Notice concerning the share repurchase and dividends of surplus (no dividends to be paid)

(Share repurchase under the provisions of Articles of Incorporation pursuant to Article 165, Paragraph 2 of the Companies Act)

March 27, 2019

Dream Incubator Inc. hereby announces that at a Board of Directors meeting held on March 27, 2019, it resolved to repurchase shares of its common stock under the provisions of Article 156 of the Companies Act, as applied pursuant to Article 165, Paragraph 3 of the said Act. Subsequently, the company decided to pay no dividends of surplus to shareholders of record as of March 31, 2019.

 

  1. Reasons for share repurchase
    Upon careful consideration of the latest stock market trends and fluctuations in the company’s stock price, Dream Incubator decided to distribute profits to shareholders through a share repurchase. The share repurchase is aimed at improving EPS, ROE, and BPS to increase shareholder value.
  2. Overview of share repurchase
    1)  Type of shares to be repurchased:    Common shares of the company
    2)  Total number of shares to be repurchased:    Up to 200,000 shares
    (2.04% of outstanding shares [excludes treasury shares])
    3)  Total repurchase amount:                                  Up to 300 million yen
    4)  Repurchase period:       From April 1, 2019 to September 30, 2019

(For reference)
Number of shares of treasury stock as of February 28, 2019
Number of outstanding shares (excludes treasury shares):        9,820,939 shares
Number of treasury shares:                                                     502,761 shares
Note: Treasury shares include those of executive compensation BIP trust account and stock granting ESOP trust account.

 3. Overview of dividends

Dividends for the fiscal year ending March 31, 2019 Most recent dividend forecast
(out May 10, 2018)		 Dividends paid for the fiscal year ended March 31, 2018
Record date March 31, 2019 March 31, 2019 March 31, 2018
Dividend per share 0.00 yen Undecided 26.00 yen
Total amount of dividends N/A N/A 262 million yen
Effective date N/A N/A June 12, 2018
Source of dividends N/A N/A Dividends of surplus

4. Rationale behind no dividend payment

To maximize shareholder value and given the current stock price, the company decided to distribute profits by repurchasing shares (such that the total repurchase amount exceeded total dividends paid in the previous fiscal year), allocating the surplus to the share repurchase rather than paying dividends.

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