NAMCO BANDAI
Holdings Inc.
Financial Summary
Consolidated Results for the Three Months Ended
June 30, 2006

August 8, 2006

DISCLAIMER- This document is a translation of the original “Kessan Tanshin” in Japanese.
- NAMCO BANDAI 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 has been prepared as a guide to non-Japanese investors and 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 from expectations.

1

NAMCO BANDAI Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp)
August 8, 2006

Consolidated Earnings Report for the Three Months Ended
June 30, 2006
Representative: Takeo Takasu, President and Representative Director
Contact:
Keiji Tanaka, Director

1. Notes on Presentation of Quarterly Operating Results(1) Use of simplified accounting methods: Yes
Corporation income taxes are calculated based on a simplified method, by application of theeffective statutory tax rate.
(2) Changes in accounting method from the most-recent consolidated fiscal year: Yes
The classification of businesses in the segment information section by business type has beenchanged.
(3) Changes in scope of consolidation and application of equity method: Yes
Consolidated subsidiaries
New: 3 (Lantis Co., Ltd., NAMCO NETWORKS AMERICA INC., CREATIVE B WORKS CO.,LTD.)
Excluded: 1 (BANDAI GAMES INC.)(4) Due to establishment of the company on September 29, 2005, the results for the three months
ended June 2005 and year on year comparisons are not available.

2. Consolidated Business Results for the Three months Ended
June 30, 2006 (April 1, 2006 ~ June 30, 2006)(1)Consolidated Business Results
Net salesFirst Quarter Ended
June 30, 2006
First Quarter Ended
June 30, 2005
(Ref.) FYE March 31, 2006

Recurring income¥ million%¥ million%¥ million%

99,119

－

8,656

－

8,993

－

－

－

－

－

－

－

450,829

35,669Net income

First Quarter Ended
June 30, 2006
First Quarter Ended
June 30, 2005
(Ref.) FYE March 31, 2006

Operating income

37,122

Net income per share¥ million%¥

Net income per share(diluted)
¥

4,077

－

16.12

－

－

－

－

－

54.39

54.37

14,1492

(2) Consolidated Financial Position
Total assets

First Quarter Ended
June 30, 2006
First Quarter Ended
June 30, 2005
(Ref.) FYE March 31, 2006

Net assets

Equity ratio

Net asset per
share¥ million¥ million%¥

369,386

252,36766.0

963.92－－－－

386,651

243,60763.0

961.36(3) Consolidated Statement of Cash Flows
Operatingactivities

First Quarter Ended
June 30, 2006
First Quarter Ended
June 30, 2005
(Ref.) FYE March 31, 2006

Investingactivities

Financing
activities¥ million¥ million¥ million

Cash and cash
equivalents at
end of period¥ million

8,584(3,754)(14,475)

103,825

－

－

－

－

31,808(24,406)(19,965)

113,186

Notes:*Figures are in millions of yen, rounded down except where noted.
*There have been no changes made regarding the consolidated and non-consolidated forecastof business results for the interim period, made on July 3, 2006. Taking into account the businessresults of the interim period and other factors, an announcement is scheduled for the
consolidated and non-consolidated forecast of business results for the fiscal year corresponding
with the announcement of results for the interim period.
*Qualitative information regarding forward-looking statements:
Forward-looking statements that have been released prior to this document are based on
management’s estimates, assumptions, projections and information available at the time of its
publications. A number of factors could cause actual results to differ materially from expectations.

33. Qualitative information on the summary of operating results for the first quarterand the forecasts of operating results, etc.
I. Consolidated Results of Operations
Summary of the Three Month-Period Ended June 30, 2006
In the period under review (April 1, 2006 – June 30, 2006), Japan’s economy overall continued torecover due to improved corporate earnings, rising private-sector capital expenditure, andgrowing personal consumption, despite strong headwinds from factors such as rising crude oil
prices.
In the network and visual fields of the entertainment industry, the launch of 1seg terrestrial digital
TV broadcasting service for portable devices has been attracting attention as the inception of new
media, further driving diversification in consumer trends. In home video games, consumer
popularity continued to concentrate on certain platforms.
In this setting, the BANDAI NAMCO Group (the Group) will engage in strengthening, enriching,and expanding the Group's portfolio management based on its 3-year medium term management
plan launched this fiscal year.
In terms of individual business operations, in the Toys & Hobby Business, the Tamagotchi Plus
series enjoyed worldwide popularity, and Data Carddass also showed strong performance. In the
Amusement Facility Business, on the back of recovering sales at existing locations, efforts
continued to further expand operations by launching new-type facility formats. And in the Visual &Music Content Business, group synergy was exhibited through the Mobile Suit Gundam series.
As a result, consolidated net sales were ¥99,119 million. Operating income and recurring income
were ¥8,656 million and ¥8,993 million, respectively, and net income for the quarter was ¥4,077
million.
Results by Business Segment

