Financial Results for the Fiscal Year Ended February 28, 2026 (Japanese GAAP, Consolidated)（431KB）

Name of company: dip Corporation Stock exchange listing: Tokyo Stock Exchange

Stock code: 2379 Company website: https://www.dip-net.co.jp/en/ Representative: Hideki Tomita, Representative Director, President and CEO

Contact: Haruhiko Arai, Managing Corporate Officer, CFO, Head of Corporate Management Group Phone: +81-3-5114-1177

April 14, 2026

Scheduled date of filing financial statements: May 21, 2026 Dividend payment date: May 22, 2026 Scheduled filing date of securities report: May 20, 2026

Supplementary documents to the financial results: Available

Financial results briefing: Scheduled (for institutional investors and analysts)

(All figures are rounded down to the nearest million yen)

1. Consolidated Earnings for FY'26/2 (the Period of March 1, 2025 to February 28, 2026)

   1. Consolidated operating results (Percentage figures indicate year-on-year change)

      	Sales		Operating Income		Ordinary Income		Net Income Attributable to Owners of Parent
      	¥ million	%	¥ million	%	¥ million	%	¥ million	%
      FY'26/2	54,852	-2.7	9,112	-32.0	8,990	-32.2	5,956	-33.5
      FY'25/2	56,386	4.8	13,405	5.0	13,257	5.1	8,951	-1.1

      (Note) Comprehensive income: FY'26/2 ¥5,974 million (-31.2%) FY'25/2 ¥8,686 million (-3.3%)

      	Basic Earnings per Share	Diluted Earnings per Share	Return on Equity	Return on Assets	Operating Income to Sales Ratio
      	¥	¥	%	%	%
      FY'26/2	113.81	113.79	16.4	17.9	16.6
      FY'25/2	168.41	168.32	23.8	26.2	23.8

      (Reference) Equity in earnings of affiliates: FY'26/2 ¥(3) million FY'25/2 ¥(0) million

   2. Consolidated financial position

      	Total Assets	Net Assets	Equity Ratio	Net Assets per Share
      	¥ million	¥ million	%	¥
      FY'26/2	49,954	37,193	73.7	703.28
      FY'25/2	50,506	36,235	71.0	684.99

      (Reference) Equity: FY'26/2 ¥36,826 million FY'25/2 ¥35,836 million

   3. Consolidated cash flows

      	Cash Flows from Operating Activities	Cash Flows from Investing Activities	Cash Flows from Financing Activities	Balance of Cash and Cash Equivalent at End of Period
      	¥ million	¥ million	¥ million	¥ million
      FY'26/2	9,965	(11,076)	(5,020)	9,039
      FY'25/2	16,453	(5,249)	(12,164)	15,156

2. Dividends

   	Annual Dividends					Total Dividend Payment	Dividend Payout Ratio (Consolidated)	Ratio of Dividends to Net Assets (Consolidated)
   	End of Q1	End of Q2	End of Q3	Year-end	Total
   FY'25/2	¥ - -	¥ 47.00	¥ -	¥ 48.00	¥ 95.00	¥ million 5,170	% 56.4	% 13.6
   FY'26/2		47.00	-	48.00	95.00	5,162	83.5	13.7
   FY'27/2 (forecast)	-	48.00	-	49.00	97.00		-

   (Note) For the end of FY'27/2 (forecast), the dividend payout ratio (consolidated) is expected to be between 79.4% and 175.2%.

3. Consolidated Earnings Forecast for FY'27/2 (the Period of March 1, 2026 to February 28, 2027)

(Percentage figures indicate year-on-year change)

No forecasts are made for the first-half period.

• Notes

  1. Significant changes in the scope of consolidation during the period: None Newly included: None

     Excluded: None

  2. Changes in accounting policies, changes in accounting estimates, and restatements during the period under review

     1. Changes in accounting policies resulting from revisions to accounting standards: None

     2. Changes in accounting policies other than those in 1 above: None

     3. Changes in accounting estimates: None

     4. Restatements: None

        FY'26/2	60,140,000 shares	FY'25/2	60,140,000 shares
        FY'26/2	7,776,545 shares	FY'25/2	7,823,092 shares
        FY'26/2	52,335,212 shares	FY'25/2	53,152,520 shares

  3. Number of shares outstanding (Common stock)

     1. Number of shares outstanding at end of period (including treasury shares)

     2. Number of treasury shares at end of period

     3. Average number of shares outstanding during period

        Treasury shares include the number of Company shares owned by the ESOP trust account (2,010,670 shares at the end of

        FY'25/2; 1,891,565 shares at the end of FY'26/2) and the number of Company shares owned by the BIP trust account (73,817 shares at the end of FY'25/2; 73,817 shares at the end of FY'26/2).

        (Reference) Summary of Non-consolidated Earnings

        1. Non-consolidated Earnings for FY'26/2 (the Period of March 1, 2025 to February 28, 2026)

           1. Non-consolidated business performance (Percentage figures indicate year-on-year change)

              	Sales		Operating Income		Ordinary Income		Net Income
              	¥ million	%	¥ million	%	¥ million	%	¥ million	%
              FY'26/2	54,852	(2.7)	9,134	(32.0)	8,896	(33.2)	5,832	(34.8)
              FY'25/2	56,386	4.8	13,427	4.7	13,313	4.0	8,952	(3.9)
              	Basic Earnings per Share		Diluted Earnings per Share
              	¥		¥
              FY'26/2	111.45		111.43
              FY'25/2	168.43		168.35

           2. Non-consolidated financial position

              	Total Assets	Net Assets	Equity Ratio	Net Assets per Share
              	¥ million	¥ million	%	¥
              FY'26/2	49,945	37,187	73.7	703.38
              FY'25/2	50,617	36,351	71.1	687.45

              (Reference) Equity: February 28, 2026 ¥36,831 million February 28, 2025 ¥35,965 million

• The financial results report is not subject to an audit by a certified public accountant or an audit firm.

• Explanation on the appropriate use of earnings forecasts and other special notes

(Note on forward-looking statements)

The forward-looking statements contained herein are based on information currently available to the Company and certain assumptions the Company deems reasonable. Actual results may differ significantly from the forecasts due to various factors. For the assumptions regarding earnings forecasts and cautionary statements regarding the use of the forecasts, see "1. Summary of Operating Results, etc., (5) Outlook" on page 5.

(How to obtain supplementary materials for financial results)

Supplementary materials for the financial results will be posted on the Company's website on Tuesday, April 14, 2026.

○Table of Contents

1. Summary of Operating Results, etc. 2

   1. Operating Results 2

   2. Financial Position 3

   3. Cash Flows 4

   4. Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Upcoming Fiscal Year 4

   5. Outlook 5

2. Situation of the Corporate Group 6

3. Basic Approach to the Selection of Accounting Standards 8

4. Consolidated Financial Statements and Notes 9

   1. Consolidated Balance Sheet 9

   2. Consolidated Statements of Income and Comprehensive Income 11

      Consolidated Statement of Income 11

      Consolidated Statement of Comprehensive Income 12

   3. Consolidated Statement of Changes in Equity 13

   4. Consolidated Statement of Cash Flows 15

   5. Notes to Consolidated Financial Statements 16

(Notes on Going Concern Assumption) 16

(Bases for Presenting Consolidated Financial Statements) 16

(Changes in Presentation) 19

(Additional Information) 20

(Consolidated Balance Sheet) 25

(Consolidated Statement of Income) 26

(Consolidated Statement of Comprehensive Income) 28

(Consolidated Statement of Changes in Equity) 28

(Consolidated Statement of Cash Flows) 31

(Segment Information, etc.) 32

(Revenue Recognition) 37

(Per share Information) 38

(Significant Subsequent Events) 38

1. Summary of Operating Results, etc.

   1. Operating Results

      Since its establishment in 1997, dip Corporation (hereinafter, the "Company") has assisted its client companies with the recruiting and deployment of human resources by providing online job information sites, as well as creating an environment where each job seeker can work with enthusiasm and energy, based on its corporate philosophy of 'Here at dip, we want to tap into dreams, ideas and passion to create a better society'.

