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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 11, 2023
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 of ordinary general meeting of shareholders:Toshihiro Uemura
June 20, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 20, 2023
June 21, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

03-5532-3200(for institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net salesYear ended March 31, 2023
Year ended March 31, 2022

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

Operating profit

Millions of yen
30,13235,566% Millions of yen(15.3)
1,190
28.0(168)

Earnings per share

Diluted earnings pershare%––

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
1,227–
11,553–
44–
7–

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
1,183.34
74.0
3.8
3.9
0.77
0.10.1(0.5)

Yen1,183.92
0.80(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
31,31033,574

Millions of yen
21,917
12,454

Cash flows fromoperating activities
Millions of yen
3,669
7,822

Cash flows frominvesting activities
Millions of yen(5,150)317

Net assets per share%
68.5
29.1

Yen
2,195.94
1,003.00(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,388)
10,263955
12,8102. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

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

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

0.00
0.00

0.00
0.00

0.00
0.00

0.00
191.11

0.00
191.11–
1,999–
16.14

–
11.95

1

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

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 March 31, 2023

700,977 shares As of March 31, 2022

705,419 shares

Average number of shares during the period
Year ended March 31, 2023

9,758,988 shares Year ended March 31, 2022

29,701,821 shares

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

As of March 31, 2023

AssetsCurrent assets
Cash and deposits12,933

10,397

Notes and accounts receivable - trade, and contract assets
Operational investment securities

5,325
6,530

1,074
5,463

Securities
Allowance for investment loss

2,767(357)

13,800(103)

Inventories
Accounts receivable - other

87
171

–3

Income taxes refund receivable
Other

24
544

18
169

Allowance for doubtful accounts
Total current assets

(26)

(24)

28,00130,800Non-current assets
Property, plant and equipment
Land
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

202–

687(161)250(96)525

153

495(307)155(59)

187

95

916

249

814
821

–
8

Intangible assets
GoodwillSoftware
Other
Total intangible assets

161

0

1,796

8

354
2,015

65
29

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

3489

158

2,859

252

5,572

510

33,57431,310(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

5541,100

3–

395
546

50
1,285

Reserve for contract of insurance
Outstanding claims

14,594
2,075––

Policy reserve
Income taxes payable

12,519
231

–
6,158

23
283

19
1

Provision for bonuses for directors (and other officers)
Other–
1,287

240
571

Total current liabilities

19,017

8,328

Non-current liabilities
Long-term borrowings

1,648

–

81
313

124
939

Current portion of long-term borrowings
Accounts payable - other

Provision for shareholder benefit program
Provision for bonuses

Deferred tax liabilities
Provision for share awardsOther590

2,101

1,064

21,119

9,393

Share capital
Capital surplus

5,014
4,458

5,019
4,548

Retained earnings
Treasury shares

942(1,099)12,648(1,366)

Total shareholders' equity

9,316

20,850Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

523

630

Foreign currency translation adjustment

(61)

(39)

Total accumulated other comprehensive income

462

590

3–

Share acquisition rights
Non-controlling interests

2,672

475

Total net assets

12,454

21,91733,57431,310Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

35,566
20,84230,132
16,746Gross profit

14,724

13,386

Selling, general and administrative expenses

14,892

12,196

(168)

1,190

Interest income
Dividend income

15
1

19–

Foreign exchange gains
Gain on sale of investment securities

1191

9–

Reversal of allowance for doubtful accounts
Gain on sale of non-current assets

360–
31

Other

41

14

Total non-operating income

28974

Interest expenses
Loss on retirement of non-current assets

138824

Loss on valuation of investment securities
Price change reserve provision

45
3–
1

Other

63

Total non-operating expenses

Operating profit (loss)
Non-operating income

Non-operating expenses

7737

Ordinary profit

44

1,227

Extraordinary income
Compensation for forced relocation

19–

Gain on sale of shares of subsidiaries and associates

518,948

Total extraordinary income25

18,948Loss on liquidation of subsidiaries and associates
Extra retirement payments of subsidiaries and associates

924––

Loss on valuation of shares of subsidiaries and associates
Tender offer related expenses

––

34
487

Special bonus

–

2,007

Total extraordinary losses

34

2,529

Profit before income taxes

35

17,646

Income taxes - current

293

6,558

Income taxes - deferred

(320)

(639)

Total income taxes

(26)

5,918

Profit61

11,727

Profit attributable to non-controlling interests

53173

Profit attributable to owners of parent

7

11,553Extraordinary losses

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Profit61

11,727

Other comprehensive income
Valuation difference on available-for-sale securities

446

80

Foreign currency translation adjustment

43

22

Total other comprehensive income

489

102

Comprehensive income

551

11,830Comprehensive income attributable toComprehensive income attributable to owners of parent

470

11,68280

147

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

4,998

Retained earnings

4,446

976

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equityTreasury shares(1,184)

(41)
4,998

4,446

1616

9,237
(41)

