Consolidated Financial Report for the Fiscal Year Ended
March 31, 2019

May 9, 2019DISCLAIMER- 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/)
May 9, 2019

Consolidated Financial Report for the Fiscal Year Ended March 31, 2019 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 24, 2019
Scheduled starting date for dividend payments:
June 25, 2019
Scheduled filing date of the annual security report:
June 24, 2019
The Financial Highlights of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2019
Fiscal Year Ended
March 31, 2018

Net sales¥ million
732,347%
8.0

678,312

9.4

Profit attributable toowners of parent¥ million%
63,383
17.1(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
84,04512.0
86,86315.2
75,024

18.6

Basic earnings per share

75,38019.1

Diluted earnings per share¥
Fiscal Year Ended
288.40March 31, 2019
Fiscal Year Ended
54,10922.5
246.29March 31, 2018
(Note) Comprehensive income: 69,952 million yen [24.9%] (FY2019.3), 56,024 million yen [30.0%] (FY2018.3)
ROE(Profit attributable toowners of parent / Net
assets)ROA(Recurring profit /Total assets)¥–
246.23Operating margin(Operating profit /Net sales)%%
Fiscal Year Ended
15.5
15.1
March 31, 2019
Fiscal Year Ended
14.7
14.7
March 31, 2018
(Reference) Gain or loss from application of equity method: 242 million yen (FY2019.3), 930 million yen (FY2018.3)

%
11.5
11.1

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2019
612,955
429,644
70.0
As of March 31, 2018
540,490387,354
71.5(Reference) Equity: 429,031 million yen (as of March 31, 2019), 386,556 million yen (as of March 31, 2018)

Net assets
per share¥
1,952.00
1,758.99

(3) Consolidated Statements of Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
79,811¥ million(24,899)¥ million(28,972)

Cash and cash
equivalents at endof period¥ million
206,270

55,138(63,338)(17,086)

180,831

Fiscal Year Ended
March 31, 2019
Fiscal Year Ended
March 31, 2018
2. Cash Dividends

Fiscal Year Ended
March 31, 2018
Fiscal Year Ended
March 31, 2019

End offirstquarter¥––

Annual cash dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
111.0018.00–

127.00Total¥
123.00145.00

Payout ratio
Dividend /Total(Consolidated) Net assets
dividend(Consolidated)
payment(Full year)¥ million%%
27,04549.9
7.4
31,888

50.3

7.8

–
20.00
–
20.00
40.00
Fiscal Year Ending
17.6
March 31, 2020
(Projections)(Note) Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March
31, 2020, the base dividend is stated based on the Company’s basic policy on the distribution of profits. The year-end cash
dividend for the fiscal year ending March 31, 2020, will be considered by the Company based on the basic policy on the
distribution of profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
profitprofitto ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
340,000
1.6
31,000 (29.4)
31,500 (31.2)
23,000 (32.7)
104.65September 30, 2019
Full Fiscal Year
720,000(1.7)
70,000 (16.7)
71,000 (18.3)
50,000 (21.1)
227.49* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes
Included: 2 companies (BANDAI NAMCO Collectibles LLC, BANDAI NAMCO Content Fund LLP)
(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(3) 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 March 31, 2019
222,000,000 shares
As of March 31, 2018b) Number of shares of treasury stock at the end of the period
As of March 31, 2019
2,209,402 shares
2,239,901 shares
As of March 31, 2018c) Average number of shares during the period
For the Fiscal Year Ended March 31, 2019219,781,288 shares
219,698,981 shares
For the Fiscal Year Ended March 31, 2018

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2019
Fiscal Year Ended
March 31, 2018

Fiscal Year Ended
March 31, 2019
Fiscal Year Ended
March 31, 2018

(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
20,61630.0
21,341
31.5

Operating revenue¥ million%
25,604
21.5
21,075(13.3)

15,855(17.0)