Toys & Hobby
Amusement Facility
Game Contents
Network
Visual & Music Content
Other(¥ million)
Three months ended June 30, 2006
Net Sales
Operating Income
42,4594,939
20,324718
25,843
791
2,920
311
9,267
2,045
5,634
385

Toys & Hobby Business
The Toys & Hobby Business saw the popularity of the Tamagotchi Plus series continue worldwide
from last year. Additionally, in Japan, Data Carddass performed well centered on the popular
Dragon Ball Z’s new series, while, for girls, Tamagotchi Cup was newly introduced in a bid to
broaden the customer target range. Boys’ toys based on characters, such as from Boukenjar

4

(Power Rangers) and Masked Rider Kabuto, also showed sound performance.
Overseas, boys’ toys based on Power Rangers characters in the Americas and Europe, andplastic models from the Mobile Suit Gundam series in Asia and other toys gained popularity.
As a result, the Toys & Hobby Business posted net sales of ¥42,459 million and operating incomeof ¥4,939 million.
Amusement Facility Business
The Amusement Facility Business in Japan benefited from the popularity of crane gamemachines and card game machines, including Data Carddass, with further growth in the numberof families visiting amusement facility locations and a recovery in sales at existing locations to
4.5% above the previous year’s level. Moreover, efforts were made to acquire new customers
through initiatives involving new-type facility formats, such as the launch of NAMCO Aso-Base(located in Kotoni, Sapporo City, Hokkaido Prefecture) where visitors are charged on a time-basis,
while various measures geared at reinvigorating existing facilities and theme parks were also
implemented.
Overseas facilities did well in Europe, centered on U.K.-based launches of hybrid facilities withentertainment offerings such as bowling alleys, and, in the Americas, efforts have been continuing
to expand revenue-sharing operations, accompanied by cost-cutting measures.
As a result, the Amusement Facility Business posted net sales of ¥20,324 million and operating
income of ¥718 million.
Number of facilities as of June 30, 2006
Directly operated
Revenue-sharing
locationslocations
458

1,206

Theme
parks

Total

5

1,669

Game Contents Business
The Game Contents Business in Japan launched video games, including Super Dragon Ball Z
and Xenosaga EPISODE III, both for PlayStation 2. However, with market trends focused on
specific platforms and given that sales of main titles of the Group concentrate from the second
quarter of the fiscal year and later on, results were steady.
In coin-operated game machines, as prize game machines performed well in Japan, the latest
version of the popular gun shooting game, Time Crisis 4, also had a strong start in both Japanand abroad since its launch in June 2006. Moreover, content for mobile devices, such as mobile
phones, from NAMCO BANDAI Games Inc., have been showing steady performance amid efforts
to expand new content in both Japan and abroad.
As a result, the Game Contents Business recorded net sales of ¥25,843 million and operating
income of ¥791 million.

5

Network Business
The Network Business executed reinforcement of its profit base by proactively introducing highvalue-added game contents to the mobile content distribution services for mobile phones, of
BANDAI NETWORKS CO., LTD. This includes the launch this June of the mobile phone gameSD Gundam RPG (for i-mode) service, appreciated as a fully-developed, network-based roleplaying game, which forms a synergic relation with NAMCO BANDAI Games Inc. Nevertheless,weakness in areas such as stand-by screen images and ringer melodies could not be covered,and the overall number of subscribers fell compared with the previous term-end. The Solution
Business, which offers technologies for businesses, has been performing well, centered onengines for mobile devices. However, up-front costs were recognized, such as for web-based
advertising operations maintained for extending business reach.
As a result, the Network Business recorded net sales of ¥2,920 million and operating income of¥311 million.
Visual & Music Content BusinessIn the Visual & Music Content Business, domestic sales of DVDs performed well for items like thecompilation edition of Mobile Suit Gundam SEED DESTINY as well as film director Takeshi
Kitano’s latest work “TAKESHIS’”. Moreover, substantial contributions to performance came from
efforts to expand the range of prior works on rental-use DVD video, an area of market growthsince last year.
Overseas, efforts continued to enhance profitability based on a review of marketing activities in
the Americas.
As a result, the Visual & Music Content Business recorded net sales of ¥9,267 million andoperating income of ¥2,045 million.
Other Business
The Other Business comprises of companies providing support to the Group’s strategic business
units through logistics, leasing, and building management. Efforts at efficient operations throughthese group support services continued in the period under review.
As a result, the Other Business recorded net sales of ¥5,634 million and operating income of¥385 million.
Geographic Segment Information(¥ million)
Three months ended June 30, 2006
Net Sales
Operating Income (Loss)Japan
81,587
8,448
Americas10,867(589)
Europe
6,240
565
Asia
7,832
661

