Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2015

February 12, 2015

DISCLAIMER- BANDAI NAMCO Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
February 12, 2015

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2015 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
February 13, 2015
Scheduled starting date for dividend payments:–
The additional materials of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2015
(April 1, 2014 to December 31, 2014)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2014)

Third Quarter of the Fiscal YearEnding March 31, 2015
Third Quarter of the Fiscal Year
Ended March 31, 2014

Net sales¥ million
409,176%11.2

368,126

5.0

Net income

Third Quarter of the Fiscal YearEnding March 31, 2015
Third Quarter of the Fiscal Year
Ended March 31, 2014
(Note)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
47,63911.4
50,226
9.9
42,782(3.2)

Net income per share

45,696

Net income per share(diluted)¥ million
31,963%7.6¥
145.49¥145.47

29,7026.1

135.20135.19Comprehensive income: 38,309 million yen [1.0%] (FY2015.3 3Q), 37,921 million yen [29.8%] (FY2014.3 3Q)(2) Consolidated Financial Position

As of December 31, 2014
As of March 31, 2014

1.4

Total assets¥ million
427,950
405,092

Net assets¥ million
298,501
267,951

Equity ratio
%
69.6
66.0

(Reference) Equity: 297,970 million yen (as of December 31, 2014), 267,521 million yen (as of March 31, 2014)

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥23.00–¥40.00

Total

Fiscal Year Ended March 31, 2014–¥35.00Fiscal Year Ending March 31, 2015–
Fiscal Year Ending March 31, 2015
¥52.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2015: Yes
For details of the revisions to the projection of cash dividend, please refer to “Notice Regarding Revision to Projection of Cash
Dividend for the Fiscal Year Ending March 31, 2015” announced today (February 12, 2015).
3. Consolidated Projections for the Fiscal Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Fiscal Year Ending March
520,000
2.4
50,00011.9
52,0009.6
30,00019.7
136.5631, 2015(Note) Revision to the projections: No* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Notes)” on page 5 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(3) Changes in Accounting Policies, Changes in Accounting Estimation andRestatement” of “2. Matters Regarding Summary Information (Notes)” on page 5 of the attached material.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
222,000,000 shares
As of December 31, 2014
222,000,000 shares
As of March 31, 2014b) Number of shares of treasury stock at the end of the period
2,314,704 shares
As of December 31, 2014
2,312,098 shares
As of March 31, 2014c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,686,482 shares
For the Third Quarter of the Fiscal Year Ending March 31, 2015
219,689,720 shares
For the Third Quarter of the Fiscal Year Ended March 31, 2014
* Implementation status of quarterly review
This Consolidated Financial Report for the Third Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the third quarter disclosing, quarterly review for the consolidated financial statements is under way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the Third Quarter” on page 4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results for the Quarter will be posted on the Company’s website on February 12, 2015.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Third Quarter ......................... 2(1) Explanation Regarding Operating Results .......................................................................................................................... 2(2) Explanation Regarding Financial Position .......................................................................................................................... 3(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements .............................................. 4

2. Matters Regarding Summary Information (Notes) ........................................................................... 5(1) Changes in Significant Subsidiaries during the Period ....................................................................................................... 5(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements ................................. 5(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement ..................................................... 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Consolidated Balance Sheets .............................................................................................................................................. 6(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................... 8(Consolidated Statements of Operations) ........................................................................................................................... 8(Consolidated Statements of Comprehensive Income)....................................................................................................... 9(3) Notes to Consolidated Financial Statements ..................................................................................................................... 10(Notes on Premise of Going Concern) ............................................................................................................................. 10(Notes on Significant Changes in the Amount of Stockholders’ Equity) ......................................................................... 10(Segment Information) ..................................................................................................................................................... 10(Significant Subsequent Events) ...................................................................................................................................... 12-1-

