Consolidated Financial Highlights for
the Fiscal Year Ended March 31, 2024
Supplemental Materials

IMAGICA GROUP Inc.
Securities Code: 6879
May 9, 2024

Highlights of financial results for the fiscal year
Operating income increased for three consecutive years. Sales and operating
income broke the highest record since the company was listed.
(Million Yen)
Net sales

99,684

Operating income before
goodwill and otheramortization

Operatingincome

5,901

3,924

YoY

YoY

YoY

+5,537 (+5.9%)+163 (+2.8％)
94,147+55 (+1.4％)

Net income
attributable toownersof the parent

2,373
YoY-1,491 (-38.6%)

99,68480,184

5,738

5,901

5,131
3,868

3,924

3,864

3,417
2,729

FY2021

FY2022

FY2023

FY2021

FY2022

FY2023

FY2021

FY2022

FY2023

FY2021

2,373

FY2022

FY2023
2Performance by segment
Operating income achieved the target on the consolidated: exceeded with Content Creation
and Imaging Systems & Solutions, while fell below with Production Technology Services.
FY2022(Million Yen)

Actual

Production
TechnologyServices

OthersConsolidated
total

ActualYoYvs. Forecast

26,00028,186

2,186

4,649

Operating income before
goodwill and other amortization

540

1,0001,281

281

741

Operating income

535

1,000

1,276

276

740

54,12857,00053,967(3,033)(161)

Operating income before
goodwill and other amortization

4,361

3,900

3,367(533)(994)

Operating income

2,532

2,000

1,430(570)(1,102)

18,93020,00019,756(244)

826

Operating income before
goodwill and other amortization

2,122

2,200

2,440

240

317

Operating income

2,086

2,200

2,404

204

317

Net sales(2,448)(3,000)(2,225)775

222

Operating loss

(1,286)(1,200)(1,187)1398

Net sales

94,147100,000

99,684

(316)

5,537

Operating income before
goodwill and other amortization

5,738

5,900

5,901

1163

Operating income

3,868

4,000

3,924(76)55

Net sales

Net sales

Imaging Systems& Solutions

Forecast23,537

Net sales

Content Creation

FY20233

Analysis of increase/decrease of Net sales (YoY)
Sales increased mainly in Content Creation, while decreased in
Production Technology Services.

（Million Yen）

99,684
OthersImaging Systems＆ Solutions

Domestic
Overseas
Production TechnologyServices Overall (161)

94,147
ContentCreation

FY2022
Actual+5,537

FY2023
Actual4

Analysis of increase/decrease of Operating income before goodwill
and other amortization (YoY)
Operating income before goodwill and other amortization increased
mainly in Content Creation, while decreased in Production
Technology Services.
（Million Yen）

Domestic

5,901

5,738
OthersContentCreation
Overseas

Imaging Systems＆ Solutions

Production TechnologyServices Overall (994)

FY2022
Actual+163

FY2023
Actual5

Content Creation
Sales and operating income increased with some major works for theater and video
streaming service, animation works and publishing business.
（Million Yen）

Net sales
28,18622,48623,537

Sales and operating income increased.
■Net sales+4,649 （+19.8%）■Operating income+741 （+137.2%）

 Feature films and dramas

Sales increased with some major works and the others.
・Feature film “Godzilla Minus One”, "Rohan au Louvre"
・Netflix "Zombie 100: Bucket List of the Dead“, "YuYu Hakusho" Animation works
FY2021

FY2022

FY2023Operating income(before goodwill and other amortization)

1,281
770

FY2021540

FY2022

Sales significantly increased with CG animation and strong
orders for TV series.

 Publishing business

Sales significantly increased with strong book sales including
the light novel “The Apothecary Diaries”.

 CM works
FY2023

Sales increased in web commercials owing to high number oforders although decreased in TV commercials due to weakorders.

6Production Technology Services*
Sales and operating income decreased in overseas with lower localization services by
impact of the Hollywood strike and a rise in depreciation and the other expenses by capital
expenditure, while good sales of digital cinema services* (domestic and overseas).
（Million Yen）

Net sales
54,12842,08016,45428,42925,626

25,698FY2021

FY202253,967
Gamerelated
28,048 business
6,338

Overseas

Domestic

25,919FY2023Operating income(before goodwill and other amortization)

3,399

4,361

3,367
Overseas

Sales and operating income decreased.
■Net sales-161 (-0.3%)■Operating income-994 (-22.8%)

 Domestic E2E services*

Sales increased with solid sales of digital cinema services.

 Overseas E2E services*

Sales decreased in localization services as the Hollywood
actors’ and writers' strike lasted longer and new releases weredelayed. Operating income decreased due to decrease in thesales, and a rise in depreciation expenses and the other costs
brought on by capital expenditure.

 Game-related businessSales increased with solid sales of Game 3DCG production.

 Post-production services for TV
Domestic
FY2021

FY2022

FY2023

Sales decreased due to environmental change caused byplatform diversification for movie contents.
7

Imaging Systems & Solutions
The annual volume of shipments of high-speed cameras broke the highest record andthe sales significantly increased. Sales of video and image processing LSI declined due toslower recovery of market environments.
（Million Yen）

Net sales

17,63918,930

FY2021

FY2022

Sales and operating income increased.
19,756FY2023Operating income(before goodwill and other amortization)

1,776

FY2021

2,122

FY20222,440

FY2023■Net sales+826 (+4.4%)■Operating income+317 (+15.0%)

 High-speed cameras
Parts shortages in the previous fiscal year was
settled and strong orders especially from overseas.
The annual volume of shipments broke the highest
record and sales significantly increased.
 Broadcast imaging systems & solutions
Operating income increased by improving cost
structure, although the sales decreased due to weakorders.
 Video and image processing LSI
Sales declined mainly due to slower recovery ofmarket environments.

