Consolidated Financial Highlights for
the Third Quarter of the fiscal year ending
March 31, 2023
Supplemental Materials

IMAGICA GROUP Inc.
Code：6879

February 7, 2023

Third Quarter Results Highlights

Company-wide operating income before goodwill
１amortization was approximately 4.1 billion yen, an increaseof 900 million yen from the previous year.

Production Services continues to be driven by overseas
２demand, with profit increasing by 1.1 billion yen from theprevious year.

３

Net income decreased by 600 million yen from theprevious year due to an increase in income taxes, etc.

2Highlights of Financial Results for the First Three Quarters•

The company secured a significant increase in both sales and profits. Net income
declined from the previous year due to an increase in income taxes, etc.
(Million Yen)

Net sales

68,220
YoY+12,581（＋22.6％）

Operating income(loss) before
goodwill amortization

Operating income(loss)

4,111

2,740

YoY
+901（＋28.1％）

YoY+802（＋41.4％）

Net profit (loss)
attributable to ownersof the parent

1,763

YoY
(697)(28.3%)

68,22058,67055,618

4,111
3,210

2,740

2,460

1,938

3Q
FYE Mar. 2023

3Q
3Q
FYE Mar. 2021 FYE Mar. 2022(663)(2,369)(1,564)

3Q
3Q
FYE Mar. 2021 FYE Mar. 2022

1,763

3Q
FYE Mar. 2023

3Q
3Q
FYE Mar. 2021 FYE Mar. 2022

3Q
FYE Mar. 2023

3Q
3Q
FYE Mar. 2021 FYE Mar. 2022

3Q
FYE Mar. 2023

3

Analysis of increase/decrease in Net Sales (YoY)•

Sales increased in all segments, especially Production Services (International),
in which sales increased by 9.6 billion yen.
(Million Yen)

Production Services(Overall: ＋9,868)

ContentCreation

ProductionServices(Domestic)

ProductionServices(International)

Imaging
Systems &Solutions

Other

Exchange rate
fluctuations＋3,0403Q FYE
Mar. 2022 Actual

3Q FYE
Mar. 2023 Actual＋12,5814

Analysis of increase/decrease in Operating Income
before goodwill amortization (YoY)•Profit increased by 1.1 billion yen in Production Services and 160 million in
Imaging Systems & Solutions. On a consolidated basis, profit increased by 900(Million Yen)
million yen.
Production Services(Overall: ＋1,128)

Imaging
Systems &Solutions

ContentCreation

Production Services(International)
Production Services(Domestic)

3Q FYE
Mar. 2022 Actual

Consolidated
Adjustments

Exchange ratefluctuations＋338

3Q FYE
Mar. 2023 Actual＋901

5

Content Creation (First Three Quarters)•Increases in sales and profit due to factors including the recording of a major
project for a video streaming service providers* in the third quarter.
Net sales

YoY+2,201(＋14.2％)※

13,888(Million Yen)

Operating income before
goodwill amortization

YoY+50(＋21.4％)

17,731

15,530

※

(562)

3Q
2021年3月期
FYE Mar. 2021

3Q
2022年3月期

FYE Mar. 2022

3Q
2023年3月期
FYE Mar. 2023

3Q
FYE Mar. 2021

2382893Q
FYE Mar. 2022

3Q
FYE Mar. 2023

 In animation production, gross profit margin continued to improve In the live entertainment business, orders remained robust In TV commercial production, orders from the third quarter onward struggled morethan expected

Notes in this document (*) are on Page 16※Due to changes in subsidiary segments, figures for "Content Creation" for FYE Mar. 2022 have been changed6

Production Services (First Three Quarters)• Global E2E services *: Significant increase in revenue and profit thanksto continued strength.
Net sales(Million Yen)

Operating income before
goodwill amortizationYoY+9,868(＋33.1％)

YoY+1,128(＋47.9％)(Numbers show the sum of
数値は国内・海外の合算
domestic plus international.)