      Since FY'20/2, under the corporate vision of becoming a 'Labor force solution company', the Company has been striving to solve diverse labor-related issues through the provision of personnel recruiting services and DX (digital transformation) services, with the goal of creating a society in which everyone can experience the joy and happiness of work.

      In FY'26/2, the Company transitioned to a solutions-based structure to strengthen its sales capabilities. Due to the resulting increase in the handover of assigned companies, sales ended at ¥54,852 million (down 2.7% year on year).

      In addition to upfront investments in Spot BAITORU, the Company made investments such as expanding the head office in conjunction with the transition to the new structure and recruiting new graduates in 2025.

      As a result, operating income, ordinary income, and net income attributable to owners of parent came to ¥9,112 million (down 32.0% year on year), ¥8,990 million (down 32.2% year on year), and ¥5,956 million (down 33.5% year on year), respectively.

      An overview of the results by segment is detailed below.

      1. Personnel Recruiting Services Business

         The personnel recruiting services business operates the following platforms: Baitoru, a job information site for part-time workers; Spot Baitoru, an information site for spot part-time jobs; Baitoru NEXT, a job information site for regular employees and contract employees; Hatarako.net, a comprehensive job information site; Baitoru PRO, a comprehensive job information site for specialized jobs; Nurse de Hatarako, a job agency service for medical professionals, and Nursing Care de Hatarako, a job agency service for nursing jobs. The Company aims to expand the user and customer bases for these services through the vigorous efforts of its sales force and its service development and promotional capabilities.

         During FY'26/2, sales of the personnel recruiting services business remained sluggish due to a slowdown in securing contracts with new clients and clients with whom we have had business in the past, as handover work regarding assigned companies increased.

         As a result, segment sales and segment profit came to ¥48,239 million (down 2.9% year on year) and ¥15,208 million (down 17.3% year on year), respectively.

      2. DX Business

         Since September 2019, the DX business has been supporting the digital transformation (DX) of small and medium-sized enterprises (SMEs) through the offering of the KOBOT series. This SaaS DX product series is priced for SMEs, features simple functions, and is easy to introduce as it is designed for SMEs.

         In FY'26/2, MEO KOBOT, which supports client companies' sales promotion activities by improving the order in which they are displayed in map searches, saw steady growth in sales. However, sales decreased for Interview Scheduling KOBOT, which automatically schedules interviews with job applicants, Temp Agency KOBOT, which supports dispatch companies' sales activities with automated sales list creation services, and Corporate Recruiting Page KOBOT, which creates client recruiting pages featuring Baitoru's unique functions, such as workplace introduction video, due to a decrease in the number of subscriber companies of media services.

         As a result, segment sales and segment profit ended at ¥6,613 million (down 1.6% year on year) and ¥3,710 million (up 9.4% year on year).

   2. Financial Position

      (Current assets)

      Total current assets recorded at the end of FY'26/2 were ¥25,869 million, a decrease of ¥394 million from the end of the

      previous fiscal year. The major factors were decreases of ¥417 million in cash and deposits and ¥361 million in notes and accounts receivable - trade, and an increase of ¥408 million in other current assets.

      (Non-current assets)

      Total non-current assets stood at ¥24,085 million, a decrease of ¥157 million from the end of the previous fiscal year. This mainly reflected an increase of ¥964 million in intangible assets and a decrease of ¥1,334 million in investments and other assets. (Current liabilities)

      Total current liabilities recorded at the end of FY'26/2 were ¥9,350 million, a decrease of ¥1,696 million from the end of the

      previous fiscal year. The major factors were an increase of ¥417 million in accounts payable - others, a decrease of ¥2,018 million in income taxes payable, and an increase of ¥542 million in other current liabilities.

      (Non-current liabilities)

      Total non-current liabilities were ¥3,410 million, an increase of ¥186 million from the end of the previous fiscal year. This mainly reflected an increase of ¥343 million in provision for share awards.

      (Net assets)

      Total net assets recorded at the end of FY'26/2 were ¥37,193 million, an increase of ¥957 million from the end of the previous fiscal year. The major factor was an increase of ¥789 million in retained earnings.

   3. Cash Flows

      Cash and cash equivalents ("cash") stood at ¥9,039 million at the end of the fiscal year under review. The breakdown of cash flows is as follows:

      (Cash flows from operating activities)

      Net cash provided by operating activities was ¥9,965 million (a decrease of ¥6,488 million year on year). This was mainly due to net income before income taxes of ¥9,084 million and depreciation of ¥4,189 million, offsetting income taxes paid totaling ¥4,764 million.

      (Cash flows from investing activities)

      Net cash used in investing activities totaled ¥11,076 million (an increase of ¥5,827 million year on year). This was mainly due to payments into time deposits of ¥12,700 million and the purchase of intangible assets totaling ¥4,739 million, offsetting proceeds from the withdrawal of time deposits of ¥7,000 million.

      (Cash flows from financing activities)

      Net cash used in financing activities stood at ¥5,020 million (a decrease of ¥7,143 million year on year). This was mainly due to dividends paid totaling ¥5,159 million.

      (Reference) The trend of cash flow-related indicators is as follows:

      	FY'22/2	FY'23/2	FY'24/2	FY'25/2	FY'26/2
      Equity ratio (%)	76.4	75.0	77.3	71.0	73.7
      Equity ratio on a market value basis (%)	445.3	391.7	283.0	221.2	212.1
      Ratio of cash flow to interest-bearing debts (annual)	-	-	-	-	-
      Interest coverage ratio (times)	-		-	-	-

      Equity ratio: Equity/Total assets

      Equity ratio on a market value basis: Market capitalization/Total assets

      Ratio of cash flow to interest-bearing debts: Interest-bearing debts/Operating cash flow Interest coverage ratio: Operating cash flow/Interest payments

      Notes: 1. The ratio of cash flow to interest-bearing debts is not stated, as there were no term-end balances for interest-bearing debt.

2. The interest coverage ratio is not stated since there was no interest payment.

1. Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Upcoming Fiscal Year

   The Company considers profit distribution to shareholders to be one of its most important management responsibilities and pays dividends twice a year, at the interim and the year end, while retaining the necessary earnings to invest for future growth of the Company and respond to changes in the business environment. It has been using a dividend payout ratio of 50% as a guide as well as taking into consideration the dividend results of the prior fiscal year in determining dividend payments.

   Based on the above profit distribution policy, the Company will pay an ordinary year-end dividend of ¥48 per share for FY'26/2. For FY'27/2, the Company plans to pay an annual ordinary dividend of ¥95 per share, which is broken down into an interim dividend of ¥47 per share and a year-end dividend of ¥48 per share, after taking into consideration its full-year earnings, financial position and other matters.

2. Outlook

Starting in FY'27/2, we will adopt a hybrid strategy combining our existing listing-based model with a new cost-per-click (CPC) model, with the aim of improving sales productivity. Taking into account the impact of introducing the hybrid model, transitioning to a solutions-based organization, and continuing initial investments in Spot and others, we forecast consolidated sales for FY'27/2 to range between -2.5% and +5% year on year, with operating income of ¥5-10 billion.

While the introduction of the CPC model may temporarily lower sales, we will leverage our direct sales strength to increase listings and quickly resume sales growth. In the medium term, we will aim for sales growth of 20% and an operating margin of 30% or higher. The details are as follows.

Consolidated operating results forecast for FY'27/2 (from March 2026 to February 2027)

1. Situation of the Corporate Group

   The main businesses of the Company are the personnel recruiting services business, which provides human work force, and the DX business, which provides digital labor force.

   (Personnel Recruiting Services Business)

   In the personnel recruiting services business, the Company has assisted its client companies with the recruiting and deployment of human resources by providing online job information sites, as well as creating an environment where each job seeker can work with enthusiasm and energy.

