DIP Corporation Fiscal year 2015 Briefing on the operating results 14.October.2014 DIP Corporation (First section of the Tokyo Stock Exchange code 2379) Copyright © 2014 DIP Corporation, All Rights Reserved. Contents 1 FY2015 Summary of the statement of accounts 2 FY2015 Business performance by division 3 FY2015 Strategy 4 FY2015 Sales forecast 1 Copyright © 2014 DIP Corporation, All Rights Reserved. Contents 1 FY2015 Summary of the statement of accounts 2 Copyright © 2014 DIP Corporation, All Rights Reserved. Market Status Active job opening ratio 2003 Jan. – 2014 Aug Opening-to-application ratio on August 2014 (adjusted by seasonal reasons) 1.1 times last month which is nearly the same as the rate prior to the Sub prime crisis Labor market-related index Effective opening-to-application ratio (adjusted by seasonal reasons) 1.10 Sub Prime Crisis 119% of Last year Average in Mar.-Aug. Ratio Labor market related index according to the employment form / Effective Opening-to application ratio (No adjustment) Sub Prime Crisis 113.8% of last 1.36 year in average 119.8% of last 1.09 year in average 0.67 119.8% of last year in average Ratio 3 Derived from the Ministry of Health, Labour and welfare Copyright © 2014 DIP Corporation, All Rights Reserved. Market Status of the clients ■Transition in Job information Mar. 2004 – Aug.2014 Since Aug 2013 the number of job information sites on the web has steadily increased and such sites are now offering more job information listings than free papers. By Aug 2014 employment sites on the web had overwhelmed paper media. Job information in Aug. 2014 Sub Prime Crisis Web sites 423,943 Paper media in total 382,878 Free papers 250,270 153.0% of last year in average 111.6% of last year in average 120.1% of last year in average （件） 4 Copyright © 2014 DIP Corporation, All Rights Reserved. Research by the Job Information Business Associates Japan Aug. 2014 Market trends among end users End users that shifted to smart phones accelerated the use of web sites for job searches - Status of the users of paper media 24.3 point decrease over 2 years Q. Do you search for employment in free papers or flyers? Very much Tend to Neither Not much Not at all 66.7％ 2012 17.9 point decrease 48.8％ 2013 6.4 point decrease 42.4％ 2014 Research by DIP Corporation：Penetration rate Data collated by：Macromill Term：Oct. 2012 - Jun. 2013 – Sep 2014 Replies：877, 509 , 519 Target age group：16-25 Target area：Tokyo, Tokai, Kansai and Kyushu 5 Copyright © 2014 DIP Corporation, All Rights Reserved. FY2015 Summary of the statement of accounts – Sales/Profit Sales Profit （※） Yen in million FY2014 FY2015 Increase Ratio Yen in million FY2014 FY2015 Increase Ratio 2Q 2,823 4,529 1,705 160.4％ 2Q 225 878 652 389.4％ 1Q+2Q 5,921 9,049 3,127 152.8％ 1Q+2Q 326 1,773 1,447 543.8％ 152.8% of last year 543.8% of last year 113.1% of amended forecast 238.3% of amended forecast 10,000 9,049 FY2014 FY2015 8,000 Amended forecast on 16 Jun. 160.4% 890.4% 145.9% 5,921 389.4% 4,519 4,529 Amended forecast on 16 Jun. 3,097 2,823 0 Q1 Q2 Q1+Q2 （Yen in Million） （Yen in Million） Last fiscal year we adopted a practical solution to deliver the company’s qwn stock to employees through trusts. (PITF No.30) (on Dec. 25, 2013.) FY2014 2Q is calculated accordingly. 6 Copyright © 2014 DIP Corporation, All Rights Reserved. FY2015 Summary of the statement of accounts Amended forecast on Jun.16th Media division +990 million yen Sales Agent division +59 million yen 10,000 9,049 8,000 1,049 5,000 0 （Yen in Million） Amended forecast Actual Sales on Jun.16 Most of the difference Profit became profit 2,000 1,773 1,500 1,029 1,000 744 500 0 （ ） Yen in Million Amended June.16 Actual profit 7 Copyright © 2014 DIP Corporation, All Rights Reserved. FY2015 Summary of statement of accounts – Income statement ーPL Summary－ FY2014 Q1+Q2 FY2015 Q1+Q2 Ratio Yen in Million Result ratio Result ratio Increase Ratio Sales 5,921 100.0% 9,049 100.0% 3,127 52.8% Cost 803 13.6% 844 9.3% 40 5.0% Gross Profit 5,117 86.4% 8,204 90.7% 3,087 60.3% Selling, General&Administratative Expenses(SG&A) 4,776 80.7% 6,432 71.1% 1,656 34.7% Personnel 2,395 40.5% 2,885 31.9% 490 20.5% Advertising Cost 1,616 27.3% 2,693 29.8% 1,077 66.6% Land & Office Rental 227 3.8% 230 2.5% 2 1.0% Others 536 9.1% 623 6.9% 86 16.1% Operating profit 341 5.8% 1,772 19.6% 1,430 419.6% Ordinaryprofit 326 5.5% 1,773 19.6% 1,447 443.8% Genuine profit 142 2.4% 953 10.5% 811 571.4% Note1: Personnel expenses include salaries and welfare expenses as well as employment-related and educational expenses. Note2: Advertising expenses include sales/promotional expenses *Last fiscal year we adopted a practical solution to deliver the company’s own stock to employees through trusts (PITF No.30) (on Dec. 25, 2013.) FY2014 2Q is calculated accordingly. 