39,64531,784
International
SDI
PPC

Domestic

29,776
International
PXL
PPC

Domestic

3,487International
PXL
PPC

2,358
International

Domestic(1,535)

Domestic

International

Domestic

International
Domestic

3Q
2021年3月期

FYE Mar. 2021

3Q
2022年3月期

FYE Mar. 2022

3Q
2023年3月期

FYE Mar. 2023

3Q
FYE Mar. 2021

3Q
FYE Mar. 2022

3Q
FYE Mar. 2023

 In global E2E services, both net sales and profit grew significantly due to continued strongdemand for localization for video streaming service providers

 In domestic E2E services, digital cinema services* and post-production services for animation

productions were robust, but profit declined due to higher fixed costs associated with therelocation of offices
Notes in this document (*) are on Page 16※ IMAGICA LIVE Corp. performance was excluded from net sales and operating income (loss) for Production Services in
FYE March 2020 and FYE March 2021 due to the reclassification of the subsidiary into another segment.

7

Imaging Systems & Solutions (First Three Quarters)• Sales increased overall, while net sales of high-speed cameras arerecovering due to the easing of impacts of semiconductor shortages.
Net sales

13,962

YoY+852(＋7.2％)※

11,782

YoY+160(＋15.3％)

12,635874

3Q
FYE Mar. 2021

3Q
FYE Mar. 2022

(Million Yen)

Operating income before
goodwill amortization

3Q
FYE Mar. 2023

3Q
FYE Mar. 2021

1,050

1,210

3Q
FYE Mar. 2022

3Q
FYE Mar. 2023

 In optical measurement, orders remained solid in line with a recovery in capital
investment.

 Image processing LSI sales remained robust in Japan and overseas

 Broadcast Imaging Systems & Solutions struggled due to low orders for projects※Impact from a change in accounting standard: Impact from posting the net amount for mobile communication line sales.

8FYE Mar. 2023: Revision of full-year financial forecast
Net income was revised due to the recording of extraordinary profit/loss. Operating income and ordinary
income are unchanged due to uncertainties in fourth quarter TV commercial production orders and theimpacts of higher labor costs and fixed costs from growth investments (overseas).
FYE Mar.2022(Million yen)FYE Mar.2023
5/13 Disclosure offinancial forecast

ActualRevision offinancial forecast

Change% YoY

80,18488,00088,000

7,816

9.7%

5,131

5,200

5,200

69

1.3%

6.4%

(5.9%)(5.9%)

3,417

3,600

3,600

183

5.3%

4.3%

(4.1%)(4.1%)

Ordinary income

3,934

3,300

3,300(634)(16.1%)Net income attributable toparent company shareholders
Net income

2,729

2,100

3,800

1,071

39.2%

Net income per share (yen)

61.49

47.30

85.59

24.1

39.1%

Dividend per share (yen)

15.0

15.0

15.00

0.0%

Net sales
Operating income before
goodwill amortization(Profit margin)

Operating income(Profit margin)※For more information, see "Notice Concerning the Recording of Extraordinary Profit/Loss and Revision of Consolidated Financial Forecast" releasedon February 7.
※Regarding the forecast for a 15 yen dividend per share, no change was made as a result of comprehensive consideration based on the dividend
9payout ratio after the exclusion of special factors.

Appendix.

10Reference:

Progress of the G-EST2025 Mid-Term Plan• Global E2E business saw a significant increase in sales, while the ‘Others,
net’ business also progressed according to plan.

■ Global E2E services

Net Sales
22.6%

556682■ Live Entertainment Business262

165
31104275

30116



295

Sales declined from the level created by event-related
special demand in the previous year, but new initiatives
aimed at business model creation are underway.

■ Imaging Systems & Solutions BusinessNet sales are recovering due to the easing of impacts ofshortages of semiconductors for high-speed cameras.
Overall, sales progressed favorably and increased.

■ Transformation Business

3Q FYE Mar.2022

Overseas, services for video streaming service providers
remained strong, with a significant 58.7% increase insales from the previous year.

Feature film productions and drama productions
remained strong. Sales increased for animation
productions, with gross margin ratio also improving.

