Financial Results Presentation
Fiscal Year Ended March 31, 2024
(FY2023)IMAGICA GROUP Inc.
Securities Code: 6879
May 16, 2024

Contents of Today’s Presentation
Ⅰ Financial Results Summary for FY2023 and Financial
Forecast for FY2024
Masakazu Morita, Director andSenior Managing Executive Officer
Ⅱ Business Plan for FY2024
Ⅲ Future Management Policy
Shunjiro Nagase, Representative
Director, President* Fiscal years in this presentation are abbreviated as follows: Fiscal year ending March 31, 2024 → FY2023

Highlights of Financial Results
Operating income increased for three consecutive years. Net sales and operating income
reached their highest values since the listing.

(Million Yen)

Operating income
before goodwill andother amortization

Net sales

99,684

5,901

YoY+5,537 (＋5.9％)

94,147

Operatingincome3,924

YoY+163 (＋2.8％)

5,738

5,901

3,417

FY2022

FY2023

FY2021

FY2022

FY2023

YoY-1,491 (-38.6%)
Extraordinary income ofcompensation for forced
relocation by redevelopmentof Gotanda, included

5,131

FY2021

2,373

YoY＋55 (＋1.4％)

99,68480,184

Net income attributable toownersof the parent

FY2021

3,868

3,924

3,864
2,729

FY2022

FY2023

FY2021

2,373

FY2022

FY20233

Analysis of increase/decrease of Net sales (YoY)
Content Creation recorded sales increase of 4.6 billion yen with major works, and Imaging Systems &Solutions recorded sales increase of 0.8 billion yen with strong sales of high-speed cameras.
Production
Technology
Services
Overall: (161)(381)
Domestic
Overseas(Million Yen)

Analysis of increase/decrease
Content Creation (increased sales)

Imaging
Systems &Solutions・Major feature film and drama works such as “Godzilla Minus One.”・Strong orders for TV animation series.
・Strong sales of original works and comics of “The Apothecary
Diaries.”

Other

Content
Creation

Production Technology Services (decreased sales)
・Domestic digital cinema services grew.
・Sales of localization services has struggled since 2H partly due to theimpact of strike in Hollywood.
・Orders for 3DCG production for games were strong.

Imaging Systems & Solutions (increased sales)
・Sales of high-speed camera increased significantly owing to strong
order.
FY2022
Actual＋5,537

FY2023
Actual・Video and image processing LSI sales decreased due to market
deterioration.
4

Analysis of increase/decrease of Operating income
before goodwill and other amortization (YoY)

Operating income decreased in Production Technology Services (overseas) but increased overall by
160 million yen partly owing to significantly increased operating income in Content Creation.
Production
Technology
Services
Overall: (994)(Million Yen)

Content Creation(increased operating income)Domestic
Content
Creation(1,169)Analysis of increase/decrease

・Margin in animation production has improved.
・Operating income increased owing to strong sales of “TheApothecary Diaries.”

Other

Imaging
Systems＆
Overseas
Solutions

Production Technology Services(decreased operating income)・Operating income of overseas E2E services decreased due
to a decrease in profit associated with sales decrease inlocalization services and an increase in depreciation
expenses and the other costs due to the expansion ofcapital investments.

Imaging Systems & Solutions(increased operating income)
FY2022
Actual＋163

FY2023
Actual・Operating income increased owing to strong high-speed
camera sales and improvement of cost structure ofbroadcast imaging systems & solutions.

5

FY2024 forecast
In FY2024 ｗe will gain a foothold for growth stage and aim for an operating margin of
5.9%.

