FY03/2024

FINANCIAL RESULTS
BRIEFING PRESENTATION
May 13, 2024

Dream
Incubator Inc. (stock code: 4310)
株式会社ドリームインキュベータ

SUMMARY
Structural reforms (establishing an earnings base in Business Production for stable growth,and harvesting investments appropriately in volatile Incubation) underway
FY03/2024 results:
Business Production continued to grow, while Venture Capital booked impairment losses on 18 companies● Business Production- Sales: JPY5.03bn (+31% YoY); operating loss: JPY0.02bn (net income of JPY0.04bn*)○ Sales exceeded the medium-term plan target, but accelerated hiring with an eye to longer-term growth weighed on profit● Venture Capital- Operating loss: JPY1.93bn○ Booked impairment losses on nine companies in Q4 (18 total in FY03/2024) due to a protracted downturn in the financing
environment

Progress of structural reforms● Business Production: Steadily sowing seeds for future growth- Accelerated hiring of many talented personnel○ 87 at end-FY03/2023 → 155 at end-FY03/2024- Expanded the customer base and diversified themes○ Orders increased for the new Technology & Amplify (T&A) service in particular● Incubation (Venture Capital + Business Investment)- Recorded substantial gains on sales in FY03/2023, but impairment losses offset any gains on sales in FY03/2024- Reflected the risk of a prolonged downturn in the financing market of India in the market value, reducing the future volatility ofinvestment portfolio

Shareholder returns● For FY03/2024, decided to pay special year-end dividends of about JPY1.2bn (JPY128/share), in addition to share buybacks ofabout JPY2.8bn● For FY03/2025, expect to pay interim dividends of JPY1.0bn (JPY106/share) (as of May 13, 2024; will announce how we will returnthe remaining JPY3.0bn as soon as it is decided)*

Simply calculated by applying a 30% tax rate (zero in case of a loss) to income after adjustment for non-controlling interests© Dream Incubator Inc. All Rights Reserved.

1

FY03/2024 Financial Results
Progress of Medium-Term Management Plan
● Looking back on the 2nd year andmoving into the 3rd year

Reference Materials● Company profile● Current medium-term management plan

© Dream Incubator Inc. All Rights Reserved.

2

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

FY03/2023(JPYbn)Sales

YoY change(JPYbn)

（％）

5.75

5.37

-6

● Business Production

3.83

5.03

31

● Venture Capital

1.91

0.34

-82

0.65

-1.96

－

● Business Production*

0.35

-0.02

－

● Venture Capital*

0.30

-1.93

－

Recurring profit

0.66

-1.99

－

Net income

－**

-1.84

－

Operating profit***

FY03/2024

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

3

BUSINESS PRODUCTION:SALES
Sales finished the fiscal year slightly above the plan
Sales progress vs. plan

Quarterly sales*(JPYbn)(JPYbn)7.0

1.6
Progress rate

105%

6.0

4.8

5.0
4.0

5.9

4.93
5.03

1.0

3.8
3.3

0.8
0.6

2.0

1.13
0.99

1.12

0.96

0.860.84
0.78
0.71
0.61
0.52

0.4

1.0

*

1.4
1.2

3.0

0.0

1.48
1.58
1.36

0.2

FY
FY
Plan Actual

FY
FY
Plan Actual

FY
FY
Plan Actual

FY03/2023

FY03/2024

FY03/2025

Excludes sales in businesses sold

0.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY03/2022

FY03/2023

FY03/2024© Dream Incubator Inc. All Rights Reserved.

4

Reference

MONTHLY AND QUARTERLY SALES (CUMULATIVE)
Monthly sales

Confirmed portion of full-year sales* (at each point in time)(JPYbn)(JPYbn)0.6

5.0

Sales target in themedium-term plan
FY03/2024

0.5

4.0

5.03
4.21

FY03/2023

3.84

FY03/2022

0.4

3.09

3.0

3.02
2.62

2.31

0.3

2.53

2.0
0.2

1.85

1.23

1.0

0.1

2.36

2.14

1.12

1.25
0.46

0.0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

0.0
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

Ordersreceived
前期受注済
in the previous year

1Q

2Q

3Q

4Q

© Dream Incubator Inc. All Rights Reserved.

