Financial Results for FY 2015 Ending February 28, 2015 · PDF fileFinancial Results for FY...

Financial Results for FY 2015 Ending February 28, 2015 (Japanese standard, Non-consolidated)

April 13, 2015 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 23, 2015 Dividends to be paid from: May 25, 2015 Scheduled date of filing financial statements: May 25, 2015 Complementary documents to the financial results: Prepared Reference documents pertaining to financial results: Prepared with investors and analysts in mind

1. Operating Results for FY 2015 ended February 2015 (from March 1, 2014 to February 28, 2015) (All figures are rounded down to the nearest million yen)

(1) Operating results (Percentage of change from previous year) Sales Operating income Ordinary profit (Current) Net Income

¥ million % ¥ million % ¥ million % ¥ million %

FY2015 19,530 49.7 4,806 180.3 4,817 182.9 2,856 203.7

FY2014 13,050 42.7 1.714 590.0 1,702 629.6 940 -

(Current) Net income per

Share Fully Diluted (Current) Net

income per Share ROE ROA Operating income to

net sales ratio

¥ ¥ % % %

FY2015 257.97 - 52.3 51.4 24.6

FY2014 85.06 85 24.2 25.2 13.1 (Note) Equity in earnings of affiliates: ¥ - million for 5 and ¥ - million for FY2014

(2) Financial Position

Total Assets Net Assets Equity Ratio Net Assets per Share

¥ million ¥ million % ¥

FY2015 11,021 6,643 60.0 597.06

FY2014 7,710 4,316 56.0 389.78

(Reference) Equity 6,611 million ¥ for FY2015 and 4,316 million ¥ for FY2014

(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

FY2015 3,877 -1,347 -1,358 4,141

FY2014 2,504 -785 -729 2,969

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 % %

FY2014 _ 0.00 _ 23.00 23.00 263 27 6.5

FY2015 _ 26.00 _ 52.00 78.00 893 30.2 15.8

FY2016 (forecast) _ 29.00 _ 55.00 84.00 30.3 Regarding Dividends per year for FY2014, ¥18 on common stock and ¥5 on commemorative

DIP corporation (2379) FY2015 TANSHIN

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3. Operating Results forecast for FY 2016 (March 1, 2015 to February 29, 2016) (Percentage of change from previous year for full year, or from the corresponding period of previous year for the first half)

Sales Operating profit Ordinary Profit Net Income Net Income per share

¥ million % ¥ million % ¥ million % ¥ million % ¥

First Half 11,486 26.9 1,912 8.0 1,911 7.8 1,058 11.0 95.60

Full year 24,500 25.4 5,500 14.4 5,497 14.1 3,071 7.5 277.35

* 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): 12,400,000 shares at the end of FY 2015 and 12,400,000 shares at the end of FY 2014 2. Number of treasury stocks at the end of period: 1,326,734 shares at the end of FY 2015 and 1,326,734 shares at the end of FY 2014

3. Average number of shares during the fiscal year 11,073,266 shares at the end of FY 2015 and 11,058,116 shares at the end of FY 2014

(Note) Regarding the treasury stocks, ESOP trust stocks are included (at the end of previous fiscal year 383,600 and at he end of this fiscal year 383,600).

* Audit Procedures These Financial results are not the subject of audit procedures according to the Financial Instruments and Exchange Law. At the moment when these financial results are disclosed, audit procedures by the Financial Instruments and Exchange Law have not been completed.

* 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 operating Results and financial position (1) Analysis of Operating Results” on page 2. (To obtain complementary documents on accounting results, see corporate website on April 14th 2015)


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Contents 1.Analysis of Operating Results and Financial position

(1) Analysis of the Operating Results (2) Analysis of the Financial Position (3) Basic Policy on Profit Sharing and Dividends for the Current and Upcoming Fiscal Years (4) Risks

2.Overview of DIP Corporation 3.Management Policies

(1) Basic Management Principles (2) Target Management Benchmark (3) Medium and Long-term Corporate Management Strategy (4) Challenges Facing the Company (5) Other Significant Issues

4.Financial Statements (1) Balance Sheets

(2) Statement of Income (3) Statement of Changes in Net Assets (4) Cash Flow Statement (5) Notes for the Financial Statements

