English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

Consolidated financial results (Japanese Accounting Standards)
for the fiscal year ending March 31, 2018
Company name:Imagica Robot Holdings Inc.

Filing date: May 8, 2018
Stock exchange listings: Tokyo 1st section

Securities code:

6879

URL:

https://www.imagicarobot.jp/en/

Representative:
Makoto Tsukada, President
Inquiries:
Masakazu Morita, Director and Executive Officer
Shareholders meeting date(as planned):
June 26, 2018
Dividend payment date(as planned):
June 12, 2018
Supplemental material of results:
Yes
Convening briefing of results:
Yes

Tel:+81-3-6741-5742(In millions of yen)

1. Consolidated Financial Results for the fiscal year ending March, 2018
(April 1, 2017 - March 31, 2018)(1) Consolidated Operating Results(Percentage represents change from the same period of the previous fiscal year.)Net sales

Operating income

Net income attributableto owners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions ofyen%

Fiscal year 2017

91,351

4.3

2,424

35.6

2,424

20.3

2,937

72.1

Fiscal year 2016

87,586

25.1

1,787

173.4

2,014

165.0

1,707

－

(Note) Comprehensive income: Fiscal year 2017：3,349 millions of yen /625.7%
Fiscal year 2016： 461 millions of yen /110.2%

Earnings per shareof common stock

Diluted earnings
per share ofcommon stock

yen

yen

Fiscal year 2017

65.98

－

Fiscal year 2016

38.35

－

(2) Consolidated Financial Position
Total assets

Net assets

Shareholders' equity
ratio to total assets

Millions of yen

Millions of yen

70,54632,97841.7

68,20729,941

38.6

Year ended March 31, 2018Year ended March 31, 2017

(Reference) Shareholdersʼ equity:%Year ended March 31, 2017: 29,425 millions of yen
Year ended March 31, 2018: 26,313 millions of yen(3) Consolidated Cash Flows
Cash flow from

Cash flow from

Cash flow fromoperating activities

investing activities

financing activities

Cash and cash
equivalents at theend of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year 2017

4,161

(1,251)(489)

11,131

Fiscal year 2016

3,980

(5,965)(1,687)

8,715

1

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

2. Dividends
1st quarter- end

2nd quarter- end

yen

Dividend per share

yen

Fiscal year 2017

－

0.00

Fiscal year 2016

－

0.00

－

0.00

Fiscal year 2018
(Forecast)

3rd quarter- end

Year-end

yen

－

－

yen

Annual

yen

10.00

10.00

10.00

10.00

10.00

10.00

(Note) Changes in dividends forecast from the latest disclosed information: No

3. Consolidated forecast for the fiscal year ending March 31, 2019
(April 1, 2018 - March 31, 2019)(Percentage represents change from the same period of the previous fiscal year.)Net sales

Fiscal year 2018

Operating income

Ordinary income

Net income
attributableto owners of theparentEarnings per
shareof commonstock

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

95,000

4.0

2,600

7.3

2,450

1.1

1,600

(45.5)

35.93(Note) Changes in earnings forecast from the latest disclosed information： No* Notes(1) Material changes in subsidiaries during this period (Changes in scope of consolidations resulting
from change is subsidiaries): Yes
Name of subsidiaries newly consolidated: IMAGICA TV Corporation(2) Applying of specific accounting of the consolidated quarterly financial statements: None
(3) Changes in accounting policies, accounting estimates and retrospective
1) Changes in accounting policies based on revisions of accounting standards: None
2) Changes in accounting policies other than ones based on revisions of accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of issued and outstanding shares (common stock)1) Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
As of March 31, 201844,531,567 shares

As of March 31, 201744,531,567 shares

108 shares

As of March 31, 2017108 shares

44,531,459 shares

As of March 31, 201744,531,459 shares

2) Number of treasury stock at the end of fiscal year
As of March 31, 2018

3) Average number of shares
As of March 31, 2018

(Explanation about the appropriate usage of business prospects and other special notes)
・The above-mentioned business forecasts were based on the information available as of the date of therelease of this report.
・Future events may cause the actual results to be significantly different from the forecasts.
(Disclaimer)This document is a translation of the Japanese original. The Japanese original has been disclosed inJapan in accordance with Japanese accounting standards and the Financial Instruments andExchange Act. This document does not contain or constitute any guarantee and the Company will notcompensate any losses and/or damage stemming from actions taken based on this document. In thecase that there is any discrepancy between the Japanese original and this document, the Japaneseoriginal is assumed to be correct.