5

NUMBER OF BUSINESS PRODUCERS*
Continued to secure many talented personnel(No. ofpeople)
160

155

140

Of which,
T&A: 50

120

Increase/decrease

100

87

80
60

58

Of which,
T&A: 17

End-Mar2023

Net
increase

End-Mar2024

70+35 **

105

T&A

17

+33

50

Total

87

+68

155

BP
（excl. T&A）

40
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End24/3期
FY03/2024
期末© Dream Incubator Inc. All Rights Reserved.

6

SHARP ACCELERATION IN HIRING TO BUILD A FOUNDATION FOR LONGER-TERM
GROWTH WEIGHED ON SHORT-TERM PROFIT
Actual results vs. medium-term plan targets for Business Production
No. of business producers(Persons)
160

155

120
80

70

87

93

Sales
(JPYbn)
60
6.0
4.0
40

Net income

4.8

3.3

5.03

20
2.0

0
FY03/2023

Plan
計画

Actual実績

FY03/2024

Sufficiently accelerated hiring

0.3

0.3

0.2
2

0.04

0

0
Actual
実績

0.6

6
0.6

3.8

4
0.4

40

Plan
計画

(JPYbn)
0.8
8

Plan
計画

Actual実績

FY03/2023

Plan
計画

Actual実績

FY03/2024

Sales cleared the target, but sales
growth commensurate with thepersonnel increase will materialize
from FY03/2025 onward

Plan
計画

Actual実績

FY03/2023

Plan
計画

Actual実績

FY03/2024

Time required for the effects ofincreased personnel to bereflected in profit© Dream Incubator Inc. All Rights Reserved.

7

YOY COMPARISON OF QUARTERLY SALES AND PERSONNEL AND HIRING
EXPENSES IN BUSINESS PRODUCTION
Profit was down sharply in the first half of the fiscal year, but the business is gradually developing a(JPYbn)structure that can generate profit
Q1 (Apr–Jun)

Q2 (Jul–Sep)

Q3 (Oct–Dec)

Q4 (Jan–Mar)
+0.44

Net

+0.36
+0.29

Increase in
sales

Increase inpersonnel andhiring expenses

＋0.28
+0.10

＋0.04

＋0.07

▲0.21
▲0.17
▲0.25
▲0.31

▲0.29
© Dream Incubator Inc. All Rights Reserved.

8

VENTURE CAPITAL: PORTFOLIO AND MARKET VALUE
Reflected the risk of a protracted downturn in the financing market in India, reducing the future
volatility of investment portfolio
March 31, 2024

March 31, 2023
Book value 1)

Core venture
portfolio

Japan

0.1

（9 co.）

Market value 2)

Book value 1)(JPYbn)Market value 2)

1.4

Sold 2 co. 4) 5)
Booked impairment
losses in 2 co.4)

0.05 （7 co.）

0.7

0.3 （4 co.）

2.1

0.0 （0 co.）

0

India

1.8 （21 co.）

6.5

Booked impairment
losses in 16 co.4)(revaluation 6) 1 co.)

Other

0.0

（1 co.）

0.3(revaluation 6) 1 co.)Total

2.0 （31 co.）

8.2

0.4（11 co.）2.8

LP investment infunds 3)

2.4

（6 co.）

2.4

2.5 （6 co.）

2.5

Total

4.5 （37 co.）

10.7

2.9（17 co.）

5.4

(1.7)
1) 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)2) Before taxes. Taxes are shown in parentheses (included in the value above).
3) Book value takes into account the amount of gains/losses. Market value is not calculated because the calculation method differs for each fund.
4) Includes partial sales/impairment losses
5) Excludes sale of four impaired companies
6) Fully impaired with subsequent up-rounds, and more than two years have passed since the most recent financing(0.7)© Dream Incubator Inc. All Rights Reserved.