1. Qualitative Information Regarding Consolidated Results for the Third Quarter(1) Explanation Regarding Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2015, although the Japanese economy
showed a moderate tone of recovery, it was also affected by a pullback from the last minute demand due to theconsumption tax increase implemented on April 1, 2014, and the continued depreciation of the yen and fall in the crude oil
price. These factors contributed to uncertainty in the overall economy, which had an impact encompassing personal
consumption. Overseas, in Asia there was continued market expansion in the ASEAN region in line with growth inincomes, although other regions experienced slowdowns in economic growth. Although in North America economic
conditions and internal demand followed moderate recovery trends, some areas in Europe showed slow growth in internal
demand.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various initiatives aimed at medium- tolong-term growth, focusing on its IP (intellectual property; including intellectual property of characters) axis strategy,
under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of the Group’s Mid-term
Plan, started in April 2012. On the business front, the Toys and Hobby Business in Japan had favorable sales of new IP
products and long-established IP products. In addition, sales were favorable in the Content Business in game software in
North America and Europe as well as network content and visual and music content.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 409,176 million
yen (year-on-year increase of 11.2%), operating income of 47,639 million yen (year-on-year increase of 11.4%), recurringincome of 50,226 million yen (year-on-year increase of 9.9%), and net income of 31,963 million yen (year-on-yearincrease of 7.6%).
Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed favorably thanks to products of the new IP Yokai Watch
becoming popular in addition to cross-functional efforts undertaken across all businesses for long-established IP products
such as Mobile Suit Gundam, the KAMEN RIDER series, and Tokkyuger (the Power Rangers series) and other products
including the IP Aikatsu! for girls. The Group also strived to broaden the variety of its target customers by such means as
stepping up development of products for adults, and also for babies and pre-school children to steadily move towardachieving our objective of becoming No. 1 in each target and market in Japan by an overwhelming margin.
Overseas, in North America and Europe, products of the Power Rangers series sold steadily, while products of the
newly launched movie IP BIG HERO 6 sold favorably. Nevertheless, performances in North America and Europe wereweak overall. In the Asian region, toys, plastic models, collectable toys for adults became popular thanks to developments
in conjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 179,156 million yen (year-on-year increase of 31.2%), andsegment income was 19,459 million yen (year-on-year increase of 67.7%).
Content BusinessLooking at the Content Business, in Japan, key titles in social games and application games for smartphones sold stably.
In addition, application game titles launched from the end of the previous fiscal year throughout the nine months, such as
JOJO’s BIZARRE ADVENTURE: STARDUST SHOOTERS and ONE PIECE Treasure Cruise, sold favorably. In home
video game software, there was a decline in sales in comparison with the same period of the previous fiscal year, when
there were launches of several big titles.
Also, visual and music content such as LoveLive! School idol project, which is IP for which visual content wasdeveloped in conjunction with music content, and Mobile Suit Gundam UC (Unicorn) episode 7: Over the Rainbow, soldfavorably and contributed to performance. In addition, the Group proactively held live events such as concerts as a newoutlet for its IP axis strategy.
Overseas, in North America and Europe, there were strong sales of DARK SOULS II, a video game launched in theprevious fiscal year, particularly for the PC version.
As a result, net sales in the Content Business were 195,924 million yen (year-on-year decrease of 0.9%), and segment
income was 28,388 million yen (year-on-year decrease of 12.9%).

-2-

Amusement Facility BusinessIn the Amusement Facility Business, the Group pushed ahead with a range of measures aimed at rebuilding thebusiness, such as strengthening the allocation of personnel and measures to attract customers. In addition, the Grouppushed ahead with initiatives such as developing differentiated facilities that offer the experience of its distinctive
worldview of specific IPs and concentrating resources on large stores. However, sales of existing facilities in Japandeclined to 91.1% of the same period of the previous fiscal year. Overseas, sales were steady thanks to efficient operations.
As a result, net sales in the Amusement Facility Business were 41,091 million yen (year-on-year decrease of 4.6%), andsegment loss was 899 million yen (compared with segment loss of 681 million yen for the same period of the previous
fiscal year).
Number of Facilities as of December 31, 2014
Directly Managed
Revenue-Sharing
Facilities
Facilities
240

1,052

Others

Total

10

1,302

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU, Content
SBU, and Amusement Facility SBU. We are making efforts to manage such operations related to group support in an
efficient manner.
As a result, net sales in the Other Businesses were 20,756 million yen (year-on-year increase of 1.8%), and segment
income was 1,565 million yen (year-on-year decrease of 0.1%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2015, total assets stood at 427,950 million yen, an
increase of 22,858 million yen from the end of the previous fiscal year. The main factors were increases of 12,261 million
yen in trade receivables, 5,584 million yen in finished goods and merchandise, 4,011 million yen in work in process, 2,576
million yen in property, plant and equipment, and 2,142 million yen in investment securities included in other investments
and assets, while there was a decrease of 8,934 million yen in cash and time deposits.
Total liabilities amounted to 129,449 million yen, a decrease of 7,691 million yen from the end of the previous fiscal
year. The main factors were decreases of 3,201 million yen in accrued income taxes mainly due to income taxes paid,
2,839 million yen in accrued employee bonuses included in other current liabilities mainly due to employee bonuses paid,
and 4,333 million yen in accounts payable-other also included in other current liabilities, while there was an increase of
1,589 million yen in trade payables.
Total net assets stood at 298,501 million yen, an increase of 30,549 million yen from the end of the previous fiscal year.
The main factors were an increase of 24,232 million yen in retained earnings thanks to the recording of 31,963 million yen
in net income, and an increase of 5,748 million yen in foreign currency translation adjustment due to foreign exchange
fluctuation, despite a decrease of 1,114 million yen in unrealized gains or losses on other securities, net of tax, and cash
dividends paid of 7,693 million yen.
As a result, the equity ratio became 69.6% compared with 66.0% at the end of the previous fiscal year.