(Notes on Business Conditions) (Method of Accounting) (Changes in the Method of Accounting) (Additional Information) (Balance Sheets)

(Statement of Income) (Statement of Changes in Net Assets) (Cash Flow Statement) (Segment of the Business) (Equity Earnings of Affiliates) (Information on Stock) (Significant Events Occurring at a Later Date)

5.Others (1) Redeployment of executives


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1. Analysis of Operating Results and Financial Position

(1) Analysis of the Operating Results

In this fiscal year the Japanese economic state is recovering somewhat and companies are gaining profits with the help of various policies implemented by the Japanese government, the fluid money policy promoted by the Bank of Japan, the weaker yen and the increase in stock prices. However we must watch for the risks that may affect the Japanese economical position because consumers remain negative toward spending and the global financial conditions fragile. Regarding the employment numbers we can see a continuous recovery. Unemployment (adjusted seasonally) in February 2015 became 3.5%, which was 0.1 point improved from the following month. The ratio of job openings to applicants (adjusted by the seasonal reasons) increased to 1.15, which was 0.01 point better than the last month. These figures are the best seen for twenty-two years and eleven months (since March 1992). (1.19). Under these circumstances the Media Division, which is our main business, worked to reinforce sales and strengthen brand image, and invested heavily in advertising in order to increase the number of site users and members. The agent division enriched the quality of the career advisors and strengthened connections to client medical institutions as well as invested positively in advertising in order to capture new nursing job registrants. In addition to these measures the continuous improvement of the job openings ratio for Baitoru and Hatarako.net in the Media Division lead us to achieve fiscal year sales of 19,530,000,000 yean. (49.7% more than last fiscal year) Operating profit and ordinary profit on the other hand, ended at ¥4,806,000,000 (180.3% of last year) and ¥4,817,000,000 (182.9% of last year) respectively due to the stable sales growth and effective use of expenses, in spite of the large scale of the investment in advertising. The operating results by division are as follows: 1.Media division The media division is a job information advertisement business comprised of Baitoru.com and Hatarako.net. During this fiscal year, Baitoru launched specialized sites which segment job postings into more refined categories. The ten sites correspond to modern employment problems facing Japan such as “Hello Baitoru” for foreign workers, “Gran job” for elderly workers, and “Part de Baitoru” for home-makers looking for part time jobs. By collecting the job information that the users have in mind the sites are equipped with desirable content and easy to use search functions in order to improve usability. “Baitoru shain” that provides full time job information, added a mobile site for smart phone users in November 2014 in addition to the renovated PC site. Regarding advertising; all the AKB48 groups, (AKB48, SKE48, NMB48 and HKT48), were added to the Company team as TV commercial spokes persons. In July 2014 “Baitoru” released the first local TV commercial, Local Gourmet version, with SKE, NMB and HKT in the areas of Tokai, Kansai and Hakata. Aiming to strengthen our presence in the various regions of Japan, “Baitoru” exclusively presented a TV program that aired on four national TV stations in the four main national regions. This project was the first in the industry to present a TV program exclusively. 8,100 applicants (site users) were invited to join the event “Baito memorial day special live”. From among the applicants fifty were chosen to become official members of AKB48 “Baito AKB” on a part-time basis. In October 2014 three TV commercials were produced featuring selected members from this group (“Baitoru rotation”) and were aired nationwide. Since January 2015 a new TV commercial featuring Aya Uedo has been released to gain more recognition of our brand and increase users.