2

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

1. Overview of operating results(1) Overview of operating results for the fiscal year ended March 31, 2018(i) Overview of the consolidated fiscal year ended March 31, 2018
During the consolidated fiscal year ended March 31, 2018 under review, the Japanese economy saw
consumer spending continue recovering gradually against the backdrop of strong employment and income
situation, while the revival of exports and production activities reached a plateau. Under such environment,
the Imagica Robot Holdings Group (the “Group”) developed its business extensively in the Context Creation
segment and endeavored to improve its profitability and strengthen its balance sheet by exerting its
collective ability.
Consequently, the Group reported net sales of 91,351 million yen (up 4.3% year-on-year), operating
income of 2,424 million yen (up 35.6% year-on-year), ordinary income of 2,424 million yen (up 20.3%
year-on-year), and net income attributable to owners of the parent of 2,937 million yen (up 72.1% yearon-year).
Meanwhile, the Group recorded an extraordinary income of 2,177 million yen as gain on sales of sharesof subsidiaries and associates, since it transferred all interest in Imagica TV Corp. to WOWOW INC. on April
3, 2017.

(ii) Performance by Business Segment
From the consolidated fiscal year ended March 31, 2018, the Group has reorganized its reportablesegments from six segments to the following four segments: Content Creation (former Video Software),Production Services (former Video Technology Services and Human Resources Consulting), Media
Localization, and Imaging Systems & Solutions. In the year-on-year comparison of performance bybusiness segment, the Group reclassified the figures for the year-earlier period to reflect the above
segment reorganization.
(The Group discontinued the Broadcasting segment, since it sold Imagica TV Corp., a core company of
the segment, on April 3, 2017.

1) Content Creation
Net sales grew from the previous year in the consolidated fiscal year under review, since the productionof movies and animations increased compared to the previous year and the Group received orders forthe production of commercial films in the fourth quarter of the consolidated fiscal year under review.
Operating income decreased by 109 million yen from the year-earlier period due to a year-on-year fallin distributions from the movie production committee, although the Group saw operating income growin the production of movies and commercial films.
Consequently, the segment posted operating income of 799 million yen (down 12.0% year-on-year)
on net sales of 25,289 million yen (up 17.3% year-on-year).

2) Production Services
Revenues from post production in television and commercial film fields decreased from the previous
year due to a fall in orders caused by the TV programming reshuffle, etc. However, revenues fromencoding and localizing services for over-the-top (OTT) platforms and digital cinema services grew
sharply from the previous year.
The Human Resource Consulting business saw revenue decline from the previous year due to theshortage of human resources. However, in the Digital Content business, revenues from the CG production
and debugging businesses, works done by contract, expanded.

3

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

Consequently, the segment posted operating income of 1,209 million yen (up 21.5% year-on-year) on
net sales of 27,725 million yen (up 4.9% year-on-year).

3) Media Localization
In the consolidated fiscal year under review, the OTT platform-related business performed steadily,
contributing to a sharp rise in net sales. Meanwhile, the segmentʼs operating loss decreased due to theimpact of sales growth and improvement of direct margin in Europe.
Consequently, the segment posted operating loss of 674 million yen (operating loss of 1,161 million
yen in the previous year) on net sales of 24,814 million yen (up 14.6% year-on-year).
Since the fiscal year of SDI Media Group, Inc. and its subsidiary ends on December 31, the Group
reflected their performance of 12 months from January 1, 2017 to December 31, 2017 to the segmentʼs
results for the consolidated fiscal year ended March 31, 2018 under review.

4) Imaging Systems & Solutions
The professional video equipment business performed robustly. This was attributable to an increase insales of imported systems due to a rise in demand supported by the shift from the HD format to the 4K
format in the live broadcasting sector and a growth in orders for the Groupʼs internally-developed textsuperimposition system and maintenance service.
Moreover, in the LSI Development sector, shipments of video and image processing LSI for China
increased, leading to a rise in net sales and operating income.
Consequently, the segment posted operating income of 1,449 million yen (up 17.3% year-on-year) on
net sales of 14,997 million yen (up 7.3% year-on-year).

