IMAGICA : ［Delayed］Financial Highlights for FY2021 1Q

Consolidated Financial Highlights for

the First Quarter of the fiscal year ending

March 31, 2022

IMAGICA GROUP Inc.

Code: 6879

August 3, 2021

First Quarter Results Highlights

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• Consolidated operating income before goodwill amortization* turned into the black, reaching a level that exceeded FYE March 2020 (prior to the COVID-19 pandemic).
  *including amortization of some intangible assets (Pages 4,7)
• In Production Services (international), the strong start of Pixelogic

will boost growth and profitability from the second quarter onward.

(Page 11)

• Production Services (domestic) recorded substantial growth in profit owing to benefits from structural reform. (Page 9)
• Content Creation saw a rebound in profit level to the FYE March 2020 (pre-COVID-19) level. (Page 8)
• The full-year forecasts for FYE March 2022 were revised upward, increasing the forecasts for ordinary income (+700 million yen) and net income (+1.2 billion yen) to 2 billion yen. (Page 13)

Notes (*1 -*8) in this document are on Pages 21 and 22. 2

(Reference)

Disclosure of Operating Income before Goodwill Amortization

We will disclose operating income before goodwill amortization as a key indicator from the first quarter of FYE March 2022 onward, to appropriately reflect the actual status of the IMAGICA GROUP.

		1Q	FYE Mar. 2022		New Mid-Term Plan
	(Million Yen)	FYE Mar. 2022	Full year		"G-EST 2025"
		Actual	Plan		Goal
	Net sales	15,414	75,000		100,000
	Operating income	(255)	1,500
	Operating income	158	3,100		8,000
	before goodwill
	amortization

Operating income before goodwill amortization includes: Operating income, goodwill amortization and amortization of intangible fixed assets accompanying M&A.

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(Million Yen)

Highlights of Financial Results for the First Quarter

• Net sales decreased due to the sale of an overseas subsidiary (SDI Media Group, Inc.).
• Operating income before goodwill amortization turned into the black and improved

by 1.7 billion yen from last fiscal year.

Net sales	EBITDA	Operating income (loss)	Net income (loss)
before goodwill	attributable to owners
15,414	539	amortization	of the parent
158	499
YoY	YoY	YoY	YoY
(1,441)	1,602	1,748	1,712
16,855
15,414		539	499
		158
			357 million yen in
			gains on sales of
			stocks of subsidiaries
			and affiliates posted
	(1,063)		(1,213)
		(1,590)

1Q FYE Mar. 2021 1Q FYE Mar. 2022

1Q FYE Mar. 2021 1Q FYE Mar. 2022 1Q FYE Mar. 2021 1Q FYE Mar. 2022 1Q FYE Mar. 2021 1Q FYE Mar. 2022 4

EBITDA includes: Operating income, depreciation and amortization, goodwill amortization and amortization of intangible fixed assets accompanying M&A

Contributing Factors to Increases (Decreases) in Net Sales

(vs 1Q FYE Mar 2021)

• All business segments achieved growth in net sales when the decrease due to the sale of SDI is excluded.

						Production Services								(Million Yen)
						(1,831)
				949	2,425	(5,205)
16,855	996
				1,167	(1,593)	(180)	15,414

1Q FYE Mar. 2021	Content	Production Services	Production Services	Sale of SDI	Imaging Systems	Impact from	Consolidated	1Q FYE Mar. 2022
Actual	Creation	(Domestic)	(International)		& Solutions	Accounting Standards	Adjustments	Actual

(1,441)

• Net sales decreased by 5.2 billion yen due to the sale of SDI and by 1.59 billion yen due to the impact from a change in accounting standard*1.
• In Production Services, global E2E services*2 got off to a good start.

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