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An official LINE account, (for the smart phone application “LINE” that allows the users to talk and mail for free), was set up in August 2014 to distribute beneficial information to our users. In September 2014 an original free stamp was distributed for 4 weeks in order to increase the satisfaction of users. For Hatarako.net, large-scale redesigns of the PC and smart phone sits were done at the end of July 2014. Conditions of the work place were shown in “barometer form” to allow job seekers to better visualize working conditions before applying. In August 2014 in accordance with an increase in the number of registrants, the iPhone application was fully revamped for the better usability. At the end of September 2014 sister site “Hatarako Index” was established to create one of the biggest job information sites for female workers. By listing over 30,000 office job postings that are specifically desired by female workers and in offering over 87,000 job postings in total, Hatarako Index provides job postings to suit many types of work styles for female workers with high a standard of usability and contentment. We are continually striving to improve the recognition and increase user base. It is with these goals in mind that “Baitoru” TV commercial with AYA UEDO was released. 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 ¥16,985,000,000 (58.3% more than last year) and operating profit of ¥5,873,000,000 (116.1% more than last year). (note) “IPhone” is a trademark of Apple Inc. “LINE” is a trademark of LINE Corporation 2. Agent division “Nurse de Hatarako” introduces medical work places to nurses who register at the site. We put an importance on training the career advisors and on establishing strong connections with medical institutions as well as effective advertising plans. At the end of September 2014 we improved the site to attract new registrants. Since the beginning of “Nurse de Hatarako” we continued to provide diligent service to support nurses in their work. Rakuten research showed we attained first prize for service in the field of recruiting for nurses in April 2014. This was our third consecutive first place showing, and is a confirmation of our high standard of service. Sales for this division were ¥2,545,000,000 (9.6% more than last year). Profit was ¥516,000,000 (75.5% more than last year). Outlook for the next fiscal year FY2016 The forecast of the Japanese economy needs careful evaluation since consumer prices and wages have remained fairly static in spite of the recovery shown particularly by companies engaged in exports. However further improvement in the economy is expected, driven by such stimuli as the demand in the construction industry, as we head towards the Tokyo Olympics and Paralympics in 2020. 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, we will enhance the mobile site (note1) and load more movie content as more than half of the registrants use smart phones nowadays. In accordance with the increase in demand for workers, the market for part time jobs will expand. At the same it is assumed that severe competition in our business will occur. DIP Corporation continues to enforce the sales power and the brand value and to invest in advertisement 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 enhance the productivity of the career advisors for more growth and profitability in this division. On 12 March 2015 DIP Corporation was certified by the national government as one of the first 27 companies to provide excellence in recruiting services. (note2) DIP Corporation will strive to improve our business by increasing quality and promoting better matching between the users and the companies. The forecast for FY2016 based on the above information is expected as; Sales amount ¥24,500,000,000 yen Operating profit ¥5,500,000,000 yen


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Gross profit ¥5,497,000,000 yen Genuine profit ¥30,071,000,000 yen (note1) Application that is for exclusive use of tablet sites or smart phone (note2) The “excellence among job introducing businesses authorization system” is a project commissioned by the Ministry of Health, Labor and Welfare, which certifies companies that fulfill certain standards. This authorization is created in order to the increase the standards of job introducing companies, improve the quality of the industry in general and promote better matching between employers and employees.


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(2) Analysis of the Financial Position 1. Assets, liabilities, and net assets (Current Assets) Current assets at the end of FY2015 amounted to ¥8,264,000,000 which is ¥3,190,000,000 more than at the end of FY2014. The increase was mainly due to an increase in cash/deposits amounting to ¥1,671,000,000 and to an increase in sales of ¥1,393,000,000. (Fixed Assets) Fixed assets at the end of FY2015 amounted to ¥2,757,000,000, which is ¥127,000,000 more than at the end of FY2014. The increase was mainly due to software expense for redesigned sites valued at ¥166,000,000. (Current Liabilities) Current Liabilities at the end of FY2015 amounted to ¥4,124,000,000, which is ¥950,000,000 more than at the end of FY2014. The increase is mainly due to a ¥104,000,000 yen increase in outstanding payment, a ¥965,000,000 yen increase in corporate tax unpaid, a ¥432,000,000 yen increase in consumption tax unpaid and a ¥800,000,000 yen decrease in short-term debts to be returned in a year. (Fixed Liabilities) Fixed liabilities at the end of FY2015 amounted to ¥253,000,000, which is ¥33,000,000 more than at the end of FY 2014. The increase was mainly due to a ¥32,000,000 increase in asset retirement obligations, a ¥23,000,000 increase in allowance for provision of stocks and a ¥16,000,000 decrease in deferred tax liability. (Net assets) Net assets at the end of FY2015 amounted to ¥6,643,000,000, which is ¥2,327,000,000 more than at the end of FY 2014. The increase was mainly caused by a ¥2,295,000,000 increase in genuine profit. 2. Cash Flow

