Q3 FY03/2023

Supplementary Materials for
Consolidated Financial Results
February 7,2023
Dream Incubator Inc.
(Stock Code: 4310)
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SUMMARY
Q3 performance● Business Production: Remained strong– Q3 sales of JPY2.7bn (+33% YoY, 82% of full-year plan)○Record-high quarterly sales in Q3– Accelerate further investment (hiring) in Q4 looking to future growth● Incubation: Moving ahead with recovering profit– Business Investment: Subsidiary ipet Holdings tender offer completed in January– Venture Capital: Profit grew significantly YoY due to large-scale recovery of funds
Impact of ipet sale
● Set to book extraordinary income of roughly JPY18.1bn in Q4● Roughly JPY15.0bn in cash (after tax). Uses decided at this stage:– Special year-end dividend of JPY2.0bn as preliminary shareholder return,targeting total return of JPY10.0bn– Special bonus of JPY2.0bn* as HR investment, targeting total growth investmentof JPY5.0bn● Remaining JPY8.0bn in planned returns to be completed by the end of the final yearof the Medium-Term Management Plan (June 2025) through share buybacks anddividends– Further details to be announced when FY03/23 results released in May 2023*

Portion exceeding annual remuneration limit for directors to be paid subject to approval at the June
2023 Annual General Meeting of Shareholders© DI 2023 － ALL RIGHTS RESERVED.

1

Q3 FY03/2023 CONSOLIDATED P&L

Q3
FY03/2022

Q3
FY03/2023

Amount%

Sales

26.10

28.99

2.88

11.0%

Gross profit

10.97

12.99

2.01

18.4%

Operating profit

0.01

1.95

1.94

－

Recurring profit

0.25

2.00

1.74

679.8%Net income

0.04

1.45

1.41－(JPYbn)

YoY change(attributable to parent company shareholders)Note: Disclosure of profit (loss) after adjustment for insurance items discontinued due to the transfer of ipet Holdings© DI 2023 － ALL RIGHTS RESERVED.

2Q3 FY03/2023 P&L by SEGMENT
Q3
Q3
FY03/2022 FY03/2023(JPYbn)YoYchange● Sales● Recurringprofit

2.03

2.70

33%

0.27

0.29

10%

VentureCapital● Sales● Recurring
profit

0.77

1.91

148%

0.270.83

203%

Business Investment

BusinessProductionPetLifestyle● Sales● Recurring
profit*

24.37

16%

0.10

0.87761%● Sales0.97－－

profit-0.12－－● Sales

1.39－－-0.26－－

HR
Innovation ● Recurring

FanMarketing

20.99● Recurring
profitNotes● Record-high quarterly sales in Q3● Accelerate further investment inQ4 looking to future growth● Recovery from one large-scale
project, achieved major growth● No significant recovery of profit
expected in Q4● Tender offer successful,extraordinary income of roughly
JPY18.1bn set to be booked in Q4● Consolidated until Q3● Sold in Q1 FY03/2023 andrecorded JPY0.03bn in
extraordinary income● Excluded from consolidationfrom beginning of FY03/2023● Sold in Q1 FY03/2023 andrecorded JPY0.51bn in
extraordinary income● Excluded from consolidationfrom beginning of FY03/2023

Note: Recurring profit was calculated as segment profit - companywide expenses ± non-operating profit/loss*
Disclosure of profit (loss) after adjustment for insurance items discontinued due to the transfer of ipet Holdings© DI 2023 － ALL RIGHTS RESERVED.

3

BUSINESS PRODUCTION SALES
Sales* progress vs. plan

Quarterly sales*(JPYbn)(JPYbn)

7.0

5.9

6.0

0.6
6

3.3

2.5

0.5
5

2.7

2.6

0.84

0.71
0.61
0.52

0.4
4

2.0

0.3
3
0.2
2

1.0

0.1
10.0
FY
通期
Plan

計画

FY
通期
Actual実績

FY03/2022
*0.78

0.8
8
0.7
7

4.0

3.0

0.86

9
0.9

4.8

5.0

0.99

10
1.0

FY
通期
Plan

計画

Q33Q
Actual実績

FY03/2023

FY
通期
Plan

計画

FY
通期
Actual実績

FY03/2024FY
通期Plan計画

FY
通期Actual

実績

002022/3 2022/3 2022/3 2022/3 2023/3 2023/3 2023/3
1Q
2Q
3Q
4Q
1Q
2Q
3Q

FY03/2025

Excluding sales and profit from carved-out businesses© DI 2023 － ALL RIGHTS RESERVED.