   The major services provided by the personnel recruiting services business are as follows:

   Name of service	Description
   Baitoru	A website offering part-time employment information
   Spot Baitoru	An information site for spot part-time jobs
   Baitoru NEXT	A job information website for those seeking regular or contract employee posts
   Hatarako.net	A comprehensive job information website
   Baitoru PRO	A comprehensive job information website for specialized jobs
   Nurse de Hatarako	A recruitment service for nurses
   Nursing Care de Hatarako	A recruitment service for caregivers

   (DX Business)

   In the DX business, the Company has been supporting the digital transformation (DX) of SMEs since September 2019 through the provision of DX services packaged to facilitate the introduction and continued use of the product. The product is designed specifically for small and medium sized companies and is packaged with a limited number of functions.

   The major services provided by the DX business are as follows:

   Name of service	Description
   Corporate Recruiting Page KOBOT	Creates websites for recruiting activities featuring Baitoru's unique functions such as workplace introduction videos
   Interview Scheduling KOBOT	Automatically sets interview dates with applicants
   Personnel Administration KOBOT	Part-time worker onboarding and labor management
   Temp Agency KOBOT	Supports the sales activities of temp agencies
   Patronage KOBOT for LINE	Supports marketing activities by restaurants and retailers
   MEO KOBOT	MEO (Map Engine Optimization) services to support customer attraction by displaying higher rankings in map searches
   Social Media Booster KOBOT	Reservations can be made from SNS accounts. Reservation ledger function to support customer management for restaurants.

   Our business flow chart is as follows:

   
   
   

   *1 Posting Fee：A model in which a job posting fee is paid based on the length of time a position is posted on our website.

   *2 Application Fee：A model in which job postings to our website are free and fees are paid when applications for the position are received.

   *3 Adoption fee：A model in which job postings to our website are free and fees are paid when a candidate is hired.

   *4 Recruiting fee： A model in which a commission is paid at the appropriate time when the employment decision is made through our staffing service.

2. Basic Approach to the Selection of Accounting Standards

   The Company currently carries out business and fund procurement mainly in Japan and will adopt Japanese standards for the time being. Regarding the application of IFRS (International Financial Reporting Standards), we plan to deal with the matter as

   appropriate based on future business development and trends of domestic competitors.

3. Consolidated Financial Statements and Notes

1. Consolidated Balance Sheet

   FY'25/2

   As of February 28, 2025

   (¥ thousand) FY'26/2

   As of February 28, 2026

   Assets

   Current assets

   Cash and deposits	18,156,176	17,739,062
   Notes and accounts receivable - trade	5,562,822	5,201,252
   Supplies	12,003	18,736
   Other	2,670,010	3,078,120
   Allowance for doubtful accounts	(136,874)	(167,964)
   Total current assets	26,264,138	25,869,207
   Non-current assets
   Property, plant and equipment
   Buildings and structures	2,724,139	2,889,571
   Accumulated depreciation	(827,270)	(860,672)
   Buildings and structures, net	1,896,869	2,028,898
   Tools, furniture and fixtures	983,302	1,091,677
   Accumulated depreciation	(683,010)	(710,724)
   Tools, furniture and fixtures, net	300,291	380,953
   Land	465,499	465,499
   Construction in progress	4,816	5,305
   Total property, plant and equipment	2,667,477	2,880,657
   Intangible assets
   Software	10,528,317	11,899,098
   Other	667,519	261,333
   Total intangible assets	11,195,836	12,160,432
   Investments and other assets
   Investment securities	※１ 5,110,230	※1 4,846,369
   Deferred tax assets	2,673,806	2,349,017
   Other	2,639,622	1,892,807
   Allowance for doubtful accounts	(44,499)	(43,906)
   Total investments and other assets	10,379,159	9,044,288
   Total non-current assets	24,242,474	24,085,378
   Total assets	50,506,612	49,954,586

   FY'25/2

   As of February 28, 2025

   (¥ thousand)

   FY'26/2

   As of February 28, 2026

   Liabilities

   Current liabilities
   Accounts payable - trade	427,602	374,033
   Accounts payable - other	3,614,283	4,031,943
   Income taxes payable	3,302,730	1,284,088
   Contract liabilities	895,014	762,645
   Provision for bonuses	1,092,240	761,149
   Asset retirement obligations	155,793	34,766
   Other	1,558,983	2,101,979
   Total current liabilities	11,046,647	9,350,607
   Non-current liabilities
   Provision for share-based remuneration	651,152	995,054
   Provision for share-based remuneration for directors	163,136	190,634
   Asset retirement obligations	797,844	905,503
   Other	1,611,851	1,319,002
   Total non-current liabilities	3,223,985	3,410,194
   Total liabilities	14,270,633	12,760,802
   Net assets
   Shareholders' equity
   Share capital	1,085,000	1,085,000
   Capital surplus	7,479,351	7,485,571
   Retained earnings	41067,774	41,857,551
   Treasury shares	(13,968,770)	(13,796,291)
   Total shareholders' equity	35,663,356	36,631,830
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	173,305	194,245
   Total accumulated other comprehensive income	173,305	194,245
   Share acquisition rights	385,940	356,531
   Non-controlling interests	13,377	11,177
   Total net assets	36,235,979	37,193,783
   Total liabilities and net assets	50,506,612	49,954,586

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statement of Income		(¥ thousand)
   	FY'25/2 (March 1, 2024- February 28, 2025)	FY'26/2 (March 1, 2025- February 28, 2026)
   Sales	56,386,193	54,852,760
   Cost of sales	5,881,908	6,319,158
   Gross profit	50,504,284	48,533,602
   Selling, general and administrative expenses	※1, ※2 37,098,537	※1,※2 39,420,838
   Operating income	13,405,747	9,112,764
   Non-operating income
   Interest income	11,176	58,924
   Dividend income of insurance	27,802	22,552
   Foreign exchange gains	-	14,814
   Other	23,024	33,537
   Total non-operating income	63,106	129,828
   Non-operating expenses
   Share of loss of entities accounted for using equity method	22	3,705
   Amortization of restricted stock remuneration	168,506	137,716
   Loss on investments in investment partnerships, etc.	11,672	101,218
   Other	42,709	9,020
   Total non-operating expenses	211,238	251,661
   Ordinary profit	13,257,615	8,990,931
   Extraordinary income
   Gain on sale of investment securities	271,607	183,137
   Gain on reversal of share acquisition rights	34,419	27,854
   Gain on receipt of donated non-current assets	72,915	-
   Total extraordinary income	378,942	210,991
   Extraordinary losses
   Impairment loss	※3 333,979	※3 16,318
   Loss on sale of investment securities	47,962	-
   Loss on valuation of investment securities	205,667	101,049
   Total extraordinary losses	587,609	117,368
   Profit before income taxes	13,048,948	9,084,554
   Income taxes - current	4,756,248	2,815,139
   Income taxes - deferred	(658,913)	315,555
   Total income taxes	4,097,335	3,130,694
   Net income	8,951,612	5,953,859
   Net income attributable to non-controlling interests	353	(2,200)
   Net income attributable to owners of parent	8,951,259	5,956,060

   Consolidated Statement of Comprehensive Income
   		(¥ thousand)
   	FY'25/2 (March 1, 2024- February 28, 2025)	FY'26/2 (March 1, 2025- February 28, 2026)
   Net income	8,951,612	5,953,859
   Other comprehensive income
   Valuation difference on available-for-sale securities	(265,101)	20,940
   Total other comprehensive income	※ (265,101)	※ 20,940
   Comprehensive income	8,686,511	5,974,800
   (Breakdown)
   Comprehensive income attributable to owners of parent	8,686,158	5,977,001
   Comprehensive income attributable to non-controlling interests	353	(2,200)

3. Consolidated Statement of Changes in Equity

FY'25/2 (From March 1, 2024 to February 28, 2025)

(¥ thousand)

FY'26/2 (From March 1, 2025 to February 28, 2026)

(¥ thousand)

1. ‌Notes to Consolidated Financial Statements (Notes to Going Concern Assumption)

   Not applicable

   (Bases for Presenting Consolidated Financial Statements)

   1. Scope of consolidation

      1. Number of consolidated subsidiaries: 1

         Name of consolidated subsidiary: DIP Labor Force Solution Investment Business Limited Partnership

      2. Non-consolidated subsidiaries

         Names of non-consolidated subsidiaries: DIP America, Inc.