(2) Overview of financial position for the consolidated fiscal year ended March 31, 2018
1) Assets Statement
Total assets at the end of the consolidated fiscal year ended March 31, 2018 grew by 2,339 million yen(or 3.4%) from the end of the previous consolidated fiscal year to 70,546 million yen.
Current assets increased by 1,830 million yen (or 4.7%) from the end of the previous consolidated
fiscal year to 40,537 million yen. This was mainly because inventories declined, while cash and deposits
increased.
Non-current assets rose by 508 million yen (or 1.7%) from the end of the previous consolidated fiscal
year to 30,009 million yen. This was mainly because deferred tax assets fell while investment securities
grew.

2) Liabilities Statement
Total liabilities at the end of the consolidated fiscal year ended March 31, 2018 decreased by 697 million
yen (or 1.8%) from the end of the previous consolidated fiscal year to 37,568 million yen.
Current liabilities declined by 378 million yen (or 1.6%) from the end of the previous consolidated fiscal
year to 23,895 million yen. This was mainly because accounts payable-other increased, while notes andaccounts payable-trade fell.
Non-current liabilities decreased by 318 million yen (or 2.3%) from the end of the previous consolidated
fiscal year to 13,673 million yen. This was mainly because long-term accounts payable-other grew while
net defined benefit liability declined.

4

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

3) Net Assets
Total net assets at the end of the consolidated fiscal year ended March 31, 2018 increased by 3,036
million yen (or 10.1%) from the end of the previous consolidated fiscal year to 32,978 million yen.
Meanwhile, the shareholdersʼ equity ratio stood at 41.7%.

(3) Overview of cash flows for fiscal year ended March 31, 2018
Cash and cash equivalents (“fund”) at the end of the consolidated fiscal year ended March 31, 2018
totaled 11,131 million yen, an increase of 2,415 million yen (or 27.7%) from the end of the previous
consolidated fiscal year.
The status of each cash flow and factor for fiscal year ended March 31, 2018 are as follows:

1) Cash flows from operating activities
Net cash provided by operating activities totaled 4,161 million yen, up 181 million yen (or 4.6%)
from the end of the previous consolidated fiscal year. This was mainly because fund increased due toa fall in inventories, while income taxes paid grew.

2) Cash flows from investing activities
Net cash used in investing activities totaled to 1,251 million yen, down 4,714 million yen (or 79.0%)
from the end of the previous consolidated fiscal year.
This was mainly because fund increased due to the sale of shares in Imagica TV Corp., a consolidated
subsidiary, while fund decreased due to acquisitions (mainly PPC Creative Limited) and the purchaseof property, plant and equipment.

3) Cash flows from financing activities
Net cash used in financing activities totaled 489 million yen, down 1,197 million yen (or 71.0%)
from the end of the previous consolidated fiscal year.
This was mainly because fund increased due to proceeds from long-term loans payable related tothe acquisition of PPC Creative Limited in U.K., while fund decreased due to repayments of loans
payable and cash dividends paid.
(Reference) Trend of Cash Flow Indicators
FY ended March FY ended March FY ended March FY ended March FY ended March
31, 2014
31, 2015
31, 2016
31, 2017
31, 2018
Shareholdersʼ equity ratio (%)
Shareholdersʼ equity ratio on amarket price basis (%)
Ratio of net cash to interest-bearing
liabilities (year)
Interest coverage ratio (times)

61.5

44.8

40.2

38.6

41.7

48.4

51.8

28.4

48.5

76.0

92.9

405.0

3,430.8

371.7

358.2

221.1

349.8

5.9

26.3

26.0

*Shareholdersʼ equity ratio: Shareholdersʼ equity/Total assets
Shareholdersʼ equity ratio on a market price basis: Total market value of shares/Total assets Ratio of
net cash to interest-bearing liabilities: Interest-bearing liabilities/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payments

5English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

(Notes)1.These indicators are calculated based on consolidated financial results.
2.Total market value of stock is calculated by the following formula: closing price at period-end x
outstanding shares at period-end (excluding treasury stock).
3.Operating cash flow is based on net cash provided by operating activities reported on the consolidated
statement of cash flow. Interest-bearing liabilities include all liabilities reported on the consolidatedbalance sheet for which interest is paid. The amount of interest payments is the amount of interest
expenses paid reported on the consolidated statement of cash flow.

