ¥1,109 million in funds (¥248,000,000 less than a year earlier), which
was mainly due to ¥118 million in dividend payments.
Trend of Indexes for cash flows is as follows
FY2012 FY2013 FY2014 FY2015 FY2016
Shareholders’ equity ratio (%) 51.8 59.3 56.0 60.0 66.4
Shareholders’ equity ratio (%), on a fair value basis 38.8 46.4 206.7 562.6 767.3
Ratio of cash flow to interest-bearing debts (%) 2.3 1.1 0.3 - -
Interest coverage ratio 44.1 91.5 234.7 905.8 3,013.2
Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio (%), on a fair value basis: Market capitalization/Total assets
Ratio of cash flow to interest-bearing debts: Interest-bearing debts/Funds from operating activities
Interest coverage ratio: Funds from operating activities/Interest payments (Note.1) Funds from operating activities are from that of the statements of the cash flow. Interest-bearing debts cover all the
liabilities that come with interest in the balance sheet. Amount of Interest is listed in the cash flow statement. (Note.2) The ratio of funds to interest-bearing debt is not stated in FY2016 due to no balance of interest-bearing debt in FY2016, as
all the liability with interest was paid in FY2015.
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(3) Basic Policy on Profit Sharing and Dividends for the Current and Upcoming Fiscal Years DIP considers profit distribution to shareholders to be one of its most important management tasks. We intend to continue making
stable profit distribution to shareholders by setting a dividend standard in consideration of the business circumstances surrounding
the Company through an increase in corporate value and maintaining the internal reserve necessary for strengthening the financial
structure and business expansion.
In addition, in order to enrich the opportunity to share the dividends with the stockholders, we share the dividends twice each fiscal
year: interim dividend and year-end dividend.
Under this policy, the dividend for the fiscal year 2016 that was calculated by the dividend payout ratio is 9 yen (Note) for the
interim dividend and 17 yen for regular dividend per stock, in total 26 yen per stock.
For the dividends for the fiscal year 2017, they are calculated to be 12 yen for interim dividend and19 yen for regular dividend, in
total 31yen for annual regular dividend per stock, corresponding to the sales and financial forecast.
(Note) The Company conducted a stock split at the ratio of one (1) common share to five (5) shares effective as of September 1,
2015. Accordingly, the interim dividend per share for FY2016 was calculated as if the said stock split was conducted at the
beginning of FY2016.
(4) Risks The main potential risks to our business are stated below. Some of the statements are not necessarily risks of our business; they are
stated because they can be important when understanding our business or investment in this sector. DIP Corporation addresses
these risks when they are recognized; however, any investment in DIP Corporation should be made after fair consideration on the
part of the investor. It must be taken into account that the statement below does not cover all the possible risk of investment.
1. System
Due to the nature of the business of operating information websites on the Internet, the Company is likely to be substantially
affected by developments in communication networks that connect systems on websites.
If our computer systems fail due to large-scale and/or wide-reaching natural disasters, such as earthquakes, floods, fires, computer
viruses, loss of electrical power, communication failures, or other causes that are unpredictable at this point, we may be forced to
suspend business. We constantly take care to ensure data back-up systems against these situations are in place. In addition, there
are other types of risks, such as the disabling of servers (by us or our ISP due to temporary overload), unauthorized access by third
parties, or network failures due to an operational error by an employee.
If any of these occur, the credibility of the Company may be damaged and actions or claims for damages may arise. In the event of
such a failure, the Company’s operating results and financial position may be substantially affected.
2. Protection of personal information and information security
For the protection of our clients seeking staff and our users searching for jobs using our websites, we employ the Secure Sockets
Layer (SSL) protocol as the security mode for utilization of our systems and to provide security when transmitting data.
SSL encodes the data between the company and the job seeker, ensuring that all information is protected from interception,
alteration and spoofing.
If a serious problem occurs, such as the unauthorized disclosure of personal information, the Company may have to assume legal
responsibility, regardless of the terms and conditions of any membership contract. Even if the Company is able to avoid legal
responsibility, it will lose credibility with job seekers and companies seeking employees. In addition, the Company’s business and
operating results may be affected negatively by the damage to the brand image.
To prevent such a situation, the Company acquired the Privacy Mark to ensure strict control of all personal information.
Furthermore, we also acquired ISMS Conformity Assessment System in October 2005. Thereafter, when we had the inspection for
continuation of ISMS certification the Company applied for evaluation for transfer to ISO 27001 (JISQ 27001) and certification
was granted on November 2006.
3. Intellectual property rights
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In the business of providing information services on the Internet, the Company may face severe competition or be sued if a
competitor acquires any relevant utility model rights or patent, which could have a negative impact on our operating results and
financial position.
We do not recognize the potential for an actual case at this moment, but we cannot completely rule out the possibility that we
might be obligated to compensate for violation of utility model rights or a patent related to the whole or a part of the business,
which someone in Japan or abroad have already acquired.
Our intellectual properties also have the possibility to be infringed by a third party, which could have a negative impact on our
operating results and financial position.