6

JapanIn Japan, as mentioned above, the Toys & Hobby Business showed strong performancesurrounding the Tamagotchi Plus series while Data Carddass proved hugely successful centeredon the popular Dragon Ball Z’s new series. The Amusement Facility Business experienced growthin the number of facility visits by families due to the popularity of crane game machines and card
game machines such as Data Carddass, with a recovery in sales at existing facilities to 4.5%
above the previous year’s level.
The Game Contents Business in Japan launched video games, including Super Dragon Ball Z for
PlayStation 2, with sound results given that release of main titles concentrate from the second
quarter of the fiscal year and later on. In coin-operated game machines, prize game machines did
well in Japan, while Time Crisis 4, the latest version of the popular gun shooting game, had astrong start since its launch in June 2006.
In the Network Business, efforts to reinforce the profit base by proactively introducing high valueadded game contents proved not enough to cover weak performance in stand-by screens andringer melodies. And overall, there was a decline in the number of subscribers compared with theprevious term-end. At the Visual & Music Content Business, DVD sales performance was solid forthe compilation edition of Mobile Suit Gundam SEED DESTINY as well as, among other titles,
film director Takeshi Kitano’s latest work “TAKESHIS’”. Moreover, substantial contributions toresults came from efforts to expand the range of prior works on rental-use DVD videos.
As a result, net sales in Japan was ¥81,587 million and operating income was ¥8,448 million.
The Americas
In the Americas, the Toys & Hobby Business performed well centered on the Tamagotchi series
and boys’ toys featuring characters from the Power Rangers series. The Amusement Facility
Business continued to expand revenue-sharing locations and implemented cost reductions, while
the Visual & Music Content Business made efforts to enhance profitability through a review ofmarketing activities, which contributed to improvements in the profit structure. However, since themain titles for home video games are concentrated on the second quarter of the fiscal year andlater, overall performance was steady.
As a result, net sales in the Americas was ¥10,867 million and operating loss was ¥589 million.
EuropeIn Europe, the Toys & Hobby Business, centered on the Tamagotchi series and boys’ toys
featuring characters from the Power Rangers series gained popularity, while the Amusement
Facility Business worked on hybrid facility launches with entertainment offerings such as bowlingalleys. In coin-operated game machines, Time Crisis 4, the latest version of the popular gun
shooting game, had a solid start.
As a result, net sales in Europe was ¥6,240 million and operating income was ¥565 million.