-3-(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, although there are some bright signs in Japanese economic trends, the business environment is
expected to remain beset by uncertainties, including the impact on personal consumption from uncertainty in the overall
economy as well as economic trends in North America and Europe. Such factors are also expected to have an impact on theentertainment industry, in which the Group is extensively involved, resulting in ongoing uncertainty in this businessenvironment.
Facing these circumstances, in light of the results and issues from the Group’s three-year Mid-term Plan, which it has
been implementing since April 2012, the Group will start a new Mid-term Plan with the vision “NEXT STAGE: Empower,
Gain Momentum, and Accelerate Evolution” in April 2015. In the new Mid-term Plan, the Group will further solidify its IP
axis strategy, which is the Group’s greatest strength, in accordance with its plan to maximize its IP value by taking
advantage of the worldviews and unique characteristics of its IP to provide the ideal products and services at the ideal time.
Furthermore, the Group aims to expand its businesses in the global market, and plans to deploy and strengthen its
operations in Asian regions with a high-growth potential.
For its main strategies in the new Mid-term Plan, the Group will implement Business Strategies to “Accelerate
Evolution in IP Axis Strategy,” Region Strategies to “Gain Momentum in Global Markets” and Functional Strategies to“Empower and Innovate Business Model.” In its Business Strategies to “Accelerate Evolution in IP Axis Strategy,” theGroup will not only cultivate original Group IP by such means as creating and obtaining IP, but also expand new IP
business such as live events, expand its target markets, and strengthen collaboration among its businesses. In its Region
Strategies to “Gain Momentum in Global Markets,” the Group will not only maintain its pursuit of becoming No. 1 in eachof its markets in Japan, but also proactively expand its business in Asia, where there is a promising outlook for future
growth. In Americas and Europe, the Group will implement initiatives aimed at maintaining its business foundations andexpanding its businesses. Furthermore, in its Functional Strategies to “Empower and Innovate Business Model,” the Groupwill create and cultivate new IP business for the next generation and push ahead with creating foundations for the
implementation of its IP axis strategy in global markets.
In order to carry out these initiatives, the Group will revise its organizational structure, under which it previously
implemented business strategies with a focus on its array of three businesses: the Toys and Hobby SBU (Strategic BusinessUnit), the Content SBU, and the Amusement Facility SBU. Under the new Mid-term Plan, the Group will push ahead with
its strategies with a focus on the following three SBUs: the Toys and Hobby SBU, which will aim to strengthen the IP axis
strategy and gain momentum in global markets; the Network Entertainment SBU, which will aim to deploy a new businessthat goes beyond the framework of the existing game business and fuses networks and entertainment; and the Visual andMusic Production SBU, which will create IP and strengthen the Group’s business deployment as it looks toward newoutlets. The former Amusement Facility SBU will be added to the Network Entertainment SBU. It does not only develop
its value chain so as to deploy a unified business; it also aims to create a new business by combining real-life face-to-facecommunications and digital technology.
The Group will push ahead with the various strategies in the new Mid-term Plan, and aims to achieve the following
numerical targets for the fiscal year ending March 31, 2018: net sales of 600,000 million yen, operating income of 60,000
million yen, and ROE of at least 10%. For details, please refer to the material titled “Mid-term Plan of the BANDAI
NAMCO Group” released today.
The consolidated projections for the full fiscal year ending March 31, 2015, are unchanged from the projections
announced on November 6, 2014.

