Consolidated Financial Highlights for
the Second Quarter of the fiscal year ending
March 31, 2024
Supplemental Materials

IMAGICA GROUP Inc.
Securities Code: 6879
October 31, 2023

Highlights of Financial Results for the Second Quarter
Sales increased for two consecutive years. Operating income decreased due tofixed cost increase in Production Technology Services (Overseas) by growth(Million Yen)investment.
Operating income
Net income attributable
OperatingNet sales
before goodwill andto owners
incomeother amortizationof the parent

46,686

1,918967700

YoY

YoY

YoY

YoY

+5,096（＋12.3%）－371（－16.2%)－444（－31.5％）－99（－12.4％）

46,686
41,5892,289
33,846

1,918
1,694
1,411

1,274967799700

431

1H FY2021

1H FY2022

1H FY2023

1H FY2021

1H FY2022

1H FY2023

1H FY2021

1H FY2022

1H FY202

1H FY 2021

1H FY2022

1H FY20232

Performance by segment (YoY and vs. forecast)
Operating income achieved the target for this first half although decreased YoY withdecrease in Production Technology Services and Imaging Systems & Solutions.
1H FY2022
Actual(Million Yen)

ProductionTechnologyServicesImaging
Systems &SolutionsOthers

Net Sales

12,7703,724Operating income

468942

Operating income before goodwill
and other amortization

4991

42

25,596

26,913

1,317

Operating income

1,192793(398)

Operating income before goodwill
and other amortization

2,049

1,723(326)

Net sales

8,212

8,094

(117)

Operating income

712

671

(40)

Operating income before goodwill
and other amortization

730

689

(40)

(1,265)(1,092)

172

(540)

(587)

(46)

41,58946,686

5,096

Operating income

1,411

967

(444)

Operating income before goodwill
and other amortization

2,289

1,918

(371)

Net sales

Net sales
Operating lossNet sales

Consolidated
totalvs. forecast

YoY

9,045

Net sales

Content Creation

1H FY2023
ActualOperating income before goodwill
and other amortization

3

Analysis of increase/decrease of Net sales (YoY)

Sales increased in Content Creation and Production Technology
Services (Overseas).
（Million Yen）

Domestic

ContentCreation

1H FY2022
ActualOverseas

Production TechnologyServices
Overall : 1,317

5,096

Other
Imaging
Systems＆ Solutions

1H FY2023
Actual4

Analysis of increase/decrease of Operating income before goodwill andother amortization (YoY)

Operating income deceased in Production Technology Services(Overseas) but it is going as planned.
（Million Yen）

ContentCreation

DomesticOverseas
Production TechnologyServices
Overall : (326)1H FY2022
ActualImaging
Systems＆ Solutions

Other

1H FY2023
Actual(371)5Content Creation
Sales and operating income increased with theater and video streaming works,
animation works and publishing business.
（Million Yen）

Sales and operating income increased.

Net sales
12,7708,993■Net sales■Operating income

9,045+3,724 （+41.2%）+42 （+85.8%）

 Feature films and dramas

1H FY2021

1H FY2022

1H FY2023

Operating income(before goodwill and other amortization)
91
41

1H FY2021

Sales increased significantly with theater and video streamingworks.
・Feature film “Godzilla Minus One”
・Netflix feature film "Zombie 100: Bucket List of the Dead" etc.

 Animation works

Sales increased with TV series and margin improved withdigitalization.

 Publishing business

Sales increased with strong sales of “The Apothecary Diaries” etc.

49

 CM works
1H FY2022

1H FYE2023

Sales decreased with weak order for TV although strong order forweb.
6

Production Technology Services*
Sales increased in the digital cinema services* and trailer production services. Operating
income decreased due to fixed cost increase in the overseas operation by growthinvestment and weak order for TV-CM post-production.
（Million Yen）

Net sales
25,596

18,45813,0406,490
11,967

12,556

１H FY2021

1H 2022

Sales increased but operating income decreased.

26,913

Overseas
14,372

Gamerelated
business
3,052

Domestic
12,542
1H 2023

Operating income(before goodwill and other amortization)
2,049

1,723
1,024

Overseas
Domestic

1H FY2021

1H FY2022

1H FY2023■Net sales■Operating income+1,317 （+5.1%）－326 （－15.9%）

 Domestic E2E services*

Sales increased with solid sales of digital cinema services.

 Overseas E2E services*

Sales increased with increase in the digital cinema services andtrailer production service though decrease in localization
service for video streaming by demand settle down.
Operating income decreased due to fixed cost increase by
growth investment.

 Game-related business

Sales increased with good sales of Game 3DCG production.

 Post-production services for TV

Sales and operating income decreased due to weak orders for
TV-CM.
7

Imaging Systems & Solutions
Sales of high-speed cameras significantly increased with strong orders but salesof video and image processing LSI and some other decreased due to market
deterioration.
Sales and operating income decreased.

