This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordancewith Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain orconstitute 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, theJapanese original is assumed to be correct.

Consolidated financial results (Japanese Accounting Standards)
for the fiscal year ended March 31, 2023
Filing date: May 11, 2023
Company name:IMAGICA GROUP Inc.
Stock exchange listing: Tokyo Prime
Securities code:
6879
URL:
https://www.imagicagroup.co.jp/en/
Representative:
Nobuo Fuse, Representative Director, President
Tel:+81-3-5777-6295
Inquiries:
Masakazu Morita, Director and Senior Managing Executive Officer
Scheduled date for ordinary general meeting of shareholders:June 27, 2023
Scheduled date for commencement of dividend payment:
June 13, 2023
Expected date of filing of annual securities report:
June 27, 2023
Supplemental material of quarterly results:
Yes
Convening briefing of quarterly results:
Yes(Millions of yen, rounded down)
1. Consolidated Financial Results for the fiscal year ended March 31, 2023
(April 1, 2022 – March 31, 2023)(1) Consolidated Operating Results(Percentage represents change from the same period of the previous fiscal year.)Net sales

Operating income

Millions of yen

Net income attributableto owners of the parent

Ordinary income%

Millions of yen%

Millions of yen%

Millions of yen%

Fiscal year ended Mar.2023

94,147

17.4

3,868

13.2

3,638

(7.5)

3,864

41.6

Fiscal year ended Mar.2022

80,184

(7.5)

3,417

-

3,934

-

2,729

(21.0)(Note) Comprehensive income: Fiscal year 2023: 7,186 millions of yen /91.5%
Fiscal year 2022: 3,753 millions of yen /7.5%

Net profit attributable to
Diluted net profit
owners of parent per attributable to owners of
shareparent per share

ReturnTotal asset ordinary Operating incomeon equity net
income ratio
ratio
income

yen

yen

%

%

%

Fiscal year ended Mar.2023

86.79

-

11.5

4.7

4.1

Fiscal year ended Mar.2022

61.49

-

9.3

5.9

4.3

(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2023 : (8) millions of yen
Fiscal year ended March 31, 2022 : (7) millions of yen(2) Consolidated Financial Position
Total assets

Net assets

Net assets per share ofcommon stock

Shareholders' equity
ratio to total assets

Millions of yen

Millions of yen%yen

As of March 31, 2023

81,88840,30344.1

809.83As of March 31, 2022

73,38434,02542.4

701.63

Cash flow from financing
activities

Cash and cash equivalents
at the end of the period(Reference) Shareholders’ equity: Year ended March 31, 2023: 36,106 millions of yen
Year ended March 31, 2022: 31,149 millions of yen(3) Consolidated Cash Flows
Cash flow from operating Cash flow from investing
activities
activities
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year ended Mar.2023

6,109(2,380)(2,585)

7,812

Fiscal year ended Mar.2022

7,414(3,928)(4,183)6,419

2. Dividends
Dividend per share
2ndquarter- end

1stquarterend
Fiscal year ended
Mar.2022
Fiscal year ended
Mar.2023
Fiscal year ending
Mar.2024 (Forecast)

3rd
quarter- end

Year-endyen

yen

Dividends
total (Annual)

Dividend
payout ratio(Consolidated)

Dividends to
Net Assets(Consolidated)yenMillions of yen%%

Annual

yen

yen

-

0.00

-

15.00

15.00

665

24.4

2.3

-

0.00

-

15.00

15.00

668

17.3

2.0

-

0.00

-

15.00

15.00

30.4

3. Consolidated forecast for the fiscal year ending March 31, 2024
(April 1, 2023 - March 31, 2024)(Percentage represents change from the same period of the previous fiscal year.)Net sales

Fiscal year ending
Mar.2024

Operating income

Net income
attributableto owners of theparentOrdinary income

Millions of yen%

Millions of yen%

Millions of yen%

100,000

6.2

4,000

3.4

3,500

(3.8)

