Financial Results Highlights for FY2019 1Q

株式会社IMAGICA GROUP
Code：6879

July 31, 2019

Highlight of Financial Results
Net sales increased 2.3 billion yen YoY, and net profit turned into black at
5.8 billion yen.
（Million Yen）

Net sales

Operating income

Net profit
attributable toowners of the parent

21,747- 681

586

YoY＋2,385

YoY＋194

YoY＋1,123

21,747586

19,362-681

FY2018 1Q

FY2019 1Q-876
FY2018 1Q

FY2019 1Q-536
FY2018 1Q

We recorded
1,647 million yen
as gain on sales ofnon-current assets
at extraordinaryincome
FY2019 1Q2

Content Creation
Net sales increased 3.1 billion yen YoY, operating income also increased 3million yen YoY
FY2018 1Q（Million Yen）

ActualNet salesContent Creation

Operating income（OP ratio）

Net sales

FY2019 1Q

YoY ＋3,144 million

 Recorded big-budget theater films andTV dramas
 Increased the number of TV animation
projects
 Solidly continued in making
commercials and recording music lives

ActualYoYYoY ratio

4,685

7,830

3,144

67.1%

-374-31342ーーー

Operating income

YoY ＋342 million

 Gross profit increased due to sales
increase Profitability got improved by cost
control on TV animation production
 Decreased in goodwill amortization
burden3

Production Services
Despite profit improvement in the post-production business, profit
decreased in human resource service
FY2018 1Q（Million yen）

ActualNet sales
Production Services

Operating income（OP ratio）

Net sales

FY2019 1Q

YoY - 263 million

 Services for digital cinema (DCP) wassolid
 Sales declined due to sell-out of one

consolidated subsidiary in the humanresource services field

ActualYoY

YoY ratio

6,228

5,965- 263- 4.2%

- 11- 101- 90ーーー

Operating income

YoY - 90 million

 Post-production business for TV shows
profit improved by workflow reform Carried out an investment in the humanresources service field (expansion of digitalcontent business and such).
SG & A expenses increased temporarily.
4Media Localization
Build strong organization for OTT orders expected from the 3rd quarter
FY2018 1Q（Million Yen）

ActualMedia Localization

ActualYoY

YoY ratio

Net sales

5,840

5,122- 717- 12.3%Operating income- 591- 685- 93ーーー（OP ratio）

Net sales

FY2019 1Q

YoY -717million

 Sales decreased due to sell-out ofconsolidated subsidiaries
 Business in Europe was slow
temporarily
 Expect orders for new OTT (Over-TheTop platforms) from 3Q by joint
promotion with SDI and Pixelogic

Operating income

YoY - 93 million

 Gross profit decreased due to sales
decrease Implement fixed cost reduction
measures after 2Q
 Build strong organization in E2Eservice5Imaging Systems & Solutions
Net sales increased, but recording of large project in Imaging Systems
has been delayed in the 2nd quarterFY2018 1Q（Million Yen）

ActualImaging Systems &Solutions

ActualYoY

YoY ratio

2,919

3,154235

8.1%

Operating income

204160- 43- 21.5%（OP ratio）

7.0%

5.1%

Net sales

Net sales

FY2019 1Q

YoY +235 million

 Sales of new high-speed camera
products was well in Japan and overseas
 The number of commercial on-line
delivery was steadily increasing
 Got a big-budget project in ICT business

Operating income

YoY - 43 million

 Big-budget project for TVbroadcaster were recorded in 2Q
 Sales of video and image processing
LSI for China got shrunk due to USChina trade friction

6Financial Results by Segment
FY2018 1Q（Million Yen）

Content Creation

Production
Services

Media Localization

ActualConsolidated

ActualYoY

YoY ratio

Net sales

4,685

7,830

3,144

67.1%

Operating income- 374- 31342ー（OP ratio）

ーー

Net sales

6,228

5,965

- 263

-4.2%

- 11

- 101

- 89

ー

（OP ratio）

ーー

Net sales

5,840

5,122

- 717

-12.3%

Operating income

- 591

- 685

- 93

ー

ーー

Operating income after
goodwill amortization

- 297

- 414

Net sales

2,919

3,1542358.1%

204160- 43-21.5%（OP ratio）

7.0%

5.1%

Net sales- 312- 325- 13ーOperating income

- 103

- 24

78ー

19,362

21,747

2,385

12.3%

- 876

- 681

194

ー

Operating income（OP ratio）

Imaging Systems
Operating income& Solutions

Adjustments

FY2019 1Q

Net sales

Operating income

7Consolidated Results for 2Q /Jul - Sep
Consolidated results for 2Q is expected to improve YoY significantlySegments
Content Creation

