This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan inaccordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This
document does not contain or constitute any guarantee and the Company will not compensate any losses
and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy
between the Japanese original and this document, the Japanese original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024 (J-GAAP)May 9, 2024
Company name:IMAGICA GROUP Inc.
Stock exchange listing: Tokyo Prime
Securities code:
6879
URL:
https://www.imagicagroup.co.jp/en/
Representative:
Shunjiro Nagase, Representative Director, President
Tel: +81-3-5777-6295
Inquiries:
Masakazu Morita, Director and Senior Managing Executive Officer
Planned date for ordinary general meeting of shareholders:June 25, 2024
Planned dividend payment date:June 11, 2024
Planned annual securities report filing date:June 25, 2024
Supplementary material of financial results:
Available
Planned financial results briefing:
Available(Millions of yen, rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(April 1, 2023 – March 31, 2024)(1) Consolidated Operating Results
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Million yen%

99,684
94,1475.9
17.4(Note) Comprehensive income:(Percentage represents change from the same period of the previous fiscal year.)
Net income attributable
Operating income
Ordinary income
to owners of parent
Million yen%
Million yen%
Million yen
%

3,924
3,868

1.4
13.2

3,727
3,638

2.5
(7.5)

2,373
3,864

Fiscal year ended March 31, 2024: ¥3,466 million / (51.8)%
Fiscal year ended March 31, 2023: ¥7,186 million / 91.5%

Basic earnings
per share

Diluted earnings
per share

Return on
equity net
incomeTotal assets
ordinary income
ratio

Operatingincome ratio

Fiscal year ended
Yen
Yen
%
%
6.4
4.6
March 31, 2024
53.57—
March 31, 2023
86.79
—
11.5
4.7
(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2024: ¥(14) million
Fiscal year ended March 31, 2023: ¥(8) million(2) Consolidated Financial Position
Total assets
As of March 31, 2024
As of March 31, 2023
(Reference) Shareholders’ equity:(38.6)
41.6

Net assets

Equity ratio

%

3.9
4.1

Net assets per share

Million yen

Million yen%

Yen

78,69481,88839,90640,30348.1
44.1

855.85809.83As of March 31, 2024:
As of March 31, 2023:¥37,828 million¥36,106 million

(3) Consolidated Cash Flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and Cashequivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

5,730
6,109

(4,461)(2,380)(4,117)(2,585)

5,241
7,812

Fiscal year ended
March 31, 2024
March 31, 2023
2. Dividends

Dividend per share
First
Second Third
Fiscalquarter- quarter quarteryear-end
end
-end
-end

AnnualDividends
total(Annual)Dividend
payout ratio(Consolidated)

Dividends to
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

0.00

–

15.00

15.00

668

17.3

2.0

–

0.00

–

15.00

15.00

663

28.0

1.8

–

0.00

–

15.00

15.00

Fiscal year ended
March 31,2023
Fiscal year ended
March 31,2024
Fiscal year ending
March 31,2025(Forecast)

33.2* For details of the dividend forecast approach for the fiscal year ending March 31, 2025, please refer to “1. Overview ofOperating Results, etc. (4) Future Outlook <Dividend policy>” on page 5 of the Attachments.

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)(Percentage represents change from the same period of the previous fiscal year.)
Net income
Basic earnings
Net sales
Operating income
Ordinary income
attributable toper shareowners of parent
Full year

Million yen%

Million yen%

98,000

(1.7)

3,700

(5.7)

Million yen%

Million yen

3,200 (14.2)%

Yen

2,000 (15.7)

45.25* Notes:(1) Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change insubsidiaries): None
(2) Changes in accounting policies, accounting estimates and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standards: None
2) Changes in accounting policies other than ones based on revisions of accounting standards: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Number of shares issued (common shares)
1) Number of shares issued at the end of the period (including treasury stock)
As of March 31, 2024
44,741,467 shares As of March 31, 2023

44,741,467 shares

2) Number of treasury stock at the end of the period
As of March 31, 2024
541,346 shares As of March 31, 2023

156,042 shares

3) Average number of shares during the period
As of March 31, 2024
44,298,707 shares As of March 31, 2023

44,527,222 shares[Reference] Overview of Non-Consolidated Financial Results
Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Non-Consolidated Operating Results(Percentage represents change from the same period of the previous fiscal year.)