Profit¥ million
21,181

%
30.7

¥
96.32

Diluted earnings per share¥–

16,204

30.7

73.72

73.70

Basic earnings per share

16,230(15.6)(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
411,545
254,128
61.7
As of March 31, 2018368,455
253,175
68.7(Reference) Equity: 254,128 million yen (as of March 31, 2019), 253,175 million yen (as of March 31, 2018)
As of March 31, 2019

Net assets
per share¥
1,155.56
1,151.38

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes.)
ProfitOperating revenue
Recurring profit
Basic earnings
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
31,00021.1
24,50014.8
24,50015.7
111.40* Consolidated Financial Reports are not required to be audited by certified public accountants or an audit firm.
* 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 “(4) Future Outlook” of “1.
Overview of Operating Results and Others” on page 4 of the attached material for matters pertaining to the earnings projections.
- To obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on May 9, 2019.

Attached Material
Index
1. Overview of Operating Results and Others ....................................................................................... 2(1) Overview of Operating Results for the Period (April 1, 2018 to March 31, 2019) ............................................................ 2(2) Overview of Financial Position for the Period ................................................................................................................... 3(3) Overview of Cash Flows for the Period ............................................................................................................................. 3(4) Future Outlook ................................................................................................................................................................... 4(5) Basic Policy on the Distribution of Profits ......................................................................................................................... 5

2. Basic Concept Regarding Selection of Accounting Standards.......................................................... 5
3. Consolidated Financial Statements and Significant Notes ................................................................ 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) Consolidated Statements of Changes in Net Assets ......................................................................................................... 10(4) Consolidated Statements of Cash Flows .......................................................................................................................... 14(5) Notes to Consolidated Financial Statements .................................................................................................................... 16(Notes on Premise of Going Concern) ............................................................................................................................. 16(Segment Information) ..................................................................................................................................................... 16(Per-Share Data) ............................................................................................................................................................... 23

4. Other .................................................................................................................................................... 24
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 24-1-

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Period (April 1, 2018 to March 31, 2019)
During the fiscal year ended March 31, 2019, the economy continued to moderately recover both in Japan and overseas.
However, the outlook for the overall economy remained uncertain.
In this environment, the BANDAI NAMCO Group (“the Group”) started a three-year Mid-term Plan in April 2018, under
the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” which reflects
our aspiration to achieve changes in all aspects to progress to a next stage without being bound by previous business models
and established ideas. Aiming for medium- and long-term growth, the Group has been promoting a range of measures. As
one of these initiatives, we have been taking advantage of the worldview and unique characteristics of IP (Intellectual
Property: meaning characters and other intellectual property) to further evolve the “IP Axis Strategy” that aims to maximize
IP value through the provision of the optimal products and services at the optimal possible times. The measures also include
an initiative to strengthen development in regions and businesses with high growth potential and an initiative to realize thetotal capabilities of the Group in regions around the world under the ALL BANDAI NAMCO concept.
During this fiscal year, the key IP and products and services in each business segment performed favorably, and businesscollaboration across the Group was highly effective. Consequently, the Group’s consolidated results for the fiscal year ended
March 31, 2019 were net sales of 732,347 million yen (year-on-year increase of 8.0%), operating profit of 84,045 million
yen (year-on-year increase of 12.0%), recurring profit of 86,863 million yen (year-on-year increase of 15.2%), and profit
attributable to owners of parent of 63,383 million yen (year-on-year increase of 17.1%).
Operating results by segment are as follows.
Effective from the fiscal year ended March 31, 2019, the Group changed the classification of its reportable segments.
Consequently, in year-on-year comparisons the figures for the previous fiscal year shown below have been restated into thefigures for the classifications after the change.
Toys and Hobby Business
As for the Toys and Hobby Business, in Japan and overseas, products for the mature fan base such as plastic models of
the Mobile Suit Gundam series and collectible figures and card related products for DRAGON BALL series gained in
popularity. In Japan, products for the mature fan base performed favorably, along with long-established IP products such as
the DRAGON BALL series, the KAMEN RIDER series, and the PRETTY CURE! series. Overseas, in the Asian region,
products such as the Mobile Suit Gundam series and ULTRAMAN series gained in popularity, and we took steps aimed atstrengthening business development in the Chinese market. In Americas and Europe, we continued with the roll-out of
products for the mature fan base, such as collectible figures and DRAGON BALL series card products.
As a result, net sales in the Toys and Hobby Business were 242,865 million yen (year-on-year increase of 9.2%), andsegment profit was 21,710 million yen (year-on-year increase of 50.0%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as DRAGONBALL and ONE PIECE, and key titles in Japan such as The iDOLM@STER series, continued to perform favorably due toongoing measures targeting users. We also undertook initiatives to create new services, such as launching a new platform. In
home video games, in addition to sales of new titles such as SOULCALIBUR VI, ACE COMBAT 7: SKIES UNKNOWN, and
JUMP FORCE for worldwide distribution, repeat sales of existing titles and sales of mainly new Japanese titles werefavorable.
As a result, net sales in the Network Entertainment Business were 340,927 million yen (year-on-year increase of 4.4%),
and segment profit was 47,534 million yen (year-on-year decrease of 5.2%).
Real Entertainment Business
As for the Real Entertainment Business, in regard to arcade games, sales of MOBILE SUIT GUNDAM EXTREME VS. 2
and other games were favorable. In amusement facilities, performance in existing facilities in Japan did not reach the level
seen in the previous fiscal year; however, the opening of facilities in new business formats that provide spaces where
customers are able to enjoy experiences that only BANDAI NAMCO can offer, among other initiatives, performed favorably.
As a result, net sales in the Real Entertainment Business were 101,493 million yen (year-on-year increase of 12.1%), andsegment profit was 4,264 million yen (year-on-year increase of 34.6%).