7

Asia
In Asia, the Toys & Hobby Business posted strong results centered on the Tamagotchi series andplastic models from the Mobile Suit Gundam series, while the Amusement Facility Businessworked to enhance prize games and reinforce initiatives involving Group products.
As a result, net sales in Asia was ¥7,832 million and operating income was ¥661 million.
II. Financial Position
Consolidated total assets decreased ¥17,264 million compared with the end of the previous termto ¥369,386 million, which was mostly due to a ¥14,489 million decline in trade receivables.
Consolidated total liabilities decreased ¥17,388 million compared with the end of the previous
term to ¥117,019 million. This was due in large part to a ¥10,454 million reduction in short-termborrowings and a ¥8,272 million decline in accounts payable-other.
Consolidated net assets including minority interests increased ¥123 million compared with theend of the previous term to ¥252,367 million. This figure reflects in the main a ¥4,077 million cash
inflow from net income for the period and a ¥3,036 million outflow from payment of cash
dividends. The stockholders’ equity ratio rose to 66.0% compared with 63.0% at the end of theprevious term.
III. Consolidated Financial Position
Cash and cash equivalents (“Cash”) at June 30, 2006, totaled ¥103,825 million. Cash flows wereas follows.
Cash flows from operating activities
Operating activities provided net cash of ¥8,584 million, mainly due to ¥8,834 million in income
before income taxes, a ¥15,600 million decline in trade receivables, a ¥10,333 million increase inaccounts payable-other, ¥5,940 million in income taxes paid, and other factors.
Cash flows from investing activities
Cash used in investing activities totaled ¥3,754 million. This was mainly due to ¥1,978 million inproperty, plant, and equipment purchases, ¥1,099 million paid for the acquisition of shares in
consolidated subsidiary BANPRESTO CO., LTD., and other factors.
Cash flows from financing activities
Cash used in financing activities totaled ¥14,475 million, due mainly to ¥10,600 million repaid
short-term borrowings, ¥3,036 million paid in cash dividends, and other factors.
IV. Full-Year Outlook
Japan’s economic outlook calls for a gradual and sustained recovery driven by improving
corporate earnings and rising capital expenditure. However, there are some uncertain factors,
such as higher crude oil prices and rising interest rates. The entertainment business-environment
surrounding the BANDAI NAMCO Group will likely witness a significant shift toward new types of
hardware especially in the game industry amid further diversification in consumer trends, making

8for a continued unclear outlook.
In this setting, the BANDAI NAMCO Group will engage in strengthening, enriching, andexpanding the Group's portfolio management based on its 3-year medium term management plan
launched in April 2006.
Specifically, in the Toys & Hobby Business, efforts will be made to create and foster new
characters in addition to the popular characters of Boukenjar (Power Rangers) and theTamagotchi Plus series, and to further strengthen merchandising activities targeted at a wide
range of customers.
In the Amusement Facility Business, initiatives will be taken to increase the scale of revenues byproactively launching new large-type facilities designed to mobilize Group synergy, such as
NAMCO WONDERPARK HERO’S BASE (Kawasaki City, Kanagawa Prefecture), and by
introducing new-type facility formats and hybrid facility launches overseas, while taking steps toincrease income by sharing expertise in low-cost business operations.
In the Game Contents Business, in order to quickly and capably respond to shifts in domestic andoverseas environments, relentless efforts will be made in the pursuit of customer needs, and abalanced multi-platform strategy will be implemented together with enhancing the efficiency ofmerchandise sales and product development. Moreover, steps will be taken to sell coin-operated
game machines such as Mobile Suit Gundam: Senjo no Kizuna that reflect the strength of
BANDAI NAMCO Group, and to generate synergic effects with the Amusement Facility Business.
The Network Business will continue to provide high value-added mobile content and move ahead
with the planning and development for entry into visual content distribution operations.
The Visual & Music Content Business will further cultivate its existing business in DVD video
sales, as seen with the hugely popular Mobile Suit Gundam DVD box set, and expand operations
while responding to environmental changes involving new markets and media.
The Group together will work to pursue group-internal synergies through efforts that cut across all
five strategic business units. In overseas initiatives, the Group will continue to widen targets andstrengthen distribution networks, and in this way promote overseas operations as a focus
strategy under the medium-term management plan.
Based on the foregoing, the Group maintains its unamended financial forecasts released July 3,
2006, for interim consolidated results and non-consolidated results.
Consolidated and non-consolidated financial forecasts for the full fiscal year will be announced
concurrently with the release of the six-month interim consolidated financial statements, taking
into consideration financial results for the interim period.

9[Attachment]

Consolidated Financial Statements for the Three Month-Period Ended June 30, 2006
(1) Consolidated Balance SheetFirst Quarter ended
June 30, 2006

Prior fiscal year

(As of June 30, 2006)
Share
Millions of yen(%)(As of March 31, 2006)
Share
Millions of yen(%)

1. Cash and time deposits

97,818109,513

2. Trade receivables

56,42070,9103. Short-term investments

7,824

5,546

4. Inventories

30,26927,5295. Deferred tax assets

7,037

7,037

6. Other current assets

24,07821,602(941)(1,506)(Assets)
I Current assets:

Allowance for doubtful receivables

222,508

Total current assets

60.2

240,634

62.2

II Fixed assets
l. Property, plant and equipment(1) Buildings and structures

14,26914,460(2) Amusement facilities and machines

24,417

23,910(3) Land

22,09222,094(4) Other property, plant and equipment

14,44775,226

13,606

74,073

2. Intangible assets(1) Goodwill(2) Consolidated adjustment accounts

10,636

－

－

7,668

7,270

(3) Other intangible assets

17,906

9,326

16,994

3. Investments and other assets(1) Investment securities

20,81722,521(2) Guarantee money deposited

25,15024,916(3) Deferred tax assets

4,272

3,901

(4) Other investments and assets

4,667

4,821

Allowance for doubtful receivables(1,162)53,745(1,211)

Total fixed assets

146,878

Total assets

369,386 100.0

10

39.8

54,948146,01637.8

386,651 100.0

First Quarter ended
June 30, 2006

Prior fiscal year

(As of June 30, 2006)
Share
Millions of yen(%)(As of March 31, 2006)
Share
Millions of yen(%)

1. Trade payables

40,17840,561

2. Short-term borrowings

4,433

14,8883.Bonds—current portion

5,000

5,000

4. Accounts payable―other

15,49523,767

5. Accrued income taxes

5,490

6,827

147

147

19,986

16,335(Liabilities)
I Current Liabilities

6. Reserve for losses on restructuring
7. Other current liabilities

90,731

Total current liabilities

24.6

107,527

27.8

II Long-term Liabilities
1. Bonds

10,00010,0002. Long-term debt

2,154

2,542

3. Deferred tax liabilities

6,341

6,592

690

690

2,087

2,065

908

904

4,105

4,084

4.Deferred tax liabilities, land revaluation difference
5. Accrued retirement and severance benefits
6. Directors' and auditors' retirement and severance benefits
7. Other long-term liabilities
Total long-term liabilities

26,287

7.1

26,8797.0

Total liabilities

117,01931.7

134,40734.8

11

First Quarter ended
June 30, 2006

Prior fiscal year

(As of June 30, 2006)
Share
Millions of yen(%)(As of March 31, 2006)
Share
Millions of yen(%)(Net Assets)
I. Stockholders’ Equity
1. Common stock

10,000－2. Additional paid-in capital

95,772－

3. Retained earnings

165,158－

4. Treasury stock(11,170)－

Total Stockholders’ Equity

259,759

70.3

－

－

II. Valuation Difference and Translation Adjustments
1. Other securities valuation differences

3,353

－

2. Deferred gains or losses on hedges

17－(21,459)

－

2,156

－

3. Land revaluation difference
4. Translation adjustment

－

－

68.3

－

－

369,386 100.0－－(15,931)

(4.3)

8,539

2.3

Total Net Assets

252,367

Total Liabilities and Net Assets

Total Valuation Difference and Translation Adjustments

III. Minority Interests(Minority Interests)
－

－

8,636

2.2

I Common stock－－

10,0002.6

II Additional paid-in capital－－

95,77224.8

Ill Retained earnings－－

164,503

42.5

IV Land revaluation difference－－(21,459)(5.6)

V Other securities valuation difference

－

－

4,145

1.1

VI Translation adjustment

－

－

1,801

0.5

VII Treasury stock－－(11,156)(2.9)

Total stockholder's equity－－

243,607

63.0

Total liabilities, minority interests and stockholders' equity－－

386,651 100.0

Minority Interests(Stockholders' Equity)12

(2) Consolidated Statements of Income
First Quarter
Prior fiscal year
ended June 30,
2006(April 1, 2006 to(April 1, 2005 toJune 30, 2006)
March 31, 2006)
Share
Share
Millions of yen
Millions of yen(%)(%)
I Net sales

99,119 100.0

450,82 100.0

II Cost of sales

61,96562.5

294,2665.3

37,15437.5

156,5634.7

28,49828.8

120,89

26.8

8,656

8.7

35,669

7.9

2,514

0.5

1,061

0.2

37,122

8.2

4,737

1.1

6,290

1.4

Gross profit
Ill Selling, general and administrative expenses
Operating income
IV Non-operating income
1. Interest income

