Consolidated Financial Highlights for
the First Quarter of the fiscal year ending
March 31, 2023
Supplemental Materials

IMAGICA GROUP Inc.
Code: 6879

August 2, 2022

First Quarter Results Highlights

１

Company-wide operating income before amortization ofgoodwill was approximately ¥700 million, an increase of¥500 million yen from the previous year.

２

３Production services increased ¥500 million from theprevious year, driven by overseas demand.

Net income declined ¥400 million due to extraordinary
losses and an increase in income taxes attributable todeferred tax assets.
Notes in this document (* 1-3) are on Page 22.

2

Highlights of Financial Results for the First Quarter
・ The company secured a significant increase in both sales and profits. Net
income decreased due to extraordinary losses and higher income taxes.
Net sales

19,861
YoY+4,447（＋28.9%）(Million Yen)

Operating income (loss)
before goodwill
amortization

Operatingincome(loss)

Net income (loss)
attributable to ownersof the parent

YoY

YoY

YoY

686

271

+528（+334.0%)

53+526(446)19,861
16,855

15,414FYE Mar.2023
Extraordinary loss 219
Income taxes 145

15868649927153(255)

1Q FYE
1Q FYE
1Q FYE
Mar. 2021 Mar. 2022 Mar. 2023

(1,590)(1,868)(1,213)

1Q FYE
1Q FYE
1Q FYE
1Q FYE
1Q FYE
1Q FYE
1Q FYE
1Q FYE
1Q FYE
Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2021 Mar. 2022 Mar. 2023

3

Contributing Factors to Increases (Decreases) in Net Sales(vs 1Q FYE Mar 2022)
・All segments increased revenues, especially production services (International)
which increased by ¥3.1 billion.
(Million Yen)

Production Services(Overall:+3,267)

Content
Creation

Production
ProductionServices
Services（International）（Domestic）

1Q FYE Mar. 2022
ActualImaging
Systems＆ Solutions

Other

1Q FYE Mar. 2023
Actual4,447

4

Contributing Factors to Increases (Decreases) in Operating Income
before Goodwill Amortization (vs 1Q FYE Mar 2022)
・ Production services increased ¥500 million yen, Imaging Systems & Solutions¥200 million yen, and consolidated profits ¥500 million yen(Million Yen)

ProductionServices(Overall:+530)

Consolidated
Adjustments
Imaging
Systems& Solutions

Production Services(International)

Content
Creation
ProductionServices(Domestic)
1Q FYE Mar. 2022
Actual1Q FYE Mar. 2023
Actual+528
5

Content Creation
・Despite strength in feature films and drama productions, income declined due topostponement of animation productions and a reactionary downturn in young-adultfiction productions
Operating income(Million Yen)
Net Sales
beforegoodwill
amortization
YOY
YOY+198 (+5.0%)
3,951(164)

4,149

(27)

2,932(192)(469)

1Q FYE
Mar. 2021

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

1Q FYE
Mar. 2021

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

 Sales and profits of animation productions decreased due to postponement ofdelivery of some productions to the second quarter or later.

 Sales and income declined in the publishing business due to the release of popular
new young-adult fiction in the previous first quarter.

 In the live entertainment business, VR platform development cooperation work andimaging direction orders did well.

6

Production Services
・ Significant increase in revenue and profit thanks to continued strength of Global
E2E services *1
Operating income
Net sales(Million Yen)
before goodwill amortization
YOY

YOY

+3,267（＋37.6%)
11,955+530(＋231.7%）

10,5198,687InternationalSDIPPCInternational
PixelogicPPC759

International
Pixelogic
PPC
Domestic

DomesticDomestic

Domestic

229

International

Domestic

Domestic

International

International(989)1Q FYE
1Q FYE
1Q FYE
1Q FYE
Mar. 2021
Mar. 2022
Mar. 2023
Mar. 2023
In Japan, digital cinema services*2 and post-production services were strong due to an
1Q FYE
Mar. 2021

1Q FYE
Mar. 2022

increase in the number of feature films, but profit decreased due to an increase in fixed
costs accompanying the relocation of bases.

 Overseas sales and profits increased significantly due to continued strong demand forlocalization by video streaming service providers*3.