(4) Forecast of financial results for FY 2018
In the video-related market, where the Group develops its business, the introduction of a digital network
has been spreading and is expected to accelerate further in the future. The Group has faced trends that
may change existing business models, including the sophistication of visual expression in technical aspects,
such as 4k, 8k, and HDR, and in production aspects, such as VR, AR, and digital signage, the diversificationof video devices, such as smartphones and tablets, and the advancement of video transferring system,
such as the evolution of compressing technology and cloud.
To cope with such situation, the Group will sufficiently analyze market trends and customer information
to pin down growth areas, make up-front investment from a long-term perspective and strengthen its
business foundation at the same time.
Under such circumstances, the Group has sufficiently analyzed market trends and customer information
to pin down growth areas, has made up-front investment from a long-term perspective and has
strengthened its business foundation at the same time.
In FY 2018, we will tackle the following prioritized issues.
1. Establishment of foundations for growth: invest in growing businesses and foster new businesses
2. Construction of foundation for profits: improve profitability of low-margin businesses and enhancebusiness efficiency
3. A change into a new group company: raise brand power under a new group name; promote theworking style reform; and foster managers
The Group will make a concerted effort to tackle these prioritized issues to achieve its earnings target
for the fiscal year ending March 31, 2019. The Groupʼs earnings forecast is as follows: net sales of 95,000
million yen, operating income of 2,600 million yen, ordinary income of 2,450 million yen, and net income
attributable to owners of the parent of 1,600 million yen.
In the fiscal year ended March 31, 2018, net income attributable to owners of the parent amounted
to 2,937 million yen, since the Group recorded 2,177 million yen, gain on sales of shares in Imagica TV
Corp., as an extraordinary income. However, since such impact will disappear in the fiscal year ending
March 31, 2019, net income attributable to owners of the parent is forecast to be 1,600 million yen.

2. Basic policy for the selection of accounting standards
Considering comparability of consolidated financial statements over time, the Group will continue to
use the Japanese accounting standards in the immediate future.
Meanwhile, the Group plans to appropriately decide the adoption of the International Financial
Reporting Standards (IFRS) after considering developments regarding accounting standards in Japan andabroad.

6

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

3. Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Thousands of yen)

Year ended March

Year ended March

31, 2017

31, 2018

AssetsCurrent assets
Cash and deposits

8,716,936

11,131,784

Notes and accounts receivable- trade17,648,525

18,415,035

Inventories

9,909,273

8,031,571

Deferred tax asset

929,336

876,146

1,561,625

2,142,656(59,198)(60,010)

38,706,498

40,537,184

Buildings and structures

3,872,655

3,823,616

Machinery and equipment

233,414

175,420Land

2,943,085

2,943,085

Lease Assets

1,152,116

914,50279,696

99,593

Other

1,402,881

1,632,753

Total Property, plant and equipment

9,683,850

9,588,971

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress

Intangible assets
Software1,380,473

1,213,321

Goodwill

7,203,768

7,255,938

Other

4,422,632

5,163,572

Total Intangible assets

13,006,874

13,632,833

3,718,646

4,436,692

Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates

475,571

614,858

Lease and guarantee deposits

1,186,175

1,167,132

Deferred tax asset

1,137,903

196,028

482,494

488,717

Other
Allowance for doubtful accounts(190,640)(115,614)

Total Investments and other assets

6,810,152

6,787,814

Total Non-current assets

29,500,876

30,009,619

68,207,375

70,546,803

Total assets

7

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

(Thousands of yen)