4. Competition
In the field of job information service there are many other competitors using the Internet to post job information of “Part time
jobs” “Temporary staff jobs” and “Full time jobs.” There are more new competitors coming into our field every year, as the barrier
to entry in this business is low. It is the same for the nursing job information business. We committed to developing new services
and functions in order to attract nurses but the competition with other companies is getting severe. If the company fails to
differentiate itself from competitors, we may be substantially affected.
5. New businesses
The Company’s new business fields are closely related to the Internet, we must adapt to constantly advancing trends in IT
technologies to satisfy the needs of our clients. However, if difficulties arise in recruiting system experts, including IT engineers,
or if system development falls behind schedule, the timely launch of a new business will be impaired, and the Company’s business
and operating results as a whole may be substantially affected.
We constantly develop new services and new businesses however this may lead to a lower profit rate due to the investment on
system development and advertising.
Sometimes the consequences may be different from what was planned. In such case we might be substantially affected.
6. Dependence on Media division
The share of Media division sales (¥23,956 million from total sales of FY2016 ¥26,798 million) is 89.4%. We depend on the
Media division, which has the site “Baitoru.com” as its core business. We may be substantially affected if the Media division fails
to grow due to competition with other job information companies. The efforts to diversify our business have led us to tackle the
nursing job information segment by the Agent division, and to other new businesses. Nevertheless if a new business does not start
as planned, we might be substantially affected as the share of Media division to our total sales is still high and any dramatic change
in that division will affect our business and its results.
7. Impairment accounting
Accounting standards of impairment accounting are applied to DIP Corporation. When the profitability of the sites or significant
changes in business circumstance occur, the investment from the cash flow of the fixed assets will be declared impairment and we
may be substantially affected.
8. Trend in economic, employment and job information
The Media division that is our main business is a job information business. Our results are affected by the individual performance
of all companies that advertise their job vacancies on our sites. Due to unforeseen and uncontrollable trends in the economy,
employment market and job information, we may be substantially affected.
9. Seasonal trends
The Media division is affected by the seasonal job information that companies release. Most of the companies are happy to give
job information at the end of the accounting month or around the end of the year. These seasonal matters affect the results of our
media division.
In addition Media division is strongly affected not only by seasonal factors but also by general economical conditions.
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On the other hand at the Agent division, Q1 tends to make the most of the sales. Since this division calculates the sales at the point
when the registrants actually start working at the new workplace; it tends to be in April when most of the sales are made. In the
future the influence of this seasonal factor may lessen as we develop new products.
10. Human resources
We rapidly expanded the scale of our business mainly by concentrating on Internet job information. In order to avoid stagnation
and continue to provide new services, it is crucial to retain our most distinguished staff as we must reinforce the sales staff and
develop new services. We may be substantially affected by not being able to retain enough of our core staff or in case that many of
our staff retire.
11. Legal matters
Recently there have been some security incidents wherein personal information on the Internet was illegally browsed, posted,
leaked and/or sold. There is a movement to change legal restrictions on the distribution of information or products on the Internet
correspondingly. At this moment the restrictions on businesses that uses the Internet to provide services are very limited. In the
future we may be substantially affected by expenses incurred in order to comply with any new law that may be enacted.
The Company is subject to a variety of different legal restrictions, such as Law on Securing, Etc. of Equal Employment
Opportunity and Treatment between Men and Women in Employment, Dispatching Undertakings and Improved Working
Conditions for Dispatched Workers, the Employment Security Law, Labor Standards Law, etc.
The Company operates in compliance with these laws; however, violation of these laws or their revision and enhancement may
lead to the possibility of limiting business and increasing expenses to comply with the new legal restrictions. This may result in
negative effects on The Company’s operating results and financial position. In addition the laws that rules the qualification of our
registrants such as Public Nursing Care Insurance Law, Act on Public Health Nurses, Midwives and Nurses may affect our sales
and financial states as our services are targeted to those who are qualified by these laws.
The Ministry of Health, Labor and Welfare licensed the Company as a recognized employment placement business provider. Our
registration number is: 13-ユ-303788 and expires on 2017 January 31st. We need this registration number to run our main
business; it may substantially affect our business if our license number is invalidated for any reason. The Employment Security
Law (Chapter 32, Section 9) defines the reasons why a license could be invalidated. At this moment (Feb.28/2015) our license is
valid. As of this date, there are, to the best of our knowledge, no factors that may result in the cancellation our registration number.
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2. Overview of DIP Corporation The main business of the company is the Media division, providing job information, and the Agent division, offering related
recruiting services via the Internet.
(Media division)
We run our job information business in the Media division. There are three sites offering part time job information and temporary or
full time job information.
(1) Baitoru.com: Operation of the portal site Baitoru.com, which focuses on offering part-time employment information from both
employment agencies and companies seeking staff. Publishing fee for posting the job information is paid to us.
(2) Hatarako.net: Operation of the portal site Hatarako.net, which provides information about temporary positions, offered by
employment agencies. Main customers of this business are temporary staffing agencies. Publishing fee for posting the job
information is paid to us.
(Agent division)
We run human resource introduction operations specifically for nursing field.
Nurse de Hatarako: Operation of agent/placement services for registered nurses and nurse assistants providing the opportunities for
interviews and employment through consulting with our career advisors (Note), who specialize in making a good match between the
medical institution and the job seeker. Service fees are collected from the medical institution when a successful employment
contract is realized.