Factors
1. Continue to control animation production costs
2. Expect to record sales of big-budget theater films in 2Q
1. Continue to improve profitability for post-production business

Production Services

2. Human resource consulting business is still effected by sell-out of aconsolidated subsidiary

Media Localization

Imaging System &Solutions

1. Reduce SG & A by fixed cost reduction will be implemented in 2Q
2. Trailer production (Creative campaigns) business is favorable

1. Sales of new high-speed camera products is well
2. Expected to record sales of big-budget project for broadcasters in 2Q

8

Consolidated Statements of Income（Million Yen）

（単位：百万円）

FY2018 1Q

FY2019 1Q

ActualActualYoYNet sales

19,362Gross profit

4,746

21,7474,894

24.5%

22.5%

- 876

- 681

ー

ー

- 839

- 841

ー

ー

Extraordinary income

1

Extraordinary losses

YoY ratio

2,385

12.3%

1483.1%

194

ー

-1ー

1,654

140921.7%

21

1,655
9- 12-57.7%

Net profit (loss) before taxes

- 860

805

1,665

ー

Net profit (loss) attributable toowners of parent

- 536

586

1,123ー(Reference)
Operating income before goodwill

- 491

- 401

89

ー

(Ratio)Operating income(Ratio)Ordinary income(Ratiio)

Operating income before goodwill includes operating income, goodwill amortization and intangible fixed assets amortization

9Consolidated Balance Sheets（Million Yen）

As of March
31,2019

As of June30, 2019

YoY

Main Factor

40,11934,978- 5,140

Cash and deposits

6,079

4,458

- 1,620

Non-current Assets

24,606

26,296

1,690

3,769

3,644

Total Assets

64,72561,275- 3,449

Current liabilities

26,71224,755- 1,956

5,375

5,979

604

10,1158,870- 1,245

6,169

5,324

- 845

Total Liabilities

36,82833,626- 3,201

Shareholder’s equity

24,85725,224366(Reference）Shareholders equity

Accumulated othercomprehensive income292203

88

As of March 31,2019

25,150 (41.7%)

Non-controlling interests

2,747

2,221

525

As of June 30,2019

25,427 (41.5%)

Total Net Assets

27,89727,649247

Total liabilities and Net Assets

64,72561,275- 3,449

Net Cash- 5,465- 6,845- 1,379 （Cash and deposits－Long and short loans)

Current Assets

Goodwill

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

Notes and accounts receivable- trade - 4,219

Land-1,238

Stocks of subsidiaries and affiliates ＋3,000- 125 （Pixelogic）

Notes and accounts payable- trade -1,396
Advance payment-1,44210

Consolidated Forecast for FY2019
No change in consolidated forecast disclosed on May 14
FY2017FY2018ActualActualForecast（May 14）91,351

90,21295,000

4,788

5.3%

2,424926

1,680

754

81.4%

(2.7%)(1.0%)(1.8%)

Ordinary income

2,424

789

1,200411

52.0%

Net income(loss)
attributableto owners of the parent

2,937-2,010

1,800

3,810

－Earnings (loss) per shareof common stock (Yen)

65.98-45.55

40.86

86.41

－（Million Yen）

（単位：億円）Net sales

Operating income（OP ratio）

FY2019YoY

YoY ratio

11For more information, please contact/visit us atPlanning Dept., IMAGICA GROUP INC.
11th Floor, Uchisaiwaicho Tokyu Bldg.,
Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011
ＴＥＬ：+81-3-6741-5742

ＦＡＸ：+81-3-6741-5752

Email：ir@imagicagroup.co.jp
URL：https://www.imagicagroup.co.jp/

Disclaimer:This document includes the Group’s business plan and future outlook in line with its forecasts.
The future outlook is formulated from information currently available to the Group and theoutlook is susceptible to future economical environment, competitive landscape, success orfailure of new services and other uncertain factors. Thus, the Group asks you for yourunderstanding that the actual performance may differ from the future outlook stated in thisdocument. Additionally, our Group shall not bear any responsibility to update the outlook after
the disclosure of this document.