To Our Shareholders and Investors

My sincerest appreciation to you for your great understanding and generous support of our group businesses.

In 2022, COVID-19 related restrictions on activities were gradually eased. In the entertainment industry, the year saw a return to pre-pandemic routines with the gradual removal of restrictions on admission to movie theaters, live music venues, and sports events, as well as the lifting of bans on loud cheering at events.

In FY2022 (the year ended March 31, 2023), the second year of the G-EST 2025 mid-term plan, net sales increased 17.4% year-on-year to 94.1 billion yen, operating income before goodwill and other amortization increased 11.8% to 5.7 billion yen, and operating income increased 13.2% to 3.8 billion yen, mainly thanks to continued strong performance and significant growth in E2E (end-to-end) services for video streaming service providers both in Japan and overseas. We have positioned FY2023 as a year in which we will "steer a course from establishing a foundation to growth". Our financial forecast calls for net sales of 100.0 billion yen, operating income before goodwill and other amortization of 5.9 billion yen, and operating income of 4.0 billion yen, with the goal of increasing operating income for the third consecutive year.

In November of last year, we held IMAGICA GROUP EXPO, an exhibition showcasing the overall strengths of the IMAGICA GROUP and the first exhibition by our group. The purpose of the exhibition was to let our business partners know about the group's overall strengths, as well as to send the message that we will learn more about each other within the group and will create synergies and that we will also innovate through co-creation with new partners outside the group.

We received many positive comments and much encouragement from visitors and employees of group companies, and are confident that the event served as a catalyst enabling our group to fully tap its potential. We invite you to visit the report site on our website for scenes from the exhibition and information on its content.

Your continued support will be deeply appreciated.

Please go to the link for more information on our mid-term business plan, G-EST 2025.
https://www.imagicagroup.co.jp/en/ir/plan.html

Please go to the following link for the financial statement for the fiscal year ending March 2023 and the progress of G-EST 2025.
https://www.imagicagroup.co.jp/file/en/ir/library/presentation/2023/financial_results_presentation_for_fy2022_4q.pdf