Financial Highlights for FY2017 2Q
Imagica Robot Holdings Inc.
November 7, 2017

© 2017 Copyright Imagica Robot Holdings Inc.

Summary▍ Net sales increased 7% YoY(Excluding the impact of sales IMAGICA TV, 15% YoY)

▍ OP reached ¥1.1bn (5 times YoY)
Improvement of Media localization segment wasattributable to this performance greatly.
▍ Gain on sales of IMAGICA TV stocks are posted¥2.1bn and Net profit records ¥1.85bn▍ Consolidated forecast for FY2018 was revised
based on 2Q performance2© 2017 Copyright Imagica Robot Holdings Inc.

Highlight of financial results
Nat sales

Operating income

Net income attributableto owners of the parent¥42.2bn¥1.1bn¥1.8bnYoY＋¥2.6bn

YoY+¥0.9bn

YoY+¥1.5bn（100 millions of yen）

39642218112

FY2017 2Q

FY2018 2Q

FY2017 2Q

2FY2018 2Q

F2017 2Q

FY2018 2Q

3© 2017 Copyright Imagica Robot Holdings Inc.

2QFinancial results by segments
FY2016（Millions of yen）

2Q Actual

ProductionServices

10,705

Operatingincome567

277（OP ratio）(6.2％)(2.6％)Net sales

12,397

13,642

Operatingincome356

611（OP ratio）(2.9％)(4.5％)

10,242

12,235Net sales
Media
Localization

Imaging
Systems &Solutions

2Q Actual

9,070

Net sales
ContentCreation

FY2017

Operatingincome△1,02418.0%

Factor

YoY

1,635△51.1%

△289

10.0%

1,245

(---％)Net sales

5,747

6,419

Operatingincome358

440(6.2％)(6.9%)

Decrease YoY in Anime
committee¾

Decrease YoY CM production¾

Business for OTT saw strong
performance.

71.4%

254

¾

19.5%

1,992

¾

Increase sales in the game CGand debugging businesses.
Business for OTT saw strong
performance¾-(---％)¾distribution from production△25（OP ratio）（OP ratio）

YoY ratio

999

Performance was improved due
to improvement of direct marginin Europe.

11.7%
22.9%

672
82

¾

Increase sales in 4Kbroadcasting system andmaintenance service.

＊OTT＝”Over The Top” means the companies excluding telecommunications that provide contents such as video and audio. 4© 2017 Copyright Imagica Robot Holdings Inc.

Revision on consolidated forecast▍ Net sales remains, but Operating income, Ordinary income
and Net income were revised upward.
（Millions yen)

FY2015FY2016

ActualActual

70,036

87,58687,900

87,9000.0%0Operating income

653

1,787

1,600

1,800

12.5%

200(Ratio)(0.9%)(2.0%)(1.8%)(２.0%)

Ordinary income

760

2,014

1,500

1,800

20.0%

300(Ratio)(1.1%)(2.3%)(1.7%)(2.0%)Net income (loss)
attributableto owners of theparent△1,555

1,707

2,200

2,300

4.5%

100Earnings per shareof common△34.93

38.35

49.40

51.6

4.5%

2.2

Net sales

FY2017
Previous
Forecast

Revised forecast

Difference
ratio

Difference5© 2017 Copyright Imagica Robot Holdings Inc.

Revision on forecast by segments

Net salesContent
Creation

Operatingincome24,00024,300

277

900

700
(2.9%)Net sales

13,64228,00027,800Operatingincome611

1,100

1,100(4.5％)(3.9％)(3.6%)

12,23524,00024,000Net sales

Imaging
Systems &Solutions

10,705(3.8％)（Ratio）

Media
Localization

FY2017
Revisedforecast(2.6％)（Ratio）

Production
Services

FY2017
Previous
forecast

FY2017 2Q
Actual（Millions yen）

Operatingincome△25（Ratio）(---％)(---％)(---%)Net sales

6,419

14,00014,000Operatingincome

440

1,300

1,300

(6.9%)(9.3%)（Ratio）△1,050△650(9.3%)

Perspective

Difference300Sales forecast raised due to strong
orders for TV animation. OP
decreased due to low distribution△200

from the animation production
committee.