For the current fiscal year, cash and cash equivalents (hereinafter called “funds”) amounted to ¥4,141,000,000, an increase of ¥1,171,000,000 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 ¥3,877,000,000 increased by ¥1,373,000,000. This was mainly because of the ¥4,816,000,000 in genuine profit before tax, and of a trade receivable increase by ¥1,395,000,000. (Cash Flow from investment activities) For the current fiscal year, investment activities consumed ¥1,347,000,000 in funds (¥562,000,000 more than in FY2014). This is due to the fixed deposit amounting to ¥500,000,000 and the acquisition of intangible fixed assets amounting to ¥690,000,000. (Cash Flow from financing activities) For the current fiscal year, financing activities consumed ¥1,358,000,000 in funds (¥628,000,000 more than FY 2014) which was due to a ¥800,000,000,000 decrease in short-term loans and the ¥558,000,000 in dividend payments. Trend of Indexes for cash flows is as follows

FY2011 FY2012 FY2013 FY2014 FY2015

Shareholders’ equity ratio (%) 53.2 51.8 59.3 56.0 60.0

Shareholders’ equity ratio (%), on a fair value basis 51.2 38.8 46.4 206.7 562.6

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

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.


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(Note.2) Ratio of funds to interest-bearing debt and Interest coverage ratio are not stated in FY2011 as the cash flows from

operating activities are below zero. (Note.3) Ratio of funds to interest-bearing debt is not stated in FY2015 since all the liability with interest was paid in the fiscal

year.


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(3) Basic Policy on Profit Sharing and Dividends for the Current and Upcoming Fiscal Years

In addition to the profit distribution to shareholders, DIP considers maintaining a competitive edge to be one of its most important management tasks. Considering that DIP is listed with the first section of the Tokyo Stock Exchange since last fiscal year, we will change the policy from providing the dividends stably to investing effectively on improving the value of our company while settling a dividend standard that would be attractive to investors still maintaining an internal reserve for the future business. In addition in order to enrich the opportunity to share the dividends with the stockholders we decided to share the dividends twice in a fiscal year. Interim dividend reflects the first half result of the fiscal year and year-end dividend is calculated by the result of the latter half of the fiscal year. Under this policy the dividend of the fiscal year 2015 that was calculated by dividend payout ratio is 26 yen for the interim dividend and 52 yen for regular dividend per stock, in total 78 yen per stock. For the dividends for the fiscal year 2016, they are calculated to be 29 yen for interim dividend and 55 yen for regular dividend per stock corresponding to the sales and financial forecast. (4) Risks Possible main 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 is to cope with these risks upon recognition, however any investment in DIP Corporation must be done 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 SSL (Secure Sockets Layer) 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. In case 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.


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3 Intellectual property rights 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 as well 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 (¥16,985,000,000 from total sales of FY2015 ¥19,530,000,000) is 87.0%. 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.


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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. 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 work place; 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.


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Business flow


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3. Management policy (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 growth rate, relative to market expansion, as important target management benchmarks. In order to expand our market share in a highly competitive environment, steady growth in net sales is necessary and requires the recruitment and training of a large number of sales personnel. In addition, advertising activities and the continuous improvement of products are essential factors in attracting more job seekers/clients and increasing awareness of the benefits our products and services. Taking into account the comprehensive balance of advertising expenses and personnel costs necessary for sales growth, dip policy is to improve ordinary income to net sales ratio in the medium to long term. (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 (note). 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. We will constantly strive to maintain a vibrant organization by improving the employee training system, reinforcing knowledge management, and fostering entrepreneurship. In so doing we endeavor to maintain the venture spirit which has carried us this far and never lose the willingness to take on challenges and achieve our business potential. (note) Feature phone, smart phone and tablet terminal oriented sites or smart phone exclusive application


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(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.

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.


