Financial Highlights for FY2017
Imagica Robot Holdings Inc.
May 8, 2018

© 2017 Copyright Imagica Robot Holdings Inc.

Highlight of financial results for FY2017

Unit billion yen

Net sales

Operating income

Net income attributableto owners of the parent

91.3

2.4

2.9

YoY

YoY

YoY

+0.7＋3.7+1.2＊Excluding IMAGICA TV, Net sales increase 9.3bn YoY and OP increase 0.8bn YoY
87.5
IMAGICA TV
Net sales

91.3

2.9

５.５

2.4

1.7
IMAGICA TVOPFY2016FY2017

1.70.19

FY2016FY2017FY2016（＊Excluding IMAGICA TV＝YoY, excluding the amount of sales and OP of IMAGICA TV sold on April 3,2017

FY20172© 2017 Copyright Imagica Robot Holdings Inc.

Financial results by segments
FY2016

Content Creation

Production
Services

ActualNet sales

21,56025,289Operatingincome908

799（OP ratio）(4.2％)(3.2％)Net sales

26,42427,725

Operatingincome995

1,209

Others(Consolidatedadaptation)

Consolidated

YoY ratio

17.3%

3,728

△12.0%

△109

4.9%

1,301

21.5%

214

(4.4％)Net sales

21,65824,814

14.6%

3,156

Operatingincome△1,161△674-487(---％)(---％)Net sales

13,97614,997

7.3%

1,021

Operatingincome

1,235

1,449

17.3%

214（OP ratio）(8.8％)(9.7%)Net sales

3,966△1,475-△5,441

Operatingincome

△190

△360-

△170

Net sales

87,58691,351

4.3%

3,765

Operatingincome

1,787

2,424

(2.0%)(2.7%)

35.6%

636(OP ratio)

Factor

YoY(3.8％)（OP ratio）

Imaging Systems
Solutions

FY2017

Actual（OP ratio)Media Localization（Millions of yen）

 Movie, TVanimation and TV
commercial productions saw strong
performance.
 YoY film distribution from production
committee was down.
 Orders of post-production from TV
program was down due to TV
programming reshuffle, etc.
 Steady growth in sales for Digital
cinema and OTT
 Increase sales in the game CG anddebugging businesses.
 Steady growth in sales for OTT
 Improvement profitability byincreasing direct margin in Europe.

 Increase sales in 4K-broadcasting
system and maintenance service.
 Strong growth in LSI sales for China.
*Others for FY2016 included sales and OP ofIMAGICA TV3© 2017 Copyright Imagica Robot Holdings Inc.

Consolidated forecast for FY2018（Millions yen)

▍ Net sales 95bn ,Operating income 2.6bn

FY2015FY2016FY2017FY2018ActualActualActualForecast

YoY ratio

YoY

70,036

87,58691,351

95,000

4.0%

3,649

653

1,787

2,424

2,600

7.3%

176

(0.9%)(2.0%)(2.7%)(２.7%)

760

2,014

2,424

2,450

1.1%

26(1.1%)(2.3%)(2.7%)(2.6%)Net income (loss)
attributableto owners of theparent△1,555

1,707

2,937

1,600

△45.5%△1,337

Earnings per shareof common

△34.9

38.3

65.9

35.9

△45.5%△30.0

Net sales
Operating income(Ratio)Ordinary income(Ratio)4© 2017 Copyright Imagica Robot Holdings Inc.

Dividend policy and Dividend forecast
Dividend policy
The target consolidated payout ratio is 30%, with a basic policy of distribution according
to consolidated results. In the event that an extraordinary factor such as an extraordinary
loss will significantly impact net income, when determining the dividend, a comprehensive
review will be conducted that includes maintaining stable dividends for shareholders,
future business expansion and the status of internal reserves based on a payout ratio thatbasically takes special factors into account.

