DIP Corporation Fiscal year 2012 1st Quarter Briefing on the operating results 15.July.2011
Contents 1 FY2012 Q1 Summary of statement of accounts 2 FY2012 Q1 Business performance by division 3 FY2012 Strategic investments after Q2 4 FY2012 Sales forecast 1
Contents 1 FY2012 Q1 Summary of statement of accounts 2 FY2012 Q1 Business performance by division 3 FY2012 Strategic investments after Q2 4 FY2012 Sales forecast 2
Market Status In addition to faltering employment caused by the sluggish economy, seasonal difficulties combined with the effects of the earthquake in East Japan to drive demand lower. It is difficult to predict when this trend will change. Trends in demand for workers (2009 January - 2012 May) full time worker part time worker in total 1.60 1.40 1.20 1.00 0.80 0.60 0.40 22.7% more than last year in May 9.1% more than last year in May (rate) 0.20 0.00 Jan.20 Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.20 Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.20 Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.20 Feb. Mar. Apr. May Data from Ministry of Health and Labour Chart created by Dip Corporation 30.8% more than last year in May 3
FY2012 1st quarter Summary of statement of accounts -Sales - In spite of damage to the recovering economy caused by the East Japan earthquake, gross sales increased by 23.3% over Q1 last year FY2011 Q1 FY2012 Q1 Gross Sales Increase Rate of increase 2,090 million yen 2,577 million yen 487 million yen 23.3 % 3,000 2,577 2,577 2,699 2,000 2090 2,157 1,000 0 (Unit : million yen) Q1 Q2 Q3 Q4 4
FY2012 1st quarter Summary of statement of accounts -Gross profit - Investment on advertising that was planned for this term was partially postponed or reduced due to the influence of the earthquake. It resulted in a profit surplus for this term. FY2011 Q1 Gross Profit FY2012 Q1 Decrease Rate of Decrease 32 million yen 400 75 50 25 32 22 million yen -10 million yen -28.5% 376 28.5% decrease 22 0-25 -9-50 -250-75 -232 Q1 Q2 Q3 Q4 (Unit : million yen) 5
FY2012 1st quarter Summary of statement of accounts Changes from FY2011 Q1 Sales (Unit : million yen) 2,090 FY2011 Q1 487 million yen more than last Q1 Baitortu 386 million yen more Nurse de 176 million yen more Hatarako 35 million yen less 2,577 FY2012 Q1 Gross Profit (Unit : million yen) 32 10 million yen less than last Q1 22 Cost and Sales Promotional Expenses FY2011 Q1 FY2012 Q1 2,058 (Unit : million yen) 497 million yen more than last Q1 Cost 127 million yen more SPE 374 million yen more Increase in sales promotion and expanded sales charges for agents 2,555 FY2011 Q1 FY2012 Q1 6
Summary of financial results for FY 2012 Q1 - Income statement Unit: million yen Result Ratio Result Ratio Difference Ratio s Sales 2090 100% 2,577 100% 487 23.3% Gross Profit 1828 87.5% 2,187 84.9% 359 19.7% Selling, general and administrative 1779 85.1% 2,153 83.5% 374 21.0% expenses(sg&a) (Note1) Personnel expenses 974 46.6% 998 38.7% 24 2.5% (Note2) FY2011 Q1 FY2012 Q1 Comparison Advertising expenses 404 19.4% 781 30.3 376 93.0% Land and office rental expenses 148 7.1% 127 4.9% -21-14.6% Others 251 12.0% 246 9.6% -4-1.8% Operating income 48 0.2.3% 34 1.3% -14-30.0% Non-operating income(loss) -16-0.8% -11-0.4% 5 - Ordinary profit 32 1.5% 22 0.9% -10-28.5% Non-ordinary -2-0.1% 0 0.0% 2 - profit(loss) Profit with tax 29 1.4% 22 0.9% -7-22.7% Tax 23 1.1% 13 0.5% -10-40.8% Genuine profit 6 0.3% 9 0.4% 3 41.4% Note1: Personnel expenses include salaries and welfare expenses as well as employment-related and educational expenses Note2: Advertising expenses include sales/promotional expenses Cost of the margin for agents corresponds to their increased sales. Also increased costs for system development. Advertising expenses increased due to production of new TV commercial. Sales promotional expenses also increased corresponding to the sales increase of the affiliate agents. 7
Contents 1 FY2012 Q1 Summary of statements of account 2 FY2012 Q1 Business performance by division 3 FY2012 Strategic investments after Q2 4 FY2012 Sales forecast 8