△200

Sales in TV business are expected todecline temporarily, but we maintain

0OP.

0

Sales for OTT was favorable in thefirst half, but will return to normal

400base in the second half. Such as IT
expenses are expected to increase in
the second half.

00

The Order of 4K system in broadcast
station is steady. No change in theinitial forecast.

＊OTT＝”Over The Top” means the companies excluding telecommunications that provide contents such as video and audio. 6© 2017 Copyright Imagica Robot Holdings Inc.

Appendix.

© 2017 Copyright Imagica Robot Holdings Inc.

7

Consolidated profit and loss statement（Million of yen）

FY2015FY2016FY2017

2Q Actual

2Q Actual

2Q Actual

YoY ratio

YoY

Net sales

29,76739,61542,263

6.7%

2,648

Gross profit

9,209

11,942

11,536△3.4%△406(Ratio)(30.9%)(30.1%)(27.2%)

Operatingincome(loss)△2102281,131395.8%

903(－%)(0.6%)(２.6%)△118272

1,218

347.2%

946(－%)(0.7%)(2.8%)△141223

3,318

1,382.0%

3,094

Net income
attributable to profit

27278

1,856

566.0%

1,578(Reference)
Operating income
before goodwill

204984

1,855

88.4%

871

(Ratio)Ordinaryincome(loss)(Ratio)Net profit (loss)
before taxes

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

8© 2017 Copyright Imagica Robot Holdings Inc.

Consolidated financial statements
Year ended
March 31, 2017

2Q FY2017

Difference breakdown
Difference

38,70638,343

△363

8,716

10,722+2,00529,500

27,691△1,809

7,203

6,616

△587

Total Assets

68,207

66,034△2,172Current liabilities

24,273

22,252△2,020

4,793

4,677

△116

Non-current liabilities

13,992

12,173△1,818Long-term loans payable

8,735

7,489

△1,245

Total Liabilities

38,26534,426△3,839

Shareholderʼs equity

25,69027,102+1,411

622

1,055+432

3,628

3,450

△178

Total Net assets

29,941

31,608+1,666

負債純資産合計

68,207

66,034△2,172(Reference) Net Cash

△4,813△1,444

3,369(Reference) Equity

26,31328,157

1,844

Current assets
Cash and deposits

Non-current assets
Goodwill

Short-term loans payable

Accumulated othercomprehensive income
Non-controllinginterests(38.6％)(42.6％)

Current assets△363M
Cash and deposits +2,005M
Notes and accounts receivable- trade△2,886M

Non-current assets△1,809M
Goodwill△587M
Others△436M
Investments securities+705M
Deferred tax asset△1,031M

Current liabilities△2,020M
Notes and accounts payable- trade△2,254M
Income taxes payable△444M
Advance payment+1,456M
Shareholderʼs equity
Net income ＋1,856M
Dividend payment △445M
Non-controlling Interests
Mainly for SDI Media Group,Inc

Net cash = Cash and deposits - debt
10,772-(4,677+7,489)=△1,4449© 2017 Copyright Imagica Robot Holdings Inc.

キャッシュ・フローの状況
FY2016 2Q
Income before income taxes
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
Other
Cash flows from operating activities
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
OtherFY2017 2Q223
1,341
431
3,377
△3,483△974△232655
1,338△1,058

3,318
1,297
431
2,396
△615
△1,851△1,381△1,7091,886△725△4,2942,941

13△5,339
△667
782
2,054
△186

△231
1,985
△445
△220
△1,115△126

1,983△1,908Net increase (decrease) in cash and cash equivalents△2,261

2,005

Cash and cash equivalents at end of period

10,24010,721

Cash flows from investing activities
Cash dividends paid
Net increase (decrease) in short-term loans payable
Net increase (decrease) in long-term loans payable
Other
Cash flows from financing activities10© 2017 Copyright Imagica Robot Holdings Inc.