935

(1,184)

9,195

Changes during period
Issuance of new shares - exerciseof share acquisition rights

32

Change in scope of consolidation––

Profit attributable to owners ofparent

77

Purchase of treasury shares
Disposal of treasury shares–

Change in ownership interest ofparent due to transactions with
non-controlling interests

(4)

(0)

(0)

84

84(4)

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

16

11

784

120

5,014

4,458

942

(1,099)9,316

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
Share acquisition
otherrights
comprehensiveincome

103(104)(0)13

Non-controllinginterests

Total net assets

3,945

13,196Cumulative effects of changes inaccounting policies
Restated balance

(41)
103

(104)

(0)

13

3,945

13,154

Changes during period
Issuance of new shares - exerciseof share acquisition rights

32

Change in scope of consolidation–

Profit attributable to owners ofparent7

Purchase of treasury shares(0)

Disposal of treasury shares

84

Change in ownership interest ofparent due to transactions with
non-controlling interests(4)

Net changes in items other thanshareholders' equity

420

42463

(10)

(1,272)(820)

Total changes during period

420

42463

(10)

(1,272)(699)

Balance at end of period

523

(61)

462

3

2,672

12,454

7

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

5,014

4,458

5

5

Total shareholders'equityTreasury shares

942(1,099)9,316

Changes during period
Issuance of new shares - exerciseof share acquisition rights

10

Change in scope of consolidation

151

151

Profit attributable to owners ofparent11,553

11,553Purchase of treasury shares––(266)

8

Disposal of treasury shares

275Deferred tax adjustment due tochange in equity of prior year(203)(203)

Change in ownership interest ofparent due to transactions with
non-controlling interests1313

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

590

11,705(266)

11,534

5,019

4,548

12,648(1,366)

20,850

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
Share acquisition
otherrights
comprehensive
income523(61)4623

Non-controllinginterests

Total net assets

2,672

12,454

Changes during period
Issuance of new shares - exerciseof share acquisition rights

10

Change in scope of consolidation

151

Profit attributable to owners ofparent

11,553Purchase of treasury shares–

Disposal of treasury shares

8

Deferred tax adjustment due tochange in equity of prior year

(203)

Change in ownership interest ofparent due to transactions with
non-controlling interests

13

Net changes in items other thanshareholders' equity

106

21128(3)(2,196)(2,072)

Total changes during period

106

21128(3)(2,196)

9,462

Balance at end of period

630

(39)

590

–

475

21,917

8Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

35
361

17,646
270

Loss on valuation of shares of subsidiaries and associates
Amortization of goodwill

–
14834
40

274
3,033

185
2,242

Increase (decrease) in allowance for investment loss
Increase (decrease) in allowance for doubtful accounts

–(68)

(253)
(1)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and131

(35)

–

240

Increase (decrease) in outstanding claims
Increase (decrease) in policy reserve and otherother officers)
Increase (decrease) in provision for share awards

41626

Increase (decrease) in provision for shareholder benefit
program(4)(4)

Interest and dividend income
Foreign exchange losses (gains)

(16)
(2)

(19)
(10)

Loss (gain) on sale of non-current assets
Loss (gain) on disposal of non-current assets

(0)
8(31)
24

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

(191)
45

––

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

(5)
(288)

(18,948)
1,253

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

5,314(1,386)

(372)
(545)

Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other(52)
(138)

598

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

169
152

0860

Increase (decrease) in deposits received
Other, net

11575

224
369

8,145

3,896

Interest and dividends received
Interest paid

15(13)

25(7)Income taxes refund
Income taxes paid

13(337)7(252)Net cash provided by (used in) operating activities

7,822

3,669

Subtotal

9

(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits(284)
281(134)
130

Purchase of securitiesPurchase of property, plant and equipment

–
(397)

(13,800)(185)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

–
(77)

157
(0)

Net decrease (increase) in investment securities
Proceeds from sale of shares of subsidiaries resulting in

731–change in scope of consolidation
Payments of leasehold and guarantee deposits

–

8,348

(98)

(28)

Proceeds from refund of leasehold and guarantee deposits
Proceeds from collection of loans receivable

27
147

210
158

Other, net

(14)

(6)

Net cash provided by (used in) investing activities

317(5,150)

Proceeds from issuance of shares
Net increase (decrease) in short-term borrowings

22(300)7(900)

Proceeds from long-term borrowings
Repayments of long-term borrowings

1,020(238)

200(902)

1565

566

149(119)

–(10)

(7)

Net cash provided by (used in) financing activities

955(1,388)

Effect of exchange rate change on cash and cash equivalents

1819

Net increase (decrease) in cash and cash equivalents

9,113(2,848)Cash and cash equivalents at beginning of period

4,220

12,810Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation

(524)

–

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries–302

12,81010,263

Cash flows from financing activities

Proceeds 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
Other, net

Cash and cash equivalents at end of period10