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, 2024
(Based on Japanese GAAP)May 13, 2024
Company name:Dream Incubator Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

4310
URL https://www.dreamincubator.co.jp
Representative Director & President
Takayuki Miyake

Inquiries:
Executive Officer, Corporate
Scheduled date of ordinary general meeting of shareholders:Toshihiro Uemura
June 17, 2024

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

June 17, 2024
June 18, 2024

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, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Net salesYear ended March 31, 2024
Year ended March 31, 2023

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

Operating profit

Millions of yen
5,378
30,132% Millions of yen(82.2)(1,966)(15.3)
1,190

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%
(1,992)–(1,847)–
1,227–
11,553–

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(10.1)(8.2)(36.6)
1,183.34
74.0
3.8
3.9

Yen
(202.26)
1,183.92(2) Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023

Net assets

Equity ratio

Millions of yen
17,45431,310Millions of yen
15,182
21,917

Cash flows fromoperating activities
Millions of yen(7,458)
3,669

Cash flows frominvesting activities
Millions of yen
8,161(5,150)Net assets per share%
86.0
68.5

Yen
1,714.41
2,195.94(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(4,751)
6,245(1,388)
10,263

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)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

191.11128.00191.11
128.00

1,999
1,210

16.14–

11.9
6.5

0.00

106.00–––1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

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, 2024

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 March 31, 2024

1,705,656 shares As of March 31, 2023

700,977 shares

Average number of shares during the period
Year ended March 31, 2024

9,133,685 shares Year ended March 31, 2023

29,758,988 shares

Consolidated financial statementsConsolidated balance sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits

10,397

6,428

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

1,074
5,463

1,407
3,589

Securities
Allowance for investment loss

13,800
(103)

5,300
(103)

Accounts receivable - other
Income taxes refund receivable

318

4–

Other
Allowance for doubtful accounts

169
(24)

338
–

30,80016,965250(96)283(112)153

170

155(59)191(102)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net

95

89249

259

Software
Other

80

60

Total intangible assets

86Investments and other assets
Investment securities

65

65

Deferred tax assets
Other

29
158

3
154

Total investments and other assets

252

223

Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets

3510

489

31,31017,454

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
350––

1,285
6,158

271
39

Provision for shareholder benefit program
Provision for bonuses

19
119
1

Provision for bonuses for directors (and other officers)
Other

240
571

29505

Total current liabilities

8,328

866

Non-current liabilities
Deferred tax liabilities

Notes and accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable

124

310

Provision for share awards
Other

939
0

1,094
–

Total non-current liabilities

1,064

1,405

9,393

2,271

Shareholders' equity
Share capital

5,0195,019

Capital surplus
Retained earnings

4,548
12,648

4,548
8,800

Treasury shares(1,366)(4,155)

Total shareholders' equity

20,85014,214

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

630
(39)

804
(1)

Total accumulated other comprehensive income

590

803

475

165

21,917

15,18231,31017,454

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total 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, 2023

March 31, 2024

Net sales
Cost of sales

30,132
16,746

5,378
4,925

Gross profit

13,386452

Selling, general and administrative expenses

12,196

2,418

Operating profit (loss)

1,190(1,966)

Interest income
Foreign exchange gains

19920–

Gain on sale of non-current assets
Other

31
14–
7

Total non-operating income

7427

Non-operating income

Non-operating expenses
Interest expenses

80

Commission expenses
Foreign exchange losses

2–3616Loss on retirement of non-current assets
Other24100

Total non-operating expenses

3753

1,227

(1,992)Gain on sale of shares of subsidiaries and associates

18,948–

Total extraordinary income

18,948

–

34
487

–
–

Special bonus

2,007

–

Total extraordinary losses

2,529

–

Profit (loss) before income taxes

17,646(1,992)

Income taxes - current

6,558

67

Income taxes - deferred

(639)

164

Total income taxes

5,918

232

Profit (loss)

11,727(2,224)

173

(377)

11,553(1,847)