Fiscal year ended
March 31, 2024
March 31, 2023

Operating revenue

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen

%

3,366
3,591

(6.3)
13.7

595
743

(19.9)
15.2

729
736

(1.0)
15.2

1,111
893

24.4
(14.4)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

25.09
20.06

—
—

Fiscal year ended
March 31, 2024
March 31, 2023

(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2024
As of March 31, 2023
(Reference) Shareholders’ equity:

31,69530,323As of March 31, 2024:
As of March 31, 2023:

Net income

Equity ratio

Million yen

20,92520,449¥20,925 million

Net assets per share
%

Yen

66.0
67.4

473.42458.67¥20,449 million* These financial results are exempted from audit by a certified public accountant or an auditing firm.
* Explanation regarding the appropriate usage of financial forecasts and other special instructions
Forward-looking statements, such as financial forecasts, presented in this document are based on information
available and certain assumptions the Company deemed to be reasonable at the time of publication, and theCompany does not guarantee its future performance. Actual results may differ significantly due to various factors.

Table of Contents
1.Overview of Operating Results, etc........................................................................................................ 2(1) Overview of operating results for the current period ........................................................................ 2(2) Overview of financial situation for the current period ...................................................................... 3(3) Overview of cash flows for the current period .................................................................................. 3(4) Future outlook. .................................................................................................................................. 4
2. Basic Policy for the Selection of Accounting Standards. ...................................................................... 5
3. Consolidated Financial Statements ...................................................................................................... 6(1) Consolidated Balance Sheets ............................................................................................................ 6(2) Consolidated Statements of Income and Statements of Comprehensive Income ............................. 8(3) Consolidated Statements of Changes in Equity. .............................................................................. 10(4) Consolidated Statements of Cash Flows. ........................................................................................ 12(5) Notes to consolidated financial statements ..................................................................................... 14(Notes on ongoing concern assumption) .................................................................................... 14(Segment information and others) .............................................................................................. 15(Per share information) . ............................................................................................................. 18(Significant subsequent events) . ................................................................................................ 18
4. Other .................................................................................................................................................... 18

1

1. Overview of Operating Results, etc.
(1) Overview of operating results for the current period① Overview of the current fiscal year
In the fiscal year ended March 31, 2024 (the “fiscal year” or “FY2023”), although the Japanese economy
slowly recovered, the outlook still contains uncertainties such as ongoing rapid depreciation of the yen andrising prices.
IMAGICA GROUP Inc. (the “Company”) and its subsidiaries (collectively, the “Group”) has positioned
FY2023, the third year of our G-EST 2025 Mid-Term Plan as “the year to get on growth path after
establishment of basis for growth,” and implemented five key strategies.
As a result, the group’s performance in FY2023 was as follows: Net sales were 99,684 million yen (up5.9% year on year), operating income was 3,924 million yen (up 1.4%), ordinary income was 3,727 million
yen (up 2.5%), and net income attributable to owners of parent was 2,373 million yen (down 38.6%). Net
income attributable to owners of parent decreased due to the recording of extraordinary income including
compensation for forced relocation in the previous fiscal year.
② Performance by business segment
Financial results by business segment are as follows.
Effective from FY2023, the reportable segment “Production Services” has been renamed to “Production
Technology Services.” This change is merely nominal and has no impact on the details of segment information.
1) Content Creation business
In FY2023, the Content Creation business reported sales of 28,186 million yen (up 19.8% year on year)
and operating income of 1,276 million yen (up 138.4%).
Sales of films and dramas increased owing to the feature film “Godzilla Minus One”, the Netflix featurefilm “Zombie 100: Bucket List of the Dead”, the Netflix series “YuYu Hakusho,” and other major works. Salesof animation works significantly increased owing to CG animation works and TV series with strong orders.
Sales in the publishing business significantly increased owing to strong sales of books of the light novel “TheApothecary Diaries,” whose TV animated series aired from October 2023 to March 2024. Sales of commercial
production grew in web commercials owing to high number of orders although performance in TV
commercials was sluggish due to weak orders.
As a result, sales and operating income significantly increased in the segment.
2) Production Technology Services business
In FY2023, the Production Technology Services business reported sales of 53,967 million yen (down
0.3% year on year) and operating income of 1,430 million yen (down 43.5%).
In domestic E2E services*1, sales increased mainly owing to solid sales of digital cinema services. In
overseas E2E services*1, sales decreased due to a decrease in sales of localization services as the Hollywood
actors’ and writers' strike lasted longer than expected and new releases were delayed, although sales of digital
cinema services grew. Operating income decreased as a result of decrease in the sales, and a rise indepreciation expenses and the other costs brought on by capital expenditure. In the game-related business*2,
sales increased as orders for Game 3DCG production increased, among other factors. In post-production
services for TV, sales declined with weak orders due to environmental change in domestic TV industry causedby platform diversification for movie contents.
As a result, sales and operating income decreased in the segment.
*1 E2E services: End-to-end services. This is a general term for one-stop services ranging from postproduction in the production of video content such as movies, dramas, and animation to media services for the
localization (dubbing and subtitling) and distribution through movie theaters, TV, and the Internet. Meanwhile,the closing date for overseas E2E services is December 31, and therefore the results from January 1, 2023 to
December 31, 2023 are reflected in those for FY2023.
2

