Consolidated Financial Highlights for
the First Quarter of the fiscal year ending
March 31, 2024
Supplemental Materials

IMAGICA GROUP Inc.
Securities Code: 6879

August 1, 2023

Highlights of Financial Results for the First Quarter• Sales and operating income increased with strong performance inContent Creation and Production Technology Services *(overseas)(Million Yen)

Net sales

23,797
YoY+3,935（＋19.8%）

Operating income (loss)
before goodwill
amortization

Operatingincome(loss)

811

345

YoY

YoY

+125（+18.3%)

Net income (loss)
attributable to ownersof the parent305
YoY+73（＋27.2％）＋252（＋474.5％）

23,797
19,861
15,414811
686499271
158

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

1Q FYE
Mar. 2024

1Q FYE
Mar. 2022

345

305

1Q FYE
Mar. 2022
1Q FYE
Mar. 2023

1Q FYE
Mar. 2024

(255)

53
1Q FYE
Mar. 2023

1Q FYE
Mar. 2024

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

1Q FYE
Mar. 2024 2

Performance by segment (YoY and vs. forecast)・Content Creation: Sales and operating income increased YoY;
sales over forecast and operating income in line with forecast
・Production Technology Services: Sales and operating income increased YoY;
sales in line with forecast and operating income over forecast
・Imaging Systems & Solutions: Sales and operating income decreased YoY;
sales in line with forecast and operating income over forecast(Million Yen)

Content Creation

OthersActualYoY

Net Sales

7,166

3,017

Operating income (loss)

(193)

49243

Operating income before
goodwill amortization

(192)

51

243

11,955

13,2001,244

Operating income

355

321

(34)

Operating income before
goodwill amortization

759

777

174,225

3,883(341)

Operating income

325

256(69)Operating income before
goodwill amortization

334

265

(69)

Net Sales(468)(452)15Operating loss

(215)

(282)

(66)

19,861

23,797

3,935

Operating income

271

345

73

Operating income before
goodwill amortization

686

811

125

Net Sales

Consolidated total

Actualvs. forecast

4,149

Net Sales

Imaging Systems &Solutions

1Q FYF Mar.2024

Net Sales

Net Sales

Production TechnologyServices

1Q FYF Mar.2023＊"Operating income" in the above comments mean operating income before goodwill amortization.

Operating income before
goodwill amortization

3

Analysis of increase/decrease of Net Sales (YoY)•3.0 billion yen increase in Content Creation and 1.2 billion yen increase inProduction Technology Services (overseas)（Million Yen）

Content
Creation

Production
TechnologyServices（domestic）

Production
TechnologyServices（overseas）

Imaging
Systems＆ Solutions

Other

Production TechnologyServices(Overall :＋1,244)

1Q FYE Mar. 2023
Actual1Q FYE Mar. 2024
Actual＋3,9354

Analysis of increase/decrease of Operating income
Before goodwill amortization (YoY)•0.24 billion yen increase in Content Creation and 0.1 billion yen increase in
Production Technology Services (overseas)
Production Technology
Services(Overall :＋17)

Content
Creation

Production
Technology
Services(domestic)

Production
Technology
Services(overseas)

1Q FYE Mar. 2023
Actual（Million Yen）

Imaging
Systems &SolutionsConsolidated
Adjustments

1Q FYE Mar. 2024
Actual＋1255

Content Creation
・Sales increased in feature films and dramas for theater and video streaming service
and in publishing business with the light novel.
Sales and operating income increased
Left：Net Sales
Right：Operating income(before goodwill amortization)（Million Yen）

7,166

■ Sales +3,017 million yen (+72.7%)■ Operating income (before goodwill amortization)+243 million yen

 Feature films and dramas: Significant sales increase owing torelease of major works for theater and video streaming service

・Netflix feature film "Zombie 100: Bucket List of the Dead"worldwide exclusive streaming scheduled from August 3
・Feature film "Rohan au Louvre" released on May 26

4,149

3,951

 Animation works: Sales increase owing to51

 Publishing business: Sales increase owing to(27)stronger sales of the new 13th volume of thelight novel “The Apothecary Diaries” with thenews of its coming TV series(192)
1Q FYE
Mar. 2022

steady orders TV series

1Q FYE
Mar. 2023

1Q FYE
Mar. 2024©Hyuganatsu , Imagica Infos /”The Apothecary Diaries”Project 6

Production Technology Services・Sales and operating income declined in post-production services for TV commercials
though increase in E2E services.

Left：Net Sales
Right：Operating income(before goodwill amortization)（Million Yen）

Sales and operating income increased■ Sales +1,244 million yen (+10.4%)■ Operating income (before goodwill amortization)+17 million yen (+2.3%)

13,20011,955

 Domestic E2E services: Sales at the same level as
7,272

8,687

6,015
Game-related business(of 5,927 - Domestic)
1,446

Overseas
2,918

Domestic

5,940

5,769

759

5,927777

the previous year, with solid sales of digital cinemaservices Overseas E2E services: Sales increase in the digital
cinema services and trailer production service,supported by increase of new theatrical releases

 Game-related business: Sales increase with strong
orders for Game 3DCG production.

 Post-production services for TV: Sales decline due to229

weak orders for TV commercials

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

Notes in this document (*) are on page 16.

