Consolidated Financial Highlights for
the Third Quarter of the Fiscal Year Ending
March 31, 2024
Supplemental Materials

IMAGICA GROUP Inc.
Securities Code: 6879
February 6, 2024

Highlights of financial results for the third quarter
Sales increased in all segments. Operating income decreased due to cost increasein Production Technology Services (Overseas) by expanding bases globally.
(Million Yen)

Net sales

71,458YoY+3,258（＋4.8%）
68,200Operating income
before goodwill andother amortization

Operatingincome

3,684

2,224

YoY

YoY－427（－10.4%)

Net income attributableto ownersof the parent1,434－516（－18.8％）

YoY－328（－18.7％）

71,4584,111

55,618

3,684

3,210

2,740
2,224

2,460

1,938

1,763
1,434

3QYTD
FY20213QYTD
FY20223QYTD
FY20233QYTD
FY20213QYTD
FY20223QYTD
FY20233QYTD
FY20213QYTD
FY20223QYTD
FY20233QYTD
FY 20213QYTD
FY20223QYTD
FY20232

Performance by segment (YoY and vs. forecast)
Operating income achieved the target for this 3Q YTD although decreased YoY mainly inProduction Technology Services.
3QYTD
FY2022
Actual3QYTDFY2023
ActualYoY

17,731

19,6301,898

Operating income

285

540

254

Operating income before goodwill
and other amortization

289

543

254

39,64540,639994

Operating income

2,147

1,403(743)

Operating income before goodwill
and other amortization

3,487

2,832(654)

12,635

12,783148

Operating income

1,184

1,144(39)

Operating income before goodwill
and other amortization

1,210

1,171(39)(1,811)(1,595)216(875)

(863)

12

68,20071,4583,258

Operating income

2,740

2,224(516)

Operating income before goodwill
and other amortization

4,111

3,684(427)(Million Yen)
Net sales

Content Creation

ProductionTechnologyServices

Imaging
Systems &Solutions

Others

Net sales

Net sales

Net sales
Operating loss
Net sales

Consolidated
totalvs. forecast
Net Sales

Operating income before goodwill
and other amortization

3

Analysis of increase/decrease of Net sales (YoY)
Sales increased in Content Creation and other segments.
（Million Yen）

ContentCreation

Domestic

Overseas

Imaging Systems＆ Solutions

OtherProduction TechnologyServices
Overall : 944

3QYTD
FY2022
Actual

3,258

3QYTD
FY2023
Actual4

Analysis of increase/decrease of Operating income before goodwill
and other amortization (YoY)
Operating income deceased mainly in Production Technology Services(Overseas) due to cost increase by expanding bases globally although
increased in Content Creation.
（Million Yen）
ContentCreation

Domestic
OtherOverseas

Imaging Systems＆ Solutions

Production
Technology Services
Overall : (654)3QYTD
FY2022
Actual

(427)

3QYTD
FY2023
Actual5

Content Creation
Sales and operating income increased with theater and video streaming works,
animation works and publishing business.
（Million Yen）
15,5303QYTD
FY2021

Net sales
17,731

Sales and operating income increased.
19,630+1,898 （+10.7%）+254 （+87.8%）

Sales remained the same level as the previous year for theaterand video streaming works.
・Feature film “Godzilla Minus One”, "Rohan au Louvre"
・Netflix feature film "YuYu Hakusho"

3QYTD
FY20223QYTD
FY2023543

3QYTD
FY2021■Operating income

 Feature films and dramas

Operating income(before goodwill and other amortization)

238■Net sales289

 Animation works

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

 Publishing business

Sales increased with strong book sales including the light novel“The Apothecary Diaries”.

 CM works
3QYTD
FY20223QYTD
FYE2023

Sales increased in web commercials owing to high number oforders although decreased in TV commercials due to weakorders.

6Production Technology Services*
Sales increased by good sales of digital cinema services* (domestic and overseas)
and trailer production services, and forex impact. Operating income decreased
due to cost increase in the overseas operation by expanding bases globally.
（Million Yen）

39,64529,776
11,074

Sales increased but operating income decreased.

Net sales

20,702

40,639Overseas
21,551

18,702

18,943

Domestic3QYTD
FY20213QYTD
FY20223QYTD
FY2023

Gamerelatedbusiness
4,640

19,088Operating income(before goodwill and other amortization)
3,487
3,832

2,358

Overseas
Domestic
3QYTD
FY20213QYTD
FY20223QYTD
FY2023■Net sales+994 （+2.5%）■Operating income－654 （－18.8%）

 Domestic E2E services*

Sales and operating income increased with solid sales of digital
cinema services and localization services.

 Overseas E2E services*

Sales increased by the growth in digital cinema services andtrailer production services and foreign exchange impact thoughdecreased sales of localization services for video streaming by
demand settle down. Operating income decreased due to a risein personnel costs, depreciation expenses and the other costs
by expanding bases globally.