8FY2024 Full-year forecast
Assuming reversal of sales of films and dramas with some major works in FY2023, sales ofconsolidated subsidiaries and impact after the Hollywood actors’ and writers' strike
FY2023(Million Yen)FY2024

ActualForecast

YoY% YoY

99,68498,000(1,684)(1.6％)

Operating income before
goodwill and other amortization

5,901

5,800(101)(1.7%)(Margin)

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％)

Earnings per share (yen)53.57

45.25(8.3)(15.5％)

Dividend per share (yen)

15.0

15.0

0.0

0.0％

Net sales

Operating income(Margin)

9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 FY2024 is 15 yen.

Expected for
FY2024

Net income attributable toowners of the parentEarnings per share

Dividend forecast

Dividend payout
ratio

2,000 million yen

45.25 yen

15.0 yen

33.2%10Notes*Production Technology Services business
Effective from the first quarter of the consolidated fiscal year, the name of the reportablesegment "Production Services business" has been changed to "Production Technology Servicesbusiness." This represents a change in segment name only and has no impact on the segment
Information.
*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).
*E2E services
Refers to an integrated end-to-end (E2E) service that covers the entire post-production process
for feature films, TV dramas, animation, and other audio/video content up to media services forlocalization (subtitling/dubbing) and distribution of these through all kinds of media, including
theaters, TV, and video streaming via the Internet.

11

Appendix.

Key strategies and services/Net sales of each segment
Net sales（FY2023）

Content Creation

Production TechnologyServices

Imaging Systems& Solutions• Localization (Subtitling, Dubbing)• Distribution

12345

Live Entertainmentbusiness• Live-music performances direction• Live-viewing• Metaverse• Sports Broadcasting• Video Archiving

1.5

3.7

• High-speed cameras, Broadcast
imaging systems & solutions,
Optical measurement, Video andimage processing LSI

Imaging Systems &Solutions business

Total

5.2

21.4

21.4
• 2D/3DCG production• Quality Assurance

Game-related businessTransformation Business

Total

36.5

36.5

Global E2E Business(Billion yen)

6.3

6.3

• Production of feature film, TV drama,
animation• Publishing• Postproduction for TV, commercial• Human resource consulting

26.3

12.8

28.1

53.9

39.2
19.7

*Total net sales by strategy do not match the totals because consolidation eliminations are not taken into account.

99.6
13Consolidated Income Statements
FY2022
Actual(Million Yen)FY2023
ActualYoY%YoY

Net sales

94,147

99,684

5,537

5.9%

Gross profit

26,72328,587

1,863

7.0%

(Margin)

28.4%

28.7%

3,924
3.9%
3,727

55

1.4%

(Margin)

3,868
4.1%
3,638

89

2.5%

3.9%

3.7%

5,327
1,445
7,519

888
216
4,399

(4,439)(83.3%)(1,229)(85.0%)(3,120)(41.5%)

3,864

2,373

(1,491)(38.6%)EBITDA

7,993

8,520526

6.6%(Reference) Operating income before
goodwill and other amortization

5,738

5,901

163

2.8%

Operating income
Ordinary income(Margin)

Extraordinary income
Extraordinary loss
Net income before income taxes
Net income attributable to ownersof the parent

・EBITDA = Operating income + goodwill amortization + amortization of intangible fixed assets including trademarks + depreciation
・Operating income before goodwill and other amortization = operating income + goodwill amortization + amortization of intangible fixed assets including trademarks
14Consolidated Balance Sheets(Million Yen)

March 31, 2023

March 31, 2024Increase/Decrease

AssetsCurrent asset

44,97041,288(3,682)

7,813

5,242

(2,571)

36,91737,405488

11,78012,045

265

81,88878,694(3,193)Long-term borrowings

33,205
6,432
8,378
1,366

28,950
5,143
9,837
3,120

(4,254)(1,289)
1,458
1,753

Total liabilities

41,58438,788(2,796)

Shareholders’ equity

33,15033,731

580

Accumulated other comprehensive income

2,956

4,097

1,141

Non-controlling interests

4,197

2,077

(2,119)Net assets

40,30339,906(397)

Total liabilities and net assets

81,88878,694(3,193)14(3,021)(3,035)

Cash and deposits

Non-current assets
Goodwill

Total assets

Liabilities / Net assets
Current liabilities
Short-term borrowings

Non-current liabilities

Net cashCash and deposits - long-termand short-term borrowings

15

Consolidated Statements of Cash Flows(Million Yen)

Cash flows from operating activities

FY2022
ActualFY2023
Actual

6,109

5,730

Net income before income taxes

7,519

4,399

Depreciation and amortization

2,596

2,941

Amortization of goodwill

1,558

1,655

(2,179)

1,928

1,172

1,007

(2,007)(523)

Increase (decrease) in contract liabilities(876)(2,668)Cash flows from investing activities(2,380)(4,461)(2,853)(2,291)

Purchase of intangible assets

(655)

(781)

Proceeds from sale of investment securities

1,642

321

Purchase of shares of subsidiaries and affiliates(215)(1,289)(2,585)(4,117)

280

(272)

(1,334)

431

(442)

(1,522)－(1,379)

Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

Purchase of property, plant and equipment

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in long-term borrowings
Purchase of investments in subsidiaries do not result in change inscope of consolidation
Distribution paid to non-controlling interests

16

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 this document are formulated
based on the plans and prospects of the group as of the date on which these materials were disclosed. Actual

performance may differ from numerical forecasts due to the uncertainties inherent in the judgments and assumptions
made, as well as possibility of future changes that may occur in business management and internal and external
circumstances.