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(5) Other significant issues on the company None

4. Financial Statements (1) Balance sheets

(Yen in thousands)

End of the previous fiscal year (FY2014)

End of the current fiscal year (FY2015)

(As of February 28, 2014) (As of February 28, 2015)

Assets Current assets Cash and deposits 2,969,964 4,641,407 Bills Receivable 2,271 4,212 Accounts receivable (trade) 1,734,570 3,128,003 Unfinished material 192 2 Storage 31,728 13,705 Prepaid expenses 215,637 221,643 Deferred tax assets 218,224 380,670 Other 1,516 1,722 Allowance for doubtful accounts △100,084 △127,258

Total current assets 5,074,020 8,264,110

Fixed assets Tangible fixed assets Buildings 383,576 446,767 Accumulated depreciation △199,686 △213,455

Buildings (actual price) 183,890 233,311

Structures 144,551 152,496 Accumulated depreciation △71,678 △81,681

Structures (actual price) 72,872 70,815

Vehicles 18,829 13,335 Accumulated depreciation △18,829 △13,335

Vehicles (actual price) 0 0

Tools, furniture and fixtures 503,360 481,687 Accumulated depreciation △418,824 △386,339

Tools, furniture and fixtures (actual price) 84,535 95,348

Land 408 408 Unfinished buildings 965 965

Total tangible fixed assets 342,673 400,849

Intangible fixed assets Patent rights 583 1,640 Trademark rights 1,200 951 Software 1,617,167 1,783,241 Other 157,168 48,299

Total intangible fixed assets 1,776,120 1,834,133

Investment and other assets Money not paid due to bankruptcy 8,700 8,361 Long-term prepaid expenses 43,505 21,843


17

Deposits 452,028 485,206 Others 15,385 15,555 Allowance for doubtful accounts △8,700 △8,361

Total of investments and other assets 510,919 522,606

Total fixed assets 2,629,713 2,757,588

Deferred assets Development expense 6,349 -

Total Deferred assets 6,349 -

Total assets 7,710,082 11,021,698


18

(Yen in thousands)

End of the previous fiscal year (FY2014) End of the previous fiscal year (FY2015)

(As of February 28, 2014) (As of February 28, 2015) Liabilities Current liabilities Accounts payable (trade) 132,293 191,409 Current status of short-term borrowings *800,000 * -

Accrued amount payable 944,890 1,049,458 Accrued expenses 176,542 306,739 Income taxes payable 815,037 1,780,080 Consumption tax payable 133,057 565,858 Deposit received 33,532 50,790 Deferred revenues 93,490 126,862 Allowance for refund 29,760 26,790 Others 15,586 26,792

Total current liabilities 3,174,191 4,124,783

Fixed liabilities Deferred tax liability 24,037 7,114 Dividends reserve debt without assets 49,905 73,730 Asset retirement obligations 133,320 165,899 Other 12,439 6,479

Total fixed liabilities 219,703 253,223

Total liabilities 3,393,894 4,378,006

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 56,312 112,450 Other Retained earnings Deferred retained earnings 2,534,501 4,773,575

Total retained earnings 2,590,813 4,886,026

Treasury stocks △495,134 △495,134

Total Shareholders' equity 4,316,188 6,611,401

Share warrant - 32,290

Total net assets 4,316,188 6,643,691

Total liabilities and net assets 7,710,082 11,021,698


19

(2) Statement of Income

(yen in thousands)

End of the previous fiscal year (FY2014) End of the current fiscal year (FY2015)

From March 01, 2013 From March 01, 2014

To February 28, 2014 To February 28, 2015

Sales 13,050,603 19,530,907 Cost of sales 1,593,022 1,852,940

Gross margin 11,457,581 17,677,967

Selling, general and administrative expenses Directors’ remuneration 152,108 199,010 Salaries and allowances 3,548,005 4,008,162 Legal welfare expenses 504,288 620,222 Welfare expenses 86,939 114,925 Staff training expenses 64,060 128,951 Sales promotion expenses 606,357 655,528 Advertising expenses 2,619,313 4,477,013 Provision for doubtful receivables 17,358 32,519 Loss for doubtful receivables 4,114 5,301 Land and offices rental expenses 455,708 473,093 Transportation and travel expenses 104,037 122,579 Dividends allowance reserve 27,500 23,824 Depreciation 128,207 144,727 Other 1,424,937 1,865,356 Total selling, general and administrative expenses 9,742,939 12,871,216