-4-

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements
Calculation of taxes
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
income before income taxes and minority interests for the fiscal year including the current third quarter, and next bymultiplying the income before income taxes and minority interests by such estimated effective tax rate.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement
Changes in Accounting Policies(Application of Accounting Standard for Retirement Benefits)
Regarding the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the“Statement No. 26”)) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,
2012 (hereinafter, the “Guidance No. 25”)), effective from the first quarter of the fiscal year ending March 31, 2015, theCompany and its consolidated domestic subsidiaries have applied the provisions of the main clauses of the article 35 of theStatement No. 26 and the article 67 of the Guidance No. 25, reviewed its calculation method for retirement benefit
obligations and current service costs. Accordingly, the Company and its consolidated domestic subsidiaries changed themethod of attributing expected retirement benefits to periods from the straight-line basis to the benefit formula basis.
Concerning the determination method of the bond maturity that forms the basis for determination of discount rate, theCompany and its consolidated domestic subsidiaries have changed from a method that is based on a period approximate to
the expected average remaining years of service of the employees to one that uses a single weighted average discount rate
reflecting the estimated timing and amount of benefit payment.
In accordance with the article 37 of the Statement No. 26, the effect of the change in the determination of retirement
benefit obligations and current service costs has been added to or deducted from retained earnings at the beginning of thecurrent third quarter (nine months).
As a result of the application, net defined benefit liability increased 47 million yen, and retained earnings decreased 37
million yen at the beginning of the current third quarter (nine months). In addition, the effect of this change on operating
income, recurring income and income before income taxes and minority interests for the current third quarter (nine months)
is immaterial.

-5-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2014)

Current 3rd quarter(As of December 31, 2014)

AssetsCurrent assets
Cash and time deposits

131,403

122,469

Trade receivables

76,587

88,849Finished goods and merchandise

15,276

20,861Work in process

23,27427,285

Raw materials and supplies

6,463

7,586

Other current assets

31,98735,572

(594)

(710)

284,398

301,913

Property, plant and equipment

51,97254,548Intangible assets

10,145

10,200

Other investments and assets

59,59262,258

Allowance for doubtful receivables(1,015)(970)

Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets

Total investments and other assets
Total fixed assets
Total assets-6-

58,576

61,287

120,694

126,037

405,092

427,950(¥ million)
Prior Fiscal Year(As of March 31, 2014)

Current 3rd quarter(As of December 31, 2014)

Liabilities
Current liabilities
Trade payables

51,62553,215

Accrued income taxes

8,827

5,625

Provision

3,553

2,355

Other current liabilities

56,12851,732

Total current liabilities

120,134

112,928263

161

Net defined benefit liability

8,062

8,179

Other long-term liabilities

8,680

8,180

Total long-term liabilities

17,006

16,520137,141

129,449

Common stock

10,00010,000Additional paid-in capital

52,24552,246

Retained earnings

214,416

238,649

Treasury stock(2,390)(2,398)

Total stockholders’ equity

274,271

298,497

Long-term liabilities
Provision

Total liabilities
Net assets
Stockholders’ equity

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax

6,226

5,111

194

1,585

Revaluation reserve for land, net of tax(5,743)(5,743)Foreign currency translation adjustment(5,145)603

Remeasurements of defined benefit plans(2,282)(2,083)

Total accumulated other comprehensive income(6,749)(526)

Deferred gains or losses on hedges, net of tax

Subscription rights to shares

44

44

Minority interests

385

486

267,951

298,501

405,092

427,950

Total net assets
Total liabilities and net assets-7-

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 3rd quarter(From April 1, 2013
to December 31, 2013)
Net sales

Current 3rd quarter(From April 1, 2014
to December 31, 2014)

368,126

409,176

Cost of sales

224,119

249,831

Gross profit

144,007

159,345

Selling, general and administrative expenses

101,225

111,705

Operating income

42,782

47,6391,168946

Non-operating income
Equity in gain of affiliated companies
Foreign exchange gains

828

716

Other non-operating income

1,514

1,136

Total non-operating income

3,511

2,800

Interest expense

82

51

Provision for loss on guarantees

365–

Loss on investments in partnerships

89

86

Other non-operating expenses

60

74

Total non-operating expenses

597

213

45,69650,226

Gain on sales of investment securities

11

510

Gain on forgiveness of debts

200–

Gain on negative goodwill

101–

Other extraordinary income

64

160

Total extraordinary income

377

671

1,252

1,555

Non-operating expenses

Recurring income
Extraordinary income

Extraordinary loss
Loss on impairment of fixed assets
Other extraordinary loss

529

283

Total extraordinary loss

1,782

1,838

Income before income taxes and minority interests

44,29149,059

Income taxes

14,471

16,976

Income before minority interests

29,81932,083

Minority interests
Net income

-8-

117

120

29,702

31,963

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 3rd quarter(From April 1, 2013
to December 31, 2013)
Income before minority interests

Current 3rd quarter(From April 1, 2014
to December 31, 2014)

29,81932,083

Unrealized gains or losses on other securities, net of tax

1,526(1,151)

Deferred gains or losses on hedges, net of tax

(330)

1,390

Foreign currency translation adjustment

6,855

5,749

Remeasurements of defined benefit plans, net of tax–

198

Share of other comprehensive income of associates
accounted for using equity method

49

39

8,101

6,226

37,92138,309Comprehensive income attributable to owners of the parent

37,702

38,186Comprehensive income attributable to minority interests

218

123

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to-9-(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

(Notes on Significant Changes in the Amount of Stockholders’ Equity)
Not applicable.