(Note) Career advisor is a consultant who matches the better work places for the nurses with their demands.
Business flow
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3. Management Policies (1) Basic Management Principles
DIP corporate policy is to strive to improve society with our Dreams, our Ideas and our Passion.
On a more focused level DIP basic management policy is to create better recruiting services capable of meeting the more
demanding and complicated needs of workers and employers, and finding the best match between the two. We must also allow for
changing patterns in employment. DIP also wants to be of help in creating as many jobs as possible in the medical institutions
where there is a chronic shortage of personnel by supporting better matching between nurses with medical facilities.
Most users of DIP services shifted from PC to smart phones and tablet terminal units that are rapidly spreading these days. DIP
focuses on building and providing an advanced and more convenient infrastructure as well as promoting the distribution of as
much information as possible on a real time basis via corresponding terminal units.
(2) Target Management Benchmark DIP views sales as important target management benchmarks. In a highly competitive environment, its policy is to improve the
operating income to net sales ratio in the medium to long term by expanding its share of the market. It aims to do this by
enhancing its competitive edge with a focus on advertising activities and the continuous improvement of products,
essential factors in attracting more job seekers/clients, while increasing awareness of the benefits of its products and services
through the active recruitment and training of a large number of sales personnel.
(3) Medium- and Long-Term Corporate Management Strategy The Japanese employment environment is assumed to continue its steady recovery. At the same time, the employment
advertising industry continues to shift from paper media to the Internet. We regard this movement as an opportunity to continue
increasing our market share.
In order to take advantage of this opportunity, we strive to offer the best services and to create fresh, relevant content and
functions on all our PC and mobile sites. It is our aim to see a better match between our clients’ requirements to expand their
businesses by adding quality staff, and the individual hopes of our members to further their careers and improve their lives.
Regarding the medical staff placement site that was established in September 2009; we will strengthen the support for this
division in order to match even more registrants and meet the demands of this industry. We remain open to the possibility of
launching new business ventures based on the internet even outside of the recruiting/advertising domain as such opportunities
may present themselves.
We are taking considerable steps to raise the profile of our brand through strategic investments in advertising and promotional
campaigns while bearing in mind the most effective way to disperse expenses and to improve the profit margin.
We have also worked to develop and guide our own staff members to be better at their jobs while asking our clients for greater
compliance. We are reaching for a high level of trust in the public mind and an evaluation in the market as a leader and a
trendsetter. We will also acquire users and clients from businesses other than the existing ones, improve the services of DIP, and
actively consider entry into other businesses through M&A or alliances, in order to increase our enterprise value, focusing on the
effective utilization of existing management resources, synergy with current businesses, and our corporate philosophy of
marketing efficiency.
(4) Challenges Facing the Company Main challenges that DIP Corporation deals with are as follows
1. Strengthen the divisions
Making improvements in the sales force and enhancing productivity are significant factors that must continuously be addressed
in order to maintain growth in our divisions. We will hire quality personnel and boost individual quality of our staff.
At the Media division we are enforcing advertising to collect users and promoting sales to insure the superiority of the site and
job information volume.
At the Agent division, we are improving matching by promoting the registration on our site which leads to satisfaction of the
both nurses and medical institutions.
―12―
2. Enhancing the brand value and expanding the users
To continue to see growth in our divisions, it is crucial to keep expanding the number of users and to improve the brand value.
We have improved both the quality and the quantity of job information.
This has been achieved by effective advertisement and promotional activities of the sites to improve the name value and expand
the users.
We enforce the business relationship between DIP and our clients by expanding a large scale of users and the improvement of
sales force.
3. Establishing a new business
We recognize that developing a new business based in the Internet, thereby providing new value to our company, is an urgent
matter for our company. We are going to tackle this matter as opportunities for organic cooperation with our current businesses
arise.
4. Strengthen the systems
We provide services via the Internet. In order to run our business and maintain stability we recognize that the facilities of
servers, the system for security, development and administration of the website are of critical importance. We invest in the system
facilities depending on the necessity and continuously upgrading the system to ensure the secure system and adapt ourselves to
changes in the market.
5. Privacy protection and Secured information
DIP views information as our most important business asset and spares no effort in building and maintaining information
security protocols that ensure the protection of all confidential information entrusted to us by strictly applying the company
protocol, training our staff regularly and structuring the security management system in order to manage the private information.
6. Strengthen the organization
In accordance with the expansion of our business, we are actively employing such as new graduates, system develop engineers.
We are continuously strengthening the organization by educating existing staff and enforcing the management team. In due course
it will enable us to improve the structure of our management and speed up decisions as well as to improve the business process
and the decision making process.
We also continue to maintain the internal controls in order to strengthen our organization.
(5) Other Significant Issues None
4. Basic Concept for Selection of the Accounting Standards We engage in business operations and raise funds mainly in Japan, and accordingly we use the Japanese standards at present.
As for the application of the International Financial Reporting Standards (IFRS), we intend to take appropriate actions considering our
future business expansion and the movements of other domestic companies.