9

Reference

PERFORMANCE OF INCUBATION
Cumulative cash flows* from founding to FY03/2024 (include estimated recovery)(JPYbn)Total

Business Investment**
5.4

6.5

0
18.6

46.7

Venture Capital

23.4

＝

4.3

2.1

16.9

＋

26.8

*
**
***

Before taxes
Boardwalk is included in the Venture Capital portfolio
Listed stocks: Market cap at year-end x DI’s stake
Unlisted stocks: Book value of investments at year-end ± mark-to-market value valuation difference (recent financing price or third-party transaction price)
Those without the above prices are not revalued, but their book value is assessed

5.4

22.5

4.4
1.7

23.2

Amount invested
Recovery realized
Estimated recovery(book value＋unrealized gains)***Operating expenses(DI HQs’ personnel and other expenses）
Cumulative cash flows© Dream Incubator Inc. All Rights Reserved.

10

CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2024
Net assets were down from JPY21.9bn to JPY15.1bn
March 31, 2023
(Total assets: JPY31.3bn)

Cash anddeposits
JPY10.3bn

Short-term
Investment
assets*
JPY13.8bn

Venture capital
JPY5.4bn
Other assets
JPY1.7bn*

Joint money trust

Liabilities
JPY9.4bn

Net assets
JPY21.9bn

March 31, 2024
(Total assets: JPY17.4bn)(Major increase/decrease)
Liabilities● Income taxes payable:-JPY 6.1bn
Net assets● Dividends:-JPY 2.0bn● Share buyback:-JPY 2.8bn● Net loss:-JPY 1.8bn

Cash anddeposits
JPY 6.4bn
Short-term
Investment assets*
JPY5.3bn

Liabilities
JPY2.2bn

Net assets
JPY15.1bn

Venture capital
JPY3.4bn

Other assets
JPY2.1bn© Dream Incubator Inc. All Rights Reserved.

11

FY03/2024 Financial Results

Progress of Medium-Term Management Plan
● Looking back on the 2nd year andmoving into the 3rd year

Reference Materials● Company profile● Current medium-term management plan

© Dream Incubator Inc. All Rights Reserved.

12

THEMES AND PROGRESS OF KEY INITIATIVES OF THE MEDIUM-TERM
MANAGEMENT PLAN (FY03/2023–FY03/2025)
Themes of key
initiatives

Major progress in the 1st year
(FY03/2023)

Major progress in the 2nd year
(FY03/2024)● Reinforced organizational structure with

● T&A got on a growth trajectory, contributing toTargets after the end of themedium-term plan

Business Production
Expandservice lineup
Expandour team
Expandcollaborations
Expandfunctions
Quantitative
targets

three divisions● Hired executive staff for T&A● Stepped up hiring ahead of schedule● Began strengthening branding activities● Built a foundation for partnerships withclients and business partners● (Secured funds for the expansion offunctions)

expanding DI’s customer base

● Steadily worked on hiring, branding, and building afoundation for collaboration● Secured manpower to drive longer-term growth byaccelerating hiring– (expect sales growth commensurate withincreased personnel from FY03/2025 onward)● Entered into a capital and business alliance with YMFG
● Pursuing various earnings models(Plan) → (Actual)(Plan) → (Actual)