Ordinary profit (loss)
Extraordinary incomeExtraordinary losses
Loss on valuation of shares of subsidiaries and associates
Tender offer related expenses

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

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2023
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities

Fiscal year ended
March 31, 2024

11,727(2,224)80

163

Foreign currency translation adjustment

2238

Total other comprehensive income

102

202

Comprehensive income

11,830(2,022)Comprehensive income attributable toComprehensive income attributable to owners of parent

11,682(1,634)147(387)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
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

55

Total shareholders'equity

Treasury 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 (loss) attributable to ownersof parent

11,553

11,553

Disposal of treasury shares

275

Deferred tax adjustment due tochange in equity of prior year(266)8(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)

462

3

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 (loss) attributable to ownersof parent

11,553

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

7

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,019

Retained earnings

4,548

12,648

Total shareholders'equity

Treasury shares(1,366)

20,850Changes during period
Dividends of surplus(1,999)(1,999)Profit (loss) attributable to ownersof parent(1,847)(1,847)Purchase of treasury shares(2,790)(2,790)

Disposal of treasury shares

11

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––(3,847)(2,789)(6,636)

5,019

4,548

8,800

(4,155)

14,214

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period

Total accumulated
Foreign currency
other comprehensive
translation adjustment
income

630

(39)

590

Non-controllinginterests

475

Total net assets

21,917

Changes during period
Dividends of surplus(1,999)Profit (loss) attributable to ownersof parent(1,847)Purchase of treasury shares(2,790)

Disposal of treasury shares

1Net changes in items other thanshareholders' equity

174

38

212

(310)

(97)

Total changes during period

174

38

212

(310)

(6,734)

Balance at end of period

804

(1)

803

165

15,1828

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation

17,646270(1,992)
66

3440

–
–

Increase (decrease) in outstanding claims
Increase (decrease) in policy reserve and other185
2,242

–
–

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

(253)
(1)

–
(24)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and(35)

0240

(210)

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

other officers)
Increase (decrease) in provision for share awards

626

154

Increase (decrease) in provision for shareholder benefit
program(4)0Interest and dividend income
Foreign exchange losses (gains)

(19)
(10)

(20)
1

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

(31)
24

––

(18,948)
1,253

–
2,125

(372)

–

(545)

(330)

Loss (gain) on sale of shares of subsidiaries and associates
Decrease (increase) in operational investment securities
Decrease (increase) in short-term investment securities
Decrease (increase) in accounts receivable - trade, andcontract assets
Decrease (increase) in inventories5–

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

980(1)
6

Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received

860
224(836)(154)

Other, net

369

(354)

Subtotal

3,896(1,570)Interest and dividends received

25

21

Interest paid
Income taxes refund

(7)
7

–
0

Income taxes paid

(252)

(5,909)Net cash provided by (used in) operating activities

3,669(7,458)9

(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

(134)
130

(183)
134

(13,800)–(1,500)10,000Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

(185)
157

(245)
–

Purchase of intangible assets
Proceeds from sale of shares of subsidiaries resulting in

(0)

(3)

8,348

–

(28)

–

Proceeds from refund of leasehold and guarantee deposits
Loan advances

210
–

0(11)

Proceeds from collection of loans receivable
Other, net

158
(6)

6(35)

(5,150)8,161

7–

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

(900)
200–
–

Repayments of long-term borrowings
Proceeds from share issuance to non-controlling shareholders

(902)
65

(50)
–

Contributions from non-controlling interests in consolidated
investment funds

149

106

Distributions to non-controlling interests in consolidated
investment funds

–

(21)

Purchase of treasury shares
Dividends paid––

(2,790)(1,996)

Other, net(7)1(1,388)(4,751)

Purchase of securities
Proceeds from redemption of securities

change in scope of consolidation
Payments of leasehold and guarantee deposits

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

1929

Net increase (decrease) in cash and cash equivalents(2,848)(4,017)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger with

12,81010,263302–

10,263

6,245

unconsolidated subsidiaries
Cash and cash equivalents at end of period10