7

Production Services (International) Quarterly Results(cumulative)and Forecasts
・Services for video streaming service providers continued strongly and the second
quarter is also expected to be solid(Million Yen)

Operating income before
goodwill amortization(cumulative)

Net sales(cumulative)

16,000

Forecast
12,000

1,600

8,000

ActualActual

1,200
800

4,000

02022 1Q

2023 1Q
ActualActual1Q FYE
1Q FYE
Mar. 2022 Mar. 2023

Forecast

4000
2Q FYE
2Q FYE
Mar. 2022 Mar. 2023

(400)

Actual1Q FYE
1Q FYE
Mar. 2022 Mar. 2023Actual
2Q FYE
2Q FYE
Mar. 2022 Mar. 2023

 Services for video streaming service providers are expected to be strong in thesecond quarter too.

 Digital cinema services are expected to remain strong as theater releases in the U.S.
and Europe return to normal.

8Imaging Systems & Solutions
・ Imaging systems for broadcasting stations and video and image processing LSI
started well and posted increased sales and profits
Net sales

Operating income before
goodwill amortization

YoY(Million Yen)

YoY

+222（+197.6%)+1,073（＋34.1%）
4,225
3,577

3,151334112

1Q FYE Mar.2021 1Q FYE Mar.2022 1Q FYE Mar.2023(46)
1Q FYE Mar.2021 1Q FYE Mar.2022 1Q FYE Mar.2023

 Imaging systems for broadcasting stations, sales and income increased due to theorders for large projects.

 Orders for high-speed cameras were solid, with sales and profits increasing.
 Video and image processing LSI had strong sales in Japan and in Asia.

9FYE Mar.2023: Full-year forecasts
・Despite strong performance in production services (International), Full-year
forecast will not be revised at this time because of concerns about the impact of theshortage of semiconductors on Imaging Systems & Solutions business.
FYE Mar.2022(Million yen)

ActualFYE Mar.2023
Financial forecast

YoYchangeYoYchange80,18488,000

7,816

9.7%

5,131

5,200

69

1.3%

6.4%

5.9%

3,417

3,600

183

5.3%

4.3%

4.1%

Ordinary income

3,934

3,300(634)(16.1%)Net income attributable to parent company
shareholders

2,729

2,100(629)(23.0%)Net income per share (yen)

61.49

47.30

(14.19)(23.0%)Net sales
Operating income before goodwill
amortization(Profit margin)

Operating income(Profit margin)

10Year-end dividend forecast

Dividend policy
The Group considers the return of profits to shareholders as an important management objective.
Our basic policy is to distribute earnings in line with consolidated results. We target a consolidated
payout ratio of 30% and aim to maintain stable dividends while increasing their level.
If any special factor, such as an extraordinary gain or loss, significantly impacts the net income of agiven fiscal year, our general policy is to take the special factor into consideration in determining
dividends, after consideration of all aspects, including provision of stable dividends to shareholders,
future business development, and retained earnings.

Based on the above policy, the dividend forecast for FYE Mar.2023 is 15 yen.
Net income
Per share
attributable to parent Net income attributable
Dividend forecastcompany
to parent company
Net income
Net income
Expected for FYE
Mar.2023

2,100 mn yen

47.30 yen

15.0 yen

Dividend payout
ratio

31.7%
11Appendix.

Reference:

Progress of the G-EST2025 Mid-Term Plan
・ In the first quarter of 2023, the four key strategies started well
Net Sales

28.9%
15.4

Global E2E services（Net sales 7.7billion yen）
(Billion Yen)

Services■ Live EntertainmentBusiness

0.7
2.8

7.7

same quarter in the previous year.

live platform provided by PIA Corporation and for imaging

0.8
3.8

Imaging Systems &Solutions Business（ Net sales 3.8billion yen）


8.0

1Q FYE Mar.2023

Orders for high-speed cameras remained steady.

Transformation Business(Net sales 8billion yen）
1Q FYE Mar.2022

Sales and income increased thanks to the contribution oflarge orders for imaging systems for broadcasting stations.

7.8

Orders for development cooperation for the NeoMe virtual
direction have been strong.

& Solutions businessbusinessa significant 70% increase in revenues compared to theLive Entertainment Business(Net sales 0.8billion yen）

■ Imaging Systems■Transformation

their strong performance, both in Japan and overseas, with19.8

4.5■ Global E2E

Services for video streaming service providers continued

Despite the postponement of animation productions to thesecond quarter, post-production for feature films and drama
productions, TV programs, and TV commercials did well.

*The sales for individuals strategies do not add up to the total because canceling out for consolidation is
not taken into account.

13

Reference:

Major subsidiaries and businesses of the key strategies

Global E2E services

Domestic and international E2Eservices

Live EntertainmentBusinessLive music performances, music video
productions, online live performances,metaverse business, etc.