4Q3 FY03/2023 CONSOLIDATED BALANCE SHEETMarch 31, 2022

December 31,2022（Total assets: JPY36.3bn）(Total assets: JPY33.5bn)

Cash and deposits
JPY17.4bn

Cash and deposits
JPY12.9bn
Liabilities
JPY21.1bn

Breakdown of change in net assets● Net income＋JPY1.45bn

Venture capital
JPY6.1bn● Non-controlling interests＋JPY0.36bn

iPet investment
securities
JPY3.0bn● Valuation differences onavailable-for-sale securities＋JPY0.06bn● Other comprehensive income▲JPY0.10bn

Other assets
JPY11.4bn

Liabilities
JPY22.0bn

Net assets
JPY12.4bn● Capial surplus● Total＋JPY0.09bn＋JPY1.86bn

Venture capital
JPY5.4bn
iPet investment
securities
JPY3.0bn

Other assets
JPY10.3bn

Net assets
JPY14.3bn

Includes non-controlling

Includes non-controllinginterests of JPY2.6bn

interests of JPY3.0bn© DI 2023 － ALL RIGHTS RESERVED.

5

STATUS OF INVESTMENT AS OF END-Q3 FY03/2023
Book value*
Unrealized gains(JPYbn)Market value**：9.6

4.3

Market value **：10.5

5.8

Tax 1.1***

Tax 1.6

5.3

4.6

March 31, 2022

December 31,2022

Fund investments include DI’s interests only.
Listed companies: Market capitalization at period-end × DI’s interests
Unlisted companies: Book value of investment at period-end ± mark-to-market valuation difference(recent financing prices and third party transaction prices)
When these prices are unavailable, book value is used without revaluation.
© DI 2023 － ALL RIGHTS RESERVED.

6

PROCEEDS FROM IPET SALE: POLICY CURRENT DECISIONS
Further returns to be announced in May
Implementation plan

Current decisions

Special year-end dividend of JPY2.0bn

Shareholder
return of
JPY10.0bn

While comprehensively taking
into consideration stock prices
and other factors, provide
returns to reward shareholder
support over the longer term

Growthinvestmentof JPY5.0bn

Allocate to investments that help
strengthen the Business
Production platform and expand,evolve (including acquisitions)Special bonus of JPY2.0bn for executives
and employees as HR investment (toattract, retain highly talented personnel)● Remaining JPY8.0bn in planned
returns to be completed by the endof the final year of the MediumTerm Management Plan (June 2025)
through share buybacks anddividends● JPY1.5bn in cash, JPY0.5bn in stock
remuneration© DI 2023 － ALL RIGHTS RESERVED.

7

DI ＝ The Business Producing Company

Mission: Create Businesses and Change Societies
Vision:Become the First Choice of Challengers

Value:

Advance Beyond Boundaries.
‒ Envision Beyond Boundaries of Areas‒ Formulate Beyond Boundaries of Customaries‒ Partner Beyond Boundaries of Organizations‒ Challenge Beyond Boundaries of Ourselves© DI 2023 － ALL RIGHTS RESERVED.

8Disclaimer

These materials contain forward-looking statements pertaining to forecasts
and future strategies, which are based on information available to theCompany at the time the materials were prepared. These statements are notguarantees that targets and forecasts will be reached, nor an assurance offuture operating results. Future performance may vary substantially due tochanges in the operating environment, downturns in performance at investee
companies, share price fluctuations in the markets for financial products, andother factors.
Also, the content of these materials may change without notice. People using
these materials are advised to refer also to other sources of information andmake any decisions based on their own judgment. The Company accepts
absolutely no responsibly for losses arising from the use of these materials.

© DI 2023 － ALL RIGHTS RESERVED.

9The Business Producing Company