Millions of yen

Earnings per
shareof common
stock
%

yen

2,200 (43.1)

49.34*Notes:(1) Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change in subsidiaries):
None(2) Changes in accounting policies, accounting estimates and retrospective
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 standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Number of issued and outstanding shares (common stock)1) Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
As of March 31, 2023

44,741,467 shares

As of March 31, 2022

44,741,467 shares

156,042 shares

As of March 31, 2022

345,938 shares

44,527,222 shares

As of March 31, 2022

44,392,807 shares

2) Number of treasury stock at the end of fiscal year
As of March 31, 2023

3) Average number of shares
As of March 31, 2023

(Explanation about the appropriate usage of business prospects and other special notes)

・The above-mentioned business forecasts were based on the information available as of the date of the release of this report.
・Future events may cause the actual results to be significantly different from the forecasts.
(Disclaimer)This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese
accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee andthe 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 is assumed to be correc

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023

1. Overview of Operating Results(1) Overview of operating results for the current period① Overview for the current consolidated fiscal year
In the imaging-related business, the Group's main business domain, the market environment is undergoing dizzying changes,
including rapid technological innovation, the emergence of online live shows and new forms of entertainment utilizing themetaverse due to social changes caused by the COVID-19 pandemic, and fiercer competition among video streaming service
providers.
Viewing this environment as an opportunity for growth, the Group has launched its mid-term plan "G-EST 2025." In the fiscal
year ended March 31, 2023, the second year of the plan, we set a policy of "continue to build the foundation for conversion to ahigh profitability Group" and advanced initiatives focused on our four key strategies.
As a result, looking at performance of the Group for the consolidated fiscal year ended March 31, 2023, net sales were 94,147
million yen (up 17.4% year-on-year), operating income was 3,868 million yen (up 13.2% year-on-year), ordinary income was 3,638
million yen (down 7.5% year-on-year), and net income attributable to owners of the parent was 3,864 million yen (up 41.6% yearon-year). Ordinary income decreased due to the recording of 875 million yen in non-operating income, including subsidy income,in the previous year. Net income attributable to owners of the parent increased due to the recording of extraordinary income,including compensation for relocation, during the year.
② Performance by business segment
Financial results by business segment are as follows.
Effective from the first quarter of the consolidated fiscal year ended March 31, 2023, one consolidated subsidiary (IMAGICA EEXInc.), which had previously been included in "Adjustments," was reclassified to the Content Creation business segment due to anincrease in its importance. Analyses and comparisons with the previous consolidated fiscal year are based on conditions following
the reclassification.
1) Content Creation businessIn the consolidated fiscal year ended March 31, 2023, the Content Creation business reported net sales of 23,537 million yen(up 4.7% year-on-year) and operating income of 535 million yen (down 30.1% year-on-year).
In feature films and dramas, sales increased significantly due to an increase in the number of projects from the previous fiscal
year and the recording of large projects for video streaming service providers. Earnings declined in commercial production,
partly due to low orders for TV commercials from the second half of the fiscal year.. In animation productions, gross margin
continues to improve due to strict per-production profit management and the streamlining of production. In the LiveEntertainment business, earnings decreased due to the reactionary decline from the recording of large-scale projects in theprevious fiscal year.
These developments resulted in improved net sales but decreased profit for the overall Content Creation business segment.