Imaging Systems &Solutions Business

Imaging systems & solutions
business excluding IMAGICA LIVE.

・ Production of feature films, dramas, andTransformation
Businessanimation.
・ Advertisement production
・ Post-production services for TV programs
and TV commercials
・ Game production and personnel services

14

Consolidated Income Statements
1Q FYE Mar. 2022(Million Yen)

1Q FYE Mar. 2023

ActualActual

YoY%YoY

Net sales

15,414

19,861

4,447

28.9%

Gross profit

4,386

5,494

1,108

25.3%

28.5%

27.7%

(255)

271

527

ーー

1.4%

(285)

306

591ーー

1.5%

Extraordinary income

358141(217)(60.5%)

Extraordinary losses

4219

215

5245.1%

69228

158

228.7%Net profit (loss) attributable toowners of parent

499

53(446)(89.3%)(Reference) Operating income (loss)
before goodwill amortization

158

686

528

334.0%(Gross margin)

Operating loss
(Operating margin)

Ordinary loss
(Ordinary margin)

Net income (loss) before income tax

Operating income before goodwill amortization = operating income + goodwill amortization + amortization of intangible
fixed assets including trademarks

15

Consolidated Balance Sheets
As of Mar.31,2022

As of June.30,2022

41,06641,007(59)

Cash and deposits

6,420

5,487

(933)

Non-current assets

32,31736,824

4,507

Goodwill

11,482

11,844361

Total Assets

73,384

77,832

4,447

Current liabilities

32,27833,364

1,085

4,170

4,308

137

7,079

10,307

3,227

4,019

3,806

(213)

Total Liabilities

39,35843,671

4,312

Shareholders' equity

29,96329,349

(614)

1,185

1,840

655ーーー

2,876

2,970

94

Total Net Assets

34,02534,160135

Total Liabilities and Net Assets

73,384

77,832

4,447

Net Cash(1,769)(2,627)(857)(Million Yen)

Current assets

AssetsShort-term loans payableNon-current liabilities
Long-term loans payable

Liabilities
Net Assets

Accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests

Net Cash : (Cash and deposits －long-term and short-term loans payable)

YoY

16Financial Results by Segment

Content Creation

ActualNet sales
Operating loss
(Operating margin)
Operating loss before goodwill
amortizatsion

Production Services

Net sales
Operating income (loss)(Operating margin)
Operating income before goodwill
amortization

Imaging Systems &Solutions

Net sales
Operating income(Operating margin)
Operating income before goodwill
amortization

OthersConsolidated total

1Q FYF Mar.2023

1Q FYF Mar.2022（Million Yen）

Net sales
Operating loss

Net sales
Operating income (loss)

Operating income before goodwill
amortization

ActualYoY%YoY

3,951(28)4,149(193)

198(164)

5.0%(27)

(192)

(164)

ー8,687(174)

11,955
355

3,267
530

37.6%

229

759

530

231.7%

3,151
103

4,225
325

1,073
222

34.1%
214.6%

112

334

222

197.6%

(376)

(468)

(92)

ー

(155)

(215)

(59)

ーー

ー

3.3%

ー

3.0%

7.7%

ー

ー

15,414(255)

19,861
271

4,447
527

28.9%

158

686

528

334.0%

ー

17Notes*1 Global E2E services
Refers to an integrated end-to-end (E2E) service that covers the entire post-production process forfeature films, TV dramas, animation, and other audio/video content up to media services for
localization (subtitling/dubbing) and distribution of these through all kinds of media, including
theaters, TV, and video streaming via the Internet.
*2 Digital cinema services
Refers to services for DCP (Digital Cinema Package) production and DCP delivery for digital showing
in movie theaters, KDM distribution, and other services (KDM: An abbreviation of Key Delivery
Message, the key for unlocking DCP encryption).
*3 Video streaming service providers
Refers to companies that provide video streaming services on a platform through the Internet.

18

Contact for inquiries:
IMAGICA GROUP Inc.
Corporate Management Department
1-14-2 Kaigan, Minato-ku, Tokyo 105-0022, Japan
Email：ir@imagicagroup.co.jp
URL：https://www.imagicagroup.co.jp/en/
DISCLAIMER:
The forward-looking statements for the current and future business periods described in thisdocument are formulated based on the plans and prospects of the Group as of the date on whichthese materials were disclosed. Actual performance may differ from numerical forecasts due to theuncertainties inherent in the judgments and assumptions made, as well as possibility of futurechanges that may occur in business management and internal and external circumstances.