Year ended March

Year ended March

31, 2017

31, 2018

Liabilities
Current liabilities
Notes and accounts payable- trade

6,722,108

Short-term loans payable

4,793,499

5,788,972
4,982,314

Accounts payable

3,234,345

3,626,139

Income taxes payable

1,235,608

711,802

Provision for bonuses

1,394,256

1,514,,231

113,707

95,778Provision for directors compensations based on profit

92,73463,449Other

Provision for loss on order received

6,687,338

7,112,583

Total current liabilities

24,273,600

23,895,272

8,735,073

8,891,288

Non-current liabilities
Long-term loans payable
Long-term accounts payable-other

216,815

601,062

Deferred tax liabilities

1,036,147

1,028,567

Net defined benefit liabilities

2,070,931

1,259,724

Other

1,933,232

1,892,742

Total non-current liabilities

13,992,200

13,673,385

Total Liabilities

38,265,800

37,568,657

Net assets
Shareholdersʼ equity
Capital stock

3,244,915

3,244,915

Capital surplus

15,189,280

15,190,725

Retained earnings

7,256,468

9,749,118

Treasury stock
Total shareholdersʼ equity

(42)

(42)

25,690,622

28,184,716

1,080,094

1,689,371

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

－

(388)

Revaluation reserve for land

(17,933)(17,933)

Foreign currency translation adjustment(443,718)(433,870)

4,308

3,942

622,752

1,241,121

Re-measurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling Interests

3,628,199

3,522,306

Total Net assets

29,941,574

32,978,145

Total liabilities and Net assets

68,207,375

70,546,803

8

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

(2) Consolidated statements of income and statements of comprehensive income

Consolidated statements of income(Thousands of yen)

Fiscal year 2016

Fiscal year 2017

Net sales

87,586,352

Cost of sales

62,380,933

91,351,958
67,229,463

Gross profit

25,205,419

24,122,494

Selling, general and administrative expenses

23,417,807

21,698,422

Operating income

1,787,612

2,424,071

Non-operating income
Interest income

7,439

6,399

Dividend income

64,15456,802Rent income

48,161

48,053

Temporary Transfer Charges Income

31,16634,144Equity in earnings of affiliates

63,10558,211

Foreign exchange gains

60,210－Other145,757

107,791

Total non-operating income

419,995

311,402145,647

176,822

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses－

98,33347,47436,051

193,122311,2072,014,485

2,424,266

Gain on sales of non-current assets

288,558

5,340

Gain on step acquisitions

190,403－－2,177,929

Ordinary income
Extraordinary income

Gain on sales of subsidiaries and affiliates' stocks
Other

29,055102,244

Total extraordinary income

508,017

2,285,514

Extraordinary losses
Loss on sales of non-current assets

2,975

294

Loss on retirement of non-current assets

59,947

17,782

Impairment loss

204,678

102,050

Loss on valuation of stocks of subsidiaries and affiliates

187,324－

35,094－

Loss on Liquidation of Subsidiaries and Affiliates General－

115,716

Loss On Workers Compensation－

85,54939,076

31,224

Provision of Allowance for Doubtful Accounts for
Subsidiaries and Affiliates

Other
Total extraordinary losses

529,097352,617

1,993,405

4,357,163

Income Taxes Current

1,860,205

1,417,210

Income Taxes Deferred(1,004,984)

188,665

Income taxes

855,220

1,605,875

Profit (loss)

1,138,184

2,751,288

Profit (loss) attributable to non-controlling interests(569,392)(186,675)

Profit (Loss) attributable to owners of parent

1,707,577

2,937,964

Income before income taxes

9English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

Consolidated statements of income(Thousands of yen)

Fiscal year 2016

Profit (Loss)

Fiscal year 2017

1,138,184

2,751,288

Valuation difference on available-for-sale securities

83,260612,415

Deferred gains or losses on hedges

1,004

(388)

(780,917)(13,873)

Other comprehensive income

Foreign currency translation adjustment
Re-measurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10

19,979(366)(676,673)

597,786

461,5113,349,074

1,401,900

3,556,333(940,389)(207,259)

English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

(3) Consolidated statements of cash flow statement(Thousands of yen)

Fiscal year 2016

Fiscal year 2017

Cash flows from operating activities
Income before income taxes

1,993,405

4,357,163

Depreciation and Amortization

2,709,078

2,719,479

Amortization of goodwill

849,023

883,950

Impairment loss

204,678

102,050

Increase (decrease) in net defined benefit liabilities

90,188(754,405)

Increase (decrease) in allowance for doubtful accounts

75,445(61,720)

Increase (decrease) in provision for bonuses

301,967

173,167Interest and dividend income(71,594)(63,201)

Interest expenses

145,647

176,822Equity in (earnings) losses of affiliates(63,105)(58,211)