3Q FYE Mar.2023※The sales for individuals strategies do not add up to the total because canceling out for consolidation is not taken into account11Reference:

Major subsidiaries and businesses of the key strategies

Global E2E services

Domestic and international E2E services

Live EntertainmentBusinessLive music performances, music video
productions, online live performances,metaverse business, etc.

Imaging Systems &Solutions Business

Imaging systems & solutions businessexcluding IMAGICA LIVE.

TransformationBusiness・ Production of feature films, dramas,and animation.
・ Advertisement production
・ Post-production services for TV programs
and TV commercials
・ Game production and personnel services
12Consolidated Income Statements
3Q FYE Mar. 2022

(Million Yen)

Actual3Q FYE Mar. 2023
ActualYoY%YoY

Net sales

55,61868,20012,581

22.6%

Gross profit

16,39019,197

2,806

17.1%

29.5%

28.1%

1,938

2,740

802

41.4%

3.5%

4.0%

2,448

2,391(57)(2.3%)

4.4%

3.5%

Extraordinary income

858585(272)(31.8%)

Extraordinary losses

559

255(304)(54.5%)Net income before income tax

2,747

2,722(25)(0.9%)Net profit attributable to owners ofparent

2,460

1,763(697)(28.3%)(Reference) Operating income
before goodwill amortization

3,210

4,111901

28.1%(Gross margin)
Operating income(Operating margin)
Ordinary income(Ordinary margin)

Operating income before goodwill amortization = operating income + goodwill amortization + amortization of intangible fixed assets including trademarks.

13Consolidated Balance Sheets(Million Yen)

AssetsLiabilities Net
Assets

As of Mar.31,2022

As of Dec.31,2022

YoY

Current assets

41,06644,165

3,098

Cash and deposits

6,420

5,098

(1,321)

Non-current assets

32,31740,614

8,297

Goodwill

11,482

13,253

1,770

Total Assets

73,38484,780

11,395Current liabilities

32,27835,745

3,466

Short-term loans payable

4,170

5,706

1,536

Non-current liabilities

7,079

11,175

4,095

Long-term loans payable

4,019

3,441

(577)

Total Liabilities

39,35846,9207,561

Shareholders' equity

29,96331,0481,085

Accumulated other comprehensive
income

1,185

3,915

2,730

Non-controlling interests

2,876

2,895

19

Total Net Assets

34,02537,8593,834

Total Liabilities and Net Assets

73,38484,780

11,395Net Cash(1,769)(4,049)(2,279)14

Financial Results by Segment
3Q FYE Mar. 2022
Actual（Million Yen）
Net sales

Content Creation

Production Services

Imaging Systems & Solutions

OthersConsolidated totalActual

3Q FYE Mar. 2023
YoY%YoY

15,53017,731

2,201

14.2%

Operating income

234

285

50

21.7%

(Operating margin)

1.5%

1.6%

Operating income before
goodwill amortizatsion

23828950

21.4%

Net sales

29,776

39,645

9,868

33.1%

Operating income

1,116

2,147

1,030

92.3%

(Operating margin)

3.8%

5.4%

Operating income before
goodwill amortizatsion

2,358

3,487

1,128

47.9%

Net sales

11,782

12,635852

7.2%

Operating income

1,023

1,184

160

15.7%

(Operating margin)

8.7%

9.4%

Operating income before
goodwill amortizatsion

1,050

1,210

160

15.3%

(1,471)(1,811)

(340)

ー

(436)

(875)

(439)

ー

Net sales

55,61868,20012,581

22.6%

Operating income

1,938

2,74080241.4%

Operating income before
goodwill amortizatsion

3,210

4,111901

28.1%

Net sales
Operating loss15※Due to changes in subsidiary segments, figures for "Content Creation" and "Other" for FYE Mar. 2022 have been changed.

Notes＊Global E2E services
Refers to an integrated end-to-end (E2E) service that covers the entire post-production process forfeature 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).

＊Video streaming service providers
Refers to companies that provide video streaming services on a platform through the Internet.

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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/
Twitter：https://twitter.com/IMAGICAGROUPDISCLAIMER:
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.
17