1H FY03/2024

Financial Results
Briefing Presentation
November 1, 2023
Dream
Incubator Inc. (stock code: 4310)
株式会社ドリームインキュベータ

INTRO: Positioning of FY03/2024 in the Medium-Term Management Plan
Medium-term profit plan (FY03/2023–FY03/2025)

Current
fiscal year

Net income
attributable toparentcompany
shareholders*(JPYbn)+JPY11.0bn (unrealized gains after tax)***(harvest=upside)

JPY12.4bn fromthe sale of ipet
Achieved

1.0
0.6

0.3
FY03/2023

•
**
***

Incubation

FY03/2024

FY03/2025

Sales (JPYbn)(Actual)
3.3 3.8

4.8

5.9

Personnel (no.)

70

87

93

115

EPS (JPY)**

31

30

56

102

Simple calculation of recurring profit x tax rate of 30%
Estimates are based on the total number of shares issued as of March 31, 2022
As of March 31, 2022. Unrealized gains after tax as of September 30, 2023: JPY3.8bn

Business Production(base)©2023 Dream Incubator Inc. All Rights Reserved.

1

SUMMARY
1H results: Business Production grew firmly, while Venture Capital booked impairment losses in threecompanies● Business Production (base business):– Sales: JPY2.08bn (+22% YoY)
○ In addition to capturing the needs for business creation projects, orders for the new service,
Technology & Amplify (T&A), began to grow in full-scale– Operating loss: JPY0.23bn○ Sales growth accelerated despite ongoing aggressive hiring, and the business moved into the black on
a monthly basis● Venture Capital (harvesting investments appropriately):– Operating loss: JPY0.44bn○ Posted impairment losses for investment in three Indian companies, due to the prolonged weaksentiment in the local financing market
Toward achieving the full-year targets● Business Production: Demand continues holding firm. Plan to absorb cost increases with anticipatedfurther growth in orders in 2H, and continue working toward achieving the full-year net
income target of JPY0.6bn● Venture Capital: Impairment losses preceded profit gains. Plan to continue recouping investments
appropriately in 2H
Shareholder returns● Announced a plan for returning a total of JPY10.0bn to shareholders in three years. Share buyback of up to
JPY3.0bn is currently under way.
©2023 Dream Incubator Inc. All Rights Reserved.

2

1H FY03/2024 Financial Results
Reference Materials● Company profile● Current medium-term management plan

©2023 Dream Incubator Inc. All Rights Reserved.

3

1H FY03/2024 CONSOLIDATED P&L
Excludes businesses sold in FY03/2023

Sales

1H FY03/2024(JPYbn)(JPYbn)YoY change
(%)

2.87

2.41

-16

● Business Production

1.70

2.08

22

● Venture Capital

1.17

0.32

-72

0.48

-0.68

－

● Business Production*

0.16

-0.23

－

● Venture Capital*

0.32

-0.44

－

Recurring profit

0.53

-0.68

－

Net income

－**

-0.67

－

Operating profit***

1H FY03/2023

Segment operating profit = segment profit – companywide expenses
No figure provided for 1H FY03/2023, as net income for FY03/2023 was calculated based on all businesses, including those already sold©2023 Dream Incubator Inc. All Rights Reserved.

4

BUSINESS PRODUCTION: SALES
Sales progress vs. plan

Quarterly sales*
YoY(JPYbn)Progress rate

70
7.0

43%
5.9

6.0
60
5.0
50
40
4.0

＋34%

(JPYbn)
14
1.4

＋11%

1.13

12
1.2

4.8

0.99

10
1.0

3.8

0.8
8

3.3

3.0
30

0.6
6

2.08

20
2.0

0.71

0.78

1.12
0.96

0.86 0.84

0.61
0.52

0.4
4

10
1.0

0.2
2

0
通期
FY

通期
FY

Plan
計画

Actual実績

FY03/2023*

Excludes sales in businesses sold

通期

通期

通期

2Q
1H
実績
ActualFY
FY
ActualPlan
計画 実績

FY03/2024

FY03/2025

FY
Plan
計画

0
1Q
Q1 2Q
Q2 3Q
Q3 4Q
Q4
FY03/2022

1Q
Q1

2Q
Q1
Q2 3Q
Q3 4Q
Q4 1Q
FY03/2023

2Q
Q2

FY03/
2024

©2023 Dream Incubator Inc. All Rights Reserved.

