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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 1, 2023
Company name:Dream Incubator Inc.
Stock exchange listing: Tokyo
Stock code:

4310

Representative:
Inquiries:

Representative Director & President
Executive Officer, CorporateURL

https://www.dreamincubator.co.jp
Takayuki MiyakeToshihiro Uemura

Scheduled date to file Quarterly Securities Report:

November 7, 2023

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

Holding of quarterly financial results meeting:

Yes

TEL

03-5532-3200(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2023
2,414 (87.2)(683)–(688)–(674)–
Six months ended September 30, 2022
18,876
12.4
794
–
878
–
1,017
–
Earnings per share

Diluted earnings per share

Yen(71.41)104.25Six months ended September 30, 2023
Six months ended September 30, 2022

Yen–
104.10(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023Net assets

Millions of yen
19,89131,310Equity ratio

Millions of yen
17,69021,917

%
86.4
68.5

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
0.00
0.00

Yen
0.00
0.00

Yen
0.00

Yen
191.11

Yen
191.11–––

Year ending March 31, 2024 (Forecast)

1Total3. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:No
Changes in accounting policies due to other reasons: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 September 30, 2023

10,465,100 shares As of March 31, 2023

10,465,100 shares

Number of treasury shares at the end of the period
As of September 30, 2023

1,408,391 shares As of March 31, 2023

700,977 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

9,440,533 shares Six months ended September 30, 2022

2

9,756,807 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)As of March 31, 2023

As of September 30, 2023

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

10,397
1,074

6,913
1,339

Operational investment securities

5,463

5,246

Securities
Allowance for investment loss

13,800
(103)

5,300
(103)

191

688

Other
Allowance for doubtful accounts

(24)

(24)

30,80019,360

249

273

Other

87

Total intangible assets

87

Investment securities
Deferred tax assets
Other65
29
158

65
27157

Total investments and other assets

252

250

510

530

31,31019,891

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade33

Current portion of long-term borrowings
Income taxes payable

50
6,158

–
53

Provision for shareholder benefit program

19–

Provision for bonuses
Provision for bonuses for directors (and other officers)

1240

1–

Other

1,856

851

Total current liabilities

8,328

909

Non-current liabilities
Deferred tax liabilities

124

273

939

1,017

00

1,064

1,291

9,393

2,201

Shareholders' equity
Share capital
Capital surplus

5,019
4,548

5,019
4,548

Retained earnings
Treasury shares

12,648(1,366)

9,974(3,301)

Total shareholders' equity

20,850

16,241

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

630
(39)

944
1

Total accumulated other comprehensive income

590

946

475

502

21,917

17,69031,31019,891

Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
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)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

18,876
10,755

2,414
1,933

Gross profit

8,121

481

Selling, general and administrative expenses

7,327

1,164

Operating profit (loss)

794(683)

Non-operating income
Interest income

1111

Gain on sale of non-current assets

30–

Foreign exchange gains
Other477–
2

Total non-operating income

9714

Non-operating expenses
Interest expenses

50Commission expenses
Foreign exchange losses
Loss on retirement of non-current assets

1–
41170

Other

10

Total non-operating expenses

1319878(688)

Gain on sale of shares of subsidiaries and associates

546–

Total extraordinary income

546–

Profit (loss) before income taxes

1,425(688)

Income taxes - current
Income taxes - deferred636(275)3641

Total income taxes

361

78

1,063(767)

46(93)

1,017(674)

Ordinary profit (loss)
Extraordinary income

Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2022
Profit (loss)

Six months ended
September 30, 2023

1,063(767)

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

454
56

353
41

Total other comprehensive income

511394Comprehensive income

1,574(372)Comprehensive income attributable toComprehensive income attributable to owners of parent

1,505(318)69(53)

Other comprehensive income

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in outstanding claims

1,425(688)

165
26

30–

168

–

1,6320–080–(240)

67

77

(16)

(19)

(11)

(11)

Foreign exchange losses (gains)

(48)

0

Loss (gain) on sale of non-current assets

(30)

–

Loss (gain) on sale of shares of subsidiaries and associates
Decrease (increase) in operational investment securities

(546)
578

–
654

Decrease (increase) in short-term investment securities
Decrease(Increase) in trade receivables and contract assets
Decrease (increase) in inventories

(793)
23
5–
(290)
–

Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other1000(44)

(3)
(14)
(624)

Increase (decrease) in policy reserve
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for share awards
Increase (decrease) in provision for shareholder benefit
programInterest and dividend income

Other, net

(154)

(901)

Subtotal

2,556(2,031)

12(5)

16–

Income taxes refund
Income taxes paid

7(106)

0(5,874)

Net cash provided by (used in) operating activities

2,464(7,889)(86)
140––(159)
157
(0)

(154)
134
(1,500)10,000(226)
–
(3)

793

–(0)
208
(3)
156

(0)
0(2)
2

1,204

8,250

Interest and dividends received
Interest paid

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Loan advances
Proceeds from collection of loans receivable
Net cash provided by (used in) investing activities

7

(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Cash flows from financing activities
Proceeds from issuance of shares

7–

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

(900)
200––

Repayments of long-term borrowings

(647)

(50)

33–

149

106–

(21)

–

(1,935)

Dividends paid–(1,995)

Other, net(5)0

Net cash provided by (used in) financing activities(1,161)(3,896)

Effect of exchange rate change on cash and cash equivalents

71

31Proceeds from share issuance to non-controlling shareholders
Contributions from non-controlling interests in consolidated
investment funds
Distributions to non-controlling interests in consolidated
investment funds
Purchase of treasury shares

Net increase (decrease) in cash and cash equivalents

2,579(3,503)

Cash and cash equivalents at beginning of period12,810

10,263

Cash and cash equivalents at end of period

15,3896,7598