Consolidated Financial Highlights for
Fiscal Year Ended March 31, 2021

IMAGICA GROUP Inc.
Code：6879

May 13, 2021

Highlights of Consolidated Financial Results(Million Yen)

An operating loss of 1.0 billion yen was posted, but a gain on the sale of shares wasposted to extraordinary income, resulting in net income attributable to owners ofthe parent of 3.4 billion yen.
Net sales

EBITDA

86,727

2,544

YoY(7,363)

YoY(2,162)

Operating income(loss)(1,084)
YoY(2,435)

Net income attributableto owners of the parent3,454
YoY

2,79094,090
86,727

Gain on the sale of SDIshares (¥4,900 million)
posted to extraordinary
income

4,706

3,454
2,544

1,351664(1,084)

FYE Mar.
2020

FYE Mar.
2021

FYE Mar.
2020

FYE Mar.
2021

FYE Mar.
2020

FYE Mar.
2021

FYE Mar.
2020

FYE Mar.
20212

Fourth Quarter Results (January 1 to March 31)• The first and second quarters deteriorated substantially from the previous year due to theimpact of COVID-19.
• Both net sales and operating income improved over the previous year from the thirdquarter onward, returning to profitability.
4Q

1Q

2Q

3Q

(January 1 toMarch 31)

Full Year

ActualActualActualActualActualNet sales

16,85518,98022,83528,05786,727

Operating income(loss)(1,868)

(760)

259

1,285

(1,084)

Ordinary income (loss)(1,942)

(986)

199

1,386

(1,343)

Net income (loss)
attributable to ownersof the parent(1,213)

(739)

1,289

4,117

3,454

EBITDA (Reference)(1,063)

37

1,034

2,536

2,544

(Million Yen)

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Content Creation (Quarterly Performance)
The rebound continued from the second quarter onward.
(Million Yen)

Net sales

Operating income6,698

2,932

5,921

122

3Q

4Q

4,258(469)

1Q

150

2Q

3Q

4Q

1Q(243)2Q

 Conditions were tough during the first half. The release of multiple feature films was postponedand shooting of TV commercials and live music performance recordings were suspended. The
number of TV animation series produced also declined and changes in TV broadcastingschedules occurred.
 Net sales improved during the second half as postponed feature films were released, shooting ofdrama series resumed, and online streaming of live music performances and orders forproduction of TV commercial productions increased.

4Production Services (Quarterly Performance)
Performance improved in the domestic business from the third quarter andoperating income returned to black.
(Numbers show the sum ofdomestic plus overseas.)(Million Yen)

Net sales■Domestic■International

15,543
12,024

10,578

10,141

Operating income(1,369)

(855)

1Q

2Q

(84)

86
■Domestic■International海外

1Q

2Q

3Q

4Q

3Q

4Q

 Conditions were tough in the domestic business during the first half. The release of multiple
feature films was postponed and shooting of live music performance recordings was suspended.
During the second half, orders increased for post-production services for TV programs, TV
commercials, and animation, and recording for video streaming service providers. The
resumption of live music and sports events streamed online also improved performance.
 SDI Media Group continued to experience severe conditions such as the cancellation of newprojects due to COVID-19. Pixelogic received steady orders for E2E services* for video streaming
service providers.
 The decision was made to pursue structural reform (Group business reorganization and voluntary retirement) of the Production
Services business. We will start business management under a strong operating structure from fiscal year ending March 31, 2022.
 All shares in SDI Media Group Inc. were sold and it was removed from consolidation as of March 31, 2021.
* E2E services: Integrated end-to-end (E2E) service that covers the entire post-editing process from localization (subtitling/dubbing) to
distribution of feature films, TV dramas, and other source videos.