DividendforecastNet income
attributableto owners of theparent

FY2017*10 yen

FY201810 yenPer shareNet income
attributableto owners of theparent

Payout ratio(Reference)*Payout ratiowithout IMAGICA
TV impact

2,938 million yen 65.98 yen

15.2％

31.2％

1,600 million yen 35.93 yen

27.8%－＜Note＞＊Payout ratio without IMAGICA TV impact ＝ It is calculated from per share net income attributable to owners of the parent
excluding IMAGICA TV gain on sale of 2,177 million yen recorded in extraordinary income for FY2017.
＊We will announce the dividend for FY2017 by “Notice of Dividend” planned to be released on May 24.

5© 2017 Copyright Imagica Robot Holdings Inc.

Appendix.

© 2017 Copyright Imagica Robot Holdings Inc.

Consolidated profit and loss statement
FY2016（Million of yen）

FY2017

ActualActualYoY ratio

YoYNet sales

87,58691,351

4.3%

3,765

Gross profit

25,20524,122△4.3%△1,083(28.8%)(26.4%)

1,787

2,424

35.6%

637

(2.0%)(２.7%)

2,014

2,424

20.4 %

410(2.3%)(2.7%)

Extraordinary income

508

2,285

350.0%

1,777

Extraordinary losses

529352△33.5%△177

1,993

4,357

118.6%

2,364855

1,605

87.7%

750

Net income attributable toowners of parent

1,707

2,937

72.1%

1,230(Reference)
Operating income beforegoodwill

3,270

3,878

18.6%

608(Ratio)

Operating profit(Ratio)Ordinary income(Ratio)

Income before income taxes
Income taxes

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

7© 2017 Copyright Imagica Robot Holdings Inc.

Consolidated financial statements（Millions yen)
Difference breakdown

Year ended
March 31, 2017

Year ended
March 31,2018Difference

38,706

40,537

1,830

8,716

11,131

2,414

29,50030,0097,203

Total Assets
Current liabilities

YoY
Difference

Account nameCurrent assets+1,830+2,414+ 766

508

・Cash and deposits
・Notes and accounts
receivable- trade
・Inventories

7,255

52

Non-current assets+508

68,20770,546

2,339

24,27323,895△378

・Goodwill・Others
・Investments securities
・Deferred tax asset+52+741+718
△941

4,793

4,982

188

Non-current liabilities

13,992

13,673△318

Current liabilities△378

Long-term loans payable8,735

8,891

156

△933

Total Liabilities

38,26537,568△697

Shareholder’s equity

25,69028,184

2,494

・Notes and accounts
payable- trade
・Income taxes payable
・Others
・Accounts payable

622

1,241

618

3,628

3,552

△75

Total Net assets

29,941

32,9783,036

Total Liabilities andNet assets

68,20770,546△2,339(Reference) Net Cash

△4,812△2,7422,070(Reference) Equity

26,31329,425(38.6％)(41.7％)

3,112

Current assets
Cash and deposits

Non-current assets
Goodwill

Short-term loans payable

Accumulated othercomprehensive income
Non-controllinginterests△1,977△523+425+391

Non-controlling interests
Mainly minority interests of SDI
Our share ratio is 50.1%

Net cash = Cash and deposits – loans payable
11,131-(4,982+8,891)=△2,7428© 2017 Copyright Imagica Robot Holdings Inc.

Consolidated Cash Flow

（Millions Yen）

FY2016
Income before income taxes

FY2017

1,993
2,709849△741△2,127374
△660
0
1,583

4,357
2,719883
△786
1,647
△595
△2,032△2,177
145

3,980

4,161

Purchase of property, plant and equipment
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Payments for sales of investments in subsidiaries resulting inchange in scope of consolidation
Other△1,764△1,359△4,294△2,49702,941719△336

Cash flows from investing activities△5,965△1,251△667△911261△370△445△365517△196

Cash flows from financing activities△1,687△489

Net increase (decrease) in cash and cash equivalents△3,786

2,415

8,715

11,131

Depreciation and Amortization
Amortization of goodwill
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Income taxes (paid) and refund
Loss (gain) on sales of socks of subsidiaries and affiliates
Other
Cash flows from operating activities

Cash dividends paid
Net increase (decrease) in short-term loans payable

Net increase (decrease) in long-term loans payable
Other

Cash and cash equivalents at end of period9© 2017 Copyright Imagica Robot Holdings Inc.