*2 Game-related business: Game software development, visual production (CG), translation, audio
recording, quality assurance and creative talent dispatch and referral, etc.
3) Imaging Systems & Solutions business
In FY2023, the Imaging Systems & Solutions business reported sales of 19,756 million yen (up 4.4% year
on year) and operating income of 2,404 million yen (up 15.2%).
Sales of high-speed cameras significantly increased, breaking a record-high annual volume of productshipments, owing in part to the settlement of parts shortages in the previous fiscal year and strong orders
especially from overseas. Operating income of broadcast imaging systems & solutions increased by improving
cost structure, although the sales decreased due to weak orders. On the other hand, sales of video and image
processing LSIs declined mainly due to slower recovery of market environments.
As a result, sales and operating income increased in the segment.

(2) Overview of financial situation for the current period① Assets
Current assets decreased by 3,682 million yen (8.2%) from the end of the previous fiscal year to 41,288
million yen. This was mainly due to decreases in cash and deposits and accounts receivable - trade.
Non-current assets increased by 488 million yen (1.3%) from the end of the previous fiscal year to 37,405
million yen. This was mainly due to increases in shares of subsidiaries and affiliates, buildings and structuresand goodwill, while deferred tax assets decreased.
As a result, total assets decreased by 3,193 million yen (3.9%) from the end of the previous fiscal year to
78,694 million yen.
② Liabilities
Current liabilities decreased by 4,254 million yen (12.8%) from the end of the previous fiscal year to28,950 million yen. This was mainly due to decreases in contract liabilities and short-term borrowings.
Non-current liabilities increased by 1,458 million yen (17.4%) from the end of the previous fiscal year to
9,837 million yen. This was mainly due to an increase in long-term borrowings, while lease liabilities
decreased.
As a result, total liabilities decreased by 2,796 million yen (6.7%) from the end of the previous fiscal year
to 38,788 million yen.
③ Net assets
Net assets decreased by 397 million yen (1.0%) from the end of the previous fiscal year to 39,906 million
yen. Equity ratio is 48.1%.

(3) Overview of cash flows for the current period
Cash and cash equivalents (“cash”) at the end of the fiscal year ended March 31, 2024 decreased by 2,571
million yen (32.9%) from the end of the previous fiscal year to 5,241 million yen.
Cash flows for the fiscal year ended March 31, 2024 and the reasons for them are as follows.
1) Cash flows from operating activities
Cash provided by operating activities amounted to 5,730 million yen (6,109 million yen in the same
period of the previous year).
This was mainly due to an increase in cash associated with decreases in trade receivables and contract
assets and inventories while cash decreased associated with a decrease in contract liabilities.
2) Cash flows from investing activities
Cash used as a result of investing activities amounted to 4,461 million yen (2,380 million yen in the same3

period of the previous year).
This was mainly due to a decrease in cash associated with the purchases of property, plant and equipment
and shares of subsidiaries and affiliates.
3) Cash flows from financing activities
Cash used as a result of financing activities amounted to 4,117 million yen (2,585 million yen in thesame period of the previous year).
This was mainly due to a decrease in cash associated with the repayment of long-term borrowings andpurchase of investments in subsidiaries do not result in change in scope of consolidation while cash
increased associated with the proceeds from long-term borrowings.
(Reference) Trends in cash flow related indicators