         BRONCOS20

         Reason for exclusion from scope of consolidation:

         The above companies have been excluded from the scope of consolidation since they are small in scale, and their total assets, sales, net income/loss (amount proportional to the equity share) and retained earnings (amount proportional to the equity share), etc., do not have a material impact on consolidated financial statements.

   2. Application of equity method

      1. Number of affiliates accounted for using the equity method: 2 Names of affiliates: xOperation Group, Inc.

         TRUNK Co., Ltd.

      2. Non-consolidated subsidiaries and affiliates not accounted for using the equity method

         Names of non-consolidated subsidiaries and affiliates not accounted for using the equity method: DIP America, Inc.

         BRONCOS20

         Reason for not applying the equity method:

         The above companies have been excluded from the application of the equity method since excluding these companies from the scope of the equity method has an immaterial impact on consolidated financial statements in terms of net income (amount proportional to the equity share) and retained earnings (amount proportional to the equity share), etc., and, taken as a whole, the impact is not significant.

      3. Matters deemed necessary to be stated regarding procedures for application of the equity method

         The most recent financial statements have been used for companies accounted for using the equity method with a different fiscal year-end date.

         The consolidated statements have been adjusted to reflect significant transactions that took place between their fiscal year-end dates and the consolidated fiscal year-end date.

   3. Fiscal periods of consolidated subsidiaries

      The fiscal year-end date of consolidated subsidiary DIP Labor Force Solution Investment Business Limited Partnership is November 30. The financial statements as of its fiscal year-end date have been used in the preparation of consolidated financial statements. The consolidated statements have been adjusted to reflect significant transactions that took place between its fiscal year-end date and the consolidated fiscal year-end date.

   4. Accounting policies

      1. Valuation standards and methods for major assets

         1. Securities

            Available-for-sale securities

            Other than securities without market value: Stated at fair value

            (All valuation gains or losses are treated as a component of net assets, with the cost of securities sold calculated using the moving-average method.)

            Securities without market value: Mainly stated at cost using the moving-average method

            Investments in limited liability partnerships and the like (those deemed to be securities pursuant to Article 2, Paragraph (2) of the Financial Instruments and Exchange Act) are stated at the net value of equities based on the most recent financial statements available prepared according to the financial reporting dates specified in the respective partnership agreements.

         2. Inventories

            Supplies: Stated at cost using the last purchase price method

            (Balance sheet amounts are determined by writing down the book value according to the decrease in profitability.)

      2. Depreciation methods for major depreciation assets

         1. Property, plant and equipment

            Depreciation of property, plant and equipment is principally calculated by the declining-balance method, except for buildings, which is depreciated using the straight-line method. However, depreciation of facilities attached to buildings and structures acquired on or after April 1, 2016, is based on the straight-line method.

            The useful lives of major assets are as follows:

            Buildings and structures: 3 to 47 years Tools, furniture and fixtures: 2 to 20 years

         2. Intangible assets

            Depreciation of intangible assets is calculated by the straight-line method. However, software for internal use is amortized over its useful life within the Company (5 years).

      3. Basis for recognition of significant provisions

         1. Allowance for doubtful accounts

            To provide for potential losses from uncollectible receivables and loans, an allowance for doubtful accounts is recorded based on the historical loss rate for general receivables, and on an individual assessment of collectability for specific receivables, with the estimated uncollectible amounts recognized.

         2. Provision for bonuses

            To provide for the payment of bonuses to employees, a provision for bonuses is recognized in the amount expected to be borne for the consolidated fiscal year.

         3. Provision for share-based remuneration

            To provide for the delivery of Company shares to employees in accordance with the Stock Granting Regulations, a provision is recognized in the estimated amount based on the points allotted to employees at the end of the fiscal year.

         4. Provision for share-based remuneration for directors

            To provide for the delivery of Company shares to directors in accordance with the Stock-based Compensation Regulations, a provision is recognized in the estimated amount based on the points allotted to directors in office at the end of the fiscal year.

      4. Basis for recognition of significant revenues and expenses

         The details of major performance obligations in the Group's main businesses and the usual timing of revenue recognition are as follows.

         For major transactions, the period between the fulfillment of performance obligations and the receipt of consideration is generally two months or less. The amount of consideration does not include significant financial elements.

         1. Job ad service

            The job ad service provides clients who have the need to hire part-time, regular, and temporary employees with ad posting services on job information websites operated by the Group.

            The ad posting plans earn posting fees from clients by providing ad posting services on job information websites operated by the Group. Since the performance obligation will be satisfied over a certain period of time during which the job ad is posted, revenue is recognized proportionally over the contract term.

            Application and hiring fee plans earn fees from clients based on results when a user applies or is hired through a job information website operated by the Group. Revenues are recognized based on the judgment that the performance obligation is satisfied when a user applies for a job with the client in the case of the application fee plan, and when the client hires a user in the case of the hiring fee plan.

            Transaction prices are calculated based on the consideration promised in the contract with the client, less discounts and sales incentives. For transactions where multiple goods or services are included in one contract, performance obligation included in the contract is identified for each goods or service, with the transaction price allocated to each performance obligation based on the ratio of the independent selling price of the goods or service.

         2. Recruiting service

            The permanent placement service earns fees from clients with the need to hire nurses and other professionals by introducing persons who seek new positions. Since this is a performance-based service aimed at placing new position seekers, revenue is recognized based on the judgment that the performance obligation is satisfied when a candidate joins a company.

            Transaction prices are calculated based on the consideration promised in the contract with the client, less discounts. For transactions where it is stipulated in the contract that part of the consideration is to be refunded if the person introduced by the Group to the client company resigns within a certain period of time after joining the company, the refund amount is included in the estimated transaction price based on past performance, and refund liabilities are recorded and deducted from revenue.

            Revenue from the daily placement service is recognized at an amount equal to the commission calculated by multiplying the user's wages by a certain percentage. The performance obligations are considered fulfilled when the client approves the end of the user's service and the user's wages, etc., are determined.

            Transaction prices are calculated based on the consideration promised in the contract with the client, less any discounts.

         3. DX service

            The DX service earns service charges from clients faced with labor shortages and work efficiency issues by providing KOBOT, etc., which automates routine work. Since performance obligation will be satisfied over a certain period of time during which DX services are provided, revenue is recognized proportionally over the contract term.

            Transaction prices are calculated based on the consideration promised in the contract with the client, less discounts and sales incentives. For transactions where multiple goods or services are included in one contract, the performance obligation included in the contract is identified for each goods or service, with the transaction price allocated to each performance obligation based on the ratio of the independent selling price of the goods or service.

      5. Significant hedge accounting methods

         1. Hedge accounting method

            Deferred hedge accounting, in principle. Designated hedge accounting is applied to forward exchange contracts that meet the requirements of designated hedge accounting.

         2. Hedging instrument and hedged item

            Hedging instrument: Forward exchange contracts Hedged item: Accounts payable - other

         3. Hedging policy

            In accordance with the internal rules for derivative transactions, the Company hedges the risk of exchange rate fluctuations related to the hedged item within a specified range.

         4. Method of evaluating hedge effectiveness

            The effectiveness of hedging is evaluated by comparing the cumulative changes in cash flows or market fluctuations of the hedged item with the cumulative changes in cash flows or market fluctuations of the hedging instrument and based on the amount of the change. The Company has confirmed that forward exchange contracts related to foreign currency-denominated receivables and payables that are accounted for using the designated hedge accounting method meet the requirements for designated hedge accounting. That judgment is substituted for the evaluation of hedge effectiveness.

      6. Scope of cash in the consolidated statement of cash flows

         Cash in the consolidated statement of cash flows comprises cash in hand, demand deposits, and short-term investments with maturities of three months or less from the date of acquisition that are liquid, readily convertible into cash and are subject to minimum risk of price fluctuation.

      7. Other important matters related to the preparation of the financial statements

Accounting principles and procedures adopted in the absence of clear provisions of related accounting standards, etc. Restricted Stock Compensation Plan

Compensation paid to the Company's directors (excluding outside directors) and employees under the Company's

restricted stock compensation plan is expensed over the applicable service period.