-1-Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
2) Production Services businessIn the consolidated fiscal year ended March 31, 2023, the Production Services business posted net sales of 54,128 million yen (up28.6% year-on-year) and operating income of 2,532 million yen (up 46.7% year-on-year).
In domestic E2E services*, post-production services for feature films, drama series, and animation productions remained strong.
Orders for digital cinema services also increased. Net sales of encoding and localization services, including compression and conversionof video files, remained strong as the business continued to secure orders from video streaming service providers, but profit declined
due to an increase in fixed costs associated with the relocation of offices.
In overseas E2E services, demand for localization for video streaming service providers remained strong, and foreign exchange
effects also contributed to a significant increase in sales.
In post-production services for TV programs and TV commercials, orders for projects struggled, against expectations.
In game production and human talent services, etc., orders for game 3DCG production, debugging, and other services remained
strong.
As a result, net sales and income grew for the overall Production Services business.
* E2E services: End-to-end services. This is a general term for one-stop services ranging from post-production in the production ofvideo content such as movies, dramas, and animation to media services for the localization (dubbing and subtitling) and distribution
required for the distribution of said content through movie theaters, TV, and the Internet.
Note: As overseas E2E services have a settlement date of December 31, their performance from January 1, 2022 to December 31,
2022 is reflected in the consolidated fiscal year ended March 31, 2023.
3) Imaging Systems & Solutions businessIn the consolidated fiscal year ended March 31, 2023, the Imaging Systems & Solutions business recorded sales of 18,930 million
yen (up 7.3% year-on-year) and operating income of 2,086 million yen (up 19.9% year-on-year).
In high-speed cameras, impacts of the semiconductor shortage eased and product shipments recovered from the second half of theyear, resulting in an increase in sales and profit. In Broadcast Imaging Systems & Solutions, net sales failed to grow due to low orders
for projects. In the Optical Measurement business, net sales of both optical elements and optical measurement systems increased inline with recovery in capital investments. Sales of online delivery of TV commercials remained strong, and sales of video and image
processing LSIs remained robust in Japan and overseas (especially in Asia).
Therefore, net sales and income rose for the overall Imaging Systems & Solutions business.

-2-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(2) Overview of financial situation for the current period① Assets
Current assets increased by 3,904 million yen (9.5%) from the end of the previous consolidated fiscal year to44,970 million yen.
This was primarily due to an increase in accounts receivable.
Non-current assets increased by 4,599 million yen (14.2%) from the end of the previous consolidated fiscal year to
36,917 million yen.
This was primarily due to an increase in lease assets as a result of the start of application of U.S. lease accounting
standards.
As a result, total assets increased by 8,503 million yen (11.6%) from the end of the previous consolidated fiscal
year to 81,888 million yen.
② Liabilities
Current liabilities increased by 926 million yen (2.9%) from the end of the previous consolidated fiscal year to33,205 million yen.
This was mainly due to an increase in short-term loans payable and lease obligations, despite a decrease innotes and accounts payable.
Non-current liabilities increased by 1,298 million yen (18.3%) from the end of the previous consolidated fiscal
year to 8,378 million yen.
This was mainly due to an increase in lease obligations, despite a decrease in long-term loans payable.
As a result, total liabilities increased by 2,225 million yen (5.7%) from the end of the previous consolidated fiscal
year to 41,584 million yen.
③ Net assets
Net assets increased by 6,278 million yen (18.5%) from the end of the previous consolidated fiscal year to 40,303 million yen.
The ratio of shareholder's equity to total assets is 44.1%.

-3-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(3) Overview of cash flow for the current period
Cash and cash equivalents (hereinafter "cash") at the end of the consolidated fiscal year ended March 31, 2023 increased by
1,393 million yen (21.7%) from the end of the previous consolidated fiscal year to 7,812 million yen.
Cash flows for the consolidated fiscal year ended March 31, 2023 and the reasons for them are as follows.
1) Cash flow from operating activities
Cash provided by operating activities amounted to 6,109 million yen (7,414 million yen in the same period of the previousyear).
This was primarily due to an increase in cash resulting from the receipt of compensation for relocation.
2) Cash flow from investment activities
Cash used as a result of investing activities amounted to 2,380 million yen (3,928 million yen in the same period of theprevious year).
This was mainly due to a decrease in cash associated with the acquisition of tangible fixed assets.
3) Cash flow from financing activities
Cash used as the result of financing activities amounted to 2,585 million yen (4,183 million yen in the same period of theprevious year).
This was primarily due to a decrease in cash associated with the repayment of long-term loans payable.
(Reference) Trends in cash flow related indicators
Fiscal year ending Fiscal year ending Fiscal year ending Fiscal year ending Fiscal year ending
March 2019
March 2020
March 2021
March 2022
March 2023
Shareholders' equity ratio tototal assets