Equity ratio
Equity ratio on a market pricebasis (%)
Ratio of cash flow to interestbearing liabilities
Interest coverage ratio

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022

Fiscal Year
ended March
31, 2023

Fiscal Year
ended March
31, 2024

40.3

45.4

42.4

44.1

48.1

25.1

39.7

43.3

32.4

38.4

162.4

(2,282.9)

117.2

215.7

231.5

21.4

(1.7)

35.5

21.0

14.0

* Equity ratio: Shareholders’ equity/total assets
Equity ratio on a market price basis: Total market value of shares/total assets
Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments.
Notes: 1. All indicators are calculated using financial figures on a consolidated basis.
2. Total market value of shares is calculated by multiplying the closing share price at the end of the periodby the number of shares outstanding (less treasury stock) at the end of the period.
3. Operating cash flow is the cash flows from operating activities in the consolidated statements of cash
flows. Interest-bearing liabilities include all liabilities on the consolidated balance sheets for whichinterest is paid. Interest payments are based on the amount of interest paid in the consolidated
statements of cash flows.

(4) Future outlook
For the fiscal year ending March 31, 2025 (“FY2024”), the Group will implement mainly the following
measures to pursue expanding growth path and continuous business transformation.
1) Content Creation business: Growing revenue by creation and leverage of IP, and improving profitabilityof animation and CM production by further digitalization
2) Production Technology Services business: Growing global E2E services from the APAC bases, andgrowing the game-related business with 3DCG production and expansion into the global market
3) Imaging Systems & Solutions business: Expanding product lineup and developing sales channels forhigh-speed cameras, and investing continuously growing business such as business using 3D sensing
For FY2024, additionally assuming reversal of sales of films and dramas with some major works in
FY2023, sales of consolidated subsidiaries and impact after the Hollywood actors’ and writers' strike, we
expect net sales of 98,000 million yen, operating income of 3,700 million yen, ordinary income of 3,200
million yen, and net income attributable to owners of parent of 2,000 million yen. Operating income includes
approximately 2,100 million yen in goodwill and other amortization*.
For future management policies, Shunjiro Nagase, who was newly appointed as Representative Directorof the Company on April 1, 2024, will present at the financial results briefing to be held on May 16, 2024.
4

(* Goodwill and other amortization equal to amortization of goodwill plus amortization of intangible
assets associated with M&A.)<Dividend policy>
The Group considers the return of profits to shareholders as an important management objective. Ourbasic policy is to distribute earnings in line with consolidated results. We target a consolidated payout ratioof 30% and aim to maintain stable dividends and increase the level of dividends.
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, futurebusiness development, and retained earnings.
Based on the above, the fiscal year-end dividend for the fiscal year ending March 31, 2025 is forecast
to be 15 yen per share.

2. Basic Policy for the Selection of Accounting Standards
Considering comparability of consolidated financial statements over time, the Group will continue to use
the Japanese accounting standards in the immediate future.

5

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes
Accounts receivable - trade
Contract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Accumulated impairment
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Accumulated impairment
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Accumulated impairment
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Accumulated impairment
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

March 31, 2024

7,813,769
420,745
21,445,673
71,061
12,460,112
2,868,953(109,328)
44,970,987

5,242,625
338,971
20,171,802
61,614
11,536,441
3,997,518(60,000)
41,288,972

12,213,112(7,584,337)(619,501)
4,009,273
6,210,738(5,525,748)(139,607)
545,383
921,3635,991,152(871,877)(121,127)
4,998,147
1,711,600
7,801,738(5,377,680)(135,685)
2,288,372
14,474,140

13,081,194(8,155,338)(598,722)
4,327,134
5,904,211(5,212,534)(137,053)
554,623
921,363
5,411,365(734,703)(89,060)
4,587,602
1,516,451
9,016,129(6,303,911)(125,339)
2,586,878
14,494,052

11,780,285
2,460,007
14,240,292

12,045,813
2,462,141
14,507,955

2,876,524
514,0422,048,952
2,420,133
490,206(147,088)
8,202,771
36,917,204
81,888,191

