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 Nine Months Ended December 31, 2023
(Based on Japanese GAAP)
February 1, 2024
Company name:Dream Incubator Inc.

Stock exchange listing: Tokyo
Stock code:
4310
Representative:
Inquiries:

URL

https://www.dreamincubator.co.jp

Representative Director & President
Executive Officer, Corporate

Takayuki MiyakeToshihiro Uemura

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

February 7, 2024–

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

Yes
No

TEL

03-5532-3200(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 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%
Nine months ended December 31, 2023
3,785 (86.9)(1,089)–(1,117)–(1,038)–
Nine months ended December 31, 2022
28,99311.0
1,952–
2,002 679.8
1,453–
Earnings per share

Diluted earnings per share

Yen(112.34)148.97

Nine months ended December 31, 2023
Nine months ended December 31, 2022

Yen–
148.49(2) Consolidated financial position
Total assets
As of December 31, 2023
As of March 31, 2023

Net assets

Millions of yen
18,23631,310Equity ratio

Millions of yen
16,106
21,917

%
86.3
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
0.00

Yen
191.11

Yen
191.11128.00128.00Year ending March 31, 2024 (Forecast)

1Total3. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 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 December 31, 2023

1,705,932 shares As of March 31, 2023

700,977 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

9,246,012 shares Nine months ended December 31, 2022

29,757,768 shares

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

As of December 31, 2023

AssetsCurrent assets
Cash and deposits

10,397

6,420

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

1,074
5,463

1,228
4,503

Securities
Allowance for investment loss

13,800(103)5,300(103)

Other
Allowance for doubtful accounts

191(24)400(24)30,80017,725249

258

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Other86

Total intangible assets

86Investments and other assets
Investment securities

65

65

Deferred tax assets
Other29
158

27
152

Total investments and other assets

252

245

510

511

31,31018,236

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of December 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings

350

–
–

Income taxes payable
Provision for shareholder benefit program

6,158
1954
–

1240

1–

Other

1,856

798

Total current liabilities

8,328

853

124
939

220
1,055

00

1,064

1,277

9,3932,130

Share capital
Capital surplus

5,019
4,548

5,019
4,548

Retained earnings
Treasury shares

12,648(1,366)

9,609(4,155)

Total shareholders' equity

20,85015,022

630

747

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

Non-current liabilities
Deferred tax liabilities
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(39)

(25)

Total accumulated other comprehensive income

590

721

475

362

21,917

16,10631,31018,236

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)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Net sales

28,993

3,785

Cost of sales

15,9993,108Gross profit

12,993676

Selling, general and administrative expenses

11,041

1,766

Operating profit (loss)

1,952(1,089)

Non-operating income
Interest income

1415

Gain on sale of non-current assets
Foreign exchange gains

309–
–

Other

114

Total non-operating income

67

20Interest expenses
Commission expenses

81036

Foreign exchange losses
Loss on retirement of non-current assets

–
4100

Other

20Total non-operating expenses

1747

2,002(1,117)

Non-operating expenses

Ordinary profit (loss)
Extraordinary income
Gain on sale of shares of subsidiaries and associates

546–

Total extraordinary income

546–

Extraordinary losses
Tender offer related expenses

177–

Total extraordinary losses

177–

Profit (loss) before income taxes

2,371(1,117)

Income taxes - current
Income taxes - deferred

899
(191)

3975

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

5707

114

1,664(1,231)

210(193)

1,453(1,038)

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities

Nine months ended
December 31, 2023

1,664(1,231)

25

117

Foreign currency translation adjustment

1214

Total other comprehensive income

38

131

Comprehensive income

1,702(1,100)Comprehensive income attributable toComprehensive income attributable to owners of parent

1,529

(907)

172

(192)

Comprehensive income attributable to non-controllinginterests6