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Imaging Systems & Solutions (Quarterly Performance)
Online delivery system sales for TV commercials continued to expand and salesin the Asian region were also firm.
(Million Yen)

Net sales

Operating income
6,672
4,973

3,522

1,203

4,502
503
284

55

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

 The online delivery system for TV commercials saw strong sales due to the expansion in market
needs.
 Some projects for TV broadcasters decreased in number, shrank in size or others werepostponed.
 Conditions remained tough for high-speed cameras in Japan, Europe, and the U.S., while sales
showed signs of rebounding in the Asian region.
 Sales of video and image processing LSI for Taiwan and China remained firm and demandexpanded throughout the year.
6Full-Year Forecast for Fiscal Year Ending March 31, 2022
Net sales are forecast to decline due to the deconsolidation of SDI MediaGroup, Inc., but we expect substantial improvement in operating and ordinary
income.
FYE Mar. 2020

FYE Mar. 2021

ActualActualFYE Mar. 2022

(Million Yen)

Full year forecast

YoY% YoY

94,09086,72775,000(11,727)(13.5%)

1,351(1,084)

1,500

2,584

－

(Operating margin)(1.0%)(-)(2.0%)-Ordinary income (loss)

416(1,343)

1,300

2,643

－

Net income attributableto owners of parent

664

3,454

800

(2,654)(76.8%)

Earnings per share(Yen)

15.05

77.89

18.02

(59.87)－EBITDA (Reference)

4,706

2,544

5,228

2,684

Net sales
Operating income(loss)

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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 and increase the level of dividends.
If any special factor, such as an extraordinary gain or loss, significantly impacts the net income ofa given 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.

We forecast a dividend of 5 yen/share for fiscal year ending March 31, 2022,
based on the policy stated above.

FYE Mar. 2022
Forecast

Net income attributableto owners of parent

Net income attributableto owners of parent
per shareDividend forecast

Dividend payout
ratio

800 million yen

18.02 yen

5 yen

27.7%
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Appendix.

9Consolidated Statements of Income
FYE Mar. 2020(Million Yen)

ActualFYE Mar. 2021

Actual

YoY% YoY

Net sales

94,09086,727(7,363)(7.8%)

Gross profit

23,76920,582(3,186)(13.4%)

25.3%

23.7%

1,351(1,084)(2,436)

ー

1.4%

ー

416(1,343)(1,759)

ー

0.4%

ー

Extraordinary income

1,688

7,138

5,449

322.7%

Extraordinary losses

358

2,240

1,881

525.3%Net income (loss) before
income tax

1,7463,554

1,808103.5%

Net profit attributable toowners of parent

664

3,454

2,790

420.2%

4,706

2,544(2,162)(45.9%)(Gross margin)

Operating income (loss)(Operating margin)

Ordinary income (loss)(Ordinary margin)

EBITDA (Reference)* EBITDA includes: Operating income, depreciation and amortization, goodwill amortization and intangible fixed assets amortization including trademarks

10Financial Results by Segment (1Q-4Q)
FYE Mar. 2020

FYE Mar. 2021

(Million Yen)

Actual(6,395)(24.4%)

(359)

(440)

(81)

ーーー

49,091

48,286(805)(1.6%)(348)(2,222)(1,874)ーーー

20,551

19,669(882)(4.3%)

Operating income

2,714

2,045(669)(24.6%)(Operating margin)

13.2%

10.4%

(1,758)(1,038)720

ー(655)

(466)

188

ー

94,09086,727(7,363)(7.8%)

1,351(1,084)(2,436)ーOperating loss

Net sales
Operating loss
(Operating margin)

Net sales

Imaging Systems &Solutions

OthersConsolidated total% YoY

19,809(Operating margin)

Production Services

YoY

26,205Net sales

Content Creation

ActualNet sales
Operating loss

Net sales
Operating income (loss)

11Consolidated Balance Sheets
As of Mar. 31, 2020

As of Mar. 31, 2021

35,29530,440Cash and deposits

7,339

6,908

Non-current assets

26,85930,005

Goodwill

3,167

12,048

Total Assets

62,15460,446(1,708)Current liabilities

25,762

22,117(3,645) Notes and accounts payable-trade: (644)Short-term loans payable

5,004

7,402

Short-term loans payable: +2,398
Income taxes payable: (1,292)
2,398 Advances received:(2,128)