Operating results for Baitoru.com Sales 24.6% increase Operating Profit 29.7% increase FY2011 Q1 1,952 1,566million yen 1,952million yen 232million 232 yen 301million 301 yen Unit : million yen FY2012 Q1 Unit : million yen FY2011 Q1 FY2012 Q1 24.6% more 29.7% more Average contracts /month 9.3% less Number of employment ads No.1 FY2011 Q1 4,583 companies FY2012 Q1 4,156 companies FY2012 Q1 average 36,996 ads 31.2% decrease 2 nd : Company R website F (33,255) 3rd : Company I website W (19,313) Researched by DIP Corporation:FY2012 Q1 Average 9
Evaluation of the site In a ranking of part time job sites Baitoru is the winner of a triple crown Part time job site most viewed by cell phone 1st Part time job site most job applications by cell phone 1st Part time job site most browsed by cell phone 1st Baitoru.com 63.0 Baitoru.com 26.1 Baitoru.com 24.6 Townworknet 43.9 Townworknet 26.1 Townworknet 24.1 From A navi 40.0 From A navi 11.3 4.5 an area My navi baito 32.4 an area 7.6 4.0 [en]challenge hataraiku [en]challenge HATARAIKU 29.9 My navi baito 7.4 3.6 From A navi 0.0% 20.0 40.0 60.0 80.0 0.0% 10.0 20.0 % % % % % % Results above are excerpted from research conducted by Net Asia Research Subject of research 700 males and females between 16~25 years old who have accessed mobile part time job sites in the past 6 months. Research term 21.04.2011~24.04.2011 Samples 700(NTTdocomo 39.9% au 44.6% softbank 15.5%) Research tool by mobile(in all 3carriers) 30.0 % 0.0% 10.0 % 20.0 % 10 30.0 %
Operating results for Hatarako.net Sales 11.6% less Operating Profit 14.8% less FY2011 Q1 265 million yen 265 300 million yen 107 (Unit:million yen) 400 FY2011 FY2012 300 300 278 265 266 267 FY2012 Q1 FY2011 Q1 FY2012 Q1 107million yen 91million 91 yen (Unit:million yen) 200 100 11.6% less 14.8% less 0 Q1 Q2 Q3 Q4 Average contracts /month FY2011 Q1 FY2012 average in 1Q 1st:CompanyR (20,095) 750 3rd:CompanyI (13,279) companies companies 4th:CompanyE (11,399) 990 24.2% decrease Number of employment ads No. 2 FY2012 Q1 13,971 ads 41.4% Decrease Research by DIP:FY2012 1Q average 11
Social media applications(facebook Twitter) Hatarako.net Facebook official site (23.05.2011) http://www.facebook.com/hatarakonet Hatarako.net Twitter official gaining followers(18.04.2011) http://twitter.com/hatarakonet To keep the interest of current Hatarako.net users and to gain new users. Social buttons (30.05.2011) Job information on Hatarako.net is applied to Facebook Good! Twitter Tweet mixi check buttons. Lets users share the most up to date job information among friends. Hatarako.net will create more plans that make Hatarako.net relevant in our users daily lives Twitter is trade mark of Twitter, Inc. Facebook is trade mark of Facebook,Inc. mixi mixi check is trade mark of MIXI Corp. 12
Operating results for Nurse de Hatarako Sales 189.8% increase Operating profit 62 million yen decrease FY2011 Q1 FY2012 Q1 FY2011 Q1 FY2012 Q1 92 million yen 268 million yen -14 million yen -76 (Unit:million yen) (Unit:million yen) 76 million yen CA staff increased 189.8%more 62 62million yen less 13
Contents 1 FY2012 Q1 Summary of statements of account 2 FY2012 Q1 Business performance by division 3 FY2012 Strategic investments after Q2 4 FY2012 Sales forecast 14
Business plan for FY2012 Q2 and onward Promotional activities:new TV commercial on air dip 3 sisters commercial Brings together the three spokeswomen for the individual sites in one TV commercial Smart phone version and Movie application version currently airing. Promoting Baitoru exclusive smart solutions for part time job search Commercial on air after three and a half year interval. match your life style is the concept of the commercial that targets temporary workers who experienced difficulties after subprime loan crisis Baitoru.com SHIORI KUTSUNA Hatarako.net AYA UETO Nurse de hatarako REI KIKUKAWA Sponsorship of TV program Team Bachista. Sponsoring the third season of this popular medical themed drama, will speed up brand recognition. Press release for the new commercials released on June 14. Began airing in the Kanto, Tokai and Fukuoka regions on June 15. 15