Net income

JPY0.3bn → JPY0.3bn

JPY0.6bn → JPY0.04bn

Sales

JPY3.3bn → JPY3.8bn

JPY4.8bn → JPY5.0bn

Personnel

70 → 87

93 → 155EPS

JPY31 → JPY30

JPY56 → JPY4

Incubation● Appropriate
harvests● Sold 13 companies, including ipet

● Sold six companies*, booked impairment losses on 18

Companywide
management● Balance between
growth investment
and shareholder
returns● Determined distribution of harvested● Continued returning profits to shareholders– Special dividend of JPY1.2bn, share buyback offunds– Shareholder return of JPY10.0bn(incl. special year-end dividend of
JPY2.0bn in FY03/2023)– Growth investment of JPY5.0bn

companies

JPY2.8bn

Complete building an earnings
base for Business Production,and continuously generate stable,
long-term profits

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

13

EXPAND SERVICE LINEUP: STATUS OF T&A AND OVERALL CUSTOMER BASE
T&A began to take off, significantly contributing to expanding DI’s overall customer baseStatus of T&A (Technology & Amplify)
While it took time to start off the business, orders began topick up in the second half of the fiscal year. T&A grew togenerate over JPY1.0bn in sales in its first year
● T&A is receiving many inquiries, and significantly

Sales in Business Production from existing andnew customers(JPYbn)
FY03/
2022

FY03/
2023

FY03/
2024

contributing to the expansion of DI’s customer base

1.25
Personnel expansion

0.61● Primarily hired T&A members, bringing the number of

personnel from 17 at end-FY03/2023 to 50 at endFY03/2024

0.56
Promote further expansion

3.22● Continue increasing personnel and steadily capturerobust demand● By combining with other services, accelerate digitaltransformation unique to DI (a full support model
combining new business development and digitalization)*

Includes customers to whom no sales were made in the past two or more years

Sales from newcustomers sharply
increased● T&A● Collaboration
with theDentsu Groupas starting points

3.77

2.13
New*
Existing© Dream Incubator Inc. All Rights Reserved.

14

PROJECT CASE STUDIES (1)Projects involving digitalization unique to DI, where digital elements are added to DI’s strengths andexpertise that characterize previous projects, increased
Platform development support utilizing digital twin
technology

Measures to prevent unauthorized resale of tickets
using My Number Card

Overview● In collaboration with Chubu Electric Power, developed a novel
production line system utilizing the metaverse for small andmidsize manufacturers– Aimed to optimize and enhance the efficiency of production
lines– Upgraded to a platform that various small and midsize
companies can jointly use● Provided full support from platform design and development tooperation

Overview● Tested the possibility of preventing mass purchases throughmultiple accounts and high-priced fraudulent reselling by using My
Number Card to verify a person’s identity at the time of ticket
purchase and venue entry– Conducted a demonstration experiment at the “38th Mynavi
Tokyo Girls Collection 2024 Spring/Summer” event● Fully utilized the results and insights obtained from a joint pilot
experiment with the Digital Agency, ongoing since September
2023, aimed at reducing workload in the entertainment industry

SC building
simulation
SC planning

Identity verification points in ticket distribution
Primary
distribution

Secondary
distribution

Tertiary
distribution

Using JPKI*
１

１
Purchase
２

Sale

3D simulation of
production lines

Design process
consulting

Production run

Product design

Purchase

×
２

３

Sale

︙

Entry
Entry
Establishment of an entrance lane exclusively for the relevant ticket

Platform overview*

Japanese Public Key Infrastructure (JPKI): Public personal authentication service

３

Identification ofprimary purchaser*Only for My Number Card
pre-sale lottery applicants

Identification of visitors*Only for My Number Card
pre-sale lottery ticket
purchasers

Secondary distribution
ticket visitor
identification*For future realization

Demonstration experiment overview© Dream Incubator Inc. All Rights Reserved.