―13―
5. Financial Statements (1) Balance Sheets
(Thousand yen) End of the previous fiscal year
(FY2015) (As of February 28, 2015)
End of the current fiscal year (FY2016)
(As of February 29, 2016) Assets Current assets Cash and deposits 4,641,407 7,219,880 Bills receivable 4,212 405 Accounts receivable (trade) 3,128,003 4,204,442 Unfinished material 2 - Storage 13,705 12,523 Prepaid expenses 221,643 290,157 Deferred tax assets 380,670 405,944 Other 1,722 21,242 Allowance for doubtful accounts -127,258 -142,122 Total current assets 8,264,110 12,012,471 Fixed assets Tangible fixed assets Buildings 446,767 614,244 Accumulated depreciation -213,455 -262,591 Buildings (actual price) 233,311 351,652 Structure 152,496 151,097 Accumulated depreciation -81,681 -89,819 Structures (actual price) 70,815 61,277 Vehicles 13,335 13,335 Accumulated depreciation -13,335 -13,335 Vehicles (actual price) 0 0 Tools, furniture and fixtures 481,687 536,724 Accumulated depreciation -386,339 -397,328
Tools, furniture and fixtures (actual price) 95,348 139,396
Land 408 408 Unfinished buildings 965 965 Total tangible fixed assets 400,849 553,700 Intangible fixed assets Patent rights 1,640 1,781 Trademark rights 951 738 Software 1,783,241 2,038,871 Other 48,299 45,740 Total intangible fixed assets 1,834,133 2,087,131 Investment and other assets Money not paid due to bankruptcy 8,361 11,458 Long-term prepaid expenses 21,843 11,971 Deposits 485,206 645,223 Others 15,555 15,555 Allowance for doubtful accounts -8,361 -11,458 Total of investments and other assets 522,606 672,751 Total fixed assets 2,757,588 3,313,583 Total assets 11,021,698 15,326,055
―14―
(Thousand yen) End of the previous fiscal year
(FY2015) (As of February 28, 2015)
End of the current fiscal year (FY2016)
(As of February 29, 2016) Liabilities Current liabilities Accounts payable (trade) 191,409 193,893 Accrued amount payable 1,049,458 1,392,395 Accrued expenses 306,739 598,101 Income taxes payable 1,780,080 1,592,232 Consumption tax payable 565,858 438,728 Deposit received 50,790 44,922 Deferred revenues 126,862 153,555 Allowance for refund 26,790 96,770 Asset retirement obligations - 5,892 Others 26,792 35,620 Total current liabilities 4,124,783 4,552,113 Fixed liabilities Deferred tax liability 7,114 40,957 Dividends reserve debt without assets 73,730 73,413 Asset retirement obligations 165,899 231,896 Other 6,479 42,727 Total fixed liabilities 253,223 388,996 Total liabilities 4,378,006 4,941,109 Net assets Shareholders’ equity Capital 1,085,000 1,085,000 Capital surplus Capital reserve 4,100 4,100 Other capital surplus 1,131,409 1,131,409 Total capital surplus 1,135,509 1,135,509 Retained earnings Legal reserve of retained earnings 112,450 223,582 Other retained earnings Deferred retained earnings 4,773,575 8,226,254 Total retained earnings 4,886,026 8,449,837 Treasury stocks -495,134 -496,154 Total shareholders’ equity 6,611,401 10,174,192 Stock acquisition right 32,290 210,754 Total net assets 6,643,691 10,384,946 Total liabilities and net assets 11,021,698 15,326,055
―15―
(2) Statement of Income (Thousand yen) Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Sales 19,530,907 26,798,340 Cost of sales 1,852,940 2,128,504 Gross margin 17,677,967 24,669,835 Selling, general and administrative expenses Salaries and allowances 4,008,162 5,106,725 Advertising expenses 4,477,013 6,021,380 Provision for doubtful receivables 32,519 27,251 Loss for doubtful receivables 5,301 7,747 Dividends allowance reserve 23,824 -316 Depreciation 144,727 196,066 Other 4,179,668 6,148,562
Total selling, general and administrative expenses 12,871,216 17,507,418
Operating income 4,806,751 7,162,417 Non-operating income Interest income 618 905 Dividend income of insurance 6,297 5,190 Compensation income - 1,523 Insurance income 1,551 1,456 Income from selling furniture 4,374 - Other 2,497 3,724 Total non-operating income 15,338 12,800 Non-operating expenses Interest expenses 4,201 1,656 Penalty for termination of lease 404 2,868 Other 72 0 Total non-operating expenses 4,678 4,526 Ordinary income 4,817,411 7,170,691 Extraordinary losses Losses on the disposal of fixed assets 1,204 0 Total extraordinary losses 1,204 0 Current net income before income taxes 4,816,206 7,170,691 Corporate, inhabitant and enterprise taxes 2,138,976 2,486,996 Income taxes deferred -179,369 8,569 Total income taxes 1,959,607 2,495,566 Current net income 2,856,599 4,675,125
―16―
(3) Statement of Changes in Net Assets Previous fiscal year (FY2015) (from March 1, 2014 to February 28, 2015)
(Thousand yen)
Shareholders’ equity
Capital
Capital surplus
Capital reserve Other capital surplus In total
Balance as of March 1 1,085,000 4,100 1,131,409 1,135,509
