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 First Quarter of
the Fiscal Year Ending March 31, 2025 (J-GAAP)
July 30, 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 dividend payment date:—
Supplemental material of financial results:
Available
Planned financial results briefing:
Not available(Millions of yen, rounded down)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 – June 30, 2024)(1) Consolidated Operating Results
Net sales
Three months ended
June 30, 2024
Three months ended
June 30, 2023

(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%

Million yen%

20,060(15.7)

(544)

—

(498)

—

(519)

—

23,797

19.8

345

27.2

394

28.9

305

474.5

(Note) Comprehensive income: Three months ended June 30, 2024: ¥25 million / (95.9)%
Three months ended June 30, 2023: ¥631 million / (14.7)%

Basic earnings
per share
Three months ended
June 30, 2024
Three months ended
June 30, 2023

Diluted earnings
per share

Yen

Yen

(11.76)

—

6.86

—

(2) Consolidated Financial Position
Total assets
As of June 30, 2024
As of March 31, 2024
(Reference) Shareholders’ equity:

Net assets

Equity ratio

Million yen

Million yen%

77,03078,694

39,21339,906

48.4
48.1

As of June 30, 2024:¥37,244 million
As of March 31, 2024:¥37,828 million(Note) In the first quarter of the fiscal year ending March 31, 2025, the Company finalized the provisional accounting
treatments related to business combinations, and the figures for the fiscal year ended March 31, 2024 reflect thedetails of the provisional accounting treatments.

2. Dividends
Dividend per share
SecondThird
quarter-end
quarter-end

Firstquarter-end
Fiscal year ended March 31,
2024
Fiscal year ending March 31,
2025
Fiscal year ending March 31,
2025 (Forecast)Fiscalyear-end

Annual

Yen

Yen

Yen

Yen

Yen

–

0.00

–

15.00

15.00

0.00

–

15.00

15.00

–

(Note) Changes in dividends forecast from the latest disclosed information: None

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
Operating
Basic earnings
Ordinary income
Net sales
attributable toincomeper shareowners of parent
Million yen

Full year%

98,000 (1.7)

Million yen%

3,700 (5.7)

Million yen%

Million yen

3,200 (14.2)%

Yen

2,000 (15.7)

45.25(Note) Changes in earnings forecast from the latest disclosed information: None

* Notes:(1) Significant changes in the scope of consolidation during the period: None
(2) The application of specific accounting of the consolidated quarterly financial statements: Yes(3) Changes in accounting policies, accounting estimates and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standards: Yes
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
(4) Number of shares issued (common shares)
1) Number of shares issued at the end of the period (including treasury stock)
As of June 30, 2024
44,741,467 shares As of March 31, 2024

44,741,467 shares

2) Number of treasury stock at the end of the period
As of June 30, 2024
541,346 shares As of March 31, 2024

541,346 shares

3) Average number of shares during the period
As of June 30, 2024
44,200,121 shares As of June 30, 2023

44,585,425 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: None
*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 financial situation for this period ............................................................................... 2(2) Overview of financial situation for this period ................................................................................. 3(3) Explanation of consolidated forecasts and other forward-looking information ................................ 3
2. Quarterly Consolidated Financial Statements ..................................................................................... 4(1) Quarterly Consolidated Balance Sheets ............................................................................................ 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income ............. 6(3) Notes to quarterly consolidated financial statements ........................................................................ 8(Notes on ongoing concern assumption) ...................................................................................... 8(Notes in the event of significant changes in shareholders’ equity) ............................................. 8(Special accounting method applied to quarterly consolidated financial statements) .................. 8(Changes in account policies)....................................................................................................... 8(Notes on Segment information and others) ................................................................................. 9(Notes on quarterly consolidated statements of cash flows) ...................................................... 10