5

BUSINESS PRODUCTION: NUMBER OF BUSINESS PRODUCERS*(No. of people)

140

131

120

Of which,
T&A: 36100

Of which,
T&A: 1780
60

Increase/decrease

87

58

End-Mar2023

Net
increase

BP

70

25

T&A

17

19

36

Total

87

44

131

(excl. T&A)

40**

End-Sep
2023

95

20
0
End22/3期
FY03/2022
期末***

Excludes employees dedicated to Incubation
Includes two employees transferred from Incubation

End23/3期
FY03/2023
期末

FY03/2024
24/3期(end-Sep)
9月末時点©2023 Dream Incubator Inc. All Rights Reserved.

6

BUSINESS PRODUCTION: Q2 SALES GROWTH OFFSET HIGHER PERSONNEL AND
OTHER EXPENSES
Year-on-year comparison of quarterly sales and personnel and hiring expenses
Q1 (April–June)

Increase insales

Q2 (July–September)(JPYbn)

＋0.29
＋0.10

Increase inpersonnel andhiringexpenses

-0.31

-0.25

©2023 Dream Incubator Inc. All Rights Reserved.

7

GROWTH IN MONTHLY SALES OF BUSINESS PRODUCTION ACCELERATED IN THE LATTERHALF OF 1H; CONTINUE AIMING FOR NET INCOME OF JPY0.6BN FOR FY03/2024
Monthly sales

Confirmed portion of full-year sales*(at each point in time)(JPYbn) Sales growth sped up in the latter half of 1H● Monthly sales in Sep. were about double the year-ago results5
0.5(JPYbn)
60
6.0
50
5.0

4
0.4

24/3期
FY03/2024
FY03/2023
23/3期
FY03/2022
22/3期

Sales target in themedium-term plan
3.83

40
4.0
3
0.3

3.09
30
3.0

2.31

2
0.2
20
2.0
1.23

1
0.1

0

Apr.
4月
May
5月
Jun.
6月
Jul.
7月
Aug.
8月
Sep.
9月
Oct.
10月
Nov.
11月
Dec.
12月
Jan.
1月
Feb.
2月
Mar.
3月
Apr.
4月
May
5月
Jun.
6月
Jul.
7月
Aug.
8月
Sep.
9月
Oct.
10月
Nov.
11月
Dec.
12月
Jan.
1月
Feb.
2月
Mar.
3月
Apr.
4月
May
5月
Jun.
6月
Jul.
7月
Aug.
8月
Sep.
9月

10
1.0

FY03/2022*

FY03/2023

Of total orders, orders for which sales are recorded in the current fiscal year.
FY03/2022 figures exclude sales of transferred businesses.

FY03/
2024

0

1.12

2.14

2.53

3.02
2.36

2.62

1.85

1.25

0.46

Orders received
前期受注済
in the previous year

1Q
Q1

2Q
Q2

3Q
Q3

4Q
Q4

©2023 Dream Incubator Inc. All Rights Reserved.

8

PROJECT CASE STUDIES
Projects outside the existing scope of Business Production are growing
Platform development support utilizing digital twin
technology (client: Chubu Electric Power)

Verification testing to expand the use of My Number Card in
the entertainment domain (client: Digital Agency)

Overview

Overview● In collaboration with Chubu Electric Power, developed● Verified the possibility of enhancing operationala novel production line system utilizing the metaverse
for small and midsize manufacturers– Aimed to optimize and enhance the efficiency of

production lines– Upgraded to a platform that various small andmidsize companies can jointly use

SC building
simulation
SC planning

3D
simulation of
productionlines
Production
run

Designprocess
consulting
Product
designFrom an article published on Nikkei xTECH(From left: Miyashita [DI], General Manager Tanaka of Chubu Electric Power’s
Advanced Research & Innovation Center, Sato [DI], and Numata [DI])

Provided full support from platform design anddevelopment to operation

efficiency and preventing unauthorized resale of tickets
through digitalization using My Number Card

● Through verification testing in community revitalization

events, explored the requirements for digitalization
initiatives that could curtail IT burden on local
governments and business operators

Joint press conference(From left: Takayuki
Miyake, President of DI,
Takayuki Higashide,
Director of PIA Corp.,
Taro Kono, Minister for
Digital Transformation,
Digital Agency, andMasaki Ogushi, State
Minister for Digital
Transformation, Digital
Agency)Project in which DI was able to take advantage of its
new strength—its digital capabilities combined with its
business experience in the entertainment industry©2023 Dream Incubator Inc. All Rights Reserved.