Change in the current FY
Dividends from retained earnings
Transferred from legal reserve of retained earnings
Current net income
Acquisition of treasury stock
Net changes except for shareholder’s equity in current FY
Total changes in the current FY - - - -
Balance as of February 28 1,085,000 4,100 1,131,409 1,135,509
Shareholder’s equity
Stock acquisition right
Total net assets
Capital surplus
Treasury stock In total Legal reserve of retained earnings
Other retained earnings Total retained
earnings Deferred retained earnings
Balance as of March 1 56,312 2,534,501 2,590,813 -495,134 4,316,188 - 4,316,188
Change in the current FY
Dividends from retained earnings
-561,386 -561,386 -561,386 -561,386
Transferred from legal reserve of retained earnings
56,138 -56,138 - - -
Current net income 2,856,599 2,856,599 2,856,599 2,856,599
Acquisition of treasury stock
- -
Net changes except for shareholder’s equity in current FY
32,290 32,290
Total changes in the current FY
56,138 2,239,074 2,295,213 - 2,295,213 32,290 2,327,503
Balance as of February 28 112,450 4,773,575 4,886,026 -495,134 6,611,401 32,290 6,643,691
―17―
Current fiscal year (FY2016) (from March 1, 2015 to February 29, 2016)
(Thousand yen)
Shareholders’ equity
Capital
Capital surplus
Capital reserve Other capital surplus In total
Balance as of March 1 1,085,000 4,100 1,131,409 1,135,509
Change in the current FY
Dividends for retained earnings
Transferred from legal reserve of retained earnings
Current net income
Acquisition of treasury stock
Net changes except for shareholder’s equity in current FY
Total changes in the current FY 0 0 0 0
Balance as of February 29 1,085,000 4,100 1,131,409 1,135,509
Shareholder’s equity
Stock acquisition right
Total net assets
Capital surplus
Treasury stock In total Legal reserve of retained earnings
Other retained earnings Total retained
earnings Deferred retained earnings
Balance as of March 1 112,450 4,773,575 4,886,026 -495,134 6,611,401 32,290 6,643,691
Change in the current FY
Dividends from retained earnings
-1,111,314 -1,111,314 -1,111,314 -1,111,314
Transferred from legal reserve of retained earnings
111,131 -111,131 - - -
Current net income 4,675,125 4,675,125 4,675,125 4,675,125
Acquisition of treasury stock
-1,019 -1,019 -1,019
Net changes except for shareholder’s equity in current FY
178,463 178,463
Total changes in the current FY
111,131 3,452,679 3,563,810 -1,019 3,562,790 178,463 3,741,254
Balance as of February 29 223,582 8,226,254 8,449,837 -496,154 10,174,192 210,754 10,384,946
―18―
(4) Cash Flow Statement (Thousand yen) Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Cash flow from operating activities Current net income before income taxes 4,816,206 7,170,691 Depreciation 740,027 835,835 Amortization of deferred assets 6,349 - Share-based Payment 32,290 178,463
Increase or decrease (-) in the allowance of doubtful accounts 26,834 17,960
Increase or decrease (-) in the reserve for refund -2,969 69,980 Receivable interest and dividends -618 -905 Interest paid 4,201 1,656 Losses on the disposal of fixed assets 1,204 0
Decrease or increase (-) in notes and accounts receivable -1,395,034 -1,075,728
Increase or decrease (-) in notes and accounts payable 59,116 2,483
Increase or decrease (-) in deferred income 33,372 26,692 Decrease or increase (-) in other assets -650 -58,206 Increase or decrease (-) in other liabilities 688,333 514,292 Other 60,308 2,387 Subtotal 5,068,972 7,685,602 Interest and dividends received 618 905 Interest paid -4,280 -1,656 Income taxes paid -1,187,855 -2,693,750 Cash flow from operating activities 3,877,454 4,991,101 Cash flow from investment activities Expenditures for fixed deposit -500,000 - Proceeds from withdrawal of time deposits - 500,000
Expenditures for acquisition of tangible fixed assets -120,925 -206,037
Expenditures for acquisition of intangible fixed assets -690,771 -936,893
Expenditures for deposits and guarantee money -100,565 -172,784
Proceeds from the refund of deposits and key money 67,387 12,767
Expenditures for asset retirement obligation -2,671 - Others -170 - Cash flow from investment activities -1,347,716 -802,948 Cash flow from financing activities Short term debt decreased (-) -800,000 - Decrease by acquisition of treasury stock - -1,019 Cash dividend paid -558,295 -1,108,660 Cash flow from financing activities -1,358,295 -1,109,680 Increase or decrease (-) in cash and cash equivalents 1,171,442 3,078,472 Balance of cash and cash equivalents at the beginning 2,969,964 4,141,407
Balance of cash and cash equivalents at the end * 4,141,407 * 7,219,880
―19―
(5) Notes on Financial Statements (Conditions of the existence of a company)
None.