(before goodwill and otheramortization)

Operating income(Million Yen)

予想

Net sales

80,184

94,14798,00099,684FY2021
ActualFY2022
Actual6.4%

6.1%

FY2023
Actual5.9%

FY2024
Forecast

5.9%

5,738

5,901

5,800

FY2022
ActualFY2023
ActualFY2024
Forecast

5,131

FY2021
Actual6

Factors of increase/decrease between FY2023 actual and
FY2024 forecast
Rebound from increased sales of major works, sale of consolidated subsidiaries, and impact of
the strike in Hollywood in the U.S. are factored into the forecast.
(Billion Yen)

Net sales

99.6

1.6

2.1

0.9
Content
Creation

Production
Technology
Services(Domestic)

Production
Technology
Services(Overseas)

5.9

Operatingincome(before goodwill andother amortization)

FY2023
ActualFY2023
ActualNet sales

0.6

0.5

Imaging
Systems&
Solutions

Other

(4.8)
Reboundfromincreasedsales of
major
works

(2.5)

0.04
Content
Creation

0.18
Production
Technology
Services(Domestic)(0.15)
Production
Technology
Services(Overseas)(Including impact of
the strike in
Hollywood)(0.1)(0.14)

factored into the forecast.
① Rebound from increased sales of major works:

Sale ofconsolidated
subsidiaries,
etc.

(4.8)
Major works such as feature film “Godzilla Minus One”
recorded in the previous year are not expected in
FY2024.
FY2024
Forecast(1.6)
Imaging
Systems&
Solutions98.0

Net sales increase in three segments, but the following are② Sale of consolidated subsidiaries: (2.5)
In March 2024, we sold all shares of three consolidated
subsidiaries that provide human resource consulting
services, for business portfolio review.

Other

5.8

(0.04)

Operating income① Although operating income of Production Technology
Services (domestic) increases, impact of the strike in
Hollywood is factored into overseas services until 1H.
② In Imaging Systems & Solutions, market recovery isconservatively expected to be slow, except one for

FY2024
Forecast

high-speed camera.
7

Full-year financial forecast for FY2024
Dividend per share is expected to remain at the same level as last year.
FY2023(Million Yen)FY2024

ActualFinancial Forecast

YoY

% YoY

99,68498,000(1,684)(1.6％)

5,901

5,800

(101)

(1.7%)

5.9%

5.9%

3,924

3,700

(224)

(5.7%)

3.9%

3.8%

Ordinary income

3,727

3,200

(527)

(14.1％)Net income attributable toowners of the parent

2,373

2,000

(373)

(15.7％)

Dividend per share (yen)

15.0

15.0

0.0

0.0％

Net sales
Operating income(before goodwill and otheramortization)(Margin)Operating income(Margin)8

Contents of Today’s Presentation
Ⅰ Financial Results Summary for FY2023 and Financial
Forecast for FY2024
Masakazu Morita, Director andSenior Managing Executive Officer
Ⅱ Business Plan for FY2024
Ⅲ Future Management Policy
Shunjiro Nagase, Representative
Director, President* Fiscal years in this presentation are abbreviated as follows: Fiscal year ending March 31, 2024 → FY2023

Introduction of Representative Director, President
Shunjiro Nagase
Date of BirthMarch 20, 1978 (46 years old)

Career Summary in the GroupMay 2012

Joined the Company

April 2016

Loaned to SDI Media Group Inc.

April 2019

Executive Officer, the Company
Director, SDI Media Group Inc.

April 2021

Manager, Pixelogic Holdings LLC

April 2022

Representative Director, President, ROBOTCOMMUNICATIONS INC.

April 2024

Representative Director, President,
the Company

Significant Concurrent Positions
Representative Director, President, ROBOTCOMMUNICATIONS INC.
Manager, Pixelogic Holdings LLC
Director, P.I.C.S. Co., Ltd.

10

Policies for Business Plan for FY2024
Following the policies so far, we define the business for growth andtransformation and formulate a new Mid-Term Plan.
Growthbusiness

Transformation
businessGame

Global E2E business(Overseas)

IP

High-speed
cameraTV-related business

11

Overview of Business Plan for FY2024 by segment
Promote growth path expansion and transformation business measures for each business.
Financial forecast for FY2024

Content Creation

1• Expand profitability by further IP creation• Improve profitability by enforcing cost control in animation
production and CM production

Net sales

Operating income/marginbefore goodwill and otheramortization

billion yen
24.3 billion yen 1.32
(5.4 )%

250億絵

Production Technology Services

2• Global E2E business: strengthen orders in APAC, reduce costs
and enhance productivity• Game-related business: expand existing businesses and expand
into new business areas

Imaging Systems & Solutions

3• High-speed camera: Strengthen orders for vehicles in Southeast
Asia and introduce new models• Challenge of a new business using 3D sensing technology.

