IMAGICA : ［Delayed］Notice of Recognition of Non-operating Income and Revision of Financial Forecast

	August 3, 2021
Company name	IMAGICA GROUP Inc.
Title and Name of	Nobuo Fuse
Representative	Representative Director, President
	(Securities code: 6879, TSE 1st Section)
Inquiries	Masakazu Morita
	Director, Managing Executive Officer
TEL	[phone]

［Delayed］Notice of Recognition of Non-operating Income and Revision of Financial Forecast

IMAGICA GROUP Inc. announces recognition of the following non-operating income. The Company is also announcing revision of the financial forecast for fiscal year ending March 31, 2022, accompanying the recognition of non-operating income.

1. Recognition of Non-operating Income

Pixelogic Holdings LLC, a consolidated subsidiary of IMAGICA GROUP Inc., received a loan through the Paycheck Protection Program (PPP), which provides loans to small and medium-sized companies in the U.S. that were negatively impacted by the COVID-19 pandemic in 2020. A notice of debt forgiveness was received for this loan and the company therefore expects to recognize non-operating income (subsidy income) of approximately 640 million yen in the second quarter of consolidated fiscal year ending March 31, 2022.

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2. Revised Financial Forecast for Fiscal Year Ending March 31, 2022

1. Revised Financial Forecast for Consolidated Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

				Net Income
		Operating	Ordinary	(Loss)	Net Income
	Net Sales	Attributable
	Income	Income	Per Share
		to Owners of
				the Parent
	Million yen	Million yen	Million yen	Million yen	Yen
Previous forecast (A)	75,000	1,500	1,300	800	18.02
Revised forecast (B)	75,000	1,500	2,000	2,000	45.06
Change (B-A)	0	0	700	1,200	27.04
Percentage change (%)	-	-	53.8%	150.0%	150.0%
(For reference)
Previous fiscal year results	86,727	(1,084)	(1,343)	3,454	77.89
(FYE March 31, 2021)

(2) Reason for Revision

There has been no change in the forecasts for net sales and operating income from the previously disclosed forecast. Ordinary income is now expected to exceed the figure in the previous forecast, mainly due to the recognition of the non-operating income noted in Point 1, above. Net income attributable to owners of the parent is expected to exceed the figure in the previous forecast, mainly due to recognition of the extraordinary gains disclosed in the "Notice of Recognition of Extraordinary Gains"on July 19, 2021.

There has been no change in the dividend forecast of 5 yen per share for fiscal year ending March 31, 2022, announced on May 13, 2021. This dividend forecast was set based on collective consideration of the dividend payout ratio after excluding special factors.

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