(Significant methods in accounting)
1. Standard and method of evaluation for Inventories
(1) Work in progress…valued on identified cost method
(In the balance sheet the amount is calculated lower than the original cost according to the decrease of its value)
(2) Supplies…valued on last purchase price method
(In the balance sheet the amount is calculated lower than the original cost according to the decrease of its value)
2. Method of depreciation for fixed assets
(1) Tangible fixed assets: Declining balance method
The years of useful life for important depreciable assets are as follows;
Buildings: 3-18 years
Structures: 15-20 year
Machineries and vehicles: 5 years
Tools, furniture, and fixtures: 2-20 years
(2) Intangible fixed assets: Straight-line method
Software used for in-house operations is amortized based on the straight-line method (5 years), which is the useful life in years
to DIP.
3. Standards for allowance
(1) Allowance for doubtful accounts
To provide for potential losses from trades receivable and loans receivable, DIP recognizes a provision for potential doubtful
accounts based on the loan loss ratio for general receivables. As for the specific potential uncollectible receivables, DIP posts
estimated losses for unrecoverable receivables by assessing the possibility of collection of individual receivables.
(2) Allowance for refund
Reserve for refund of Agent division. DIP has been accounted the commission refund when the registrants quitted the job in the
future.
(3) Allowance for share benefit
Corresponding to the share regulations to our employees, estimated price is accounted at the end of this fiscal year in order to
reserve the same price as the points that the employees are given.
4. Scope of cash and cash equivalents in the statement of cash flow
Cash and cash equivalents are composed of cash on hand, deposits withdraw able on demand, and short-term investments that are
easy to change to cash and have minimum risk for volatility of principal and mature within three months after acquisition.
5. Other important items forming the basis for preparation of the financial statement
Accounting for consumption tax:
Tax exclusion method
―20―
(Additional information)
(ESOP Trust)
Since May 2012, the Company has adopted the trust-type incentive plan for employees, the “ESOP Trust” system. The purpose is to
enhance corporate value in the medium to long term by motivating employees and giving them a sense of involvement in
management, emphasizing a management approach aimed at increasing the stock value.
(1) Summary of the ESOP trust system
DIP Corporation chooses the employees who meet the requirements to be given the benefit of the ESOP trust. This system gives
the benefit of stocks to employees while they work or when they leave the company, according to the regulations.
(2) Treasury stock for the ESOP trust
Regarding this accounting, ESOP trust shares are included in the treasury stock of DIP Corporation. The stocks for ESOP trust are
included in the Income Statement and Balance sheet. The number of treasury stocks include that of ESOP trust, which is 1,918,000
shares that amount to ¥122,985 thousand as of February 28, 2015, ¥122,985 thousand as of February 29, 2016.
(Note) As the Company conducted a stock split in the ratio of one (1) common share to five (5) shares as of September 1, 2015,
the number of treasury stocks is stated as if the said stock split was conducted at the beginning of the previous fiscal year.
(Notes for the Balance Sheet)
Overdraft agreement and Commitment line contract
DIP has the Overdraft agreement with four banks in order to manage running cost effectively.
Borrowing balance based on this contract is as follows; (Thousand yen)
End of the previous fiscal year (FY2015) (As of February 28, 2015)
End of the current fiscal year (FY2016) (As of February 29, 2016)
In total of commitment line charge 3,500,000 3,500,000 Amount of borrowed - - Balance 3,500,000 3,500,000
(Notes for the Statement of Income)
* Losses on the disposal of fixed assets (Thousand yen)
Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Buildings 601 0 Structure - 0 Vehicles 0 - Tools, furniture and fixtures 603 0 Soft wares - 0
In total 1,204 0
―21―
(Notes for the Statement of Changes in Net Assets)
Previous fiscal year (FY2015) (from March 1, 2014 to February 28, 2015)
1. Type and number of outstanding and treasury stocks
Number of shares at the beginning of FY 2015
Increase in the number of shares for FY 2015
Decrease in the number of shares for FY 2015
Number of shares at the end of FY 2015
Outstanding shares
Common shares 12,400,000 - - 12,400,000
Total 12,400,000 - - 12,400,000
Treasury stocks
Common shares (Note) 1,326,734 - - 1,326,734
Total 1,326,734 - - 1,326,734 (Note) The stock for ESOP trust that is included in treasury stock at the beginning of this fiscal year and the end of this fiscal year is
383,600.
2. New stock acquisition right
Company Detail Type of stock Number of the stocks As of end of
FY2015 (thousand yen) At the beginning
of FY2015 Increase Decrease At the end of FY2015
Company to hand over
The 4th acquisition right of new stock
Common stock ― ― ― ― 32,290
In total ― ― ― ― 32,290
(Note) The beginning date of exercise period for the 4th acquisition right of new stocks has not come yet.
3. Dividends
(1) Dividends paid
Resolution Type of stock Total dividends (thousand yen)
Dividends per share (yen)
Record date for dividends Valid on
Regular general meeting of shareholders held on May 24, 2014 (Note 1)
Common stock 263,507 23 Feb. 28, 2014 May 26, 2014
Executives’ meeting held on October 10,
2014 (Note 2) Common stock 297,878 26 Aug. 31, 2014 Nov. 7, 2014
(Note 1) Total dividends that were decided at the regular meeting on May 24th 2014 include the amount for the ESOP trust, ¥8,822 thousand for 383,600 stocks.