(Segment Information)
Segment Information
I. Prior 3rd quarter (From April 1, 2013 to December 31, 2013)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)43,017360,785

7,341

368,126–

368,126

10,25350

16,57813,044

29,623(29,623)–

136,509

197,788

43,067377,364

20,385

397,750(29,623)

368,126

11,60632,578(681)

43,503

1,567

45,071(2,288)42,782

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

To external customers

130,233

187,534

Inter-segment sales
and transfers

6,275

Total
Segment income (loss)

Net sales

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 2,288 million yen deducted from segment income (loss) as adjustment are a deduction of 57
million yen in inter-segment eliminations, and a deduction of 2,230 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment income (loss) is adjusted with operating income in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
In the Amusement Facility Business segment, a loss on impairment of fixed assets has been recorded mainly due toscheduled store closures and disposals of machines whose use is expected to be low. In the third quarter (ninemonths), the corresponding amount recorded in loss on impairment of fixed assets was 1,175 million yen.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 10 -

II. Current 3rd quarter (From April 1, 2014 to December 31, 2014)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

41,035

401,5397,636

409,176–

409,176

7,662

56

14,632

13,11927,752(27,752)–

179,156

195,924

41,091

416,172

20,756436,929(27,752)

409,176

19,45928,388(899)

46,9491,565

48,514(875)

47,639Content
Business

Amusement
Facility
Business

172,242

188,261

6,913

Total
Segment income (loss)

Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers

Net sales

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 875 million yen deducted from segment income (loss) as adjustment are an addition of 934
million yen in inter-segment eliminations, and a deduction of 1,809 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment income (loss) is adjusted with operating income in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 11 -

(Significant Subsequent Events)
Current 3rd Quarter (From April 1, 2014 to December 31, 2014)
Change to segment categories
The Group previously implemented business strategies with a focus on its array of three businesses, categorized bydomain: the Toys and Hobby SBU (Strategic Business Unit), the Content SBU, and the Amusement Facility SBU.
However, the Group has decided to revise its organizational structure in order to implement the following main strategies
under its new Mid-term Plan, which will start in April 2015: “Accelerate Evolution in IP Axis Strategy,” “GainMomentum in Global Markets” and “Empower and Innovate Business Model.”Under the new Mid-term Plan, the Group will push ahead with its strategies with a focus on the following three
SBUs: the Toys and Hobby SBU, which will aim to strengthen the IP axis strategy and gain momentum in global
markets; the Network Entertainment SBU, which will aim to deploy a new business that goes beyond the framework of
the existing game business and fuses networks and entertainment; and the Visual and Music Production SBU, which will
create IP and strengthen the Group’s business deployment as it looks toward new outlets. The former Amusement
Facility SBU will be added to the Network Entertainment SBU. It does not only develop its value chain so as to deploy aunified business; it also aims to create a new business by combining real-life face-to-face communications and digitaltechnology.
In line with this revision to the organizational structure, the previous reportable segments of the “Toys and Hobby
Business,” the “Content Business” and the “Amusement Facility Business” will be changed to the “Toys and Hobby
Business,” the “Network Entertainment Business” and the “Visual and Music Production Business” effective from thefiscal year ending March 31, 2016.
Information regarding the amounts of net sales and income/loss by reportable segment for the current third quarter(nine months), assuming the segment categories after the organizational change is as follows.
(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

172,242

197,747

Inter-segment sales
and transfers

6,913

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

31,549401,5397,636

409,176–

409,176

3,070

2,286

12,271

13,11925,391(25,391)–

179,156

200,818

33,836

413,810

20,756434,567(25,391)

409,176

19,45917,96010,14547,565

1,565

49,131(1,491)

47,639Net sales

Segment income

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 1,491 million yen deducted from segment income as adjustment are an addition of 318 million
yen in inter-segment eliminations, and a deduction of 1,809 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

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