38.9

40.3

45.4

42.4

44.1

Shareholders' equity ratio on amarket price basis (%)

45.5

25.1

39.7

43.3

32.4

Ratio of cash flow to interestbearing liabilities

10,625.2

162.4(2,282.9)

117.2

215.7

0.4

21.4

(1.7)

35.5

21.0

Interest coverage ratio*Shareholders' equity ratio: Shareholders' equity/total assets
Shareholders' 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 period by the number ofshares outstanding (less treasury stock) at the end of the period.
3. Cash flow from operating activities is the cash flow from operating activities in the consolidated statements of cash flow.
Interest-bearing liabilities includes all liabilities on the consolidated balance sheets for which interest is paid. Interest
payments are based on the amount of interest paid in the consolidated statements of cash flows.
(4) Future outlook
The fiscal year ending March 31, 2024, the third year of the Mid-Term Plan "G-EST2025," is positioned as one in which wewill "steer the company from the establishment of a foundation to a growth path" and will continue to steadily implement
the four key strategies set forth in the Mid-Term Plan.
1. Global expansion of business domain (Global E2E business)
2. Establishment of a new Live Entertainment business (Live Entertainment business)
3. Generation of additional business value in the Imaging Systems & Solutions business (Imaging Systems & Solutions
business)
4. Accomplishment of business transformation (Transformational business)
Our efforts concerning these basic strategies have resulted in a consolidated performance forecast for the fiscal year-4-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
ending March 2024 that projects net sales of 100,000 million yen, operating income of 4,000 million yen, ordinary incomeof 3,500 million yen, and net income attributable to owners of the parent of 2,200 million yen. Operating income includes
approximately 1,900 million yen in amortization of goodwill and other expenses*.
Specific details on the progress of the Mid-Term Plan "G-EST 2025" will be disclosed at the financial results briefing to beheld on May 18, 2023.
(*Amortization of goodwill and other expenses equals 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. Our basic policy is to
distribute earnings in line with consolidated results. We target a consolidated payout ratio of 30% and aim to maintain stabledividends and increase the level of dividends.
If any special factor, such as an extraordinary gain or loss, significantly impacts the net income of a given fiscal year, ourgeneral 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, the year-end dividend for the fiscal year ending March 2024 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-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)March 31, 2022

March 31 2023

AssetsCurrent assets
Cash and deposits

6,420,308

7,813,769

Notes receivable- trade353,710420,745

Accounts receivable - trade

18,321,433

21,445,673

Contract assets

174,250

71,061Inventories

13,613,658

12,460,112

Other

2,223,017

2,868,953

Allowance for doubtful accounts(39,570)(109,328)

41,066,808

44,970,987

Buildings and structures

5,448,367

4,009,273

Machinery and equipment

832,609545,383

Total current assets
Non-current assets
Property, plant and equipment

Land1,705,807

921,363

Lease Assets

303,675

4,998,147

Construction in progress

214,187

1,711,600

Other

1,664,776

2,288,372

Total Property, plant and equipment

10,169,425

14,474,140

Goodwill

11,482,801

11,780,285

Other

2,352,770

2,460,007

Total Intangible assets

13,835,572

14,240,292

2,670,687

2,876,524

385,838

514,042

Lease and guarantee deposits

2,066,324

2,048,952

Deferred tax asset

3,051,529

2,420,133

286,596490,206

Intangible assets

Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates

Other
Allowance for doubtful accounts(148,462)(147,088)