279

820

2. Dividend income

83

140

3. Rental income

64

248

4. Operation consignment income

105

266

5. Other non-operating income

238

771

0.8 1,039

V Non-operating expenses
1. Interest expense

63

292

2. Amortization of goodwill

121

485

3. Other non-operating expenses

249

Recurring income

433

0.4

8,993

9.1

283

VI Extraordinary income
1. Gain on sale of property, plant and equipment

16

1,270

2. Gain on sale of investment securities

22

480

3. Reversal of allowance for doubtful receivables

31

58

4. Government subsidy and other income

102－

5. Other extraordinary income－

172

0.2 2,928

VII Extraordinary loss
1. Loss on disposal of property, plant and equipment

44

538

2. Loss on valuation of investment securities

186

244

3. Loss on deduction of property, plant and equipment

100－

4. Other extraordinary losses

－

5,507

331

0.4

8,834

8.9

35,569

7.9

Income taxes

4,385

4.4

19,282

4.3

Minority interests

371

0.4

2,137

0.5

Net income

4,077

4.1

14,1493.1

Net income before income taxes and minority interests13(3) Consolidated Statements of Cash FlowsFirst Quarter
ended June 30,
2006

Prior fiscal
year(April 1, 2006 to(April 1, 2005 toJune 30, 2006)

March 31, 2006)

Millions of yen

Millions of yen

8,834
4,238

35,56919,144753

I Cash Flows from Operating Activities
Income before income taxes and minority interests
Depreciation
Amortization of consolidation adjustment accounts
Amortization of goodwill

－
563
(614)
(362)
63
15,600(2,494)(2,293)(1,008)(10,333)
2,316

－
260
(960)
292
4,454
5,841
(10,892)(2,678)3,254(7,086)

14,509365(349)(5,940)47,952
1,348(352)(17,140)

8,584

31,808Purchases of property, plant and equipment
Purchases of intangible assets
Acquisition of shares in consolidated subsidiaries, net of cash acquired
Other
Net cash used in investing activities
Ill Cash Flows from Financing Activities(1,978)(680)(1,099)3(9,924)(3,203)(18,032)
6,754(3,754)(24,406)

Net increase(decrease) in short-term borrowings
Repayment of long-term debt
Dividends paid
Other
Net cash used in financing activities
IV Effect of exchange rate changes on cash and cash equivalents(10,600)(613)(3,036)(224)

10,847(2,398)(4,415)(23,998)(14,475)(19,965)

274

1,675

V Net increase(decrease) in cash and cash equivalents(9,371)(10,887)

VI Cash and cash equivalents at beginning of period

113,186

124,923

10

10
(860)
113,186

Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Decrease(increase) in trade receivables
Decrease(increase) in inventories
Investment in amusement facilities and machines
Increase(decrease) in trade payables
Increase(decrease) in trade payable―other
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
II Cash Flows from Investing Activities

VII Net Increase in cash and cash equivalents due to additional consolidation of subsidiaries
VIII Net decrease in cash and cash equivalents due to exclusion of consolidated subsidiaries
IX Cash and cash equivalents at end of period
14－103,825

(4). Segment Information[By Business Segment]
First Quarter Ended June 30, 2006 (April 1, 2006 to June 30, 2006)(¥ million)

Toys & Hobby
Business

41,087

20,28023,103

2,843

9,037

2,766

99,119－99,119

1,371

43

2,739

76

230

2,868

7,330

( 7,330)－

42,45920,32425,843

2,920

9,267

5,634

106,449( 7,330)

99,11937,52019,60525,052

2,609

7,222

5,249

97,259( 6,795)

90,463

4,939

718

791

311

2,045

385

9,190

534)

8,656

Net sales
To external(1) customers
Intersegment sales(2) and transfers
Total
Operating expenses
Operating income(loss)

Game
Contents
Business

Visual &Music
Content
Business

Amusement
Facility
Business

NetworkBusiness

Other
Business

Total

Prior fiscal year (April 1, 2005 to March 31, 2006)

Eliminations
andCorporate

Consolidated((¥ million)

Toys & Hobby
Business

176,474

78,792

128,104

12,19642,27912,981450,829－

450,829

4,533

591

2,326

324

1,048

10,08918,914(18,914)－

181,007

79,384130,430

12,521

43,32823,071

469,744(18,914)450,829

161,92276,878

119,979

10,68537,141

23,242429,849(14,689)

415,160

19,0852,506

10,451

1,835

6,187

(171)

39,894( 4,225)

35,669Net sales
To external(1) customers
Intersegment sales(2) and transfers
Total
Operating expenses
Operating income(loss)