8 Copyright © 2014 DIP Corporation, All Rights Reserved. FY2015 Q2 Summary of the statement of accounts A change in the dividend policy to provide interim dividend Planned to increase 9 yen per year Dividend per stock Q2 Q4 In total Forecast on April 10th 2014 ¥0 ¥34 ¥34 Amendment ¥26 ¥19 ¥45 ¥23 ¥23 FY 2014 result 0円 Ordinary ¥18 Ordinary ¥18 Memorial ¥5 Memorial ¥5 Interim dividends based on the results of Q2 and the year end dividend are being planned. Year end dividend is amended as above and corresponds with the result on Sep.12. 9 Copyright © 2014 DIP Corporation, All Rights Reserved. Contents 2 FY2014 Business performance by division 10 Copyright © 2014 DIP Corporation, All Rights Reserved. Operating results for Baitoru.com in Media division 【売上高】Sales FY2014 2Q FY2015 2Q Ratio Operating【営業利益】 profit FY2014 2Q FY2015 2Q Ratio 2Q 2,145 3,549 165.4% 2Q 527 営業利益推移997 189.3% 1Q+2Q 4,100 6,878 167.7% 1Q+2Q 623 1,830 293.8% Yen in million Yen in million 167.7% 293.8% 129.5% 189.3% 165.4% 868.7% 170.3% 95.0% 118.0% 142.1% 158.4% 29.5% Average contracts/month 116.9% of last year Number of employment ads 241.6% of last year FY 2015 totalFY2014 total FY2015 totalFY2014 total FY2015 totalFY2014 5,814 ads 6,795 ads 55,467 ads 71,479 ads Average in FY2015 Average in FY2015 11 Copyright © 2014 DIP Corporation, All Rights Reserved. Operating results for Hatarako.net (Temporary staff) 【売上高】Sales FY2014 FY2015 Ratio Operating【営業利益】 profit FY2014 FY2015 Ratio 2Q 228 429 187.9% 2Q 98 営業利益推移188 191.9% 1Q+2Q 462 799 172.7% 1Q+2Q 142 334 235.1% Yen in million Yen in million 172.7% 235.1% 84.3% 187.9% 68.5% 191.9% 157.8% 331.2% 81.5% 87.3% 41.9% 95.9% Average Contracts 115.2% of last year Number of ads 130.1% of last year F Y2015 FY2014 FY2015 FY2014FY2014 803 924 companies 27,703 ads 36,049 ads companies Average in FY2015 Average in FY2015 12 Copyright © 2014 DIP Corporation, All Rights Reserved. Operating Results for Nurse de Hatarako in Agent Division 【売上高】Sales FY2014 FY2015 Ratio Operating【営業利益】 profit FY2014 FY2015 Ratio 174million yen 2Q % 2Q 営業利益推移 416 532 127.8 -129 45 more 1Q+2Q 1,292 1,333 103.2% 1Q+2Q 187 365 194.5% Yen in million Yen in million 194.5% 103.2% 100.9% 91.5% 127.8% 174 million yen more 13 Copyright © 2014 DIP Corporation, All Rights Reserved. Contents 3 FY2015 Strategy 14 Copyright © 2014 DIP Corporation, All Rights Reserved. Strengthen Media Promotions Enrich the sites targeting users who are looking for jobs with clear intentions. Vol.1 on May 13 2014 “Conbini baitoru” “Apparel Collection” “Café baitoru” Vol.2 on Jun. 30 2014 “Resort baitoru” “Kojo (factory) baitoru” “High earning baitoru” 15 Copyright © 2014 DIP Corporation, All Rights Reserved. Strengthen Media Promotions Enrich the sites targeting users who are looking for jobs with clear intentions. Vol.3 on Jul. 31 2014 night life jobs “Baitoru Celeb” Vol.4 on Oct. 15 2014 Sites for Foreign people, seniors and part time workers “Gran Job” the job information site “Part de Baitoru” the job information “Hello Baitoru” the job information site where Seniors are welcomed. site for part time workers for foreign workers. 16 Copyright © 2014 DIP Corporation, All Rights Reserved. Promotional Strategy TV commercials on air ©ＡＫＳ ©ＡＫＳ ©ＡＫＳ Ver. Graduation Ver. How to look for jobs Ver. AKB Special live Press Release Yuko Oshima, Haruna Kojima, Minami Jurina Matsui and Rena Matsui Mayu Watanabe, Rino Sashihara, Yuki Takahashi, Mayu Watanabe, Mako Kojima, Kashiwagi, Jurina Matsui and Rena Matsui, Nana Okada and Juri Takahashi Sayaka Yamamoto and Haruka Shimazaki 17 ©ＡＫＳ ©ＡＫＳ ©ＡＫＳ Ver. Local Gourmet jobs by SKE Ver. Local Gourmet jobs by NMB Ver. Local Gourmet jobs by HKT Limited Edition to the Tokai area Limited Edition to the Kansai area Limited Edition to the Fukuoka area 17 Copyright © 2014 DIP Corporation, All Rights Reserved. Promotional Strategy Collaboration events with commercial spokespersons Campaign Application: ©ＡＫＳ Mar.