(Changes in Presentation)

(Consolidated Statement of Income)

"Subsidy income," which was presented as a separate item under "Non-operating income" in the previous consolidated fiscal year, is included in "Other" under "Non-operating income" in the consolidated fiscal year under review, as the amount has become immaterial. The consolidated financial statements for the previous consolidated fiscal year have been reclassified to reflect this change.

As a result, the "Subsidy income" of ¥1,102 thousand, which was presented under "Non-operating income" in the previous consolidated fiscal year, has been reclassified as "Other."

"Loss on investments in investment partnerships," which was included in "Other" under "Non-operating expenses" in the previous consolidated fiscal year, is presented as a separate item in the consolidated fiscal year under review, as the amount has become significant. The consolidated financial statements for the previous consolidated fiscal year have been reclassified to reflect this change.

As a result, the ¥42,709 thousand that was presented in "Other" under "Non-operating expenses" in the previous consolidated fiscal year has been reclassified as ¥11,672 thousand in "Loss on investments in investment partnerships" and ¥31,036 thousand in "Other."

(Additional Information)

Stock Ownership Plan for Directors of the Company (Board Incentive Plan (BIP) Trust Scheme)

Pursuant to a resolution adopted at the board meeting on April 13, 2016, the Company introduced a Board Incentive Plan (BIP) trust scheme ("BIP Trust Scheme") for its directors (excluding outside directors and overseas residents. The same shall apply hereinafter.) in August 2016 to increase their motivation to contribute to improving corporate value in the medium-to-long term and to share a common sense of interest with the shareholders. At the board meeting held on the same day, a resolution was adopted to submit a proposal for introducing the BIP Trust Scheme to the 19th Annual General Meeting of Shareholders held on May 28, 2016. The proposal was approved at the shareholders meeting. Following the introduction of the BIP Trust Scheme, new stock acquisition rights will no longer be granted to directors in the future for stock options.

The Board of Directors resolved at its meeting on June 22, 2021, to extend the BIP Trust Scheme until August 2026.

Furthermore, at the 26th Annual General Meeting of Shareholders held on May 24, 2023, in connection with the transition to a company with an Audit & Supervisory Committee, the Company obtained approval to abolish the previous compensation framework under the BIP Trust Scheme, to establish a performance-linked stock-based compensation framework for directors (excluding directors who are Audit & Supervisory Committee members and outside directors; the "Eligible Directors"), and to continue the BIP Trust Scheme.

1. Summary of the scheme

   A BIP trust is an incentive plan for directors based on performance shares and restricted stock schemes of the United States. Company shares acquired by the BIP Trust and cash equivalent to the value of the Company shares are distributed to the Eligible Directors according to the degree of achievement of performance targets.

   By contributing funds to acquire Company shares, the Company has established a trust (BIP trust account), with Eligible Directors who meet certain requirements as the beneficiaries. The trust acquires the number of Company shares expected to be provided to the Company's Eligible Directors in accordance with pre-established stock-based compensation regulations through third-party allotment from the Company. Pursuant to the stock-based compensation regulations, the trust distributes Company shares and the cash equivalent of the proceeds from the sale of such shares on the date of determination of beneficiary right due to retirement, etc. to Eligible Directors who meet certain beneficiary requirements. The number of Company shares delivered is determined by the degree to which performance targets are achieved each fiscal year.

2. Company shares remaining in trust

Company shares held in the BIP trust account are recorded as treasury shares under net assets at book value to the trust (excluding ancillary expenses). The book value and number of said treasury shares were ¥228,440 thousand and 73,817 shares in FY'25/2, and ¥228,440 thousand and 73,817 shares in FY'26/2.

(Restricted Stock-Based Compensation Plan for Directors)

Pursuant to a resolution adopted at the board meeting on April 7, 2021, the Company introduced a directors compensation plan utilizing restricted stock (with performance-based conditions) ("Director RS Compensation Plan") to encourage the Company's directors (excluding outside directors) to further promote value sharing with shareholders and maximize social and economic values, thereby contributing toward the realization of the Company's corporate vision of becoming a 'Labor force solution company'. At the board meeting held on the same day, a resolution was adopted to submit a proposal for introducing the Director RS Compensation Plan to the 24th Annual General Meeting of Shareholders held on May 26, 2021. The proposal was approved at the shareholders meeting.

Pursuant to a resolution adopted at the board meeting on April 14, 2023, the Company passed a resolution to submit the following proposal to the 26th Annual General Meeting of Shareholders held on May 24, 2023: (i) To implement changes following the transition to a company with an Audit & Supervisory Committee and (ii) to extend the transfer restriction period by two years. The proposal was approved at the shareholders meeting.

Of the three directors who were granted restricted stock based on the proposal that was approved at the 24th Annual General Meeting of Shareholders, one retired due to the expiry of his term of office at the 26th Annual General Meeting of Shareholders. This director has continued to hold the restricted stock as a person equivalent to a director (corporate officer) until he was elected director and Audit & Supervisory Committee member at the 27th Annual General Meeting of Shareholders held on May 23, 2024, and as a director since his appointment as a director and Audit & Supervisory Committee member.

1. Summary of the plan

   The Company's directors (excluding directors who are Audit & Supervisory Committee members and outside directors; the "Eligible Directors") will pay all monetary claims granted by the Company as payment in kind in accordance with the resolution of the Company's Board of Directors and, in return, be subject to the issuance or disposition of common stock of Company shares.

   The amount to be paid per share of restricted stock will be determined by the Board of Directors based on the closing price of common stock of Company shares on the Tokyo Stock Exchange on the business day immediately preceding the date of resolution by the Board of Directors on the issuance or disposal of such restricted stock (if there is no closing price on such date, the amount will be based on the closing price on the most recent trading day) to the extent that such amount will not be an amount particularly favorable to the Eligible Directors who subscribe for such restricted stock.

   In addition, when issuing or disposing of the Company's common stock under the Director RS Compensation Plan, a restricted share allotment agreement (the "Allotment Agreement") will be executed between the Company and the Eligible Directors. The agreement shall include, among other matters, (i) a provision preventing the Eligible Directors from transferring, creating a security interest, or otherwise disposing of the Company's common stock that has been allotted to the Eligible Directors under the Allotment Agreement for a certain period, and (ii) a provision that, if certain events should arise, the Company will acquire such common stock for no consideration.

2. Provisions of Allotment Agreement

   The restricted share allotment agreement to be executed between the Company and the Eligible Directors pursuant to the Company's board resolution upon allotment of restricted stock shall include the following provisions.

   1. Provisions of transfer restrictions

      The Eligible Directors may not transfer, create a pledge, create a transfer security interest, make an inter vivos gift, make a bequest, or otherwise dispose in any way (the "Transfer Restrictions") of the Restricted Shares allotted to the relevant directors (the "Allotted Shares") to a third party for a period of up to six years as determined by the Company's Board of Directors (the "Transfer Restriction Period"). The Transfer Restriction Period is scheduled from August 27, 2021, through April 15, 2027.

   2. Acquisition of restricted stock without consideration

      In the event that an Eligible Director retires or resigns from any position as a director of the Company, a director of a subsidiary of the Company, or any other equivalent position before the expiry of the Transfer Restriction Period, the Company will automatically acquire the Allotted Shares without consideration, unless there is a reason that the Board of Directors of the Company deems justifiable. In addition, if there are any of the Allotted Shares for which transfer restrictions have not been lifted in accordance with the provisions of the reasons for the lifting of Transfer Restrictions below upon the expiry of the Transfer Restriction Period in above, the Company will automatically acquire such Allotted Shares without consideration.

   3. Conditions for releasing Transfer Restrictions based on performance conditions, etc.

      The Transfer Restrictions will be released at the expiry of the Transfer Restriction Period (or on the date the summary report

      on financial results for the year ending February 2027 is released, if such report is released prior to the expiry of the Transfer Restriction Period) for all or part of the Allotted Shares, subject to the enrollment conditions, which require Eligible Directors to remain in a position of director of the Company, a director of a subsidiary of the Company or equivalent throughout the Transfer Restriction Period, and based on the position conditions and the performance conditions. The Company will automatically acquire the Allotted Shares for which Transfer Restrictions are unreleased for no consideration.