9

Reference

STATUS OF TECHNOLOGY & AMPLIFY (T&A)
Significance and aim of T&A

StatusBusinesses created in Business Production are
amplified through technology● Integration and collaboration with existing
Business Production teamInnovation①②

Create Businesses
Amplifyand(Value Amplification)③

FY03/2023
Focus

Established initial Intend to get the business on
structure
track and expand the scope

Recruitment Hired executives
and establishedinitial structure

Change Societies● Six

executives/
managing
directors① Conceptualize
from 0② Turn concepts
from 0 to 1

③ Transform 1 into
10 and even 100

Industry Production
Business
Production

Business
Production
Installation

Technology& Amplify

Orders

FY03/2024 (as of Q2)

Began making
proposals tocustomers inearnestPromoting expansion of themember base● 36-person structure as of

September 30– +19 from March 31

Orders in full swing● Q1 sales of JPY0.05bn⇒

Q2 sales of JPY0.16bn● The pipeline of projects

in negotiation amounts
to several billions of yen©2023 Dream Incubator Inc. All Rights Reserved.

10

STATUS OF BRANDING AND MARKETING ACTIVITIES
Published a new book related to business production

Continued engaging in aggressive marketing activities

Empathy x Digging Deep Is
the Strongest Business Skill-The way of thinking forbusiness production to create
new businesses worth
JPY300bn-

Published articles on owned media, DI COLUMN
DI’s Works Vol.5
Executive Officers Kazuya Suzuki
and Masaaki Tashiro

Breaking free from the vices of
conventional R&D: How to create
a new virtuous circle in R&D
DI’s Works Vol.6
Senior Exec. Officer Masahito
Ishikawa and Exec. Officer Taiji
Yoshida● PHP Institute● Published July 20, 2023
● Author: Takayuki Miyake

Industry production by DI. The
now and future of SIBs in solvingsocial issues(Publications to date)

T&A posted an article ad on Nikkei
DI supports the hands-on use of
AI for enhancing corporate value
ビジネスプロデュース！
DI式3000億円事業の創り方-Business reform opportunities
arising from AI transformation©2023 Dream Incubator Inc. All Rights Reserved.

11

VENTURE CAPITAL: PORTFOLIO AND MARKET VALUE
We continued harvesting investments appropriately(JPYbn)March 31, 2023
Book value 1)

Core venture
portfolioJapan(9 co.)

Market value 2)

Book value 1)

Market value 2)

1.4

Sold twocompanies 4)0.1(8 co.)

1.0

Booked impairment
losses in threecompanies 4)

1.7(19 co.)5.8

0.0(1 co.)

0.3

1.8(28 co.)

7.2

India

1.8

(21 co.)

6.5

Other

0.0

(1 co.)

0.3

Total

1)
2)
3)
4)

0.1

September 30, 2023

Prolonged weaksentiment in thefinancing market

2.0(31 co.)8.2

LP investment infunds 3)

2.4

(6 co.)

2.4

2.5(6 co.)

2.5

Total

4.5

(37 co.)

10.7

4.3

(34 co.)

9.7

(1.7)

(1.5)

Excludes stocks that have been fully impaired and have no subsequent up-rounds, and stock options not subject to valuation (for stocks held in own funds, includes only the portion equivalent to DI’s stake)
Before taxes. Taxes are shown in parentheses (included in the value above).
Book value takes into account the amount of gains/losses. Market value is not calculated because the calculation method differs for each fund.
©2023 Dream Incubator Inc. All Rights Reserved.
Includes partial sales/impairment losses

12

CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2023

March 31, 2023
(Total assets: JPY31.3bn)

Cash anddeposits
JPY10.3bn

Liabilities
JPY9.4bn

September 30, 2023
(Total assets: JPY19.8bn)(Major increase/decrease)
Liabilities

Short-term
Investment
assets*
JPY13.8bn

Venture capital
JPY5.4bn

Other assets
JPY1.7bn*

Joint money trust● Income taxes payable:-JPY6.1bn

Net assets
JPY21.9bn

Net assets● Dividends: -JPY2.0bn● Share buyback: -JPY1.9bn

Cash anddeposits
JPY 6.9bn
Short-term
Investment assets*
JPY5.3bn

Liabilities
JPY2.2bn

Net assets
JPY17.6bn

Venture capital
JPY5.1bn
Other assets
JPY2.5bn©2023 Dream Incubator Inc. All Rights Reserved.