Total Investments and other assets

8,312,513

8,202,771

Total Non-current assets

32,317,511

36,917,204

Total assets

73,384,320

81,888,191-6-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023

(Thousands of yen)March 31, 2022

March 31 2023

Liabilities
Current liabilities
Notes and accounts payable- trade

8,884,981

7,133,738

Short-term loans payable

4,170,485

6,432,680

Lease liabilities

208,046

881,977

Accounts payable

1,824,055

1,769,403

Income taxes payable

850,863

1,172,785

Contract liabilities

8,373,707

7,591,449

Provision for bonuses

1,594,260

1,281,691

3,717

1,100

Provision for loss on litigation

584,309630,660

Asset retirement obligations

41,401

23,181Other

5,743,062

6,286,605

Total current liabilities

32,278,892

33,205,274

4,019,743

1,366,665

Lease liabilities

293,316

4,498,102

Long-term accounts payable-other

208,183

252,767

Deferred tax liabilities

396,815

196,598

Net defined benefit liabilities

1,311,241

1,241,071

Asset retirement obligations

636,938

653,518

Other

213,750

170,257

Provision for loss on order received

Non-current liabilities
Long-term loans payable

Total non-current liabilities

7,079,990

8,378,982

Total Liabilities

39,358,882

41,584,257

Capital stock

3,306,002

3,306,002

Capital surplus

13,223,561

13,020,018

Retained earnings

13,785,809

16,982,736

Treasury stock(351,569)(158,530)

Total shareholders’ equity

29,963,804

33,150,226

610,074

713,553－

20,740Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

(17,933)(17,933)

Foreign currency translation adjustment

595,800

2,237,081

Re-measurements of defined benefit plans(2,483)

2,828

Total accumulated other comprehensive income

1,185,458

2,956,270

Non-controlling Interests

2,876,174

4,197,436

Total Net assets

34,025,437

40,303,934

Total liabilities and Net assets

73,384,320

81,888,191-7-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(2) Consolidated Statements of Income and Statements of Comprehensive Income

Consolidated Statements of Income(Thousands of yen)

Fiscal year 2021

Fiscal year 2022

Net sales

80,184,157

94,147,707

Cost of sales

56,797,356

67,424,283

Gross profit

23,386,800

26,723,423

Selling, general and administrative expenses

19,969,029

22,854,523

Operating income

3,417,771

3,868,899

Interest income

1,203

3,709

Dividend income

22,24026,117

Rent income

65,386

65,177

Foreign exchange gains

46,132

83,005

Other740,474

111,149

Total non-operating income

875,437

289,160

204,657

290,255

Non-operating income

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Taxes and dues
Other
Total non-operating expenses
Ordinary income

7,224

8,290

－

84,271

146,855

136,686

358,737

519,5033,934,471

3,638,556

Extraordinary income
Gain on sales of non-current assets

4,690

7,464

Gain on sales of investment securities

414,702

1,576,172

Compensation for forced relocation

438,7543,608,494

Other
Total extraordinary income

442,959

135,034

1,301,107

5,327,166

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities

102,982

21,425

1,280,371

326,587－

188,001－

785,559

653,911

124,279

Total extraordinary losses

2,037,265

1,445,854

Net income before income tax

3,198,313

7,519,868

Income Taxes Current

1,351,725

1,984,715

Income Taxes Deferred (loss)(1,018,408)

345,712

Income taxes

333,3172,330,427

Net income

2,864,995

5,189,440

135,277

1,324,955

2,729,718

3,864,485

Extra retirement payments
Other

Net income attributable to non-controlling interests
Net income attributable to owners of the parent-8-

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023

Consolidated Statements of Comprehensive Income(Thousands of yen)

Fiscal year 2021

Net income

Fiscal year 2022

2,864,995

5,189,440(266,504)

318,208－

20,7401,156,758

1,652,856

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Re-measurements of defined benefit plans(1,795)

5,312

Total other comprehensive income

888,458

1,997,117

3,753,454

7,186,558

Comprehensive income attributable to owners of parent

3,613,638

5,635,297

Comprehensive income attributable to non-controllinginterests

139,815

1,551,261

Comprehensive income(Breakdown)-9-Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(3) Consolidated Statements of Cash Flow Statement(Thousands of yen)