(Note 2) Total dividends that were decided at the Executive meeting on October 10th 2014 include the amount for the ESOP trust, ¥9,973 thousand for 383,600 stocks.
(2) Dividends to be effective after FY2015, of which valid date is relevant to the period
Resolution Type of stock Total dividends (thousand yen)
Source of dividends
Dividends per share (yen)
Record date for dividends Valid on
Regular general meeting of shareholders held on May 23, 2015
Common stock 595,757 Retained
earnings 52 Feb. 28, 2015 May 25, 2015
(Note) ¥19,947 thousand that is amount to the dividends for 383,600 stocks for ESOP trust system which belongs to the treasury stocks was included in the total amount of dividends.
―22―
Current fiscal year (FY2016) (from March 1, 2015 to February 29, 2016)
1. Type and number of outstanding and treasury stocks
Number of shares at the beginning of FY 2016
Increase in the number of shares for FY 2016
Decrease in the number of shares for FY 2016
Number of shares at the end of FY 2016
Outstanding shares
Common shares (Note 1) 12,400,000 49,600,000 - 62,000,000
Total 12,400,000 49,600,000 - 62,000,000
Treasury stocks Common shares (Notes 2, 3) 1,326,734 5,307,411 - 6,634,145
Total 1,326,734 5,307,411 - 6,634,145 (Note 1) Outline of change in the outstanding shares
The breakdown of the increase in the number of shares is as follows: Increase upon stock split (1:5) on September 1, 2015: 49,600,000 shares
(Note 2) Outline of change in treasury stocks The breakdown of the increase in the number of shares is as follows: Increase upon stock split (1:5) on September 1, 2015: 5,306,936 shares (includes the stock for ESOP trust:
1,534,400 shares) Increase upon purchase of shares of less than one unit: 475 shares
(Note 3) The stock for ESOP trust that is included in treasury stock at the beginning of this fiscal year is 383,600 and the end of this fiscal year is 1,918,000.
2. New stock acquisition right
Company Detail Type of stock Number of the stocks As of end of
FY2016 (thousand yen) At the beginning
of FY2016 Increase Decrease At the end of FY2016
Company to hand over
The 4th acquisition right of new stock
Common stock ― ― ― ― 81,623
The 5th acquisition right of new stock
Common stock ― ― ― ― 129,130
In total ― ― ― ― 210,754
(Note 1) The beginning date of exercise period for the 4th acquisition right of new stocks has not come yet. (Note 1) The beginning date of exercise period for the 5th acquisition right of new stocks has not come yet.
3. Dividends
(1) Dividends paid
Resolution Type of stock Total dividends (thousand yen)
Dividends per share (yen)
Record date for dividends Valid on
Regular general meeting of shareholders held on May 23, 2015 (Note 1)
Common stock 595,757 52 Feb. 28, 2015 May 25, 2015
Executives’ meeting held on October 9, 2015
(Note 2) Common stock 515,557 45 Aug. 31, 2015 Nov. 16, 2015
(Note 1) Total dividends that were decided at the regular meeting on May 23rd 2015 include the amount for the ESOP trust, ¥19,947 thousand for 383,600 stocks.
(Note 2) Total dividends that were decided at the Executive meeting on October 9th 2015 include the amount for the ESOP trust, ¥17,262 thousand for 383,600 stocks.
(Note 3) As the Company conducted a stock split at the ratio of one (1) common share to five (5) shares as of September 1, 2015, the figures above are calculated based on the number of shares before the said stock split.
(2) Dividends to be effective after FY2016, of which valid date is relevant to the period
―23―
Resolution Type of stock Total dividends (thousand yen)
Source of dividends
Dividends per share (yen)
Record date for dividends Valid on
Regular general meeting of shareholders held on May 28, 2016
Common stock 973,825 Retained
earnings 17 Feb. 29, 2016 May 30, 2016
(Note) ¥32,606 thousand that is amount to the dividends for 1,918,000 stocks for ESOP trust system which belongs to the treasury stocks was included in the total amount of dividends.
(Notes for the Cash Flow Statement)
* Cash and equivalent to cash at the end of the fiscal year on the statements of the account (Thousand yen)
Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Cash and deposit 4,641,407 7,219,880 Over three months deposit -500,000 - Cash and equivalent to cash 4,141,407 7,219,880
(Segment information and others)
(Segment information)
1. Summary of segment report
A segment report is available to browse in each of the unit and produced for the purposes of periodical evaluation of operating
decisions by the board of directors.
DIP operates “Media division” for a job information business on the Internet and “Agent division” for human resourcing
businesses mainly for nurses.
On “Media division” we run the job information business. We provide the job information depending on the clients’ needs, such
as part time jobs and temporary jobs.
On “Agent division” we introduce medical work places to the nurses who registered on our site.
2. Method to account for sales, profit or loss, assets, debt and others in each division.
The method to account for these in each segment is nearly the same as that outlined in “Significant method of accounting” above.
Profit by segment is based on operating profit.