13

STATUS OF SHARE BUYBACK

Shareholder return policy during the medium-term plan period (FY03/2023–FY03/2025) (disclosed)● Total shareholder returns of JPY10.0bn– FY03/2023: Paid special dividends of JPY2.0bn– FY03/2024: Return over JPY4.0bn to shareholders, primarily in the form of share buyback○ Share buyback of up to JPY3.0bn currently under way– FY03/2025: Return the remaining amount to shareholders

Acquisition status as of October 31, 2023
● Number of shares acquired: 900,000 shares (about 9% of total issued shares*)● Total acquisition price: JPY2.5bn (progress rate: 83%)

Future policy● Plan to cancel acquired treasury shares by the time of full-year FY03/2024 earnings announcement(allocate only a small portion of acquired shares to stock-based compensation)● Continue reviewing ways to return the remaining JPY1.0bn+ to shareholders*

As of the time of share buyback announcement©2023 Dream Incubator Inc. All Rights Reserved.

14

SUMMARY AND OBSERVATIONS
We are seeing greater-than-expected growth potential in Business Production, and aim to make a big leap forward
by bringing forward HR investment.
● As a result, losses are preceding profits at the moment, but we expect annual sales, which had for a longtime been in the low JPY2.0bn range, to double in the next three years. If the results of investments in hiringand other areas materialize, this will bring about profit growth as well.

● Owing to the launch of T&A and incorporation of Incubation’s investment assets into Business Production, therange of projects we can offer to customers has expanded. By taking advantage of this, we have rolled out anumber of social impact initiatives, and would like to disseminate development in this front when theopportunity arises.

In Incubation, we have recouped what we can, but due to the prolonged weak sentiment in the financing market
in India, we incurred substantial impairment losses in the first half of the year.
● That being said, we still have a sizable amount of unrealized gains, and will continue striving to harvest

investments appropriately.

We are buying back shares as planned as a means of returning profits to shareholders. We are currently reviewing
ways to return the remainder of the scheduled amount to shareholders, but as previously announced, we● will return profits to shareholders in an appropriate and reasonable manner as planned; and● will return profits mainly in the form of share buybacks, and except for a small portion, will cancel all acquired

shares.

In doing so, we intend to increase EPS in the medium to long term.
©2023 Dream Incubator Inc. All Rights Reserved.

15

THEMES AND PROGRESS OF KEY INITIATIVES OF THE MEDIUM-TERM
MANAGEMENT PLAN (FY03/2023–FY03/2025)
Themes of key
initiatives
Business Production
Expandservice lineup
Expandour team

Expandcollaborations
Expandfunctions
Quantitative
targets

Major progress in the 1st year
(FY03/2023)● Reinforced organizational structurewith three divisions● Hired executive staff for T&A● Stepped up hiring ahead of schedule● Began strengthening branding
activities● Built a foundation for partnerships
with clients and business partners● (Secured funds for the expansion offunctions)

growth trajectory⇒ Orders grew. Aim for further growth in 2H● Continue working on expanding our team andcollaborations⇒ Continued hiring ahead of plan, andstrengthened branding activities
business model⇒ Multiple initiatives under way

Net income

JPY0.3bn→JPY0.3bn

JPY0.6bn

Sales

JPY3.3bn→JPY3.8bn

JPY4.8bn

Personnel

70→87

93

EPS

JPY31→JPY30

JPY56● Sold 13 companies, including ipet

● Continue to appropriately harvest investments● Determined distribution of harvested● Continue steadily returning profits toharvests

Companywide
management

Balance between
growth investment
and shareholder
returns

funds– Shareholder return of JPY10.0bn(incl. special year-end dividendof JPY2.0bn in FY03/2023)– Growth investment of JPY5.0bn

Complete building anearnings base for Business
Production, and continuously
generate stable, long-term
profits● Continue considering ways to strengthen the(Plan)● Appropriate

Targets after the end of
the medium-term plan

● Expand the scope of T&A business and put it on a(Plan) → (Actual)

Incubation●

Focus of the 2nd year (FY03/2024)(1H progress in blue)⇒ Booked impairment losses in 1H. Continued
harvesting unrealized gains appropriately

shareholders⇒ Share buyback of JPY3.0bn ongoing

Reduce earnings volatility byrealizing unrealized gains andreducing book value
Continue returning profits in astable manner from profits
generated in Business
Production©2023 Dream Incubator Inc. All Rights Reserved.