15

PROJECT CASE STUDIES (2)Business production projects that address sustainability and social issues steadily increased
Support for growth of the health management solution,“KIRIN naturals”
Overview● Proposed solutions for realizing corporate health management toKirin Beverage, and provided full support from strategy design to
PoC support- Proposed service upgrades and replanned business strategies- Designed and conducted demonstration experiments for thedevelopment of KIRIN naturals

SurveyOverview● Commissioned by JICA to conduct research for the establishment
of JICA Social Innovator Hub (tentative name)● Social Innovator Hub is a new program that aims to address social
challenges and promote sustainable development through thecultivation of individuals with knowledge and experience in social
entrepreneurship, as well as the creation of a platform for businessco-creation

Membersite

AwardpointsHealthPGM

RecordhabitsIR

Service overview

Japanese
universities

Developing countries● Information onsocial issues
Business
implementation ● Networks ofhuman resources

y behavior hlthCompanies(HR/administrative div.) Employees

ActionProvide certificationacquisition anddisclosure support

Do
Execute initiatives

Video/seminar

op
it lo
ab

He
a

Plan
Identify issues
Support creating
surveysement PD
CA
anag
m
cy
h
t
l
cle
a
e
H

JICA×DI launches next generation social
entrepreneurship development project

PeoplePlacesSocial issues
and the places
to resolve them

Check
Verify effectiveness
Provide analysis support

Socialinnovators● Human resources
with ambition,
skills, andtechnology● Research technology,
Business
human resources

development
supportJoint
management

Issues

Products

Japan

Tech

Ongoingdevelopment
and export oftechnology

SocialInnovator
Hub
The nexus of social
issues, technology,
and human
resources

Socialentrepreneurshipcourses● Seeds of social

innovators fromhighly motivateddeveloping countries
and Japan

The Social Innovator Hub concept© Dream Incubator Inc. All Rights Reserved.

16

DIRECTION FOR FUTURE GROWTH
Expand the business scale and upgrade functions to maximize the social impact of Business
Production, and diversify the earnings model
Direction DI aims forWays of diversifying earnings model

To achieve this goal, we will expand the scale of ourbusiness and upgrade functions, and create value by
drawing on all kinds of strengths we have cultivated thus far.

×

Diversify methods of recouping investments by promoting
business model transformation● Strengthen commitment to realizing value● Develop and cultivate more strengths and organicallycombine themBusiness-oriented● Scale expansion● Functional upgrades● Ability to form concepts● Ability to collaborate withgovernment policies● Ability to build alliances● Business modelingcapabilities● Digitalization capabilities● Execution capabilities

Consulting-oriented

DI aims to maximize its impact as a business producing
company that “creates businesses and changes societies.”

Outcome-based
consulting/businessproduction

Outcome-based support forcompanywide management
reforms

Business production
linked with M&A

One-stop support from M&A
strategy development andimplementation to PMIBusiness production
technology
implementation

Full support from devisingconcepts to developing systems
that can be linked to businesses

Business productionagent

DI leads business creation andlaunches new businesses● Benchmark compensation,etc.

Investment x
business production

DI participates in projects toaccelerate business creation andincrease business potential● Bundled with risk
management services© Dream Incubator Inc. All Rights Reserved.

17

PARTNERSHIP WITH YAMAGUCHI FINANCIAL GROUP (YMFG)
Aim to build a business model to accelerate regional development by leveraging YMFG’s capital,
while supporting YMFGAnnounced capital and business alliance with YMFG
(March 26, 2024)

Direction of DI and YMFG’s regional development
initiatives
In regional development, there is much room for business creation
leveraging funds● Can build a framework in which investments in infrastructure
maintenance, preventive care, and urban development lead to new
earnings opportunities● By catering to inbound demand, can expect to earn foreign
currency in multiple areas (transportation, lodging, restaurant,
souvenirs, and sightseeing)
DI will promptly work on the above with YMFG, which has a reformoriented mindset● YMFG will mainly handle finances, while DI will be in charge ofdeveloping and implementing a business model● Overcome regulatory limits through policy collaborations
DI and YMFG will together build a new model for regional banks, withYMFG conducting further reforms and striving to grow while DI actively
supports these efforts and implements reforms● Support structural reforms, and roll out the new model for regionalbanks in other regions as well

Reference: Press release© Dream Incubator Inc. All Rights Reserved.