Net sales

Operating income

before goodwill and otheramortization

55.1 billion yen 3.4(6.2billion) yen%

Net sales

Operating income

before goodwill and otheramortization

billion yen
20.3 billion yen 2.3
(11.3
%)

12

Content Creation
Although sales decrease due to the rebound from last year’s increase in sales of major works,etc., aim for a margin of over 5% through the effects of various measures.
28,186(Million Yen)

23,537

FY2024 Highlights

24,300Net sales

Continue to enhance profitability through IP

Forecast

１ creation••(before goodwill andother amortization)

Operating income

FY2022

FY2023

4.5%
2.3%

1,281

FY2024

5.4%

Enhance profitability with existing works including “TheApothecary Diaries.”
Promote initiatives for further IP creation. Details in the next page

Animation production: continue to implement

2 measures to increase gross margin
•

1,320

Continue to promote digitalization and control outsourcing
ratio.

3 CM production: aim to improve gross margin
Forecast

540

FY2022

FY2023

FY2024•

Screen out projects with low-profitability and enforce cost
control.

•

Consider M&As to strengthen digital production capabilities.
13

Example of IP Creation “The Apothecary Diaries”
The number of copies sold in the series has increased rapidly since TV animation broadcasting started, contributing toincreased operating income of Content Creation. 2nd season of the TV animation broadcasting has been decided.

Through FY2023
33 million
copiesMarch 2024

Changes in operating
income of Content
Creation business

FY2024
2nd season of TV animation broadcasting decided(Million Yen)

＋741
November 2023
1st season of TV animation
broadcasting started

1,281

27 million copies

15 million
copiesNovember 2021

21 million
copiesFebruary 2023

540

9 million
copiesJuly 2020

Changes in the total number of copies
sold for “The Apothecary Diaries” series
FY2022

FY2023Fund allocation revenue from the production
committee is expected, in addition to an increase insales volume of original works and comics.
©Hyuuga Natsu, IMAGICA Infos/”The Apothecary Diaries” Project14

New IP Creation Initiatives: “Monogatari-Lab” and “Light Anime”“Monogatari-Lab”“Light Anime®” (production method)

diverse creatorswith Dai Nippon Printing Co., Ltd. (DNP)＝A scenario production team comprising
A scenario production team led by Norihiro Koizumi, directorof the “Chihayafuru” series and “The Liar and His Lover.”
Comprised of scenario writers, film directors, producers andother members engaged in entertainment projects on adaily basis.

MonogatariLab＝Animation production method promoted jointly
・”Light Anime®” is a general term for animation in which still
images from the original “manga” or “WEBTOON” aremoved and voiced by voice artists. Time and cost ofanimation production can be significantly reduced compared
to conventional production methods.
・Broadcasting to begin on terrestrial TV in June under thelabel of “AnimationID.”
Dubbing

Production of scripts
for movies and dramas

Produce original IP suchas comics, novels,
movies, games, etc.

SE, BGM

MotionEffectManga/Webtoon

Use of original IP produced by Monogatari-Lab isalso under consideration

Light Anime*Light Anime is a registered trademark of DNP.