16

1H FY03/2024 Financial Results
Reference Materials● Company profile● Current medium-term management plan

©2023 Dream Incubator Inc. All Rights Reserved.

17

OVERVIEW OF DREAM INCUBATOR (DI)Company profile

Corporate philosophy

Name

Dream Incubator Inc.

Established

June 1, 2000 (launch of operations)

Stock code

4310 (TSE Prime)

Head office

Tokyo Club Building, 4F 3-2-6 Kasumigaseki, Chiyoda-ku, Tokyo, Japan

Capital*

JPY5.0bn

Credo

1. Service (Strive to benefit clients and people)
2. Create (Generate profit by yielding added value)
3. Grow (Contribute to develop a better society)4. Share (Harmonize with society for mutual prosperity)
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

MVV

Employees* 143
KeyDream Incubator (Vietnam) Joint Stock Company
subsidiaries Next Rise Social Impact Fund Investment Limited Partnership
DI India Digital Investment FundManagement Takayuki Miyake
Kyohei Hosono
Tetsuro Harada
Tsutomu Fujita
Soichiro Uno
Yuriya Komatsu
Sakon Uda

Business

Representative Director, President
Director, Executive Vice President
Director, Chairman of the Board
Outside Director
Outside Director, Audit &Supervisory Committee member
Outside Director, Audit &Supervisory Committee member
Outside Director, Audit &Supervisory Committee member

Business Production(business creation support, growth strategy consulting, etc.)

History
2000
2002

Launched operations with the aim of developing investment/incubationand consulting businesses
Listed on TSE Mothers Market

2005

Listed on TSE First Section

2007

Established Dream Incubator Vietnam in Ho Chi Minh City, Vietnam
Acquired shares in ipet (current ipet Holdings) and made it aconsolidated subsidiary for incubation
Formed DI India Digital Investment FundEntered into a capital and business alliance with Dentsu Group
Formed Next Rise Social Impact Fund Investment Limited Partnership
Changed stock listing to TSE Prime Market
Sold all shares in ipet Holdings and two other subsidiaries toconcentrate resources on Business Production

2011
2018
2021
2022

2023
*

As of March 31, 2023

©2023 Dream Incubator Inc. All Rights Reserved.

18

DI’S VALUE ADDED: BUSINESS PRODUCTION (BUSINESS CREATION SUPPORT)
Support menu

Description

Industry
Production● With the aim of resolving social issues through business, support customers’ review of businesscreation potential, starting with the industry outlook● Design new concepts, with boundary-defying ideas that can change existing rules, throughdiscussions with government bodies and other organizations

Business
Production● Support the development of business strategies, leveraging the technologies, resources, and otherstrengths of customer companies● Focused on designing business models, develop a framework for large projects through networking

and policy collaborations

Business
Production
Installation● In addition to strategy development, support business creation of customer companies through toTechnology &Amplify● To amplify the business value of customer companies through technology, provide comprehensive

execution and realization of results● Further support customer companies with resolving management issues they face in the process ofbusiness creation (related to organizational structure, personnel, infrastructure, etc.)

support from strategy development to conceptualization and execution● Support customers from the conceptualization stage, combining digital architecture and businessstrategies

Global SX*● Centered on Asia, support global business production of Japanese companies● In collaboration with JICA, develop and execute schemes for new public-private collaboration andsocial impact creation, primarily in emerging nations*

Sustainability Transformation©2023 Dream Incubator Inc. All Rights Reserved.

19

EXECUTIVES

Takayuki Miyake

Kyohei Hosono

Tetsuro Harada

Representative Director, President

Director, Executive Vice President

Director, Chairman of the Board● After his time at the Ministry of Economy,● At Japan Bank for International Cooperation,● While undergoing sonar operator training for

Trade and Industry (METI), where hedeveloped a venture capital program,oversaw the development of a range ofpolicies within the Ministry, includinginternational energy policies, and formulated
laws and regulations, he entered theconsulting industry.
● To realize DI’s founding philosophy (create
100 companies like Sony and Honda), whichleft much impression on him, Mr. Miyake
established the concept of “industry
production” and “business production,”
focused on creating businesses rooted inefforts to address social issues.
● He co-authored Business Production
Strategies to Create 300 Billion Yen Businessand The Road to Success in Business
Production to Create 300 Billion Yen Business(PHP Institute); co-authored Creating the
Future through Industry Production: How toThink to Create New Businesses One after
Another (Nikkei BP); and authored Empathy x
Digging Deep Is the Strongest Business Skill(PHP Institute).