18

FY03/2025 FORECAST FOR BUSINESS PRODUCTION
Compared with the medium-term plan targets, revised up the sales target while lowering the profit
targetFY03/2025 forecast
Sales (JPYbn)

Medium-term
profit plan

7.3

Reasons for discrepancy
5.9（FY03/2024 results: 5.0)

Personnel (headcount)

196● Pursue further expansion of115

business scale with an eye tolonger-term growth（FY03/2024 results: 155)

Net income
0.5
attributable to owners（FY03/2024 results: 0.04)
of parent (JPYbn)
EPS (JPY)*60（FY03/2024 results: 4)*

EPS figure for the medium-term profit plan is based on the total number of shares issued as of March 31, 2022,
and for the FY03/2025 forecast, on the total number of shares issued as of March 31, 2024, excluding treasury shares.

1.0● Time required before sales

102

growth can match the personnel
increase, with the impact of
upfront expenditures remaining
to some degree© Dream Incubator Inc. All Rights Reserved.

19

SHAREHOLDER RETURNS
Aim for total shareholder returns of JPY10.0bn during the medium-term management plan period

FY03/2023

FY03/2024

FY03/2025

Interimdividendーー

JPY1.0bn (forecast)Year-end
dividend

JPY2.0bn

JPY1.2bn

Undecided(JPY191.11/share)(JPY128/share)ー

JPY2.8bn

Sharebuyback(JPY106/share)

Total JPY3.0bn
Undecided● Of which, cancelled

JPY2.6bn*● Plan to allocate
JPY0.2bn** to stock
remuneration***for employees

*
**
***

Represents 930,784 shares (8.9% of total shares issued before cancellation as of March 31, 2024)
Represents 74,500 shares (0.7% of total shares issued before cancellation as of March 31, 2024)
Shares as a percentage of annual income: 10% for executive officers, 5% for senior managers and managing directors (from FY03/2025 onward)● Choose themethods for
returning profits,considering future
share price andliquidity© Dream Incubator Inc. All Rights Reserved.

20

ENTERING THE SUSTAINABLE GROWTH PHASE, AFTER THE CONCLUSION OF
THE CURRENT MEDIUM-TERM PLAN
Currently working on formulating the next growth plan to maximize the social impact of businessproduction
DI to this point

Structural reform

Going forward(Medium-term management plan FY03/2023–2025)(FY03/2026 onward)(Scale)Business
Production● Growth stagnated due toinsufficient allocation of
resources● Lacked a framework toleverage what differentiated DI
and scale up

Incubation(Venture● Difficult to be recognized andvalued by the stock market
Capital,– Volatile financial results
Business– Conglomerate structure
Investment)

established through theconsolidation of investees● Concentrated resources on businessexpansion● Transformed into a foundational
business that consistently generates
stable profit

Sustainablegrowth● Scale up the fee model– Increase unit price● Enhance profitability by

diversifying thebusiness model

Mission:Createbusinesses
andchangesocieties● Under control (appropriate harvesting)– Realized unrealized gains and curbed

volatility of the portfolio by reducing
the book value of investments– Dissolved the conglomerate structure
and adopted a simple business model© Dream Incubator Inc. All Rights Reserved.

21

FY03/2024 Financial Results
Progress of Medium-Term Management Plan
● Looking back on the 2nd year andmoving into the 3rd year

Reference Materials● Company profile● Current medium-term management plan

© Dream Incubator Inc. All Rights Reserved.

22

OVERVIEW OF DREAM INCUBATOR (DI)Company profile

Corporate philosophy

Name
Established
Stock code
Head office
Capital*Employees*Keysubsidiaries

Credo

Dream Incubator Inc.
June 1, 2000 (launch of operations)4310 (TSE Prime)
Tokyo Club Building, 4F 3-2-6 Kasumigaseki, Chiyoda-ku, Tokyo, Japan
JPY5.0bn
227
Dream Incubator (Vietnam) Joint Stock Company
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.)