      However, if an Eligible Director retires or resigns from the position of director of the Company, a director of a subsidiary of the Company or equivalent prior to the expiry of the Transfer Restriction Period for reasons deemed justifiable by the Board of Directors, the number of Allotted Shares for which Transfer Restrictions will be released and the timing of releasing the Transfer Restrictions shall be adjusted reasonably as needed.

3. Total number of shares held by Eligible Directors FY'25/2: 160,000 shares; FY'26/2: 160,000 shares

Stock Ownership Plan for Employees of the Company (Employee Stock Ownership Plan (ESOP) Trust Scheme)

Pursuant to a resolution adopted at the board meeting on April 12, 2012, the Company introduced an Employee Stock Ownership Plan (ESOP) trust scheme ("ESOP Trust Scheme") for its employees in May 2012 to improve the Company's corporate value in the medium-to-long term. A resolution was adopted at a board meeting held on March 10, 2023, to extend the ESOP Trust Scheme, and a resolution was passed at a board meeting held on August 1, 2023, to dispose of treasury shares on August 22.

1. Summary of the scheme

   An ESOP trust is a trust-type incentive plan for employees based on the employee stock ownership plan (ESOP) of the United States. It has a purpose of enhancing the compensation system for employees by utilizing Company shares.

   By contributing funds to acquire Company shares, the Company establishes a trust (ESOP trust account) with employees who meet certain requirements as the beneficiaries. Over a predetermined acquisition period, the trust acquires from the stock market Company shares in the number expected to be distributed to Company employees in accordance with pre-established stock granting regulations. Pursuant to the stock granting regulations, the trust distributes Company shares and cash equivalent to the proceeds from the sale of such shares according to the rank and years of service of the employee during the trust period to employees at no cost on their retirement. As the Company contributes all funds for acquiring Company shares to be acquired by the trust, there will be no financial burden on the employees.

2. Company shares remaining in the trust

Company shares held in the ESOP trust account are recorded as treasury shares under net assets at book value to the trust (excluding ancillary expenses). The book value and number of said treasury shares were ¥2,462,554 thousand and 2,010,670 shares in FY'25/2, and ¥2,316,642 thousand and 1,891,565 shares in FY'26/2.

(Restricted Stock-Based Compensation Plan for Employees)

Pursuant to a resolution adopted at the board meeting on May 27, 2020, the Company introduced an incentive plan for employees in August 2020 utilizing restricted stock ("Employee RS Compensation Plan") to enhance employee motivation and encourage each employee to further promote value sharing with shareholders and maximize the social and economic value of the Company, thereby contributing toward the realization of the Company's corporate vision of becoming a 'Labor force solution company'. In addition, at the board meeting held on June 22, 2021, the Company resolved to allot shares to employees who were hired between April 2, 2020 and May 31, 2021, and who were promoted between May 1, 2020 and May 31, 2021, and at the board of directors meeting held on July 13, 2022, to allot shares to employees who were hired or promoted between June 1, 2021 and June 1, 2022. At the Board of Directors meeting held on August 1, 2023, it also resolved to allot shares to employees hired or promoted between June 2, 2022 and June 1, 2023.

In the Employee RS Compensation Plan, the Company had set performance targets five years in advance, the achievement of which was the condition for releasing transfer restrictions. However, due to revisions to the medium-term management plan, the Board of Directors adopted a resolution to extend the transfer restriction period by two years and to revise the performance conditions for those allottees who are Company employees belonging to the DX Business Group, which had been sales and operating income of the DX business, to the same conditions as those applied to Company employees belonging to departments

other than the DX Business Group, which are consolidated sales and consolidated operating income (or non-consolidated sales and non-consolidated operating income if non-consolidated), based on a resolution adopted at the board meeting on April 14, 2023.

1. Summary of the plan

   The eligible employees will pay all monetary claims granted by the Company under the Employee RS Compensation Plan as payment in kind and, in return, be subject to the issuance or disposition of common stock of Company shares. The amount to be paid per common stock that will be issued or disposed of to the eligible employees by the Company under the Employee RS Compensation Plan will be determined by the Board of Directors based on the closing price of common stock of Company shares on the Tokyo Stock Exchange on the business day immediately preceding the date of resolution by the Board of

   Directors (if there is no closing price on such date, the amount will be based on the closing price on the most recent trading day) to the extent that such amount will not be an amount particularly favorable to the eligible employees who subscribe for such common stock.

   In addition, when issuing or disposing of the Company's common stock under the eligible employees, a restricted stock allotment agreement (the "Allotment Agreement") will be executed between the Company and the eligible employees. The

   agreement shall include, among other matters, (i) a provision preventing the eligible employees from transferring, creating a

   security interest, or otherwise disposing of the Company's common stock that has been allotted to the eligible employees under the Allotment Agreement for a certain period, and (ii) a provision that, if certain events should arise, the Company will acquire such common stock for no consideration.

2. Summary of the Allotment Agreement

   1. Transfer restriction period

      From August 27, 2020, through April 15, 2027

   2. Conditions for releasing transfer restrictions based on performance conditions, etc.

      The transfer restrictions will be released at the expiry of the transfer restriction period (or on the date the summary report on financial results for the year ending February 2027 is released, if such report is released prior to the expiry of the

      transfer restriction period) for all or part of the allotted shares, subject to the enrollment conditions, which require the eligible employees to remain in a position of director, corporate officer (who does not hold a position as director),

      employee or equivalent throughout the transfer restriction period, and the position conditions, which require the transfer restrictions to be released for the number of the allotted shares determined according to the employee's rank immediate prior to the expiry of the transfer restriction period, and based on the performance conditions. The Company will automatically acquire the allotted shares for which the transfer restrictions are unreleased for no consideration.

      However, if an eligible employee retires or resigns from the position of director, corporate officer (who does not hold a position as director), employee, or equivalent prior to the expiry of the transfer restriction period in question for reasons deemed justifiable by the Board of Directors, the number of allotted shares for which the transfer restriction will be

      released and the timing of releasing the transfer restriction shall be adjusted reasonably as needed.

   3. Total number of shares held by eligible employees FY'25/2: 880,563 shares; FY'26/2: 806,142 shares

(Consolidated Balance Sheet)

*1 Amounts related to non-consolidated subsidiaries and affiliates are as follows:

FY'25/2

FY'26/2

(¥ thousand)

(As of February 28, 2025) (As of February 28, 2026)

Investment securities (shares) 38,970 35,265

*2 Overdraft agreements and commitment line agreements

To facilitate efficient procurement of operating capital, the Company has entered into overdraft agreements with three banks.

In addition, to ensure flexibility and stability in financing, the Company has entered into commitment line agreements with

three financial institutions. The unused balance of loans under these agreements as of the end of the fiscal year under review is as follows.

FY'25/2

FY'26/2

(¥ thousand)

(As of February 28, 2025) (As of February 28, 2026)

The above commitment line agreements are subject to the following financial covenants. If the Company violates all of the following covenants, a lump sum repayment of the loan will be required at the lender's request.

FY'25/2 (As of February 28, 2025)

1. The total amount of net assets on the consolidated balance sheet as of the last day of the fiscal year must be maintained at ¥0 or more.

2. The amount of operating income or loss (or net income or loss after income taxes) on the consolidated statement of income as of the last day of the fiscal year must not be in the red for two consecutive years.

FY'26/2 (As of February 28, 2026)

1. The total amount of net assets on the consolidated balance sheet as of the last day of the fiscal year must be maintained at ¥0 or more.

2. The amount of operating income or loss (or net income or loss after income taxes) on the consolidated statement of income as of the last day of the fiscal year must not be in the red for two consecutive years.