Fiscal year 2021

Fiscal year 2022

Cash flows from operating activities
Income before income taxes

3,198,313

7,519,868

Depreciation and Amortization

2,059,069

2,596,176

Impairment loss

1,280,371

326,587

Amortization of goodwill

1,406,351

1,558,279

Increase (decrease) in net defined benefit liabilities

62,677(61,306)

Increase (decrease) in allowance for doubtful accounts

22,55963,157

Increase (decrease) in provision for bonuses

585,000(312,568)

Interest and dividend income(23,443)(35,041)

Interest expenses

204,657

290,255

7,224

8,290

Equity in (earnings) losses of affiliates
Loss (gain) on sales of non-current assets

98,292

13,960Loss (gain) on sales of investment securities(414,702)(1,576,172)

Compensation for forced relocation(438,754)(3,608,494)－

785,559

Decrease (increase) in trade receivables and contract assets(1,992,676)(2,179,438)

Decrease (increase) in inventories(6,770,229)

1,172,665

Increase (decrease) in notes and accounts payable-trade

2,431,249(2,007,531)

Increase (decrease) in contract liabilities

5,393,275(876,900)

Other, net(153,927)

2,155,621

Subtotal

6,955,306

5,832,968

22,58534,182Extra retirement payments

Interest and dividend income received

22,617－

Interest expenses paid

(209,152)(290,320)

Proceeds from compensation for forced relocation

1,858,926

3,434,095

Subsidies received－(712,525)

Office transfer related expenses paid

(530,888)－

Business restructuring expenses paid

(315,537)－

Income taxes paid

(389,105)(2,189,269)

Net cash provided by (used in) operating activities

7,414,751

6,109,130(3,996,470)(2,853,620)(612,816)(655,015)

Proceeds from sale of investment securities

944,982

1,642,912

Payments of leasehold and guarantee deposits(546,979)(161,444)

Other, net

282,929(353,275)(3,928,354)(2,380,444)

Extra retirement payments paid

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets

Net cash provided by (used in) investing activities- 10 -

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(Thousands of yen)

Fiscal year 2021

Fiscal year 2022

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(2,023,493)

280,149

Repayment of long-term loans payable(1,974,386)(1,334,433)－(665,932)

Dividends paid to non-controlling shareholders(57,658)(140,670)

Purchase of investments in subsidiaries do not result in change inscope of consolidation(43,198)(442,473)

Cash dividends paid

Proceeds from share issuance to non-controlling shareholders

267,500－

Others, net(352,724)(282,415)(4,183,962)(2,585,777)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

211,125

250,452

Net increase (decrease) in cash and cash equivalents(486,439)

1,393,361

Cash and cash equivalents at beginning of period

6,856,953

6,419,206

48,693－

6,419,206

7,812,568

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period- 11 -

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(4) Notes to consolidated financial statements(Notes regarding ongoing concern assumption)
No relevant matters to be noted.
(Changes in accounting policy)(Adoption of FASB Accounting Standards Codification (ASC) No. 842, "Leases")
As of the beginning of the first quarter of the consolidated fiscal year ending March 31, 2023, ASC No. 842, "Leases," wasadopted for foreign consolidated subsidiaries that have adopted U.S. GAAP.
In principle, therefore, all leases of lessees are recorded as assets and liabilities. When applying this standard, the Company
follows transitional treatment and recognizes the cumulative effect of a change in accounting policy at the date of adoption.
As a result, "Lease assets (net)" under "Property, plant, and equipment," "Lease obligations" under "Current liabilities," and"Lease obligations" under "Non-current liabilities" increased by 3,002,985 thousand yen, 384,364 thousand yen, and 2,735,036
thousand yen, respectively, at the beginning of the consolidated fiscal year ended March 31, 2023. Impacts on the beginningbalance of retained earnings for the consolidated fiscal year ended March 31, 2023 and the impact on the Consolidated
Statements of Income for the consolidated fiscal year ended March 31, 2023 are immaterial.

