Consolidated Financial Highlights for
Fiscal year ending March 31, 2023
Supplemental Materials
IMAGICA GROUP Inc.
Stock Code：6879

May 11, 2023

Financial Highlights

１

２Company-wide operating income before goodwill amortization wasapproximately 5.7 billion yen, a second consecutive record high.

Production Services (International) continues to lead the way withan increase of 900 million yen from the previous year.

Net income attributable to owners of the parent increased by 1.1

３billion yen due to the recording of extraordinary income, including
compensation for relocation.
2Notes in this document (*1-2) are on page 16.

Financial results highlights•

The Company achieved two-digit growth in sales and profit, with net sales,operating income, and net income reaching their highest values since the listingof the Company.
Net sales

94,147
YoY+13,963（＋17.4％）

Operating income before
goodwill amortization

Operating income(loss)

5,738

3,868

YoY
+607（＋11.8％）

YoY＋451（＋13.2％）

Net profit
attributable to ownersof the parent

3,864

YoY
＋1,134（＋41.6%）（Million Yen）

94,14786,72780,184

5,131

5,738

3,417

3,868

3,864

3,454
2,729

320(1,084)
FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

3

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

Revenue increased in all segments, with Production Services (International)
recording an increase of 12.0 billion yen.
（Million Yen）

Production Services(Overall) ＋12,047
12,08280,184

1,050

72

ContentCreation

ProductionServices(Domestic)

1,290

Imaging
Systems &Solutions

94,147(424)Consolidated
Adjustments

ProductionServices(International)

FYE Mar. 2022
ActualFYE Mar. 2023
Actual＋13,963

4

Analysis of increase/decrease in Operating Income
before goodwill amortization (YoY)•Increases: Production Services, 960 million yen; Imaging Systems & Solutions,
340 million yen; consolidated, 600 million yen（Million Yen）

Production Services(Overall) +962

ImagingSystems &Solutions
ContentCreation

ProductionServices(Domestic)

Consolidated
Adjustments

ProductionServices(International)

FYE Mar. 2022
ActualFYE Mar. 2023
Actual＋607

5

Content Creation business•

Revenue increased in content creation for feature films, dramas, and video
streaming, but income decreased due to special procurement in the previous year
and due to weakness in the TV commercials in the second half of the year.
YoYNet sales

Operating income before
goodwill amortization＋1,050（+4.7％)（Million Yen）

YoY（230）（29.9％）

23,53722,48619,809770

540(440)FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

 Net sales were solid due to delivery of feature films, TV animation, and dramas for video
streaming service providers.

 Gross margin improved due to continued strict revenue management in animation productions.
 TV commercial production income declined, due to low orders for TV commercials in the second
half of the year.

 In the Live Entertainment business, net sales were robust but income decreased due to special
procurement in the previous year.

※Due to changes in subsidiary segments, figures for "Content Creation" for FYE Mar. 2022 have been changed

6

Production Services business•

Significant increase in revenue and profit due to continued strength of Global E2E
services*1Net sales

Operating income before
goodwill amortization

YoY＋12,047（＋28.6％）（Million Yen）

YoY

+962（+28.3％）
54,1284,361

46,973
InternationalSDI
PPC

42,080International

3,399International

PXL
PPCInternational

PXL
PPC

(Numbers show the sum ofdomestic plus international.)

Domestic

Domestic

DomesticFYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

Domestic△818

FYE Mar. 2021

FYE Mar. 2022

International

DomesticFYE Mar. 2023

 In international E2E services, both net sales and profit grew significantly due tocontinued strong demand for localization for video streaming service providers*².

 In domestic E2E services, digital cinema services and post-production services foranimated films were robust, but profit decreased due to higher fixed costs associatedwith the relocation of offices.

7

Imaging Systems & Solutions business•

Increase in sales and profit due to recovery in product shipments of high-speed
cameras from the second half of the fiscal year, etc.
Net sales

YoY＋1,290（＋7.3％）
21,006

4,839*（Million Yen）

Operating income before
goodwill amortization

YoY＋346（＋19.5％）

18,930

2,122

2,046
1,776
17,639FYE Mar. 2021

FYE Mar. 2022FYE Mar. 2023

FYE Mar. 2021

FYE Mar. 2022

FYE Mar. 2023

 Shipments of high-speed cameras recovered from the second half of the fiscal year
as impacts of the semiconductor shortage eased.

 Imaging/Image Processing LSI sales remained robust in Japan and overseas.
 In the Optical Measurement business, net sales increased in line with recovery incapital investments.

