Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2022
(Based on Japanese GAAP)
August 5, 2022
Company name:Dream Incubator Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

4310
URL https://www.dreamincubator.co.jp
Representative Director and CEO
Tetsuro Harada

Inquiries:
Executive Officer,Corporate
Scheduled date to file Quarterly Securities Report:

Toshihiro Uemura
August 10, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

03-5532-3200(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2022
Three months ended June 30, 2021

Millions of yen
8,983
7,974

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
12.7
352
–
421 605.5
728
–
31.3
(138)
–59–
(21)
–

Earnings per share

Diluted earnings per share

Yen
74.65
(2.22)

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen
74.55
–

(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Millions of yen
33,88433,574Equity ratioMillions of yen
13,671
12,454%32.1
29.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00

Yen
0.00

Yen
0.00

Yen
–

0.00

0.00

––

Year ending March 31, 2023 (Forecast)

1

Total

3. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

10,465,100 shares As of March 31, 2022

10,454,500 shares

Number of treasury shares at the end of the period
As of June 30, 2022

705,419 shares As of March 31, 2022

705,419 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022

9,753,901 shares Three months ended June 30, 2021

2

9,670,078 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

12,933
5,325

12,485
4,468

Operational investment securities
Securities

6,530
2,767

7,033
3,751

Allowance for investment loss
Inventories(357)
87(357)21

Other
Allowance for doubtful accounts

740
(26)

1,335
(26)

28,001

28,712

916

892

814

442

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

982

758

1,796

1,200

354
2,015

354
2,188

Investments and other assets
Investment securities
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

3489

536

2,859

3,079

5,572

5,172

33,57433,884

(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade554

3

Short-term borrowings
Current portion of long-term borrowings

1,100
395

100
300

Reserve for insurance policy liabilities
Outstanding claims

14,594
2,075

15,533
2,189

Policy reserve
Income taxes payable

12,519231

13,344
342

23283

8384

Other1,833

1,828

Total current liabilities

19,01718,501

1,648
81

1,050
257

Provision for share awards
Other313
59

345
57

Total non-current liabilities

2,101

1,711

21,11920,213

Shareholders' equity
Share capital

5,014

5,019

Capital surplus
Retained earnings

4,458
942

4,461
1,670

Treasury shares(1,099)(1,099)Total shareholders' equity

9,316

10,052

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

523
(61)

858
(30)

Total accumulated other comprehensive income

Provision for shareholder benefit program
Provision for bonuses

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

Total liabilities
Net assets

Accumulated other comprehensive income462

827

Share acquisition rights
Non-controlling interests

3
2,672

–
2,790

Total net assets

12,454

13,671

33,57433,884

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2021

June 30, 2022

Net sales
Cost of sales

7,974
4,547

8,983
5,031

Gross profit

3,427

3,951

Selling, general and administrative expenses

3,565

3,599

Operating profit (loss)

(138)

352

4
14–

Gain on sale of investment securities
Gain on sale of non-current assets

186––
30

Foreign exchange gains
Other–
1239
5

Total non-operating income

205

80

Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses

23

Foreign exchange losses
Loss on retirement of non-current assets

10–
4

Price change reserve provision
Other1101

Total non-operating expenses
Ordinary profit

61059

421

–

546

Extraordinary income
Gain on sale of shares of subsidiaries and associates–

546

Profit before income taxes

Total extraordinary income

59968

Income taxes - current

51279

Income taxes - deferred24(76)

Total income taxes

76

203

Profit (loss)

(16)

765

Profit attributable to non-controlling interests

437

Profit (loss) attributable to owners of parent

(21)

728

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Three months ended

Three months ended

June 30, 2021

June 30, 2022
(16)

765

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

58(2)

342
31

Total other comprehensive income

56

374

39

1,139

27

1,093

1246

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6