3,081,638
1,480,535
2,000,866
1,672,072
326,433(157,899)
8,403,647
37,405,654
78,694,627

(Thousands of yen)March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Lease liabilities
Accounts payable
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for loss on orders received
Provision for loss on litigation
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Long-term accounts payable
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

7

March 31, 2024

7,133,738
6,432,680
881,977
1,769,403
1,172,785
7,591,449
1,281,691
1,100
630,660
23,181
6,286,605
33,205,274

6,799,221
5,143,423
983,578
2,530,291
1,432,145
4,886,312
1,393,870
11,380－－5,770,083
28,950,308

1,366,665
4,498,102
252,767
196,598
1,241,071
653,518
170,257
8,378,982
41,584,257

3,120,478
4,015,709
519,874
214,227
1,219,274
667,624
80,746
9,837,935
38,788,243

3,306,002
13,020,018
16,982,736(158,530)
33,150,226

3,306,002
12,149,768
18,686,595(411,349)
33,731,016

713,553
20,740(17,933)
2,237,081
2,828

1,076,431
30,654(17,933)
3,024,687(16,227)

2,956,270
4,197,436
40,303,934
81,888,191

4,097,613
2,077,752
39,906,383
78,694,627

(2) Consolidated Statements of Income and Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Administrative expenses for investment
partnerships
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries andaffiliates
Gain on step acquisitions
Reversal of provision for loss on litigation
Compensation for forced relocation
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andaffiliates
Extra retirement payments
Other
Total extraordinary losses
Net income before income taxes
Income Taxes Current
Income Taxes Deferred (loss)
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

8

Fiscal year ended
March 31, 2023
94,147,707
67,424,283
26,723,423
22,854,523
3,868,899

Fiscal year ended
March 31, 2024
99,684,745
71,097,516
28,587,228
24,663,192
3,924,035

3,709
26,11765,17783,005111,149
289,160

10,25334,74751,001
226,621
119,996442,620290,255
8,290

408,691
14,610－105,497

220,957
519,5033,638,556

109,887
638,685
3,727,971

7,464
1,576,172

2,668
290,067

132,878－－
3,608,494
2,156
5,327,166

189,252
159,561
234,162－
12,372
888,084

21,425326,587
188,001

11,191
23,903
95,127－785,559
124,279
1,445,854
7,519,868
1,984,715
345,7122,330,427
5,189,440
1,324,955
3,864,485

84,677－
1,840
216,740
4,399,315
1,296,386
570,282
1,866,668
2,532,646
159,5032,373,143

Consolidated Statements of Comprehensive Income(Thousands of yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

9

Fiscal year ended
March 31, 2023
5,189,440

Fiscal year ended
March 31, 2024
2,532,646

318,208

158,091

20,7401,652,856

9,914
784,515

5,312(19,056)

1,997,117
7,186,558

933,464
3,466,111

5,635,297

3,514,486

1,551,261(48,374)

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCapital surplus

Retained earnings

13,223,561

13,785,809

3,306,002

Cumulative effects of changes

Total shareholders’(351,569)(1,625)in accounting policies
Restated balance

Treasury shares

3,306,002

13,223,561

equity29,963,804(1,625)

13,784,184(351,569)

29,962,178

Changes during period
Dividends of surplus
Net income attributable toowners of parent(665,932)(665,932)

3,864,485

3,864,485

Purchase of treasury shares
Disposal of treasury shares(53,280)

(151)

(151)

193,190

139,910

Change in ownership interestof parent due to transactions(150,263)(150,263)

with non-controlling interests
Net changes in items otherthan shareholders’ equity－(203,543)

3,198,552

193,039

3,188,048

3,306,002

13,020,018

16,982,736(158,530)

33,150,226

Total changes during period
Balance at end of current period

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning of current
period610,074

Deferred
gains orlosses onhedges－

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(17,933)

595,800

Remeasurementsof defined
benefit plans(2,483)

Total accumulated

Non-

other

controllingcomprehensive

interests

income1,185,458

2,876,174

Cumulative effects of changes

34,025,437(1,625)in accounting policies
Restated balance

Total net assets

610,074－(17,933)

595,800(2,483)