 Broadcast Imaging Systems & Solutions struggled due to low orders for projects.
*Impact of change in accounting standards: Impact due to recording of mobile communication line sales as net amounts

8Full-year financial forecast for the FYE March 2024
The Company aims to achieve net sales of 100 billion yen and a third consecutive
fiscal year of increased profit.
FYE Mar. 2023
(Million yen)

ActualFYE Mar. 2024
Financial Forecast

YoY

% YoY

94,147100,000

5,853

6.2％

5,738

5,900

162

2.8%

(Profit margin)

6.1%

5.9%

4,000

132

3.3%

(Profit margin)

3,868
4.1%

Ordinary income

3,639

3,500

△139

△3.8％

Net income attributable to ownersof the parent

3,864

2,200

△1,664△43.0％Net income per share (yen)86.7949.34△37.45△43.1％

Dividend per share (yen)15.0

15.000.0％

Net sales

Operating income before
goodwill amortization
Operating income

4.0%

9

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 FYE Mar.2024 is 15 yen.
Net income
Per share
attributable to parent Net income attributable
Dividend forecastcompany
to parent company
Net income
Net income

Expected for FYE
Mar.2023

2,200 mn yen

49.34 yen

15.0 yen

Dividend payout
ratio

30.4%
10Appendix.

11Consolidated Income Statements
FYE Mar. 2022

(Million Yen)

ActualFYE Mar. 2023
ActualYoY%YoY

Net sales

80,184

94,147

13,963

17.4%

Gross profit

23,386

26,723

3,336

14.3%

29.2%

28.4%

ーー

3,417

3,868

451

13.2%

4.3%

4.1%

ーー

3,934

3,638(295)(7.5%)

4.9%

3.9%

ーー

Extraordinary income

1,301

5,327

4,026

309.4%

Extraordinary losses

2,037

1,445(591)(29.0%)Net income before income tax

3,198

7,519

4,321

135.1%Net income attributable to owners ofparent

2,729

3,8641,134

41.6%(Reference) Operating income before goodwill
amortization

5,131

5,738

606

11.8%

(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

12Consolidated Balance Sheets(Million Yen)

As of Mar. 2022

YoY

41,06644,9703,904Cash and deposits

6,420

7,813

1,393

Non-current assets

32,31736,917

4,599

11,482

11,780297

Total Assets

73,38481,888

8,503

Current liabilities

32,27833,205

926

4,170

6,432

2,262

7,079

8,378

1,298

4,019

1,366(2,653)

39,35841,5842,225

29,96333,1503,186

Accumulated other comprehensive income

1,185

2,956

1,770

Non-controlling interests

2,876

4,197

1,321

Total Net Assets

34,02540,303

6,278

Total Liabilities and Net Assets

73,38481,8888,503

Net Cash(1,769)

14

1,784

Current assets

AssetsFYE Mar. 2023

Goodwill

Short-term loans payableNon-current liabilities
Long-term loans payable
Total Liabilities

Liabilities
Shareholders' equityNet Assets

13Consolidated Statements of Cash Flow(million yen)

Income before income taxes (loss)
Depreciation and amortization
Amortization of goodwill
Gain/loss on sales of investment securitiesFYE Mar. 2022

FYE Mar. 2023
3,198
2,059
1,406
(414)

7,519
2,596
1,558
(1,576)

Increase (Decrease) in trade receivables and contract assets(1,992)(2,179)

Increase (Decrease) in inventory(6,770)

1,172

2,431

(2,007)

5,393
(389)
2,493
7,414
(3,996)
(612)
944
(264)
(3,928)(2,023)(1,974)－(876)(2,189)2,091
6,109(2,853)
(655)
1,642
(514)
(2,380)280(1,334)
(665)

(43)

(442)

(142)
(4,183)(423)(2,585)

211

250

(486)

1,393

48－

6,419

7,812

Decrease (Increase) in notes and accounts payable-trade
Increase (Decrease) in contract liabilities
Income taxes paid
Others, net
Cash flow from operating activities
Purchase of property, plant and equipment
Purchase of intangible assets
Income from the sale of investment securities
Others, net
Net cash used in investing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Purchase of investments in subsidiaries do not result in change inscope of consolidation
Others, net
Cash flow from financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (Decrease) in cash and cash equivalents
Increase (Decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

14

Financial Results by Segment
FYE Mar. 2022

（Million Yen）

ActualNet salesContent Creation

Production Services

Imaging Systems &Solutions

OthersConsolidated total

FYE Mar. 2023
ActualYoY%YoY

22,48623,537

1,050

4.7%

Operating income

765535(230)(30.1%)(Operating margin)

3.4%

2.3%

ーー

Operating income before goodwill
amortization

770540(230)(29.9%)Net sales

42,08054,12812,047

28.6%

Operating income

1,726

2,532806

46.7%(Operating margin)

4.1%

4.7%

ーー

Operating income before goodwill
amortization

3,399

4,361

962

28.3%

Net sales

17,63918,930

1,290

7.3%

Operating income

1,740

2,086

346

19.9%

(Operating margin)

9.9%

11.0%

ーー

Operating income before goodwill
amortization

1,776

2,122346

19.5%(2,023)(2,448)(424)

ー(814)(1,286)(471)

ーNet sales

80,184

94,147

13,963

17.4%

Operating income

3,417

3,868

451

13.2%

Net sales before goodwill amortization

5,131

5,738

606

11.8%

Net sales
Operating loss

15※子会社のセグメント変更により、2022年3月期のNet sales・のれん償却前利益は修正しております。

Notes＊1.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.

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

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/
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