Operating income 1,714,641 4,806,751

Non-Operating income Interest income 278 618 Dividend income of insurance 5,837 6,297 Insurance income 2,591 1,551 Income from selling furniture 579 4,374 Other 4,257 2,497

Total Non-Operating income 13,544 15,338

Non-Operating expenses Interest expenses 9,807 4,201 Commission for syndicate loan 14,894 - Other 608 477 Non-Operating expenses 25,310 4,678

Ordinary profit 1,702,875 4,817,411

Extraordinary losses Losses on the disposal of fixed assets (*) 18,512 (*) 1,204

Total Extraordinary losses 18,512 1,204

Current net income before income taxes 1,684,363 4,816,206

Corporate, inhabitant and enterprise taxes 829,592 2,138,976 Income taxes deferred △85,858 △179,369

Total income taxes 743,733 1,959,607

Current net income 940,629 2,856,599


20

(3) Statement of Changes in Net Assets Previous fiscal year (FY 2014) (from March 1, 2013 to February 28, 2014)

(Yen in thousands)

Shareholders’ equity

Capital Capital surplus

Capital reserve Other capital surplus In total

Balance as of March 1 1,081,200 300 1,131,409 1,131,709

Change in the current FY

Issue of new shares 3,800 3,800 3,800

Dividends for retained earnings

Transferred from legal reserve of retained earnings

Current net income

Acquisition of treasury stock

Total changes in the current FY 3,800 3,800 - 3,800

Balance as of February 28 1,085,000 4,100 1,131,409 1,135,509

(Yen in thousands) Shareholders’ equity

Total Net

assets

Treasury stock In total Legal

reserve of retained earnings

Other retained earnings Total

Retained earnings Deferred retained earnings

Balance as of March 1

47,177 1,694,358 1,741,535 -495,113 3,459,330 3,459,330


Issue of new shares

7,600 7,600


-91,351 -91,351 -91.351 -91,351


9,135 -9,135 - - -

Current net income

940,629 940,629 940,629 940,629


-20 -20 -20

Total changes in the current FY

9,135 840,142 849,278 -20 856,857 856,857

Balance as of February 28

56,312 2,534,501 2,590,813 -495,134 4,316,188 4,316,188


21

Current fiscal year (FY 2015) (from March 1, 2014 to February 28, 2015)

(Yen in thousands)

Shareholder’s 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


Issue of new shares



Current net income


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

(Yen in thousands)

Shareholder’s equity

Share warrant

Total Net assets

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


Issue of new shares - -


-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


- -

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


22

(4) Cash Flow Statement (yen in thousands)

Previous fiscal year (FY 2014: from March 1, 2013

to February 28, 2014)

Current fiscal year (FY 2015: from March 1, 2014


Cash flow from operating activities Current net income before income taxes 1,684,363 4,816,206 Depreciation 660,472 740,027 Amortization of deferred assets 76,190 6,349 Share-based Payment - 32,290 Increase or decrease (△) in the allowance of doubtful accounts

11,808 26,834

Increase or decrease (△) in the reserve for refund △10,542 △2,969 Receivable interest and dividends △278 △618 Interest paid 9,807 4,201 Commission of the syndicate loan 14,894 - Losses on the disposal of fixed assets 18,512 1,204 Increase (△) in notes and accounts receivable △657,002 △1,395,034 Decrease(△) in notes and accounts payable 10,321 59,116 Decrease(△) in deferred income 28,701 33,372 Increase (△) in other assets △94,052 △650 Decrease(△) in other liabilities 803,027 688,333 Other 57,803 60,308

Subtotal 2,614,027 5,068,972

Interest and dividends received 278 618 Interest paid △10,671 △4,280 Syndicate loan commission paid △3,749 - Income taxes paid △95,633 △1,187,855

Cash flow from operating activities 2,504,250 3,877,454 Cash flow from investment activities Expenditures for fixed deposit - △500,000 Expenditures for acquisition of tangible fixed assets △69,860 △120,925 Expenditures for acquisition of intangible fixed assets △685,305 △690,771 Expenditures for deposits and guarantee money △89,833 △100,565 Proceeds from the refund of deposits and key money 85,837 67,387