1,185,458

2,876,174

34,023,811

Changes during period
Dividends of surplus(665,932)

Net income attributable to3,864,485

owners of parent
Purchase of treasury shares(151)

Disposal of treasury shares

139,910

Change in ownership interestof parent due to transactions(150,263)

with non-controlling interests
Net changes in items other－

1,641,280

5,312

1,770,812

1,321,261

20,740－1,641,280

5,312

1,770,812

1,321,261

6,280,122

20,740(17,933)

2,237,081

2,828

2,956,270

4,197,436

40,303,934

103,479

20,740Total changes during period

103,479

Balance at end of current period

713,553

than shareholders’ equity

10

3,092,074

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCapital surplus

3,306,002

13,020,018

Retained earnings

Treasury shares

16,982,736

Total shareholders’(158,530)

equity33,150,226

Cumulative effects of changes－

in accounting policies
Restated balance

3,306,002

13,020,018

16,982,736(158,530)

33,150,226

Changes during period
Dividends of surplus
Net income attributable toowners of parent(668,781)(668,781)

2,373,143

2,373,143

Purchase of treasury shares
Disposal of treasury shares(17,764)(339,978)(339,978)87,15969,395

Change in ownership interestof parent due to transactions(852,485)(852,485)with non-controlling interests
Change in scope of(502)

consolidation(502)

Net changes in items otherthan shareholders’ equity－(870,249)

1,703,858(252,818)

580,7903,306,002

12,149,768

18,686,595(411,349)

33,731,016

Total changes during period
Balance at end of current period

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning of current
period713,553

Deferred
gains orlosses onhedges
20,740

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(17,933)

2,237,081

Remeasurementsof defined
benefit plans

2,828

Total accumulated

Non-

other

controllingcomprehensive

interests

income2,956,270

4,197,436

Cumulative effects of changes

40,303,934－

in accounting policies
Restated balance

Total net assets

713,553

20,740(17,933)

2,237,081

2,828

2,956,270

4,197,436

40,303,934

Changes during period
Dividends of surplus(668,781)

Net income attributable to2,373,143

owners of parent
Purchase of treasury shares(339,978)

Disposal of treasury shares

69,395

Change in ownership interestof parent due to transactions(852,485)with non-controlling interests
Change in scope of(502)

consolidation
Net changes in items otherthan shareholders’ equity

362,877

9,914－

787,606(19,056)

1,141,342(2,119,684)(978,341)

Total changes during period

362,877

9,914－

787,606(19,056)

1,141,342(2,119,684)(397,550)

Balance at end of current period

1,076,431

30,654(17,933)

3,024,687(16,227)

4,097,613

2,077,752

39,906,383

11

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Impairment losses
Amortization of goodwill
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on litigation
Interest and dividend income
Interest expenses
Equity in (earnings) losses of affiliates
Loss (gain) on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries andaffiliates
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries andaffiliates
Loss (gain) on step acquisitions
Compensation for forced relocation
Extra retirement payments
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in contract liabilities
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Increase (decrease) in accounts payable
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from compensation for forced relocation
Extra retirement payments paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and affiliates
Purchase of investments in subsidiaries result inchange in scope of consolidation
Sales of investments in subsidiaries result in change
in scope of consolidation
Payments of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings

12

Fiscal year ended
March 31, 2024

7,519,868
2,596,176
326,587
1,558,279(61,306)

4,399,315
2,941,143
23,903
1,655,201
21,602

63,157(45,305)(312,568)－(35,041)
290,255
8,290
13,960188,001

183,907(630,660)(45,001)
408,691
14,6108,523
95,127－

84,677(1,576,172)(290,067)(132,878)(189,252)－(3,608,494)
785,559(159,561)－－(2,179,438)

1,928,766

1,172,665

1,007,708(2,007,531)(523,675)(876,900)(2,668,142)(113,379)

919,529

10,2512,203,626
5,832,968
34,182(290,320)
3,434,095(712,525)(2,189,269)
6,109,130

920,704(2,314,628)
7,747,117
43,995(408,310)－(73,034)(1,579,527)
5,730,240(2,853,620)(655,015)
1,642,912(215,681)(2,291,501)(781,978)321,785(1,289,081)－(203,303)－(267,310)(161,444)(137,593)(2,380,444)(59,343)
108,953(4,461,779)