Business plan for FY2012 2nd quarter and after Working smile project Working smile project SMILE GIRL&BOY images in this presentation could be different from the site. OPEN on July 14th! SMILE GIRL&BOY is the site where smiling faces of working people gather. DIP will collect images of their staff smiling in the workplace. The more smiles we see on working faces, the more Japan will improve. That is what DIP believes. According to the number of smiles images posted on the website or tweeted from users, DIP corporation will donate money to the earthquake recovery fund. 1,000 yen per image, 100 yen per tweet will be donated by DIP corporation. 16
Business plan for FY2012 Q2 and beyond Smart Baitoru is the concept for new application skin and functions Searching for part-time jobs on Baitoru is easier and more efficient than traditional job search methods Increased use by younger generation especially students The ability to find job location on the map helps students find jobs in their living zone To increase the number of smartphone applicants The movie functions released in FY 2011in conjunction with showing job locations on maps, and detailed job conditions will enable us to offer more suitable jobs to our users. Map location of job Baitoru Homepage New Applications allow users to manage points, to find a job by location, to check the working conditions and to search the route to the job. Mac /PC compatible With the increased use of smart phones, we will be striving for a bigger share 17
Business plan for FY2012 Q2 and beyond First among the main temp staff companies to release a smart phone application Application for Android was released on the 14 th of July. It enables users to search according to their lifestyle Many search options for temp staff jobs including work experience, and working hours. Registered life style conditions entered by the user are automatically reflected in the next search. This feature is both PC and smartphone compatible. iphone App is to be released by the end of August. Hatarako.net application top Life style choice iphone is trade mark of Apple Inc. Android is trademark of Google Inc. Application Homepage As the smart phone market is expanding DIP corporation is attracting new users by supplying these services faster than our competitors. 18
Business plan for FY2012 Q2 and beyond Promotional activities 看護師向け専門誌に広告掲載 Sponsorship and TV commercial start in July Programme Team Batista 3 (medical drama) Schedule July to September every Tuesday at 10:00pm KANSAI TV, FUJI TV, nationwide 27 channels in total Average rating for Team Batista 3 1st choice for 13.2% of viewers. 2nd choice for14.4% of viewers. Nurse de hatarako commercial Change jobs Ver. Advertising articles in magazines targeting nurses Advertising articles in magazines targeting nurses. Published on July 20th in Expert Nurse and Monthly Nursing magazines. Adverts introduce new spokeswoman REI KIKUKAWA. To deal with the increasing registrants more career advisors are being hired and trained. 19
Contents 1 FY2012 Q1 Summary of statements of account 2 FY2012 Q1 Business performance by division 3 FY2012 Strategic investments after Q2 4 FY2012 Sales forecast 20
FY2012 Sales forecast Sales 12,800 million yen Profit 500 million yen sales (Unit:million yen) Profit (Unit:million yen) 34.4%more 197.9%more There is no change in the forecast figures, as the effects of the earthquake are still having an impact. 21
(Appendix)
Contents 1. Corporate Profile 2. Corporate History 3. Summary of Main Business
1. Corporate Profile Company name:dip Corporation Founded:March 1997(End 15 th fiscal term) Representative:President & CEO, Hideki Tomita Location:1-6-1 Roppongi, Minato-ku, Tokyo Capital: 1,081million (As of end of February 2011) Sales: 9,524million(For the fiscal year ended February 2011) Employees:755 (As of end of May 2011. Includes full time, temp staff and part time workers. Excludes executives) Main business :Provision of online job information Market :Mothers Tokyo Stock Exchange (code:2379)