15

IP-related Topics in FY2024
TV Drama “RoOT”“PARALLEL CLIMB”

Planning, original work, and production by P.I.C.S.
Broadcasting started on April 2 on TV Tokyo and other stations
Distribution available exclusively on Netflix

A comic that reads from top to bottom, co-produced
by Monogatari-Lab and IMAGICA Infos©P.I.C.S., Kazuya Konomoto/RoOT Project

˝Rinko Higashiyama, mono-gatally & Imagica Infos Co.,
Ltd. 2024“Maarui Kanojo to Zannen
na Kareshi”
The first of a series of Light Anime by IMAGICA Infos x Dai
Nippon Printing
Broadcasting on terrestrial TV in June decided©Izumi Hayama, Yachiyo Okamura, una toonstudio/LDF/”Marukano” Project“The Apothecary
Diaries” 2nd season of TV
animation broadcasting
decided©Hyuuga Natsu, IMAGICA Infos/”The Apothecary Diaries”
Project

16

Production Technology Services
We expect to increase both sales and operating income through sales increase in game-related
business and profitability improvement, etc. in global E2E business.
54,12853,967

Forecast

FY2022(before goodwill and otheramortization)

Operating income

FY2024 Highlights

55,100

１ Global E2E businessNet sales(Million Yen)FY2023

FY2024•••2 Game-related business
•

4,361
3,367

3,400
Forecast

FY2022

FY2023

Strengthen orders in APAC (Korea and Japan).
Reduce costs by assigning personnel to low-cost countries.
Impact of strike in Hollywood is expected to cease in 1H.

Details in the next page

Expand existing businesses and expand into new businessareas.

3 TV-related business••

Strengthen orders from key customers.
Improve profitability by enforcing outsourcing cost
reduction and fixed cost reduction, etc.

FY202417

Initiatives for Game-related business
Implement measures for growth that will drive the Group.
Further growth in the 3DCG business (aim for 26% sales increase
compared to the previous year)

Changes in net sales of theGame-related business・Increase the number of key customers and high value added projects.
・Strengthen human resource development (develop project-specific training and OJT-type
training).

+1.7
billion(Billion Yen)(+26%)

8.0

Provide global E2E services for game production
Produce/plan
Produce/plan

6.3

Services

Production
Development

Art production

Localization

Ads/operation
Quality control

Marketing

Production（3D/2D CG）
Placement and dispatch of personnel

Services(QA・agents)

Accelerate global expansion (acquire projects from overseas clients)
・Acquire overseas projects via Universally Speaking, Ltd. in UK, with whom we have a

Solutions

Localization
FY2023 actual

FY2024 planbusiness alliance, and respond in cooperation with group companies.

Clients
18

Imaging Systems & Solutions
Sales of high-speed cameras aim for record-high, and seek for the next growth seeds.
FY2024 Highlights(Million Yen)

19,756Net Sales

18,93020,300

Forecast

Strengthen orders for vehicles in Southeast
１ Asia and introduce new models, and aim forrecord-high sales units•

Strengthen the system in Southeast Asia, where replacement
demand for Global NCAP-compliant cameras is increasing.

*Global NCAP: Global New Car Assessment Program

Operating income(before goodwill and otheramortization)

FY20222,122

FY2023

FY2024

2,440

2,300

Changes in annual unit sales

2020

Forecast

FY2022

Increase byapprox. 30%

FY2023

FY2024

2021

2022

2023

2 Seek for the next growth seeds
•
•

2024

Take on the challenge of a new business using 3D sensing
technology.
Consider investments aiming to acquire new technologies andexpand sales channels.

19

Contents of Today’s Presentation
Ⅰ Financial Results Summary for FY2023 and Financial
Forecast for FY2024
Masakazu Morita, Director andSenior Managing Executive Officer
Ⅱ Business Plan for FY2024
Ⅲ Future Management Policy
Shunjiro Nagase, Representative
Director, President

Progress of the Mid-Term Plan “G-EST2025”
Achieved operating income targets in the Mid-Term Plan through FY2023(Million Yen)

94,147

Net Sales

80,184

ActualActualFY2021

FY2022(before goodwill and otheramortization)