1

1. Overview of Operating Results, etc.
(1) Overview of operating results for this period① Overview of the first three months of the fiscal year
The Group has positioned the current consolidated fiscal year as a year for “expanding its growth path andpromoting business transformation.” The Group is pushing forward with business operations focused on
growth businesses aimed at expanding the Group’s business (game-related business, IP creation, and highspeed camera business) and on transformation businesses aimed at improving profitability (global E2Ebusiness, TV-related business).
As a result of these efforts, the Group’s performance in the first three months of the fiscal year was asfollows: Net sales were 20,060 million yen (down 15.7% year on year), operating loss of 544 million yen(compared to operating income of 345 million yen in the same period of the previous fiscal year), ordinary lossof 498 million yen (compared to ordinary income of 394 million yen in the same period of the previous fiscal
year), and net loss attributable to owners of parent was 519 million yen (compared to net income of 305
million yen in the same period of the previous fiscal year)..

② Performance by business segment
Financial results by business segment are as follows.
1) Content Creation businessIn the first three months of the fiscal year, the segment reported sales of 5,345 million yen (down 25.4%
year on year) and operating income of 481 million yen (up 863.8%).
Sales of feature films and dramas decreased, reflecting the fact that the previous fiscal year had seen
several major works. However, sales for commercial production increased, owing to solid inflows of orders for
TV commercials. Sales of animation works also increased owing to strong orders for CG animation works andTV series. Sales and operating income in the publishing business also increased owing to strong sales of theoriginal “The Apothecary Diaries” novel and its accompanying comic book series, as well as the recording of
distribution-related income from the TV animation production committee.
As a result, sales decreased, but operating income increased significantly in the segment.

2) Production Technology Services businessIn the first three months of the fiscal year, the segment reported sales of 11,571 million yen (down 12.3%
year on year) and operating loss of 1,016 million yen (compared to operating income of 321 million yen in thesame period of the previous fiscal year).
In domestic E2E services*1, sales increased mainly owing to solid sales of film-editing and digital cinema
services.
In overseas E2E services*1, sales decreased mainly due to sluggish sales of localization services as a resultof production delays and cancellations on the back of the Hollywood actors’ and writers’ strike. Furthermore,
operating income decreased significantly due mainly to a fall in gross profit resulting from the decrease insales.
In the game-related business*2, sales increased as orders for Game 3DCG production increased in
response to a scaling-up of our production system, among other factors.
Meanwhile, in post-production services for TV, sales declined with weak orders due to changes in theenvironment surrounding the domestic TV industry.
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 the2

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, 2024 toMarch 31, 2024 are reflected in those for the first three months of the fiscal year.
*2 Game-related business: 2D/3DCG production, debugging and software testing, creative talent dispatch andreferral etc. for games
3) Imaging Systems & Solutions businessIn the first three months of the fiscal year, the segment reported sales of 3,579 million yen (down 7.8%
year on year) and operating income of 325 million yen (up 27.0%).
Sales of high-speed cameras increased, owing in part to solid orders of shipments for automobile-related
applications, particularly in Europe, as well as the impact of exchange rates. Sales of broadcast imaging
systems & solutions decreased following the recording of sales of large projects in the previous fiscal year.
Further, sales of video and image processing LSIs declined mainly due to slower recovery in orders forinventory adjustment of the domestic customers.
As a result, sales decreased, but operating income increased in the segment.

(2) Overview of financial situation for this period
With regard to the business combination made on February 8, 2024, between mediafellows GmbH and oneof its subsidiaries, provisional accounting was carried out in the previous fiscal year. However, with thefinalization being made in the first quarter of the current fiscal year, the amount used in the year-on-yearcomparison and analysis is one that reflects significant revisions made to the initial amount allocated forthe acquisition following this finalization of the provisional accounting method.
①

AssetsCurrent assets decreased by 1,345 million yen (3.3%) from the end of the previous fiscal year to 39,943
million yen. This was mainly due to a decrease in notes and accounts receivable - trade, and contract assets.
While inventories and cash and deposits increased.
Non-current assets decreased by 318 million yen (0.9%) from the end of the previous fiscal year to 37,086
million yen. This was mainly due to a decrease in leased assets.
As a result, total assets decreased by 1,664 million yen (2.1%) from the end of the previous fiscal year to
77,030 million yen.
②