As of March 31, 2024

MVV

History

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

2000

Launched operations with the aim of developing investment/incubationand consulting businesses

2002

Listed on TSE Mothers Market

2005

Listed on TSE First Section

2007

Established Dream Incubator Vietnam in Ho Chi Minh City, Vietnam

2011

Acquired shares in ipet (current ipet Holdings) and made it aconsolidated subsidiary for incubation

2018

Formed DI India Digital Investment Fund

2021

Entered into a capital and business alliance with Dentsu Group
Formed Next Rise Social Impact Fund Investment Limited Partnership

2022

Changed stock listing to TSE Prime Market

2023

Sold all shares in ipet Holdings and two other subsidiaries toconcentrate resources on Business Production

2024

Enter into a capital and business alliance agreement with Yamaguchi
Financial Group© Dream Incubator Inc. All Rights Reserved.

23

DI’S VALUE ADDED: BUSINESS PRODUCTION (BUSINESS CREATION SUPPORT)
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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© Dream Incubator Inc. All Rights Reserved.

24

Reference

BUSINESS CREATION PROJECTS UNDERTAKEN WITH MAJOR CORPORATIONS
A list of projects introduced on our homepage (links available)
Technology & Amplify

Client：Chubu Electric
Power●

Supported the constructionof a digital twin/metaverse
platform to resolve issues
facing SMEs

Strategy Consulting

Client：A major
manufacturer●

Installation /Execution support

Client：TOYOTA●

Provided support for theestablishment of Toyota
Research Institute, Inc.
(TRI), the hub of Toyota’s
AI/robotics research●

Client：MUFG

Supported the optimizationof corporate R&D portfolio

Joint industry production
with MUFG: Devised
concepts and strategies,
and created mechanisms
for industrialization

Installation /Execution support

Business Creation

Client：OMRONSupport for establishment
and operation of Innovation
Exploring Initiative
Headquarters (IXI), an
organization for new
business creation

Installation /Execution support

Installation /Execution support

Client：JICA

Client：EXEO Group

Client：EXEO Group● Strategy formulation andexecution support for social
impact investment inSoutheast and South Asia

● In-team support for theInnovation Promotion
Department (IBEX –Innovation Base of EXEO),
whose mission is to addresschanges in the businessenvironment over the
medium to long term
through innovation● Promoting Purpose
formulation with an eye
toward transformation into
an innovative organization

Industry Produce●

Client：A major
manufacturer●

Comprehensive support forbusiness creation in China,
including strategy
formulation, negotiations
with potential local partners,
and PoC design

Global SX

Business Creation

Business Creation

M&A / FA / Financial Solutions

Client：A major
manufacturer●

Commercialization oftechnology, andaccompanying overseas
M&A support

Client：Metropolitan
Expressway Group●

Development strategy
formulation support for
InfraDoctor (infrastructure
maintenance &management support
system)© Dream Incubator Inc. All Rights Reserved.

25

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.

© Dream Incubator Inc. All Rights Reserved.

26

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© Dream Incubator Inc. All Rights Reserved.

27

FY03/2024 Financial Results
Progress of Medium-Term Management Plan
● Looking back on the 2nd year andmoving into the 3rd year
Reference Materials● Company profile● Current medium-term management plan

© Dream Incubator Inc. All Rights Reserved.

28

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© Dream Incubator Inc. All Rights Reserved.

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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)
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

Based on profits from stable growth in P&L andharvested funds

Harvest appropriately

BalanceIncubation(harvests)

Business
Production(profit)

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

30

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

Calculation assumes number of shares outstanding as of end-March 2022 (excludes treasury shares)
As of end-March, 2022

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

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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.

© Dream Incubator Inc. All Rights Reserved.

32

The Business Producing Company