―24―
3. Accounting for sales, profit or loss, assets, debt and others
Previous fiscal year (FY2015) (from March 1, 2014 to February 28, 2015) (Thousand yen)
Reported division
Adjustment (Note 1)
Amount on statement of income
(Note 2) Media division Agent division Total
Sales
Sales from clients 16,985,445 2,545,462 19,530,907 ― 19,530,907
Sales between segments ― ― ― ― ―
Total 16,985,445 2,545,462 19,530,907 ― 19,530,907
Segment profit 5,873,792 516,477 6,390,270 -1,583,518 4,806,751
Others Depreciation 602,396 124,942 727,338 12,688 740,027
(Note 1) Adjustment of the segment profit or loss, ¥1,583,518 thousand is not shared among the segments. It is regarded as a general administrative cost.
(Note 2) Profit or loss in each segment is in accordance with the operating profit in income statement above. (Note 3) Based on a management decision, assets and other items are not disclosed, as they are not separated by segment.
Current fiscal year (FY2016) (from March 1, 2015 to February 29, 2016) (Thousand yen)
Reported division
Adjustment (Note 1)
Amount on statement of income
(Note 2) Media division Agent division Total
Sales
Sales from clients 23,956,850 2,841,489 26,798,340 ― 26,798,340
Sales between segments ― ― ― ― ―
Total 23,956,850 2,841,489 26,798,340 ― 26,798,340
Segment profit 8,781,883 450,138 9,232,022 -2,069,605 7,162,417
Others Depreciation 692,027 126,087 818,115 17,719 835,835
(Note 1) Adjustment of the segment profit or loss, ¥2,069,605 thousand is not shared among the segments. It is regarded as a general administrative cost.
(Note 2) Profit or loss in each segment is in accordance with the operating profit in income statement above. (Note 3) Based on a management decision, assets and other items are not disclosed, as they are not separated by segment.
(Related information)
Previous fiscal year (FY2015) (from March 1, 2014 to February 28, 2015)
1. Information of products and services
(Thousand yen)
Baitoru.com Hatarako.net Nurse de Hatarako Other Total
Sales amount from clients 15,089,150 1,827,864 2,545,462 68,430 19,530,907
―25―
2. Regional information
(1) Sales
As there are no clients overseas, there is no information to report.
(2) Tangible fixed assets
No information, as DIP has no tangible fixed assets overseas.
3. Information on main clients
It is omitted because that there is no client that shares more than 10% of the sales in statement of income.
Current fiscal year (FY2016) (from March 1, 2015 to February 29, 2016)
1. Information of products and services
(Thousand yen)
Baitoru.com Hatarako.net Nurse de Hatarako Other Total
Sales amount 20,975,064 2,938,969 2,841,489 42,816 26,798,340
2. Regional information
(1) Sales
As there are no clients overseas, there is no information to report.
(2) Tangible fixed assets
No information, as DIP has no tangible fixed assets overseas.
3. Information on main clients
It is omitted because that there is no client that shares more than 10% of the sales in statement of income.
(Information of impairment accounting for fixed assets by segment)
None.
(Goodwill depreciation)
None.
(Information regarding goodwill that DIP must pay)
None.
(Equity in net income of affiliates)
None.
―26―
(Per share information)
Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Net assets per share ¥119.41 ¥183.76
Net income per share for the period ¥51.59 ¥84.44
Net income per share, fully diluted - ¥84.17
(Note 1) Net income per share, fully diluted for this fiscal year is not listed since there is no potential voting that reduces the per stock profit.
(Note 2) The Company conducted a stock split at the ratio of one (1) common share to five (5) shares effective as of September 1, 2015. Net assets per share, net income per share for the period and net income per share, fully diluted are calculated as if the said stock split was conducted at the beginning of the previous fiscal year.
(Note 3) Background data for calculation of the net income per share for the period and net income per share for the period, fully diluted, is as follows.
Previous fiscal year (FY2015)
From March 01, 2014 To February 28, 2015
Current fiscal year (FY2016) From March 01, 2015 To February 29, 2016
Net income per share for the current period
Net income for the current period (thousand yen) 2,856,599 4,675,125
Amount not attributable to common stockholders (thousand yen) - -
Net income for the current period related to common shares (thousand yen) 2,856,599 4,675,125
Average number of outstanding shares in the period 55,366,330 55,366,070
Net income per share, fully diluted, for the current period
Adjustment to net income for the current period (thousand yen) - -
Increase in number of common shares - 174,670
(Number of equity warrants) - (174,670)
Outline of potential common shares not included in the calculation of net income per share for the current period, fully diluted, due to lack of dilution effects.
The number of the 4th new share issues:
586 The number of the stock for the 4th new share issues:
Common stocks 293,000
The number of the 5th new share issues:
701 The number of the stock for the 5th new share issues:
Common stocks 350,500 (Note 4) Stocks that are owned by the ESOP trust (1,918,000 in the previous fiscal year and 1,918,000 as the average number of
outstanding shares in the period) are excluded from the calculation of the previous fiscal year’s per share information. (Note 5) Stocks that are owned by the ESOP trust (1,918,000 this fiscal year and 1,918,000 as the average number of outstanding
shares in the period) are excluded from the calculation of the fiscal year’s per share information.
(Significant subsequent events)
None.
―27―
6. Others (1) Redeployment of Executives
Notices of redeployment of representative director and executives were issued on April 13, 2016.