Loss (gain) on sales of socks of subsidiaries and affiliates
Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade－(2,177,929)(225,635)

12,736(741,650)(786,440)(2,127,632)

1,647,792

374,740(595,239)

Other, net

1,187,351

709,452

Subtotal

4,701,909

6,285,467

Interest and dividend income received

90,002

68,490Interest expenses paid

(151,195)(159,909)

Income taxes (paid) and refund(660,675)(2,032,746)

Net cash provided by (used in) operating activities

3,980,040

4,161,301(1,764,505)(1,359,398)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

339,141

6,923(365,481)(447,220)

Proceeds from Sales of Investment Securities

1,460

235,150

Proceeds from Withdrawal of Time Deposits

260,998－(4,294,199)(2,497,660)－

2,941,715

Purchase of stocks of subsidiaries and affiliates(86,088)(91,653)

Other, net(57,149)(39,525)(5,965,824)(1,251,668)

Purchase of intangible assets

Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for sales of investments in subsidiaries resulting
in change in scope of consolidation

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable(911,600)(365,898)(2,738,253)(2,230,993)

Cash dividends paid

(667,971)(445,314)

Proceeds from long-term loans payable

3,000,000

2,748,664

Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents(369,382)(196,277)(1,687,207)(489,819)(113,506)(3,956)

Net increase (decrease) in cash and cash equivalents(3,786,498)

2,415,857

Cash and cash equivalents at beginning of period

12,048,741

8,715,927

453,683－

8,715,927

11,131,784

Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

11English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

2.

Segment information
I.

Fiscal year 2016 (from April 1,2016 to March 31,2017)(Thousands ofyen)

Imaging

Content

Production

Media

Creation

Services

Localization

21,411,118

25,611,178

21,465,631

13,396,660

81,884,589

149,695

813,004

193,123

579,715

1,735,539

21,560,814

26,424,182

21,658,755

13,976,376

83,620,128

908,642995,485(1,161,309)

1,235,270

1,978,088

Systems &Sub total

Solutions

Net sales
Sales toexternalcustomers
Inter-segment
sales ortransfers
Total
Segment profit(loss)

Amount in the
Other

Adjustments(Note 1)

(Note 2)quarterly
consolidated
statement ofincome(Note 3)

Net sales
Sales toexternal

5,586,883

114,880

87,586,352

1,920(1,737,459)－

5,588,803(1,622,579)

87,586,352

195,775(386,251)

1,787,612

customers
Inter-segment
sales ortransfers
Total
Segment profit(loss)
Notes:
1.

The “Other” category is for operating segments that are not included among the reportable segments,
and it shows data pertaining to divested subsidiaries.

2.

The Segment profit (loss) adjustment of (386,251) thousand yen consists of 1,014,167 thousand yen in
profits of holding companies (consolidated financial statement-submitting companies) and intersegment
transaction eliminations of (1,400,419) thousand yen.

3.

The segment profit (loss) adjustment is based on the operating income item in the quarterly
consolidated statements of income.

12English translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release shall prevail.

II.

Fiscal year 2017 (from April 1,2017 to March 31,2018)(Thousands ofyen)

Imaging

Content

Production

Media

Creation

Services

Localization

25,114,451

26,982,069

24,472,361

14,637,521

91,206,403

175,236

743,212342,430

360,191

1,621,071

25,289,687

27,725,282

24,814,792

14,997,713

92,827,475

799,2121,209,810(674,142)

1,449,462

2,784,343

Systems &Sub total

Solutions

Net sales
Sales toexternalcustomers
Intersegment
sales ortransfers
Total
Segment profit(loss)

Amount in the
Adjustments(Note 2)quarterly
consolidated
statement ofincome(Note 3)

Net sales
Sales toexternal

145,554

91,351,958(1,621,071)－(1,475,517)

91,351,958(360,272)

2,424,071

customers
Inter-segment
sales ortransfers
Total
Segment profit(loss)
Notes:
1.

The Segment profit (loss) adjustment of (360,272) thousand yen consists of 916,746 thousand yen in
profits of holding companies (consolidated financial statement-submitting companies) and intersegment
transaction eliminations of (1,277,018) thousand yen.

2.

The segment profit (loss) adjustment is based on the operating income item in the quarterly
consolidated statements of income.

13