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Dream Incubator Inc. (hereinafter, \u201cDI\u201d or \u201cthe Company\u201d) hereby announces that it resolved at its Board of Directors meeting on February 7, 2023 to pay special bonuses to its executives and employees as follows. As a result, DI expects to record an extraordinary loss of approximately 2.0 billion yen in its consolidated financial statements for the fiscal year ending March 31, 2023.<\/p>\n
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DI plans to pay a total of 2.0 billion yen in bonuses to its executives and employees. Of this amount, 500 million yen will be stock remuneration under the \u201cExecutive Compensation BIP Trust\u201d (hereinafter, \u201cBIP Trust\u201d) and the \u201cStock Delivery ESOP Trust\u201d (hereinafter, \u201cESOP Trust\u201d).<\/p>\n
(Payment of a portion exceeding the annual remuneration limit for Directors is subject to approval at the Annual General Meeting of Shareholders to be held in June 2023.)<\/p>\n
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In accordance with the Medium-Term Management Plan announced in May 2022, DI is currently promoting structural reforms to focus its resources on the Business Production business while appropriately harvesting from the Incubation business.<\/p>\n
As part of this effort, in the fiscal year ending March 31, 2023, DI sold its investees PEACS Inc., Work Style Lab, Inc. and ipet Holdings, Inc. (hereinafter, \u201cipet Holdings\u201d). In particular, the Company expects to post an extraordinary gain of approximately 18.1 billion yen on the sale of ipet Holdings, pushing its earnings for the fiscal year ending March 31, 2023 to a new record. In line with this, the Company has decided to pay a special year-end dividend of 2.0 billion yen as the first installment of its plan to return a total of 10.0 billion yen to shareholders to reward them for their support to date.<\/p>\n
At the same time, due to the nature of DI\u2019s business as a \u201cprofessional consulting firm,\u201d it considers human resources as its biggest growth driver. The Company\u2019s remuneration strategy is to share capital gains not only with its shareholders but also with its executives and employees, aiming to attract and retain highly talented personnel. Based on this policy, the Nomination and Compensation Committee and the Board of Directors\u2014the majority of which comprises Outside Directors\u2014reviewed the matter and decided to pay the bonus.<\/p>\n
Moreover, DI plans to increase the percentage of shares held by executives and employees, with the aim of boosting their motivation and morale more than ever to improve performance over the medium and long term, and sharing the results with shareholders. Accordingly, the Company has decided to provide 500 million yen of the bonus as stock remuneration through the stock delivery incentive plans BIP Trust and ESOP Trust (allocated shares as announced in \u201cNotice Concerning Disposal of Treasury Stock by Third-Party Allotment\u201d dated November 7, 2022).<\/p>\n
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In consolidated financial statements for the fiscal year ending March 31, 2023, the Company expects to record an extraordinary loss of approximately 2.0 billion yen in the form of bonuses to executives and employees.<\/p>\n
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