(Consolidated Statement of Income)

*1 The major items and their amounts included in selling, general and administrative expenses are as follows:

Y'25/2

(¥ thousand) FY'26/2

(From March 1, 2024

To February 28, 2025)

(From March 1, 2025

To February 28, 2026)

*2 Total research and development expenses included in general and administrative expenses

FY'25/2

FY'26/2

(¥ thousand)

(From March 1, 2024

To February 28, 2025)

(From March 1, 2025

To February 28, 2026)

50,223 15,553

*3 Impairment loss

FY'25/2 (From March 1, 2024 to February 28, 2025)

1. Asset for which impairment loss was recognized

   (¥ thousand)

   Location	Usage	Type	Impairment loss
   Minato-ku, Tokyo	Asset for personnel recruiting services business	Software	333,979

2. Background to recognition of impairment loss

   Impairment loss was recognized since the Company considered it unlikely to earn profits as initially projected.

3. Asset grouping method

   In applying non-current asset impairment accounting, the Company groups assets at the lowest level for which there are cash flows that are largely independent of those from other assets.

4. Recoverable amount calculation method

The recoverable amount of the asset in question is measured on the basis of value in use. Since the value in use based on future cash flows is negative, the recoverable amount is estimated at zero.

FY'26/2 (From March 1, 2025 to February 28, 2026)

1. Asset for which impairment loss was recognized

   (¥ thousand)

   Location	Usage	Type	Impairment loss
   Minato-ku, Tokyo	Shared asset	Software	16,318

2. Background to recognition of impairment loss

   Impairment loss was recognized since future use is no longer expected.

3. Asset grouping method

   In applying non-current asset impairment accounting, the Company groups assets at the lowest level for which there are cash flows that are largely independent of those from other assets.

4. Recoverable amount calculation method

The recoverable amount of the asset in question is measured on the basis of value in use. Since the value in use based on future cash flows is negative, the recoverable amount is estimated at zero.

(Consolidated Statement of Comprehensive Income)

F FY'25/2 (From March 1, 2024 to February 28, 2025)

1. Type and total number of shares outstanding and treasury shares

   Type of shares	Number of shares at the beginning of the fiscal year	Number of shares increased during the fiscal year	Number of shares decreased during the fiscal year	Number of shares at the end of the fiscal year
   Shares outstanding
   Common stock	60,140,000	-	-	60,140,000
   Total	60,140,000	-	-	60,140,000
   Treasury shares
   Common stock (Notes 1, 2)	5,280,191	2,678,686	135,785	7,823,092
   Total	5,280,191	2,678,686	135,785	7,823,092

   Notes: 1. Summary of reasons for change in treasury shares

   The number of shares increased can be broken down as follows.

   Increase due to purchase of restricted shares without consideration: 133,532 shares

   Increase due to purchase of treasury shares on the market: 2,545,000 shares Increase due to request for purchase of odd-lot shares: 154 shares

   The number of shares decreased can be broken down as follows.

   Decrease due to exercise of stock options: 24,700 shares

   Decrease due to sale or delivery of shares in the ESOP trust account: 90,2350 shares

   Decrease due to delivery of restricted shares: 20,850 shares

2. The number of shares of Company stock held in the ESOP trust account that are included in the number of treasury shares at the beginning and end of the consolidated fiscal year is 2,100,905 shares and 2,010,670 shares, respectively, and the number of shares of Company stock held in the BIP trust account is 73,817 shares and 73,817 shares, respectively.

1. Share acquisition rights

   Company name	Breakdown	Type of shares subject to share acquisition rights	Number of shares subject to share acquisition rights				Balance at the end of the fiscal year (¥ thousand)
   			At the beginning of the fiscal year	Increase	Decrease	At the end of the fiscal year
   	8th series of stock options
   	based on resolution of the Board of Directors on June	-	-	-	-	-	311,502
   dip Corporation	21, 2018
   	9th series of stock options
   	based on resolution of the Board of Directors on June	-	-	-	-	-	74,438
   	21, 2019 (Note)
   Total			-	-	-	-	385,940

2. Dividends

   1. Dividend payments

      Resolution	Type	Total dividends (¥ thousand)	Dividend per share (¥)	Record date	Effective date	Source of dividends
      Meeting of Board of Directors on April 12, 2024 (Note 1)	Common stock	2,737,657	48	February 29, 2024	May 24, 2024	Retained earnings
      Meeting of Board of Directors on October 15, 2024 (Note 2)	Common stock	2,559,295	47	August 31, 2024	November 18, 2024	Retained earnings

      Notes: 1. Total dividends based on the resolution of the Board of Directors on April 12, 2024, include dividends of ¥10,843 thousand in relation to 2,100,905 shares of Company stock held in the ESOP trust account and dividends of ¥3,543 thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

      2. Total dividends based on the resolution of the Board of Directors on October 15, 2024, include dividends of ¥96,741 thousand in relation to 2,058,320 shares of Company stock held in the ESOP trust account and dividends of ¥3,469 thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

   2. Dividends with a record date in the fiscal year but an effective date in the following fiscal year

Note: Total dividends include dividends of ¥96,512 thousand in relation to 2010,670 shares of Company stock held in the ESOP trust account and dividends of ¥3,543 thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

FY'26/2 (From March 1, 2025 to February 28, 2026)

1. Type and total number of shares outstanding and treasury shares

   Type of shares	Number of shares at the beginning of the fiscal year	Number of shares increased during the fiscal year	Number of shares decreased during the fiscal year	Number of shares at the end of the fiscal year
   Shares outstanding
   Common stock	60,140,000	-	-	60,140,000
   Total	60,140,000	-	-	60,140,000
   Treasury shares
   Common stock (Notes 1, 2)	7,823,092	86,245	132,792	7,776,545
   Total	7,823,092	86,245	132,792	7,776,545

   Notes: 1. Summary of reasons for change in treasury shares

   The number of shares increased can be broken down as follows.

   Increase due to purchase of restricted shares without consideration: 86,208 shares Increase due to request for purchase of odd-lot shares: 37 shares

   The number of shares decreased can be broken down as follows.

   Decrease due to exercise of stock options: 1,900 shares

   Decrease due to sale or delivery of shares in the ESOP trust account: 119,105 shares

   Decrease due to delivery of restricted shares: 11,787 shares

2. The number of shares of Company stock held in the ESOP trust account that are included in the number of treasury shares at the beginning and end of the consolidated fiscal year is 2,010,670 shares and 1,891,565 shares, respectively, and the number of shares of Company stock held in the BIP trust account is 73,817 shares and 73,817 shares, respectively.

1. Share acquisition rights

   Company name	Breakdown	Type of shares subject to share acquisition rights	Number of shares subject to share acquisition rights				Balance at the end of the fiscal year (¥ thousand)
   			At the beginning of the fiscal year	Increase	Decrease	At the end of the fiscal year
   	8th series of stock options
   	based on resolution of the Board of Directors on June	-	-	-	-	-	288,637
   dip Corporation	21, 2018
   	9th series of stock options
   	based on resolution of the Board of Directors on June	-	-	-	-	-	67,894
   	21, 2019
   Total			-	-	-	-	356,531

2. Dividends

   1. Dividend payments

      Resolution	Type	Total dividends (¥ thousand)	Dividend per share (¥)	Record date	Effective date	Source of dividends
      Meeting of Board of Directors on April 14, 2025 (Note 1)	Common stock	2,611,520	48	February 28, 2025	May 23, 2025	Retained earnings
      Meeting of Board of Directors on October 14, 2025 (Note 2)	Common stock	2,554,764	47	August 31, 2025	November 17, 2025	Retained earnings

      Notes: 1. Total dividends based on the resolution of the Board of Directors on April 14, 2025, include dividends of ¥96,512 thousand in relation to 2,010,670 shares of Company stock held in the ESOP trust account and dividends of ¥3,543 thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

      2. Total dividends based on the resolution of the Board of Directors on October 14, 2025, include dividends of ¥91,332 thousand in relation to 1,943,235 shares of Company stock held in the ESOP trust account and dividends of ¥3,469 thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

   2. Dividends with a record date in the fiscal year but an effective date in the following fiscal year

Note: Total dividends include dividends of ¥- thousand in relation to 1,891,565 shares of Company stock held in the ESOP trust account and dividends of ¥- thousand in relation to 73,817 shares of Company stock held in the BIP trust account.

(Consolidated Statement of Cash Flows)

* Reconciliation of cash and cash equivalents as of the end of the fiscal year and the accounts reported in the balance sheet

(¥ thousand)

FY'25/2

From March 1, 2024

To February 28, 2025

FY'26/2

From March 1, 2025

To February 28, 2026

(Segment Information etc.)