Game
Contents
Business

Visual &Music
Content
Business

Amusement
Facility
Business

NetworkBusiness

Other
Business

Total

Eliminations
andCorporate

Consolidated

Notes: 1. Business segment classifications are in accordance with classifications adopted for internalmanagement purposes.
(Accounting changes)
To display the Group’s business content more appropriately, changes to the composition ofeach business division were made in this first quarter ended June 30. As a result, somecompanies are now part of different business divisions.
When segment information for the prior fiscal year is recalculated using the new businessdivision compositions, figures are as follows:
Prior fiscal year (April 1, 2005 to March 31, 2006)(¥ million)
Game
Contents
Business

NetworkBusiness

Visual &Music
Content
Business

Other
Business

80,769 128,448

12,19642,27910,661 450,829

2,326

324

1,048

10,142

181,007

81,294 130,774

12,521

161,922

79,406 121,067

10,68519,085

1,888

1,835

Toys & Hobby
Business

Net sales
To external(1) customers
Intersegment sales(2) and transfers
Total
Operating expenses
Operating income(loss)

176,474
4,533

Amusement
Facility
Business

525

9,707

Eliminations
andCorporate

Consolidated－

450,829

18,901 (18,901)－

43,32820,804 469,730 (18,901)

450,829

37,141

19,616 429,838 (14,678)

415,160

6,187

1,187

35,669Total

39,892(4,222)

2. Principal products and operations in each business segment(1) Toys & Hobby
Business(2) Amusement Facility
Business(3) Game Contents
Business(4) Network Business(5) Visual & Music
Content Business(6) Other Business…… Toys, candy toys, products for vending machines, cards, plastic models,apparel, sundries, stationery and other products…… Amusement facility operations and other operations…… Software for home video games, coin-operated game machines, prizes foramusement machines and other products…… Mobile content and other products
Visual titles, visual software, on-demand video distribution and other products……
and services…… Transportation and warehousing of products, leasing, real estate management,
printing, development and sale of environmental equipment and other activities

153. Unallocatable amounts of operating expenses under “Eliminations and Corporate” are as listed
below.
Millions of yen
First Quarter ended
June 30, 2006

Prior fiscal year

561

5,812

Figure primarily consists of:

Expenses related to management divisions at NAMCO
BANDAI Holdings Inc. (The Company) and NAMCO BANDAI
Holdings (USA) Inc.
Expenses related to management divisions at The Company,
Bandai Co., Ltd. and NAMCO LIMITED (currently NAMCO
BANDAI Games Inc.)16

[By Geographic Segment]
First Quarter Ended June 30, 2006 (April 1, 2006 to June 30, 2006)(¥ million)
Eliminations

Japan

Americas

Europe

Asia

Total

Consolidated

andCorporate

Net sales
79,16910,454

6,240

3,254

99,119－99,119

2,418

412

－

4,578

7,409

(7,409)－Total

81,587

10,867

6,240

7,832

106,528(7,409)99,119Operating expenses

73,13911,457

5,674

7,171

97,443(6,979)90,463Operating income (loss)

8,448

(589)

565

661

9,085

( 429)

8,656

(1)
(2)

To external customers
Intersegment sales andtransfers

Prior fiscal year (April 1, 2005 to March 31, 2006)(¥ million)
Eliminations

Japan

Americas

Europe

Asia

Total

Consolidated

andCorporate

Net sales
365,823

42,76931,231

11,005450,829－

450,829

8,497

1,334

13

21,10630,951(30,951)－

Total

374,320

44,10331,244

32,112

481,780(30,951)

450,829

Operating expenses

336,705

47,38826,91429,841

440,848(25,688)415,160

Operating income (loss)

37,614(3,284)

4,330

2,270

40,931( 5,262)

35,669(1)(2)

To external customers
Intersegment sales andtransfers

Notes: 1. Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as geographic closeness,similarities in economic activities and mutual relationship of business activities.
(2) Principal countries and regions belonging to each geographic segment(i) Americas:

U.S.A. and Canada(ii) Europe:

France, U.K. and Spain(iii) Asia:

Hong Kong, Thailand and South Korea

2. Unallocatable amounts of operating expenses under “Eliminations and Corporate” are as listed
below.
Millions of yen
First Quarter
ended

561

Expenses related to management divisions at NAMCO
BANDAI Holdings Inc. (The Company) and NAMCO BANDAI
Holdings (USA) Inc.

5,812

Expenses related to management divisions at The Company,
Bandai Co., Ltd. and NAMCO LIMITED (currently NAMCO
BANDAI Games Inc.)

June 30, 2006
Prior fiscal year

Figure primarily consists of:17