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 Three Months Ended June 30, 2023
(Based on Japanese GAAP)
August 1, 2023
Company name:Dream Incubator Inc.
Stock exchange listing: Tokyo
Stock code:

4310

Representative:
Inquiries:

Representative Director & President
Executive Officer, CorporateURL

https://www.dreamincubator.co.jp
Takayuki Miyake
Toshihiro Uemura

Scheduled date to file Quarterly Securities Report:

August 8, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

03-5532-3200(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2023
1,174 (86.9)(182)–(190)–(187)–
Three months ended June 30, 2022
8,983
12.7
352
–
421 605.5
728–
Earnings per share

Diluted earnings per share

Yen(19.45)74.65

Three months ended June 30, 2023
Three months ended June 30, 2022

Yen–
74.55

(2) Consolidated financial position
Total assets
As of June 30, 2023
As of March 31, 2023

Net assets

Millions of yen
21,95831,310Equity ratio

Millions of yen
19,356
21,917

%
85.7
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

Yen
0.00

Yen
191.11

Yen
191.11––––

Year ending March 31, 2024 (Forecast)

1Total3. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 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:No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 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 June 30, 2023

986,491 shares As of March 31, 2023

700,977 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2023

9,656,402 shares Three months ended June 30, 2022

29,753,901 shares

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

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

10,397
1,074

9,061
889

Operational investment securities

5,463

5,669

Securities
Allowance for investment loss

13,800
(103)

5,300
(103)

191

632

Other
Allowance for doubtful accounts

(24)

(24)

30,80021,425

249

273

Other

87

Total intangible assets

87

Investment securities
Deferred tax assets
Other

65
29
158

65
27158

Total investments and other assets

252

250

510

532

31,31021,958

Total current assets
Non-current assets
Property, plant and equipment
Intangible assetsInvestments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of June 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade34

Current portion of long-term borrowings
Income taxes payable

50
6,158

50
19

Provision for shareholder benefit program

194

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

1240

1–

Other

1,856

1,356

Total current liabilities

8,328

1,437

Non-current liabilities
Deferred tax liabilities

124183

939

97900

1,064

1,164

9,393

2,601

Shareholders' equity
Share capital
Capital surplus

5,019
4,548

5,019
4,548

Retained earnings
Treasury shares

12,648(1,366)

10,460(2,127)

Total shareholders' equity

20,85017,901

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

630
(39)

913
(1)

Total accumulated other comprehensive income

590

911

475

544

21,917

19,35631,31021,958Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive incomeNon-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)Three months ended

Three months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

8,983
5,031

1,174
740

Gross profit

3,951

433

Selling, general and administrative expenses

3,599

615

Operating profit (loss)

352(182)

Non-operating income
Interest income

47

Gain on sale of non-current assets

30–Foreign exchange gains
Other

395–
1

Total non-operating income

808Non-operating expenses
Interest expenses

30

Foreign exchange losses
Commission expenses
Loss on retirement of non-current assets

–
14

1140

Other

10

Total non-operating expenses

1016421(190)Gain on sale of shares of subsidiaries and associates

546–

Total extraordinary income

546–

Profit (loss) before income taxes

968(190)

Income taxes - current
Income taxes - deferred279(76)15
1

Total income taxes

203

17

Profit (loss)

765(208)

Profit (loss) attributable to non-controlling interests

37(20)

Profit (loss) attributable to owners of parent

728

(187)

Ordinary profit (loss)
Extraordinary income

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2022
Profit (loss)

Three months ended
June 30, 2023
765

(208)

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

342
31319
38

Total other comprehensive income

374

357

Comprehensive income

1,139

149

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,093

132

46

16

Other comprehensive income

Comprehensive income attributable to non-controllinginterests6