2. Corporate History The 1st FY1997 Mar. 1996 Dip Corporation was established in Naka Nagoya. Free catalog delivery service using the terminal unit of ]multimedia station at convenience stores. The 2nd FY1998 May 1997 The 4th FY 2000 May 1999 Oct. 1999 Dec. 1999 The 5th FY 2001 Sep. 2000 The 6th FY 2002 Oct. 2001 The 7th FY 2003 The 8th FY 2004 The 9th FY 2005 The 10th FY 2006 Mar. 2002 Aug. 2002 May 2003 Jul. 2003 Oct. 2003 Jan. 2004 Feb. 2004 Jun. 2004 Jul. 2004 Oct. 2004 Mar. 2005 Apr. 2005 Jun. 2005 Nov. 2005 Nov. 2006 The 11th FY 2007 Jan. 2007 The 12th FY 2008 Feb. 2008 Mar. 2008 The 13th FY 2009 Sep. 2009 Head office was relocated in Shibuya Tokyo Temporary job staff information service started on the terminal unit. Head office was relocated in Chiyoda Tokyo. Hatarako.net on the internet started.supplying the job information for the temp staff. Hatarako.net on the mobile started. Osaka branch was established on Kita Osaka Baitoru.com for part time job information was independent from Hatarako.net. Head office was relocated in Minato Tokyo. Nagoya branch was established in Naka Nagoya. Dip is listed in the Mothers Tokyo stock market. Privacymark obtained. Job engine for mid carrier job information was started by subsidiary e-engine company limited (in the old name Job information service company imited) Hatarako temp staff information is started as the sister site of Hatarako.net. Job engine agent was started as sister site of Job engine. Dip Jobs was started as a portal site of job information. Yokohama branch was established in Nishi Yokohama Hukuoka branch was established in Chuo Hukuoka. Book design company limited was consolidated subsidiary. Kyoto branch was established in Shimogyo Kyoto. Dip agent company limited was established. ISO27001(JIS Q27001) was obtained for international information management system standard. Book design company limited became subsidiary as all the stock was obtained by Dip. E-engine and Book design was absorbed in Dip corporation. Obtained license for providing job information business. Dissolution of Dip agent by taking over its whole business to Dip corporation. Nurse de hatarako was started to supply nursing job information on the internet
3. Summary of main business Item Baitoru.com Hatarako.net Job engine Nurse de hatarako Summary Job information service for part-time workers Job information service for temp jobs Robot search-type job information service for mid career employment Job information service for the nursing field Start Oct. 2002 Oct. 2000 Oct. 2004 Sep. 2009 Feature Sales (Ratio) No.1 information volume in the industry (36,000 ads) Average per month in FY2011 Rated No.1 by users for the amount of information and ease of use. (GOMEZ mobile rank No,1:2009 eddition) ( 1 st by Net Asia :Feb. 2008) 7,178million (75.4%) Sales ratios are calculated based on figures for FY 2011 No.1 information volume in the industry (13,000 ads) Average per month in FY2011 First in number of contracted companies (750 companies) Average per month in FY2011 As the pioneer in this sector users trust our brand and information. ( 1 st by Net Asia :Feb. 2008) 1,112million (11.6%) No.1 information volume in the industry (30,000 ads) As of end of Feb. 2011 A unique business model that provides homepage, support and advertising for recruiting solutions. 437million (4.6%) No.1 information volume in the medical industry (90,000 ads) As of end of Feb. 2011 More than 1,700 hospitals registered (2,500 info) As of end of Feb. 2011 Overwhelming amount of information and career support rewards drive fast growth in membership. 774million (8.1%) For Job Engine, 1st place in publishing information volume indicates the positioning amongst major websites for career recruiting. Sales ofjob Engine include sales for Job Engine Agent.