Liabilities
Current liabilities decreased by 211 million yen (0.7%) from the end of the previous fiscal year to 28,739
million yen. This was mainly due to decreases in notes and accounts payable – trade and income taxes payable
despite an increase in contract liabilities.
Non-current liabilities decreased by 760 million yen (7.7%) from the end of the previous fiscal year to
9,077 million yen. This was mainly due to a decrease in lease liabilities and long-term borrowings.
As a result, total liabilities decreased by 971 million yen (2.5%) from the end of the previous fiscal year to37,816 million yen.
③

Net assets
Net assets decreased by 692 million yen (1.7%) from the end of the previous fiscal year to 39,213 million
yen. This was mainly due to decreases in retained earnings and valuation difference on available-for-salesecurities, while foreign currency translation adjustment increased.

(3) Explanation of consolidated forecasts and other forward-looking information
There are no revisions to the full-year forecasts for the fiscal year ending March 31, 2025, from theforecasts announced on May 09, 2024.
3

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract 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

4June 30, 2024

5,242,625

5,961,426

20,572,387

15,890,875

11,536,441
3,997,518(60,000)
41,288,972

13,676,496
4,460,982(46,058)
39,943,723

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

13,109,118(8,328,961)(598,722)
4,181,433
5,932,296(5,247,658)(137,053)
547,585
921,3635,039,722(800,296)(87,503)4,151,922
1,360,554
9,342,976(6,602,769)(123,791)
2,616,415
13,779,274

11,411,410
3,096,544
14,507,955

11,719,889
3,233,265
14,953,154

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

2,841,849
1,480,535
1,972,614
1,864,542
350,647(155,825)
8,354,364
37,086,793
77,030,516

(Thousands of yen)March 31, 2024
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
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

5

June 30, 2024

6,799,221
5,143,423
983,578
2,530,291
1,432,145
4,886,312
1,393,870
11,3805,770,083
28,950,308

5,455,321
6,790,889
959,3122,274,726
254,2906,885,320
718,632815
5,399,907
28,739,215

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

2,797,123
3,538,809
533,650
219,955
1,237,948
672,360
77,497
9,077,345
37,816,561

3,306,002
12,149,768
18,686,599(411,354)
33,731,016

3,306,002
12,150,230
17,515,296(411,354)
32,560,175

1,076,431

896,927

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

22,644(17,933)
3,797,806(15,032)

4,097,613

4,684,413

2,077,752
39,906,383
78,694,627

1,969,366
39,213,955
77,030,516

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Net income (loss) before income taxes
Income taxes
Net income (loss)
Net income (loss) attributable to non-controllinginterests
Net income (loss) attributable to owners of parent

6

Three months ended
June 30, 2023
23,797,342
17,586,453
6,210,888
5,865,674
345,213

Three months ended
June 30, 2024
20,060,758
14,173,666
5,887,091
6,431,508(544,416)

2,391
21,266
170,071
39,113
232,843

4,323
19,851
129,440
46,252
199,867

89,4282,370
91,473
183,272
394,784

126,172—
27,480153,652(498,201)93
280,984
281,077

10
—
10

1,277
1,277
674,583
161,553
513,029412
412(498,603)
67,881(566,485)

207,244(46,670)

305,784(519,814)

Quarterly Consolidated Statements of Comprehensive Income(Thousands of yen)

Net income (loss)
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

7

Three months ended
June 30, 2023
513,029

Three months ended
June 30, 2024
(566,485)

168,642(167,990)

17,649(67,861)(8,009)766,950

(318)

1,194

118,112631,141

592,144
25,658425,777

78,498205,364(52,839)

(3) Notes to quarterly consolidated financial statements(Notes on ongoing concern assumption)
No relevant matters to be noted.
(Notes in the event of significant changes in shareholders’ equity)
No relevant matters to be noted.
(Special accounting method applied to quarterly consolidated financial statements)(Calculation of tax expenses)
Tax expenses are calculated by reasonably estimating the effective tax rate after tax effect accounting on
net income before income taxes for the fiscal year that includes the first quarter and multiplying net income
before income taxes for the quarter by the estimated effective tax rate.
However, if using this estimated effective tax rate results in extremely unreasonable tax expenses, thestatutory effective tax rate is used after adjusting net income (loss) before income taxes for material differencesthat are not temporary.