Non-current liabilities

8,913

8,495(417)Long-term loans payable

5,510

5,384

(126)

Total Liabilities34,676

30,613(4,062)

Shareholders’ equity

25,42827,149

Accumulated othercomprehensive income(361)301

662 As of March 31, 2020: 25,066 (40.3%)

Stock acquisition rights

11

11

ー As of March 31, 2021: 27,450 (45.4%)

2,400

2,370(29)

Total Net Assets

27,47829,832

2,354

Total Liabilities and Net
Assets62,15460,446(1,708)Net Cash(3,175)(5,878)(2,703) short-term loans payable)(Million Yen)

AssetsCurrent assets

YoY

Main Factors(4,854) Cash and deposits: (431)

Notes and accounts receivable-trade:(1,450)(431) Inventories: (3,234) Other: +252

3,145 Investment securities: +867

Shares of subsidiaries and affiliates:(1,595)8,880 Deferred tax asset: +301

Liabilities / Net Assets

Long-term loans payable: (126)

Non-controlling interests

1,721 (Reference) Equity capital(Cash and deposits －long-term and12

Consolidated Statements of Cash FlowFYE Mar. 2020
1,746
2,777
576
(7)
－
2,248
1,528(480)
(482)
(933)
6,974
(1,791)(1,468)2,674(2,975)－FYE Mar. 2021
3,554
2,757
871
(4,936)(2,076)
(52)
2,741
26
(1,635)(1,843)(592)－(1,500)5(467)(60)

Expenditure for purchase of subsidiary stock accompanying a change inthe scope of consolidation－(4,099)Gain on sales of subsidiary stock accompanying a change in the scope ofconsolidation

－

5,859

(735)
(4,297)245
1,090(2,473)(220)(1,100)(1,364)3,596
4,939(4,048)(221)(7)(2,794)74(1,291)
(124)
1,260

(2)
1,469
(2)
(485)

－

14

7,327

6,856

(Million Yen)

Net income (Loss) before income taxDepreciation and amortization
Amortization of goodwill
Loss (Gain) on sales of stocks of subsidiaries and affiliates
Gain (Loss) on step acquisitions
Decrease (Increase) in notes and accounts receivable-trade
Decrease (Increase) in inventories
Decrease (Increase) in notes and accounts payable-trade
Increase (Decrease) in advanced payment
Other, net
Cash flows from operating activities
Long-term loan advances
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investments in affiliates
Purchase of investments in subsidiaries

Other, net
Cash flows from investing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Purchase of investments in subsidiaries do not result in change in scope ofconsolidation
Other, net
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Net increase (decrease) in cash and cash equivalents accompanying
change in the scope of consolidation
Cash and cash equivalents at end of period13Business segment list of consolidated subsidiaries（Fiscal Year Ending March 31, 2022）
Content CreationProduction Services

ROBOT COMMUNICATIONS INC.

Imagica Entertainment Media Services, Inc.

P.I.C.S. Co., Ltd.
OLM, Inc.
OLM Digital, Inc.
OLM Ventures Inc.
Sprite Animation Studios
Shufunotomo Infos Co., Ltd.

IMAGICA SDI Studio, Inc.
PPC Creative Limited
Pixelogic Holdings LLC

IMAGICA Lab. Inc.
COSMO SPACE Co., Ltd.
IMAGICA DIGITAL SCAPE Co., Ltd.

Imaging Systems& Solutions
PHOTRON LIMITED
PHOTRON M&E Solutions Inc.
PHOTRON USA, INC.
PHOTRON EUROPE LIMITED
i-Chips Technology Inc.
IPmotion Inc.
IMAGICA LIVE Corp.

IMAGICA ALOBASE Co., Ltd.
Shonan Hi-tech Planning Co.,Ltd.
Weather Map Co., Ltd.

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Contact for inquiries:
IMAGICA GROUP Inc.
Corporate Management Department
11th Floor, Uchisaiwaicho Tokyu Building 1-3-2 Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011, Japan
TEL: +81-3-6741-5742

FAX: +81-3-6741-5752

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.

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