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 Six Months Ended September 30, 2022
(Based on Japanese GAAP)
November 7, 2022
Company name:Dream Incubator Inc.
Stock exchange listing: Tokyo
Stock code:

4310

Representative:
Inquiries:

Representative Director and CEO
Executive Officer,CorporateURL

https://www.dreamincubator.co.jp
Tetsuro Harada
Toshihiro Uemura

Scheduled date to file Quarterly Securities Report:

November 11, 2022

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

Holding of quarterly financial results meeting:

Yes

TEL

03-5532-3200(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2022
18,876
12.4
794–
878
–
1,017
–
Six months ended September 30, 2021
16,795
25.9
(233)
–(29)
–(129)–
Earnings per share

Diluted earnings per shareYen
104.25(13.41)

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
104.10–(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
35,39033,574Equity ratio

Millions of yen
14,00912,454%31.4
29.1

2. Cash dividends
Annual dividends per share

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

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

Yen
0.00

Yen–0.00––

Year ending March 31, 2023 (Forecast)

1

Total

3. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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:
Yes
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 September 30, 2022

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 September 30, 2022

705,419 shares As of March 31, 2022

705,419 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

9,756,807 shares Six months ended September 30, 2021

29,681,552 shares

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

As of September 30, 2022

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

12,933
5,325

15,475
4,399

Operational investment securities

6,530

6,562

Securities
Allowance for investment loss

2,767
(357)

3,491
(357)

Inventories

87

26

Other

740

782

Allowance for doubtful accounts

(26)

(26)

28,00130,353

Property, plant and equipment

916

869

Intangible assets
Goodwill814

428

Total current assets
Non-current assets

Other
Total intangible assets

982

702

1,796

1,131

Investments and other assets
Investment securities

354

353

Deferred tax assets
Other

2,015
489

2,366
315

Total investments and other assets

2,859

3,035

5,572

5,036

33,57435,390Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade554

3

Short-term borrowings
Current portion of long-term borrowings

1,100
395

–
472

Reserve for insurance policy liabilities

14,594

16,395

Outstanding claims
Policy reserve

2,075
12,5192,243
14,151

Income taxes payable

231

761

Provision for shareholder benefit program

236

Provision for bonuses
Other

283
1,833

291
1,522

Total current liabilities

19,017

19,454

1,648
81

1,023
464

313
59

381
55

Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for share awards
Other

2,101

1,925

Total liabilities

Total non-current liabilities

21,11921,380Net assets
Shareholders' equity
Share capital

5,014

5,019

Capital surplus
Retained earnings

4,458
942

4,281
1,959

Treasury shares(1,099)(1,099)Total shareholders' equity

9,316

10,161

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

523
(61)

955
(5)

Total accumulated other comprehensive income

462

950

Share acquisition rights
Non-controlling interests

3
2,672

–
2,897

Total net assets

12,45414,00933,57435,390Total 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)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

16,795
9,755

18,876
10,755Gross profit

7,040

8,121

Selling, general and administrative expenses

7,273

7,327

Operating profit (loss)

(233)

794

Non-operating income
Interest income

811

Dividend income

1–

191––
30

Foreign exchange gains

–

47

Other

18

7Total non-operating income

219

97

555–

01
1

4
1
1

Gain on sale of investment securities
Gain on sale of non-current assets

Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on retirement of non-current assets
Price change reserve provision
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of shares of subsidiaries and associates

1513(29)

878

–

546

Total extraordinary income–

546

Profit (loss) before income taxes

(29)

1,425

Income taxes - current
Income taxes - deferred

63
(1)

(275)

636

Total income taxes

62361

Profit (loss)

(91)

1,063

Profit attributable to non-controlling interests

3846

Profit (loss) attributable to owners of parent

(129)

1,017

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2021
Profit (loss)

Six months ended
September 30, 2022
(91)

1,063

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

88
6454
56

Total other comprehensive income

94

511

3

1,574

(18)

1,505

2169

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

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

(29)

1,425

Depreciation
Amortization of goodwill

170
80

165
26

Increase (decrease) in outstanding claims

228

168

1,218
(1)

1,632
0

Increase (decrease) in provision for bonuses

298

Increase (decrease) in provision for share awards

1267

Increase (decrease) in provision for shareholder benefit
program

(21)

(16)

Interest and dividend income

(9)

(11)

Foreign exchange losses (gains)
Loss (gain) on sale of non-current assets

5–(48)(30)

Loss (gain) on sale of investment securities(191)––(546)

Decrease (increase) in investment securities for sale
Decrease (increase) in short-term investment securities

(504)
5,282

578
(793)

Decrease (Increase) in trade receivables and contract assets
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other

(592)
(28)
(44)

23
5100

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net

8125
162

0(44)
(154)5,874

2,556

11(5)
1312(5)
7

Income taxes paid

(179)

(106)

Net cash provided by (used in) operating activities

5,714

2,464

(152)
150(320)
–
(49)
731

(86)
140
(159)
157
(0)
––

793

(5)
2(5)
54
5(0)
208
(3)
156
–

410

1,204

Increase (decrease) in policy reserve
Increase (decrease) in allowance for doubtful accounts

Loss (gain) on sale of shares of subsidiaries and associates

SubtotalInterest and dividends received
Interest paid
Income taxes refund

Cash flows from investing activities
Payments into time depositsProceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Decrease (increase) in short-term investment securities
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

7

(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Cash flows from financing activities
Proceeds from issuance of shares

47Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(400)
20(900)200

Repayments of long-term borrowings

(131)

(647)

4

33

566

149

(111)

–(0)

–

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
Purchase of treasury shares
Other, net(4)(5)

Net cash provided by (used in) financing activities(52)(1,161)

Effect of exchange rate change on cash and cash equivalents

(3)

71

Net increase (decrease) in cash and cash equivalents

6,069

2,579

Cash and cash equivalents at beginning of period

4,220

12,810Cash and cash equivalents at end of period

10,28915,3898