Net sales（Million Yen）

8,212
7,321

1H FY2021

1H FY2022

8,094

1H FY2023

Operating income(before goodwill and other amortization)
730

689

504

1H FY2021

1H FY2022

1H FY2023■Net sales－117 （－1.4%）■Operating income－40 （－5.6%）

 High-speed cameras
Sales increased significantly owing to recovery of
production by settlement of semiconductor
shortage and strong orders.
 Broadcast imaging systems & solutions
Sales decreased as it had sales of the large
projects in the previous year.
 Video and image processing LSI/Opticalmeasurement/Video
Sales decreased due to market deterioration.
8FY2023 Full-year forecast
No change with the full year forecast
FY2022（Million yen）

FY023

ActualForecast

YoY% YoY

94,147100,000

5,853

6.2％

5,738

5,900

162

2.8%

6.1%

5.9%

3,868

4,000

132

3.4%

4.1%

4.0%

Ordinary income

3,638

3,500(138)(3.8％)Net income attributable toowners of the parent

3,864

2,200(1,664)(43.0％)

Earnings per share (yen)

86.79

49.34

(37.45)(43.1％)

Dividend per share (yen)15.0

15.00.0

Net sales
Operating income before goodwill
and other amortization(Margin)Operating income(Margin)9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 Services
business." This represents a change in segment name only and has no impact on the segment
Information.
*E2E services
Refers to an integrated end-to-end (E2E) service that covers the entire post-production processfor feature films, TV dramas, animation, and other audio/video content up to media services for
localization (subtitling/dubbing) and distribution of these through all kinds of media, including
theaters, TV, and video streaming via the Internet.
*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).

10Appendix.

Key strategies and services/Net sales of each segment

1Live Entertainmentbusiness

3Imaging Systems &Solutions business4

Game-related business•••live-music performances direction
live-viewing
metaverse

Sports BroadcastingVideo Archiving Business

0.8
7.3
3.0

Transformation Business •Production feature film,TV drama, Animation
Publishing

12.1

•
•

Postproduction for TV,
Commercials
Human resource consulting service

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

2.2
7.3
3.0

17.2

51
13.5

Total

18.1
••

1.4

•

Total

Imaging Systems& Solutions business

18.1

Global E2E Business

25Production TechnologyServices

Content Creation

Net sales（1H FY2023）(Billion yen)

8.1

47.8
12

Consolidated Income Statements
1H FY2022（Million yen）

1H FY2023

ActualActualYoY%YoY

Net sales

41,58946,686

5,096

12.3%

Gross profit

12,092

12,864

772

6.4%

29.1%

27.6%

1,411

967(444)(31.5%)

3.4%

2.1%

1,336

938(398)(29.8%)

3.2%

2.0%

Extraordinary income

318524205

64.7%

Extraordinary loss

234

16(217)(92.9%)Net income before income taxes
Net income attributable to ownersof the parent

1,420

1,445

25

1.8%799700(99)(12.4%)EBITDA

3,334

3,117(217)(6.5%)(Reference) Operating income before
goodwill and other amortization

2,289

1,918(371)(16.2%)(Margin)Operating income(Margin)

Ordinary income(Margin)・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

13Consolidated Balance Sheets（Million yen）
Current assets

March 31, 2023

September 30, 2023

Increase/Decrease

Assets44,97039,305(5,665)

7,813

4,868

(2,945)36,917

37,250333

11,78011,999219

81,88833,20576,55630,100(5,331)

Short-term borrowings

6,432

6,686

253

Non-current liabilities

8,378

7,958

(420)

Long-term borrowings

1,366

913

(453)

41,58433,15038,05932,064(3,524)

2,956

4,193

1,236

2,239
38,496(1,957)

Net assets

4,197
40,303

Total liabilities and net assets

81,88876,556(5,331)14(2,731)(2,745)

Cash and deposits

Non-current assets
Goodwill

Total assets

Current liabilities
Liabilities / Net assets

Total liabilities
Shareholders’ equity
Accumulated othercomprehensive income
Non-controlling interests

Net cash・Net Cash = Cash and deposits － long-term and short-term loans payable(3,104)(1,086)(1,807)14

FY2023 Full year forecast by segment
The company targets operating income growth YoY with increase in Content Creation and otherbusinesses assuming decline in Production Technology Services
FY2022（Million yen）

Actual535

Operating income before goodwill
and other amortization

540

1,000460

54,1282,872

OthersConsolidated total23,537

2,463
465

Operating income

2,532

57,0002,000

Operating income before goodwill
and other amortization

4,361

3,900(461)

18,93020,0001,070

Operating income

2,086

2,200114

Operating income before goodwill
and other amortization

2,122

2,200

78

Net sales(2,448)(3,000)552

Operating loss

(1,286)(1,200)(86)

Net sales

94,147

5,853
162

Net sales

Imaging Systems ＆Solutions

YoY

Operating income

Net sales

Production TechnologyServices

Forecast

26,0001,000

Net sales

Content Creation

FY2023Operating income

3,868

100,000
4,000

Operating income before goodwill
and other amortization

5,738

5,900(532)13215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 FY2023 is 15 yen.

Expected forFY2023

Net income attributable toowners of the parent

Earnings per share

Dividend forecast

Dividend payout
ratio

2,200 million yen

49.34 yen

15.0 yen

30.4%

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.