Consolidated Financial Highlights for
the First Quarter of FY2024
Supplemental Materials

IMAGICA GROUP Inc.
Securities Code: 6879
July 30, 2024

FY2024: The fiscal year ending March 31, 2025

Highlights of financial results for the first quarter
Net sales and operating income decreased due to recording of sales of several
major works in the previous year, impact of the Hollywood’s strike, etc.
（Million Yen)
Net sales

20,060
YoY-3,736（-15.7%）
23,797

20,06019,861

Operating income
before goodwill andother amortization

Operatingincome

Net income
attributable to ownersof the parent

YoY

YoY

YoY

0.2-544-811（-100.0%）
686-519-889（－）-825（－）

811

271

345

305
530.2(519)(544)
FY2022

FY2023

FY2024FY2022

FY2023

FY2024FY2022

FY2023

FY2024FY2022

FY2023

FY20242

Performance by segment (vs. forecast)
Operating income achieved the target for this first quarter although it fell short of thetarget in Production Technology Services.
1Q FY2024
Actual(Million Yen)

Operating income before goodwill
and other amortization

Operating incomeProductionTechnologyServices

Net sales
Operating income before goodwill
and other amortization

Operating incomeNet sales

Imaging Systems& Solutions

Operating income before goodwill
and other amortization

Operating income
Net sales

Consolidated total

Operating income before goodwill
and other amortization

Operating income
Vs. forecast

Net sales

5,345

Net sales

Content Creation

vs. forecast

Over +5%

Operating income
before goodwill andother amortization

Strong sales of the original“The Apothecary Diaries”
novel and recording of
distribution-related income

484
481
11,571

Sluggish sales oflocalization services inoverseas(483)(1,016)
3,579

Strong sales of high-speed
cameras in Europe334
325
20,060Operating income achieved
the target on theconsolidated total

0.2(544)-5% to +5%

Below -5%3

Analysis of increase/decrease of Net sales (YoY)
Net sales decreased due to recording of sales of several major works in the previousyear, sale of consolidated subsidiaries, impact of the Hollywood’s strike, etc.
Content
Creation(1,821)

OtherMajor works inthe previous year

（Million Yen)

Domestic(241)
OtherOverseas

Sale ofconsolidated
subsidiaries

Production Technology
Services
Overall (1,628)

1Q FY2023
Actual(3,736)

ImagingSystems &Solutions

Other

1Q FY2024
Actual4Analysis of increase/decrease of Operating income before
goodwill and other amortization (YoY)
Operating income increased in all the segments except Production
Technology Services (Overseas)
Production
Technology Services
Overall (1,261)（Million Yen)

Domestic
Overseas

1Q FY2023
ActualContentCreation

Imaging
Systems &Solutions

(52)

0.2

Other

1Q FY2024
Actual(1,496)(811)

5

Content Creation for the first quarter
Sales decreased due to recording of sales of several major works in theprevious year but operating income significantly increased with strong
sales related to “The Apothecary Diaries”, etc.
Net sales(Million Yen)

7,166
5,345
4,149

Sales decreased but operating income increased.

■Net sales-1,821 （-25.4%）■Operating income+433 （+846.0%）

 Feature films and dramas

Sales significantly decreased due to recording of sales of several
major works in the previous year.

 Animation works
FY2022

FY2023

FY2024

Operating income(before goodwill and other amortization)484

51(192)

FY2022

FY2023

FY2024

Sales increased with strong orders for CG animation and TV
series.

 Publishing business

Sales increased with strong sales of the original “The ApothecaryDiaries” novel and its accompanying comic book series, andrecording of distribution-related income from the TV animation
production committee.

 CM works

Solid inflows of orders for TV commercials.

6

Production Technology Services for the first quarter
Sales and operating income decreased impacted by the Hollywood’s strike,although domestic E2E services and game-related business went well.
Net sales
11,955
6,015

13,200
7,272

5,940

5,927

FY2022

FY2023（Million Yen）
11,571
Game- Overseas
related5,884
business
1,446
Domestic
5,686
FY2024

Operating income(before goodwill and other amortization)
759777(483)

Domestic
Overseas
FY2022

FY2023

FY2024

Gamerelatedbusiness 1,665

Sales and operating income decreased.
■Net sales-1,628 （-12.3%）■Operating income-1,261 （-）

Domestic E2E services*

Sales increased with solid sales of film-editing and digital
cinema services*.

 Overseas E2E services*

Sales decreased due to sluggish sales of localization services asa result of production delays caused by the Hollywood’s strike.
Operating income decreased with a fall in gross profit resulting
from the decrease in sales.

 Game-related businessSales increased as orders for Game 3DCG production increased
in response to a scaling-up of our production system.

 Post-production services for TV

Sales decreased due to changes in the environment
surrounding the domestic TV industry.