Expenditures for asset retirement obligation △26,500 △2,671

Others - △170

Cash flow from investment activities △785,661 △1,347,716

Cash flow from financing activities Short term debt decreased (△) △200,000 △800,000 Decrease by repayment of long-term borrowings △446,700 -

Decrease by acquisition of treasury stock △20 -

Proceeds from issuance of stock resulting from exercise of Stock acquisition rights

7,600 -

Cash dividend paid △90,827 △558,295

Cash flow from financing activities △729,947 △1,358,295

Increase or decrease (△) in cash and cash equivalents 988,641 1,171,442

Balance of cash and cash equivalents at the beginning 1,981,322 2,969,964

Balance of cash and cash equivalents at the end * 2,969,964 * 4,141,407


23

(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: 20 years Machineries and vehicles: 4 -5years 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. Treatment of deferred charges

Cost for development; Amortized for 3 years straight-line method

4. 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.

5. 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.

6. Other important items forming the basis for preparation of the financial statement

Accounting for consumption tax: Tax exclusion method


24

(Additional information) (ESOP Trust) DIP Corporation applies “Practical solution for Employee Stock Ownership Plan” via trust. (Practice Corresponding Report No. 30, December 25, 2013) (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 383,600 shares that amount to 122,985,000 yen as of 28 Feb. 2014, 122,985,000 yen as of 28 Feb. 2015. (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;

(Yen in thousands) Previous fiscal year

(As of February 28th 2014) Current fiscal year

(As of February 28th 2015)

In total of commitment line charge 3,800,000 3,500,000

Amount of borrowed 800,000 -

Balance 3,000,000 3,500,000

(Notes for the Income statements)

(*) Losses on the disposal of fixed assets (Yen in thousands)

Previous fiscal year (From March 1st 2013 to February 28th 2014)

Current fiscal year (From March 1st 2014 to February 28th 2015)

Buildings 0 601

Tools, furniture and fixtures 825 603

Soft wares 17,632 -

Trademark rights 55 -

Vehicles - 0

In Total 18,512 1,204


25

(Statement of changes in equity capital) Previous fiscal year (FY 2014: from March 1, 2013 to February 28, 2014) 1. Type and number of outstanding and treasury stocks

Number of shares at The beginning of FY 2014

Increase in the number of shares for FY 2014

Decrease in the number of shares for FY 2014

Number of shares at The end of FY 2014

Outstanding shares Common shares (Note)1 12,362,000 38,000 - 12,400,000

Total 12,362,000 38,000 - 12,400,000 Treasury stocks

Common shares (Note)2 1,326,700 34 - 1,326,734 Total 1,326,700 34 - 1,326,734

(Note) 1. 38,000 Increase in Common shares of outstanding shares are due to exercising the new stock acquisition right. 2. 34 increase in treasury stock shares where less than one unit was purchased. 3. 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 share issues None 3. Dividends (1) Dividends paid

(2) Dividends to be effective after FY 2014, of which effective date is relevant to the period

Resolution Type of stock

Total dividends (yen in thousands)

Source of Dividends

Dividends per share (yen)

Record date for Dividends

Effective date

Regular general meeting of shareholders

held on May 24, 2014

Common stock

263,507 Retained earnings

23 Feb. 28, 2014 May 26, 2014

(Note) Total dividends include 8,822,000 yen for the ESOP trust of 383,600 stocks.

Current fiscal year (FY 2015: 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.

Resolution Type of stock Total dividends (yen in thousands)

Dividends per Share (yen)

Record date for dividends

Effective date

Regular general meeting of shareholders held on May 25, 2013

Common stock 91,351 8 Feb. 28, 2013 May 27, 2013


26

2. New stock acquisition right

Company Detail Type of stock

Number of the stocks As of end of FY2015 (yen in thousands)

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 4th acquisition right of new stocks has not come yet. 3. Dividends (1) Dividends paid

Resolution Type of stock Total dividends (yen in thousands)

Dividends per Share (yen)

Record date for dividends

Valid on


(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 Oct. 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, 8,822,000 yen 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, 9,973,000 yen for 383,600 stocks.

(2) Dividends to be effective after FY 2015, of which valid date is relevant to the period

Resolution Type of stock

Total dividends (yen in thousands)

Source of Dividends

Dividends per share (yen)

Record date for Dividends

Valid on


Common Stock

595,757 Retained earnings

52 Feb. 28, 2015 May 25, 2015

(Note) ¥19,947,000 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.