(Changes in account policies)
The Company has applied the “Accounting Standard for Current Income Taxes, etc.” (ASBJ Statement No. 27,
October 28, 2022; hereinafter, referred to as “Revised Accounting Standard, 2022”) and other standards from the
beginning of the first quarter of the current fiscal year.
With regard to the accounting classification used for income taxes, etc. (other comprehensive income taxation), theCompany acts in accordance with the transitional treatment provided for in the proviso to Paragraph 20-3 of the
Revised Accounting Standard, 2022 and the proviso to Paragraph 65-2 (2) of Guidance on Accounting Standard forTax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter, referred to as the “Revised Guidanceon Tax Effect Accounting”). This change in accounting policy will have no material impact on the quarterly
consolidated financial statements.
Furthermore, with regard to the amendments made in relation to the review of treatments in the consolidated financial
statements for the deferment of profits/losses arising from the sale of shares, etc., of subsidiary companies between
consolidated companies for tax purposes, Revised Accounting Standard, 2022 has been applied from the beginningof the first quarter of the current fiscal year. This change in accounting policy has been applied retroactively, andthe quarterly consolidated financial statements and the annual consolidated financial statements for the previous
quarter and previous fiscal year reflect this retroactive application. This change in accounting policy will have no
impact on the quarterly consolidated financial statements and the annual consolidated financial statements for theprevious quarter and previous fiscal year.

8

(Notes on Segment information and others)
I.

For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information regarding net sales and income (loss) by reportable segment(Thousands of yen)

Net sales
Sales to external customers
Inter-segment sales ortransfers
Total
Segment income

Adjustments(Note 1)

Amount in the
Quarterly
Consolidated
Statements ofIncome(Note 2)

23,795,136

2,205

23,797,342

158,188455,189(455,189)—

3,883,507
256,490

24,250,326
627,653(452,984)(282,439)

23,797,342
345,213

Content
Creation

Production
Technology
Services

Imaging
Systems &Solutions

Sub total

7,151,041

12,918,776

3,725,318

15,772281,228

7,166,814
49,98913,200,005
321,173(Notes) 1. Adjustment to segment income of (282,439) thousand yen consists of income (loss) related to theCompany of 1,332,343 thousand yen and elimination of inter-segment transactions of (1,614,783)
thousand yen.
2. Segment income is adjusted against operating income on the quarterly consolidated financial statements.

II.

For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information regarding net sales and income (loss) by reportable segment(Thousands of yen)

Net sales
Sales to externalcustomers
Inter-segment sales ortransfers
Total
Segment income (loss)

Content
Creation

Production
Technology
Services

Imaging
Systems &Solutions

Sub total

Adjustments(Note 1)

Amount in the
Quarterly
Consolidated
Statements ofIncome(Note 2)

5,344,945

11,271,318

3,430,645

20,046,909

13,84820,060,758

595

299,828

148,905449,329(449,329)—

5,345,541
481,796

11,571,146(1,016,973)

3,579,551
325,734

20,496,239(209,442)(435,481)(334,973)

20,060,758(544,416)(Notes) 1. Adjustment to segment income (loss) of (334,973) thousand yen consists of income (loss) related to theCompany of 1,982,477 thousand yen and elimination of inter-segment transactions of (2,317,451)
thousand yen.
2. Segment income (loss) is adjusted against operating loss on the quarterly consolidated financial
statements.

9

(Notes on quarterly consolidated statements of cash flows)

The Group has not prepared quarterly consolidated statements of cashflows for the first three months of the fiscal
year. Depreciation and amortization (including amortization associated with intangible assets, excluding goodwill)
and goodwill amortization for the first quarter of the consolidated fiscal year are as follows:(Thousands of yen)Three months ended June 30, 2023
Depreciation and amortization
Goodwill amortization

645,840
390,973

10

Three months ended June 30, 2024
840,117443,964