280,149－(1,334,433)(272,203)
3,448,960(3,017,609)

Cash dividends paid
Dividends paid to non-controlling interests
Purchase of investments in subsidiaries do not resultin change in scope of consolidation
Distribution paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at end of period

13(665,932)(140,670)(668,781)(102,689)(442,473)(1,522,345)－(282,415)(2,585,777)(1,379,514)(603,522)(4,117,706)

250,452

176,940

1,393,361
6,419,206(2,672,305)
7,812,568－

101,000

7,812,568

5,241,262

(5) Notes to consolidated financial statements(Notes on ongoing concern assumption)
No relevant matters to be noted.

14

(Segment information and others)[Segment information]
1. Overview of reportable segments(1) Method for determining reportable segments
The reportable segments of the Group are those constituent units of the Company and its consolidated
subsidiaries for which separate financial information is available and which are subject to periodic review by
the Board of Directors for the purpose of determining the allocation of management resources and evaluating
performance.
The Group is engaged in a wide range of businesses in the Content Creation field, and has three reportablesegments: Content Creation business, Production Technology Services business, and Imaging Systems &Solutions business.
The Content Creation business includes planning and production of feature films, drama programs,
animation, and web-related video; advertising production for TV commercials, the Internet, etc.; publishing;audio-visual production primarily for music videos; and comprehensive production of spaces centered on visualcontent, such as live entertainment.
The Production Technology Services business provides one-stop global imaging technology services that
range from shooting and broadcasting to editing and distribution, including shooting; live broadcasting; image
and audio editing for programs, commercials, PR, etc.; digital synthesis; VFX and CG production; digital
cinema; localization; and distribution, as well as game software development, visual production (CG),translation, audio recording, quality assurance and human talent services, etc.
The Imaging Systems & Solutions business operates in areas such as development, manufacturing, import,
sales, and maintenance services for cutting-edge hardware and software related to video and imaging, as well as
the development and sales of video and image processing LSIs, and the live broadcast and distribution ofsporting events, etc.
(2) Information regarding changes in reportable segments
Effective from FY2023, the reportable segment “Production Services” has been renamed “Production
Technology Services.” This change is merely nominal and has no impact on the details of segment information.
Segment information for the fiscal year ended March 31, 2023 is presented using the new name.
2. Method for calculating net sales, income (loss), assets, liabilities, and other items for each reportable segment
The accounting methods for reportable business segments are generally the same as those used inconsolidated financial statements.
Income of reportable segments are based on operating income.
Inter-segment sales or transfers are based on prevailing market prices.

15

3. Information regarding net sales, income (loss), assets, liabilities, and other items by reportable segment
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Thousands of yen)

Net sales
Sales to external customers
Inter-segment sales ortransfers
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Impairment losses
Increase in property, plantand equipment, andintangible assets

Adjustments(Note 1)

Amount in theConsolidated
Financial
Statements(Note 2)

94,133,762

13,944

94,147,707

757,182

2,462,031(2,462,031)－

54,128,142
2,532,715
44,625,497

18,930,226
2,086,987
16,601,645

96,595,794
5,154,937
79,675,274(2,448,086)(1,286,037)
2,212,916

94,147,707
3,868,899
81,888,191

60,2532,009,073

424,485

2,493,812

102,3632,596,176

299,217

27,370－326,587－

326,587

124,996

2,702,160

799,000

3,626,156

90,224

3,716,381

Content
Creation

Production
Technology
Services

Imaging
Systems &Solutions

Sub total

23,397,103

52,563,615

18,173,043

140,3211,564,527

23,537,424
535,234
18,448,131(Notes) 1. Adjustments are as follows.
(1) Sales to external customers include dividend income and real estate rental income.
(2) Adjustment to segment income of (1,286,037) thousand yen consists mainly of income (loss) related to
the Company of 872,667 thousand yen and elimination of inter-segment transactions of (2,158,704)
thousand yen.
(3) Adjustment to segment assets of 2,212,916 thousand yen includes corporate assets of 14,277,047
thousand yen not allocated to reportable segments and elimination of inter-segment transactions of(12,064,130) thousand yen. Corporate assets consist mainly of cash and deposits and fixed assets suchas investment securities.
(4) Adjustment to depreciation and amortization of 102,363 thousand yen includes depreciation andamortization related to corporate assets of 119,466 thousand yen and elimination of inter-segment
transactions of (17,103) thousand yen.
(5) Adjustment to increase in property, plant and equipment and intangible assets of 90,224 thousand yen
includes an increase in corporate assets of 513,506 thousand yen and elimination of inter-segment
transactions of (423,282) thousand yen.
2. Segment income is adjusted against operating income on the consolidated statements of income.