(Statements on Cash Flows) * Cash and equivalent to cash at the end of the fiscal year on the statements of the account (Yen in thousands)

Previous fiscal year From 01. Mar. 2013

To 28.02.2014

Current fiscal year From 01. Mar. 2014

To 28.02.2015

Cash and deposit over three months deposit

2,969,964 -

4,641,407 - 500,000

Cash and equivalent to cash 2,969,964 4,141,407


27

(Segment information and others) 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.

3. Accounting for sales, profit or loss, assets, debt and others.

Previous Fiscal year (from March 1st 2013 to 2014 February 28) (Unit: yen in thousands)

*Note 1. Adjustment of the segment profit or loss, ¥1,297,651,000 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.

Reported division Adjustment *Note 1

Amount on income

statement *Note 2

Media division Agent division Total

Sales Sales from clients

Sales between segments

10,727,064

-

2,323,538

-

13,050,603

-

-

-

13,050,603

-

Total 10,727,064

2,323,538 13,050,603 - 13,050,603

Segment profit or loss(△) 2,717,064 294,364 3,012,293 △1,297,651 1,714,641

Others Depreciation reserves

520,553 124,875 645,429 15,043 660,472


28

Current Fiscal year (from March 1st 2014 to February 28 2015)

(Unit: yen in thousands)

*Note 1. Adjustment of the segment profit or loss, ¥1,583,518,000, 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 (from 2013 March 1st to 2014 February 28th)

1. Information of products and services (Unit: yen in thousands)

Baitoru.com Hatarako.net Nurse de Hatarako

Other In Total

Sales amount from clients

9,579,648 1,030,912 2,323,538 116,503 13,050,603

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 Income Statements.

Reported division Adjustment *Note 1

Amount on income

statement *Note 2

Media division Agent division Total

Sales Sales from clients

Sales between segments

16,985,445

-

2,545,462

-

19,530,907

-

-

-

19,530,907

-

Total 16,985,445 2,545,462 19,530,907 - 19,530,907

Segment profit or loss(△) 5,873,792 516,477 6,390,270 △1,583,518 4,806,751

Others Depreciation reserves

602,396 124,942 727,338 12,688

740,027


29

Current fiscal year (from 2014 March 1st to 2015 February 28th) 1. Information of products and services (Unit: yen in thousands)

Baitoru.com Hatarako.net Nurse de Hatarako

Other In Total

Sales amount 15,089,150 1,827,864 2,545,462 68,430 19,530,907

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. Main clients As there is no specific client of which sales are over 10% of the income statements, there is no report.

(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


30

(Per Share Information)

Previous fiscal year (FY 2014: from March 1, 2013 to

February 28, 2014)

Current fiscal year (FY 2015: from March 1, 2014 to

February 28, 2015)

Net assets per share ¥389.78 ¥597.06

Net income per share for the period ¥85.06 ¥257.97

Net income per share, fully diluted ¥85 -

Note1: 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. Note2: 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.

FY 2014 (from March 1, 2013


FY 2015 (from March 1, 2014


Net income per share for the current period

Net income for the current period (yen in thousands) 940,629 2,856,599

Amount not attributable to common Stockholders (yen in thousands) - -

Net income for the current period related to common shares (yen in thousands)

940,629 2,856,599

Average number of outstanding shares in the period 11,058,116 11,073,266

Net income per share, fully diluted, for the current period

Adjustment to net income for the current period (yen in thousands) - -

Increase in number of common shares 7,548 -

(Number of equity warrants) (7,548) -

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 58,600

Note3: Stocks that are owned by the ESOP trust (383,600 in this fiscal year and 383,600 in the average number of outstanding shares in the period) are excluded from the calculation of the current Per Share Information. Note4: Stocks that are owned by the ESOP trust (383,600 in the previous fiscal year and 383,600 in the average number of outstanding shares in the period) are excluded from the calculation of the previous Per Share Information.

(Significant subsequent events) None 5. Others (1) Redeployment of executives Notices of redeployment of representative director and executives were issued today. (April 13, 2015)

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