7

Imaging Systems & Solutions for the first quarter
Operating income increased with solid sales from European automobile
customers.
Net sales

4,225

3,883(Million Yen)
3,579

Sales decreased but operating income increased.
■Net sales-303 （-7.8%）■Operating income+69 （+26.1%）

 High-speed cameras

Sales increased with solid orders from European automobilecustomers.

FY2022

FY2023

FY2024

Operating income(before goodwill and other amortization)
334

334
265

FY2022

FY2023

FY2024

 Broadcast imaging systems & solutions

Sales decreased following recording of sales of large projects
in the previous year.

 Video and image processing LSI

Sales declined due to a lack of slower recovery in orders forinventory adjustment of the domestic customers.
Photron Ltd. released new high-speed
camera “FASTCAM Mini R5-4K” on July11, which is small and light weight with4K resolution.

8Full-year financial forecast for FY2024No change of the forecast.
FY2023(Million Yen)FY2024

ActualFinancial Forecast

YoY% YoY

Net sales

99,68498,000(1,684)(1.6％)

Operating income
before goodwill and otheramortization

5,901

5,800(101)(1.7%)(Margin)

5.9%

5.9%

3,924

3,700(224)(5.7%)

3.9%

3.8%

Ordinary income

3,727

3,200(527)(14.1％)Net income attributable toowners of the parent

2,373

2,000(373)(15.7％)

Dividend per share (yen)

15.0

15.0

0.0

0.0％

Operating income(Margin)

9Notes*E2E services
Refers to an integrated end-to-end (E2E) service that covers the entire post-production process
for feature films, TV dramas, animation, and other audio/video content up to media services forlocalization (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.

11

Consolidated Income Statement
1Q FY2023
Actual(Million Yen)

1Q FY2024
ActualYoY%YoY

Net sales

23,797

20,060(3,736)(15.7%)

Gross profit

6,210

26.1%

5,887

29.3%

(323)

(5.2%)

811

0.2(811)(100.0%)

3.4%
345
1.5%
394
1.7%
281
1674

0.0%
(544)
(498)
00(498)

(889)

-

(892)

-

(281)

(100.0%)0(67.7%)(1,173)

-

305

(519)

(825)

-

1,382

739(642)(46.5%)(Margin)Operating income before goodwill
and other amortization(Margin)Operating income(Margin)

Ordinary income(Margin)

Extraordinary income
Extraordinary loss
Net income before income taxes
Net income attributable to ownersof the parent
EBITDA

・Operating income before goodwill and other amortization = Operating income + Goodwill amortization + Amortization of intangible fixed assets including trademarks
・EBITDA = Operating income + Goodwill amortization + Amortization of intangible fixed assets including trademarks + Depreciation

12

Consolidated Balance Sheet(Million Yen)

AssetsMarch 31, 2024

June 30, 2024

Increase/Decrease

Current asset

41,28839,943(1,345)

Non-current assets

37,40537,086(318)

Total assets

78,694

77,030(1,664)Current liabilities

28,95028,739(211)

Non-current liabilities

9,837

9,077

(760)

Total liabilities

38,78837,816(971)

Shareholders’ equity

33,731

32,560(1,170)

Accumulated other comprehensive income

4,097

4,684

586

Non-controlling interests

2,077

1,969

(108)

39,906

39,213(692)

Cash and deposits
Goodwill

Liabilities / Net assets
Short-term borrowings
Long-term borrowings

Net assets
Total liabilities and net assets
Net cash

5,242

11,411

5,143
3,120

5,961

11,719

6,790
2,797

718
308(Note)
In the first quarter of the fiscal
year ending March 31, 2025,
the Company finalized theprovisional accounting
treatments related to businesscombinations, and the figures
for the fiscal year ended March31, 2024 reflect the details of
the provisional accounting
treatments.

1,647
(323)

78,694

77,030(1,664)(3,021)(3,626)(605)

Cash and deposits - long-termand short-term borrowings

13

FY2024 Full-year forecast by segment(Million Yen)

ProductionTechnologyServices

Imaging Systems &Solutions

Consolidated total

FY2023

ActualActualFY2024
ForecastYoY% YoY

23,53728,18624,300(3,886)(13.8%)

Operating income before
goodwill and other amortization

540

1,281

1,320

39

3.0%

Operating income

535

1,276

1,310

34

2.7%

54,12853,967

55,100

1,133

2.1%

Operating income before
goodwill and other amortization

4,361

3,367

3,400

33

1.0%

Operating income

2,532

1,430

1,350(80)(5.6%)Net sales

18,93019,756

20,300544

2.8%Operating income before
goodwill and other amortization

2,122

2,440

2,300(140)(5.7%)

Operating income

2,086

2,404

2,270(134)(5.6%)Net sales

94,147

99,68498,000(1,684)(1.7%)

Operating income before
goodwill and other amortization

5,738

5,901

5,800(101)(1.7%)

Operating income

3,868

3,924

3,700(224)(5.7%)Net sales

Content Creation

FY2022

Net sales

1414

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.