16

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Thousands of yen)

Net sales
Sales to external customers
Inter-segment sales ortransfers
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Impairment losses
Increase in property, plantand equipment, andintangible assets

Adjustments(Note 1)

Amount in theConsolidated
Financial
Statements(Note 2)

99,675,896

8,848

99,684,745

720,2622,234,374(2,234,374)－

53,967,034
1,430,304
42,327,572

19,756,616
2,404,840
16,994,774

101,910,270
5,111,201
76,541,569(2,225,525)(1,187,166)
2,153,058

99,684,745
3,924,035
78,694,627

60,8942,265,607

534,400

2,860,903

80,2392,941,143

18,327

5,576－

23,903－23,903

160,418

2,180,090

402,047

2,742,555

32,7852,775,341

Content
Creation

Production
Technology
Services

Imaging
Systems &Solutions

Sub total

28,091,795

52,547,746

19,036,354

94,824

1,419,288

28,186,619
1,276,056
17,219,222(Notes) 1. Adjustments are as follows.
(1) Sales to external customers include real estate rental income.
(2) Adjustment to segment income of (1,187,166) thousand yen consists mainly of income (loss) related to
the Company of 595,283 thousand yen and elimination of inter-segment transactions of (1,782,450)
thousand yen.
(3) Adjustment to segment assets of 2,153,058 thousand yen includes corporate assets of 14,553,765
thousand yen not allocated to reportable segments and elimination of inter-segment transactions of(12,400,707) thousand yen. Corporate assets consist mainly of cash and deposits and fixed assets suchas investment securities.
(4) Adjustment to depreciation and amortization of 80,239 thousand yen includes depreciation andamortization related to corporate assets of 99,423 thousand yen and elimination of inter-segment
transactions of (19,183) thousand yen.
(5) Adjustment to increase in property, plant and equipment and intangible assets of 32,785 thousand yen
includes an increase in corporate assets of 51,236 thousand yen and elimination of inter-segment
transactions of (18,450) thousand yen.
2. Segment income is adjusted against operating income on the consolidated statements of income.

17(Per share information)
Fiscal year ended March 31, 2023
(April 1, 2022 to March 31, 2023)

Fiscal year ended March 31, 2024
(April 1, 2023 to March 31, 2024)

Net assets per share

809.83 yen

855.85 yen

Basic earnings per share

86.79 yen

53.57 yen

(Notes)

1. Diluted earnings per share is not stated as there were no dilutive shares.
2. The basis for calculating basic earnings per share is as follows.
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2024
(April 1, 2022 to March 31, 2023)(April 1, 2023 to March 31, 2024)

Basic earnings per share
Net income attributable to owners of
3,864,485
parent (thousands of yen)Amount not attributable to ordinary－
shareholders (thousands of yen)
Net income attributable to owners of
3,864,485
parent relating to common shares(thousands of yen)
Average number of common shares
44,527,222
during the period (shares)
3. The basis for calculating net assets per share is as follows.
As of March 31, 2023
Total net assets (thousands of yen)Amount deducted from total net assets(thousands of yen)[of which non-controlling interests(thousands of yen)]
Net assets at end of period related tocommon shares (thousands of yen)
Number of common shares at end of
period used for calculating net assets per
share (shares)

2,373,143－

2,373,143

44,298,707

As of March 31, 2024

40,303,934

39,906,383

4,197,436

2,077,752[4,197,436][2,077,752]

36,106,497

37,828,630

44,585,425

44,200,121(Significant subsequent events)
No relevant matters to be noted.

4. Other(1) Changes in executives
1. Change of representative
Please refer to the “Notice regarding Change of Representative Director” dated February 6, 2024, forthe change of representative.

18