[Segment information]

1. Overview of reported segments

   1. Method of determining reported segments

      The reported segments of the Company are those units for which separate financial statements can be obtained among the constituent units of the Company and which are regularly examined by the Board of Directors for decisions on the allocation of management resources and for assessing business performance.

   2. Types of products and services included in each reported segment

      The Company's reported segments are the personnel recruiting services business, which consists of online job information advertising and the recruitment of nursing staff, and the DX business, which develops and provides services that use DX.

2. Methods for calculating sales, profit or loss, assets, liabilities, and other items by reported segment

   The accounting methods used for reported segments are generally the same as those described in "Bases for Presenting Consolidated Financial Statements".

   The income figures stated in the reported segments are based on operating income.

3. Information on amounts of sales, profit or loss, assets, liabilities, and other items and revenue breakdown by reported segment FY'25/2 (March 1, 2024 to February 28, 2025)

(¥ thousand)

Notes: 1. Adjustment of segment profit of ¥(8,364,799) thousand is corporate expenses not allocated to any reported segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to any reported segment.

1. Segment profit was reconciled with operating income of the consolidated statement of income.

2. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decision by the highest decision-making body, such information was not allocated to each segment.

FY'26/2 (March 1, 2025 to February 28, 2026)

(¥ thousand)

Notes: 1. Adjustment of segment profit of ¥(9,806,417) thousand is corporate expenses not allocated to any reported segment. Corporate expenses are mainly selling, general, and administrative expenses that are not attributable to any reported segment.

1. Segment profit was reconciled with operating income of the consolidated statement of income.

2. Assets, liabilities and other items of the reported segments are not disclosed because, based upon a management decision by the highest decision-making body, such information was not allocated to each segment.

[Related information]

FY'25/2 (March 1, 2024 to February 28, 2025)

1. Information by product and service

   (¥ thousand)

   	Media (job advertising) service	Permanent Placement services	DX services	Other services	Total
   Sales to outside customers	47,438,361	2,120,448	6,723,335	104,047	56,386,193

2. Regional information

   1. Sales

      Not applicable, since there are no sales to overseas customers.

   2. Property, plant and equipment

      (¥ thousand)

      Japan	United States of America	Total
      2,287,416	380,061	2,667,477

3. Information on each major client

Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information on major clients is omitted.

FY'26/2 (March 1, 2025 to February 28, 2026)

1. Information by product and service

   (¥ thousand)

   	Media (job advertising) service	Permanent Placement services	DX services	Other services	Total
   Sales to outside customers	46,048,469	1,848,227	6,613,740	342,322	54,852,760

2. Regional information

   1. Sales

      Not applicable, since there are no sales to overseas customers.

   2. Property, plant and equipment

      (¥ thousand)

      Japan	United States of America	Total
      2,522,950	357,707	2,880,657

3. Information on each major client

Since no sales to a specific customer exceeded 10% of the sales reported on the income statement, the disclosure of information on major clients is omitted.

[Impairment loss on non-current assets by reported segment] FY'25/2 (March 1, 2024 to February 28, 2025)

(¥ thousand)

Note: An impairment loss of ¥333,979 thousand was recorded for the personnel recruiting services business since the Company considered it unlikely to earn profits as initially projected.

FY'26/2 (March 1, 2025 to February 28, 2026)

(¥ thousand)

Note: The "Company-wide" amount pertains to a shared asset that does not belong to a reported segment. An impairment loss of

¥16,318 thousand was recorded since the asset's future use is no longer expected.

[Goodwill amortization and unamortized balance by reported segment] Not applicable.

[Information on gain from negative goodwill by reported segment] Not applicable.

(Revenue Recognition)

1. Breakdown of revenues from contracts with customers

   The breakdown of revenue from contracts with customers is as described in "Notes, (Segment Information, etc.)".

2. Information fundamental to understanding revenues from contracts with customers

   Information fundamental to understanding revenues from contracts with customers is as described in "Notes, ("Bases for Presenting Consolidated Financial Statements), 4. Accounting policies, (4) Basis for recognition of significant revenues and expenses".

3. Information for understanding the amount of revenues of the fiscal year under review and upcoming fiscal years

   1. Balance of claims arising from contracts with customers and contract liabilities

      	FY'25/2 (¥ thousand)
      	Balance at beginning of period	Balance at end of period
      Claims arising from contracts with customers	5,785,358	5,562,822
      Contract liabilities	938,197	895,014

      Note: Contract liabilities are related to unearned revenue received from customers before the provision of services and are

      reversed upon recognition of revenue. Of the revenue recognized in FY'25/2, the amount included in the balance of contract liabilities as of the beginning of the period was ¥938,123 thousand.

      	FY'26/2 (¥ thousand)
      	Balance at beginning of period	Balance at end of period
      Claims arising from contracts with customers	5,562,822	5,201,252
      Contract liabilities	895,014	762,645

      Note: Contract liabilities are related to unearned revenue received from customers before the provision of services and are

      reversed upon recognition of revenue. Of the revenue recognized in FY'26/2, the amount included in the balance of contract liabilities as of the beginning of the period was ¥894,949 thousand.

   2. Transaction price allocated to remaining performance obligations

      The Group applies practical convenience for the note on the transaction price allocated to remaining performance obligations and does not include the following contracts in the targets of the note: a) contracts with an initial anticipated term of one year or less; and b) contracts that recognize revenue at the amount that the Company has the right to charge according to the service performed. The Group has no significant transaction where the initial anticipated term is more than one year.

      (Per Share Information)

      	FY'25/2 From March 1, 2024 To February 28, 2025	FY'26/2 From March 1, 2025 To February 28, 2026
      Net assets per share	¥684.99	¥703.28
      Net income per share	¥168.41	¥113.81
      Diluted net income per share	¥168.32	¥113.79

      Notes: 1. The basis for calculation of net income per share and diluted net income per share is as follows.

      	FY'25/2 From March 1, 2024 To February 28, 2025	FY'26/2 From March 1, 2025 To February 28, 2026
      Net income per share
      Net income attributable to owners of parent (¥ thousand)	8,951,259	5,956,060
      Amount not attributable to common stock shareholders (¥ thousand)	-	-
      Net income attributable to owners of common stock of parent (¥ thousand)	8,951,259	5,956,060
      Average number of shares of common stock outstanding during the fiscal year (shares)	53,152,520	52,335,212
      Diluted net income per share
      Adjustment for net income attributable to owners of parent (¥ thousand)	-	-
      Increase in number of shares of common stock (shares)	26,538	8,741
      Of which, share acquisition rights (shares)	26,538	8,741
      Description of potentially dilutive shares not included in the computation of diluted net income per share because of their anti-dilutive effect	No. of 8th series of share acquisition rights: 2,316 No. of shares to be issued up on exercise of the 8th series of share acquisition rights: 231,600 shares of common stock	No. of 8th series of share acquisition rights: 2,146 No. of shares to be issued up on exercise of the 8th series of share acquisition rights: 214,600 shares of common stock

      1. The number of Company shares held in the ESOP trust account (2,010,670 shares at the end of FY'25/2 and 2,065,370 shares for the average of FY'25/2) and the number of Company shares held in the BIP trust account (73,817 shares at the end of FY'25/2 and 73,817 shares for the average of FY'25/2) are excluded from the average number of shares of common stock outstanding during the fiscal year that was used in the calculation of per share information for FY'25/2.

      2. The number of Company shares held in the ESOP trust account (1,891,565 shares at the end of FY'26/2 and 1,955,389 shares for the average of FY'26/2) and the number of Company shares held in the BIP trust account (73,817 shares at the end of FY'26/2 and 73,817 shares for the average of FY'26/2) are excluded from the average number of shares of common stock outstanding during the fiscal year that was used in the calculation of per share information for FY'26/2.

(Significant Subsequent Events)

Not applicable.

(Note) English documents are prepared as a courtesy to our stakeholders. In the event of any inconsistency between English-language documents and Japanese-language documents, the Japanese-language documents will prevail.