(Additional information)(Application of treatment of disclosure and accounting treatment when the Japanese Group Relief System is applied)
The Company and a number of its consolidated subsidiaries in Japan have transitioned from a consolidated tax payment
system to the Japanese Group Relief System from the consolidated fiscal year ended March 31, 2023. In accordance with thischange, the disclosure and accounting treatment of corporate tax, local corporate tax, and tax-effect accounting now follow"Handling of Disclosure and Accounting Treatment under Application of the Japanese Group Relief System" (ASBJ PITF No. 42,
August 12, 2021; hereinafter "PITF No. 42"). In accordance with Paragraph 32 (1) of PITF No. 42, no impact is deemed to arise
from the change in accounting policy associated with the application of PITF No. 42.

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Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(Segment information and other items)[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 ofdetermining 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 reportable segments: Content
Creation business, Production 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 visual content, such as live music performances in metaverses that fuse thevirtual and real worlds.
The Production Services business provides one-stop global imaging technology services that range from shooting andbroadcasting 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 3DCG production
and debugging, human talent services, etc.
The Imaging Systems & Solutions business operates in areas such as development, manufacturing, import, sales, andmaintenance services for cutting-edge hardware and software related to video and imaging, as well as the development and salesof video and image processing LSIs, and the live broadcast and distribution of sporting events, etc.
(2) Note concerning changes in reportable segments(Reporting Segments changed)
Effective the first quarter of the consolidated fiscal year ended March 31, 2023, one consolidated subsidiary (IMAGICA EEXInc.), which had previously been included in "Adjustments," was reclassified to the Content Creation business segment due to anincrease in its importance.
Relevant "information for each reportable segment including net sales, profit or loss, assets, liabilities, and other items" for theprevious consolidated fiscal year is disclosed on the basis of the new classification.
2. Method for calculating sales, profit or loss, assets, liabilities, and other items for each reportable segment
The accounting methods for reportable business segments are generally the same as those used in consolidated financial
statements.
Profits of reportable segments are based on operating income.
Intersegment sales or transfers are based on prevailing market prices.

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Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
3. Information concerning sales, profit or loss, assets, liabilities and other items
Previous consolidated fiscal year (from April 1, 2021 to March 31, 2022)(Thousands of yen)Content Creation
Net sales
Sales to externalcustomers
Inter-segment
sales or transfers

Production
Services

Imaging Systems &Solutions

Sub total

22,287,825

40,902,341

16,981,276

80,171,443

198,813

1,178,645

658,7102,036,169

22,486,638

42,080,986

17,639,986

82,207,612

Segment income

765,556

1,726,100

1,740,806

4,232,463

Segment assets

19,171,370

38,853,874

14,877,213

72,902,459

Total

Adjustments(Note 1)

Net sales
Sales to externalcustomers
Inter-segment
sales or transfers
Total
Segment income

Amount in the
Quarterly
Consolidated
Statements ofIncome (Note 2)

12,71380,184,157(2,036,169)－(2,023,455)

80,184,157(814,692)

3,417,771

Segment assets
481,860
73,384,320
Notes: 1. Adjustments are as follows.
(1) Sales to outside customers Include real estate rental income.
(2) The (814,692) thousand yen segment profit or loss (loss) adjustment consists mainly of a 541,590 thousand yen profit
related to the Company and (1,356,283) thousand yen of elimination of intersegment transactions.
(3) The amount of 481,860 thousand yen as an adjustment for segment assets includes corporate assets of 15,196,791
thousand yen not allocated to reportable segments and elimination of intersegment transactions amounting to(14,714,930) thousand yen. Corporate assets consist mainly of cash and deposits and fixed assets such as investment
securities.
2. Segment profits are adjusted with operating income in the consolidated financial statements- 14 -

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
Current consolidated fiscal year (April 1, 2022 to March 31, 2023)(Thousands of yen)Content Creation
Net sales
Sales to externalcustomers
Inter-segment
sales or transfers
Total