1Q FYE
Mar. 2024

7

Imaging Systems & Solutions
・Sales decreased in optical measurement and video/image processing LSI though
increase in high-speed cameras with strong orders.

Left：Net Sales
Right：Operating income(before goodwill amortization)（Million Yen）

Sales and operating income decreased■ Sales (341) million yen (-8.1%)■ Operating income (before goodwill amortization)(69) million yen (-20.7%)

4,225
3,883

 High-speed cameras: Sales increase owing to

3,151

recovery of production by settlement ofsemiconductor shortage and strong orders

 Broadcast imaging systems & solutions: Sales

decrease as it had sales of the large projects in theprevious year

334265

 Optical measurement: Sales decrease due to lower
orders in optical elements Video/image processing LSI: Sales decrease due to112

world market deterioration

1Q FYE
Mar. 2022

1Q FYE
Mar. 2023

1Q FYE
Mar. 2024

8

FYE Mar. 2024: Full-year forecast
The Company targets net sales of 100 billion yen and operating income growth
for three consecutive years
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

3.4%

(Profit margin)

3,868
4.1%

Ordinary income

3,638

3,500(138)(3.8％)Net income attributable toowners of the parent

3,864

2,200(1,664)(43.0％)

Earnings per share (yen)86.79

49.34(37.45)(43.1％)

Dividend per share (yen)15.0

15.000.0％

Net Sales

Operating income before
goodwill amortization
Operating income

4.0%

9

Reference:FYE Mar. 2024: Full-year forecast by segment
The Company targets operating income growth YoY with increase in Content
Creation and other businesses assuming decline in Production Technology Services（Million Yen)

Net Sales

Content Creation

Production TechnologyServices

Imaging Systems ＆Solutions

OthersConsolidated total

FYE Mar. 2023
Actual23,537

FYE Mar. 2024
ForecastYoY

26,0002,463

Operating income

535

1,000465

Operating income before
goodwill amortization

540

1,000460

Net Sales

54,12857,0002,872

Operating income

2,532

2,000(532)

Operating income before
goodwill amortization

4,361

3,900(461)

Net Sales

18,93020,0001,070

Operating income

2,086

2,200114

Operating income before
goodwill amortization

2,122

2,20078

Net Sales(2,448)(3,000)552

Operating loss

(1,286)(1,200)(86)

Net Sales

94,147100,000

5,853

Operating income

3,868

4,000132

Operating income before
goodwill amortization

5,738

5,90016210Appendix.

Key Strategies and services/Net Sales of each segments
Actual Net sales（2024.3 1Q）(billion yen)

8.9

Global E2E BusinessLive Entertainmentbusiness•••live-music performances direction
live-viewing
metaverse

0.6

3.4
14
•

Total

Sports BroadcastingVideo Archiving Business

0.4

Game-related business•

Production feature film,
TV drama, Animation
Publishing

6.7
7.1

•
•Total8.9••

Imaging Systems &Solutions businessTransformationBusiness

Imaging Systems& Solutions
business

Production TechnologyServices

Content Creation

1.0
3.4
1.4

Postproduction for TV, Commercials
Human resource consulting service

9.4

2.7
13.2

3.8

23.7
12

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

Consolidated Income Statements
1Q FYE Mar. 2023

(Million Yen)

Actual1Q FYE Mar. 2024
ActualYoY

19,861
5,494

23,797
6,210

27.7%

26.1%

271

345

1.4%

1.5%

306

394

1.5%

1.7%

Extraordinary losses

141219281
1

Net income before income tax

228

Net Sales
Gross profit(Gross margin)

Operating income(Operating margin)

Ordinary income(Ordinary margin)

Extraordinary income

Net income attributable toowners of the parent

EBITDA(Reference) Operating income before
goodwill amortization

%YoY

3,935

19.8%

716

13.0%

7327.2%8828.9%13998.5%(218)(99.4%)

674

446

195.4%

53305

252

474.5%

1,189

1,382

192

16.1%

686

811

125

18.3%

・EBITDA = Operating income + goodwill amortization + amortization of intangible fixed assets including trademarks + depreciation
・Operating income before goodwill amortization
13= operating income + goodwill amortization + amortization of intangible fixed assets including trademarks

Consolidated Balance Sheets(Million Yen)

As of Mar.31,2023

As of June.30,2023

YoY

44,97039,817(5,153)

7,813

6,534

(1,279)Assets Non-current assets

36,91736,480(437)Goodwill

11,78011,455(324)

Total Assets

81,88876,297(5,590)Current liabilities

33,20529,336(3,868)6,432

5,687(744)8,3788,108(270)1,366

1,139(227)

41,58437,445(4,138)33,15032,783

(366)

2,956

3,076

119

4,197

2,992

(1,205)

Total Net Assets

40,30338,852(1,451)

Total Liabilities and Net Assets

81,88876,297(5,590)14(292)(307)

Current assets
Cash and deposits

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

Liabilities
Shareholders' equity
Net
Assets Accumulated other comprehensive
incomeNon-controlling interests

Net Cash

Net Cash : (Cash and deposits －long-term and short-term loans payable)

14

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.

Expected forFYE Mar.2023

Net income attributable toowners of the parent

Earnings per share

Dividend forecast

Dividend payout
ratio

2,200 million yen

49.34 yen

15.0 yen

30.4%
15

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 Services
business." 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 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.

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/DISCLAIMER:
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.