Operating Income(margin)1st year of Mid-Term
Plan
Actual

2nd year

6.4%

110,000

99,68498,000

Actual

Fore
cast

Plan

FY2023

FY2024FY2025

3rd year

4th year

5th year

Mid-Term Plan
8.0%

6.1%

5.9%

5.9%

●

8,800
5,738

5,131
3,000 ActualPlan

FY2021

1st year of Mid-Term
Plan

4,100
Plan

ActualFY2022
2nd year

5,400
Plan

5,901

5,800

Actual

Fore
cast

Plan

FY2023

FY2024FY2025

3rd year

4th year

5th year21

Summary of the Mid-Term Plan “G-EST2025”
The plan is still going with some revisions since it started but the progress differs from eachstrategy due to the environmental changes and the other factors.
Progress of key strategies

Global E2E business
Expanding rapidly with market growth, and has transitioned to stable growth since 2023 partly due to market changes,
focusing on profitability improvement overseas

Game-related business
Full-scale start in FY2023, aiming for foundation building and business expansion as a future growth driver

Imaging Systems & Solutions business
High-speed camera sales are progressing as planned, focusing on improvement in broadcast imaging systems and growthbusinesses (optical measurement, SaaS)Transformation businessRealize IP creation cases such as “The Apothecary Diaries” and continue to be focused on. Margin for animation
production has improved while that for TV-related business is on the way to improvement

Live Entertainment business
Expanded business under the COVID-19 pandemic through online live shows and metaverse, currently shifting to stockbusiness due to changes in the environment

Rapid changes in video
streaming market

Changes in industry profit models
due to diversification ofadvertising media

Changes in live entertainment
market22

The Group Has Responded to Changes in the External EnvironmentStarted as a dye shop in Kyoto, then became a trading company specializing in chemicals, andtransitioned to a company developing feature films.
The Group has changed its business in response to changes in the external environment.
2019

2022
Full-scale entry intogame-related businessEntered publishing business2016
Entered animation production
business(Billion Yen)

100.0

2015
Entered overseas subtitling/dubbing andstreaming service business2009
Entered human resource
consulting service business
2006
Entered feature films, drama, andadvertising production business

Film developing laboratory at the time of
the Group’s founding

Founded in 1935
Began developing
feature films

1940

2002

Entered live music business

1993
1953

Started color
development
business

1950

1971

Launched video
service businessEntered imaging systems &solutions businessChanges in the Group’s net sales

1960

1970

1980

1990

2000

2010

2020

23

Future Management Policy
In order to respond to changes in the external environment,
it is necessary to understand the needs of the times and create new
businesses that are required.

Three keywords
Response tochanges

Selection of thebest market

New business
model

Based on the above three keywords, we will build business andresource portfolio considering ROIC (Return On Invested Capital).
24

Positioning of FY2024
FY2024FY2025

Solidify the foundation bycompleting the business plan andgain a foothold for growth stage

Start a new Mid-Term Plan

Promote the expansion of growth path andtransformation businessthat increases capital efficiency

Financial forecast for FY2024

Net Sales
Operating
Income(before goodwill and

98.0 billion yen
5.8 billion yenother amortization)

25

Appendix.

FY2024 Full-year forecast by segment(Million Yen)

Production
Technology
Services

Imaging Systems &Solutions

Consolidated total

FY2023

ActualActualFY2024
Forecast

YoY

% YoY

23,53728,18624,300(3,886)(13.8%)

Operating income before
goodwill and other amortization

540

1,281

1,320

39

3.0%

Operating income

535

1,276

1,310

34

2.7%

54,12853,967

55,100

1,133

2.1%

Operating income before
goodwill and other amortization

4,361

3,367

3,400

33

1.0%

Operating income

2,532

1,430

1,350

(80)

(5.6%)Net sales

18,93019,756

20,300544

2.8%Operating income before
goodwill and other amortization

2,122

2,440

2,300

(140)

(5.7%)

Operating income

2,086

2,404

2,270

(134)

(5.6%)Net sales

94,147

99,68498,000(1,684)(1.7%)

Operating income before
goodwill and other amortization

5,738

5,901

5,800

(101)

(1.7%)

Operating income

3,868

3,923

3,700

(223)

(5.7%)Net sales

Content Creation

FY2022

Net sales2728