he was involved in ODA for former Soviet
Union countries, efforts to resolve debt issuesof emerging nations, and ODA reforms.
● Mr. Hosono joined DI because he wasattracted to the Company’s business model
encompassing both strategic consulting andincubation.
● At DI, he was mainly in charge of global
business and incubation. While in Vietnam, hesupported global expansion of large
companies, promoted investments in local
companies, and experienced the ordeal ofleading the revitalization of a listed local
investee. Currently, he is involved in global
business production to support Japanesecompanies striving to resolve social issues
facing emerging nations, and he is also incharge of HR, finance, accounting, and IR asa corporate officer.

naval vessels in the Japan Maritime SelfDefense Force in Etajima, Mr. Harada
witnessed the devastation brought by war toHiroshima and the city’s recovery from it.
Driven by his desire to contribute to theindustrial development that propelled thisrecovery, he transitioned to the private sector.
● At Nippon Life Insurance, he was engaged infinancial planning, loan sales planning, andHR planning.
● Mr. Harada joined DI shortly after its founding,
after learning about the Company’s purposeof fostering new businesses and newindustries. He was engaged in strategic
consulting, top management development,
and investment and incubation for a range ofmajor companies in IT, telecommunications,manufacturing, general trading, wholesale,retail, construction, etc. After leading
structural reforms as CEO, he becamechairman of the Board and supports theCompany’s succession for continued growth.

©2023 Dream Incubator Inc. All Rights Reserved.

20

CORPORATE MISSION

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©2023 Dream Incubator Inc. All Rights Reserved.

21

1H FY03/2024 Financial Results
Reference Materials● Company profile● Current medium-term management plan

©2023 Dream Incubator Inc. All Rights Reserved.

22

DIRECTION DI AIMS TO TAKE
Incorporate investment assets to further strengthen Business Production
Expand service lineup

Business Production

Expand ourteam
Expandcollaborations

Business
Production
Industry
Production

Business
Production
Installation

Global SX

Expandfunctions● Further strengthen the Business Production platform● Enhance profitability by investing in related and peripheral businesses

Integrate assets (harvested funds/capabilities) by incorporating them into Business Production

Incubation©2023 Dream Incubator Inc. All Rights Reserved.

23

MAINTAIN BALANCE BETWEEN GROWTH INVESTMENT TOWARD ENHANCINGCORPORATE VALUE AND SHAREHOLDER RETURNS
As we transition from NAV-based to P&L-based management, we will be resuming shareholder returns.
Growth investment (expansion of functions):
Grow profits

Shareholder returns:
Increase EPS and PER

Disciplined investment (cost effectiveness)

Based on profits from stable growth in P&L
and harvested funds

1) Further strengthen our Business Production
platform● Invest in recruitment and HR development● Invest in infrastructure to raise

productivity2) Enhance profitability by investing in related
and peripheral businesses of Business
Production● Invest to bolster capabilities and expand

revenue opportunities, etc.

● Anticipated ROIC* > 12%*

Net income ÷invested capital

Harvest appropriately

BalanceIncubation(harvests)

Business
Production(profit)

Returned toshareholders
except for funds
for growthinvestment andrequired cashflow
Dividend from
Business
Production©2023 Dream Incubator Inc. All Rights Reserved.

24

MEDIUM-TERM PROFIT PLAN (FY03/2023–FY03/2025)
Net income from Business Production + Potential upside of harvests from Incubation
Net income
attributable toparentcompany
shareholders*(JPYbn)＋JPY11.0bn (unrealized gains after tax)***

Incubation(harvest=upside)

1.0
0.3

*
**
***

0.6

FY03/2023

FY03/2024

FY03/2025

Sales (JPYbn)

3.3

4.8

5.9

Personnel(headcount)

70

93

115

EPS (JPY)**

31

56

102

Simple calculation of recurring profit x tax rate of 30%
Calculation assumes number of shares outstanding as of end-March 2022
As of end-March, 2022

Business
Production(base)©2023 Dream Incubator Inc. All Rights Reserved.

25

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 of
future 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 decisions based on their own judgement. The Company accepts
absolutely no responsibility for losses arising from the use of these materials.

©2023 Dream Incubator Inc. All Rights Reserved.

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