 Game-related business

Sales increased with solid sales of Game 3DCG production.

 Post-production services for TV

Sales and operating income decreased due to weak orders forTV commercials.

7

Business alliance and M&A to enhance capacity for E2E game
Update on Key Strategy #4 “Expansion of Game-related Business”
production and services
We have formed a business alliance and an M&A for enhanced capacity to provide E2E
game production and services targeting the global gaming market, centered on
IMAGICA GEEQ.
Announce dateForm

PartnerBusiness area

Jan 15, 2024

Business alliance

Universally Speaking, UK

Localization, QA

Feb 6, 2024

M&A

appci corporation, JapanDevelopment

The E2E game production and services we aim for＊１ LQA（Linguistic Quality Assurance）
Production/ Service＊２ FQA（FunctionalQuality Assurance）

Develop
ProgramPrototype

Art

3DCG
2DCG
Animation

Localize

Translation
Dubbing
LQA*¹QAFQA*²Debug＊１ LQA（Linguistic Quality Assurance）＊２ FQA（Functional Quality Assurance）

End to End8

Imaging Systems & Solutions
Sales of high-speed cameras significantly increased with strong orders but salesof video and image processing LSI decreased due to market deterioration.
（Million Yen）

Net sales
11,782

12,635

12,783

Sales increased but operating income decreased.
■Net sales＋148 （＋1.2%）■Operating income－39 （－3.3%）

 High-speed cameras
Sales increased significantly with strong orders.
3QYTD
FY20213QYTD
FY20223QYTD
FY2023

1,210

1,171

3QYTD
FY20223QYTD
FY2023Operating income(before goodwill and other amortization)
1,050

3QYTD
FY2021

 Broadcast imaging systems & solutions
Sales decreased with weak orders.
 Video and image processing LSI
Sales and operating income decreased bycontinued market deterioration.

9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 parent3,864

2,200(1,664)(43.0％)

Earnings per share (yen)86.79

49.34(37.45)(43.1％)

Dividend per share (yen)

15.0

15.0

0.0

0.0%

Net sales
Operating income before goodwill
and other amortization(Margin)Operating income(Margin)

10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 Servicesbusiness." 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 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).

11

Appendix.

Key strategies and services/Net sales of each segment
Net sales（3QYTD FY2023）

Content Creation

Production TechnologyServices

Imaging Systems& Solutions• Localization (Subtitling, Dubbing)• Distribution

12345

Live Entertainmentbusiness• Live-music performances direction• Live-viewing• Metaverse• Sports Broadcasting• Video Archiving

1.2

2.4

• High-speed cameras, Broadcast
imaging systems & solutions,
Optical measurement, Video andimage processing LSI

Imaging Systems &Solutions business

Total

3.6

14.3

14.3
• 2D/3DCG production• Quality Assurance

Game-related businessTransformation Business

Total

27.7

27.7

Global E2E Business(Billion yen)

4.6

4.6

• Production of feature film, TV drama,animation• Publishing• Postproduction for TV, commercial• Human resource consulting

18.5

9.4

19.6

40.6

27.9
12.7

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

71.4
13

Consolidated Income Statements
3QYTD FY2022（Million yen）

3QYTD FY2023

ActualActualYoY%YoY

Net sales

68,20071,458

3,258

4.8%

Gross profit

19,197

20,508

1,310

6.8%

28.1%

28.7%

2,740

2,224(516)(18.8%)

4.0%

3.1%

2,391

2,003(387)(16.2%)

3.5%

2.8%

Extraordinary income

585

685

99

16.9%

Extraordinary loss

25576(178)(70.1%)Net income before income taxes
Net income attributable to ownersof the parent

2,722

2,612(109)(4.0%)

1,763

1,434(328)(18.7%)EBITDA

5,741

5,573(168)(2.9%)(Reference) Operating income before
goodwill and other amortization

4,111

3,684(427)(10.4%)(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

14Consolidated Balance Sheets（Million yen）
Current assets

March 31, 2023

December 31, 2023

Increase/Decrease

Assets44,97041,025(3,945)

7,813

4,377

(3,436)36,917

37,117200

11,78011,933

153

81,88833,20578,14230,828(3,745)

Short-term borrowings

6,432

7,163

730

Non-current liabilities

8,378

7,595

(783)

Long-term borrowings

1,366

686

(680)

41,58433,15038,42432,798(3,160)

2,956

4,640

1,684

2,279
39,718(1,917)

Net assets

4,197
40,303

Total liabilities and net assets

81,88878,142(3,745)14(3,472)(3,486)

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(2,376)

(352)

(585)

15

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

1,000

460

54,1282,872

OthersConsolidated total

23,5372,463
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

2,200

114

Operating income before goodwill
and other amortization

2,122

2,200

78Net 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 TechnologyServicesForecast

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)13216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 parentEarnings per shareDividend forecast

Dividend payout
ratio

2,200 million yen

49.34 yen

15.0 yen

30.4%

17

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.