Production
Services

Imaging Systems &Solutions

Sub total

23,397,103

52,563,615

18,173,043

94,133,762

140,3211,564,527

757,182

2,462,031

23,537,424

54,128,142

18,930,226

96,595,794

Segment income

535,234

2,532,715

2,086,987

5,154,937

Segment assets

18,448,131

44,625,497

16,601,645

79,675,274

Adjustments(Note 1)

Net sales
Sales to externalcustomers
Inter-segment
sales or transfers

Amount in the
Quarterly
Consolidated
Statements ofIncome (Note 2)

13,944

94,147,707(2,462,031)

－

Total

(2,448,086)

94,147,707

Segment income(1,286,037)

3,868,899

Segment assets
2,212,916
Notes: 1. Adjustments are as follows.

81,888,191(1) Sales to outside customers Include real estate rental income.
(2) The adjustment of segment profits amounting to (1,286,037) thousand yen mainly includes profits of 872,667thousand
yen related to the Company and elimination of intersegment transactions of (2,158,704) thousand yen(3) The 2,212,916 thousand yen adjustment for segment assets includes corporate assets of 14,277,047 thousand yen notallocated to a reportable segment and inter-segment elimination of (12,064,130) thousand yen. Corporate assets
consist mainly of cash and deposits and fixed assets such as investment securities.
2. Segment profits are adjusted with operating income in the consolidated statements of income.

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Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023
(Per-share information)
Fiscal year 2021
(April 1, 2021 to March 31, 2022)

Fiscal year 2022
(April 1, 2022 to March 31, 2023)

Net assets per share

701.63 yen

809.83 yen

Net income per share

61.49 yen

86.79 yen

Notes: 1. As there are no residual shares that could dilute stock value diluted net income per share in the previous
consolidated fiscal year is not shown.
As there are no residual shares, diluted net income per share in the current consolidated fiscal year is not shown.
2. As stated in "Changes in accounting policy", the Company has adopted U.S. FASB Accounting Standards Codification(ASC) No. 842, "Leases." The impact of this on net income per share for the consolidated fiscal year ended March 31,
2023 is immaterial.
3. Net income per share is calculated on the following basis.
Fiscal year 2021
(April 1, 2021 to March 31, 2022)

Fiscal year 2022
(April 1, 2022 to March 31, 2023)

2,729,718

3,864,485－－

Net income attributable to shareholders of theparent company for common stock(thousands of yen)

2,729,718

3,864,485

Average number of shares of common stock during
period (shares)

44,392,807

44,527,222

Net income per share
Net income attributable to parent company
shareholders (thousands of yen)Amount not attributable to ordinary shareholders(thousands of yen)

Stock acquisition rights by resolutionof the Board of Directors on July 11,2019

Summary of potential stock not included in thecalculation of diluted net income per share due tothe absence of a dilutive effect.

Third series of stock acquisitionrights 42,901 stock acquisition rights(4,290 thousand shares of common
stock)－

Fourth series of stock acquisitionrights 40,000 stock acquisition rights(4,000 shares of common stock)

All of the above stock acquisitionrights were acquired and canceledon November 16, 2021.
4. Basis for calculating net assets per share is as follows.
Fiscal year 2021
(ending March 31, 2022)
Total net assets (thousands of yen)

Fiscal year 2022
(ending March 31, 2023)

34,025,437

40,303,934

2,876,174

4,197,436(of which, non-controlling interest (thousands of yen))(2,876,174)(4,197,436)

Net assets at period end related to common shares(thousands of yen)

31,149,262

36,106,497

Number of shares of common stock at end of periodused for calculating net assets per-share

44,395,529

44,585,425

Amount deducted from total net assets(thousands of yen)

- 16 -

Imagica Group, Inc. (6879), Financial Statements for Fiscal Year ending March 31, 2023

(Significant subsequent events)
No relevant matters to be noted.
4. Others, net(1) Changes in executives
Will be disclosed when decided.

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