-2-

Visual and Music Production Business
As for the Visual and Music Production Business, products such as visual and music package software of LoveLive!
Sunshine!! and The iDOLM@STER series gained in popularity. Meanwhile, IP live events such as IDOLiSH 7 and associatedproduct sales and sales of live visual package software performed favorably.
As a result, net sales in the Visual and Music Production Business were 45,518 million yen (year-on-year increase of
11.9%), and segment profit was 8,797 million yen (year-on-year increase of 32.9%).
IP Creation Business
As for the IP Creation Business, we stirred up public attention through releases of new IP movies such as the Mobile Suit
Gundam series, LoveLive! Sunshine!!, and the Aikatsu! series, leading to those series gaining popularity. In other initiatives,
we took steps to strengthen our structure and create new products with a view to enhancing IP creation.
As a result, net sales in the IP Creation Business were 22,464 million yen (year-on-year increase of 32.4%), and segment
profit was 5,020 million yen (year-on-year decrease of 4.6%).
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 companies. We are making efforts to manage such operations
related to group support in an efficient manner.
Net sales in the Other Businesses were 29,764 million yen (year-on-year increase of 7.7%), and segment profit was 1,197
million yen (year-on-year increase of 56.1%).
(2) Overview of Financial Position for the Period
At the end of the fiscal year ended March 31, 2019, total assets stood at 612,955 million yen, an increase of 72,465
million yen from the end of the previous fiscal year. The main factors were increases of 28,334 million yen in cash and time
deposits, 5,021 million yen in trade receivables, 4,281 million yen in finished goods and merchandise, 4,743 million yen inwork in process, and 17,528 million yen in investment securities.
Total liabilities amounted to 183,311 million yen, an increase of 30,175 million yen from the end of the previous fiscal
year. The main factors were increases of 5,249 million yen in trade payables, 8,898 million yen in accrued income taxes, and14,123 million yen in other current liabilities due to increases mainly in accrued employee bonuses.
Total net assets stood at 429,644 million yen, an increase of 42,289 million yen from the end of the previous fiscal year.
The main factors were increases of 35,051 million yen in retained earnings due to the recording of 63,383 million yen in
profit attributable to owners of parent, and 8,494 million yen in valuation difference on available-for-sale securities, net oftax, despite cash dividends paid of 28,366 million yen.
As a result, the equity ratio became 70.0% compared with 71.5% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Period
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand had increased by 25,438 million
yen from the end of the previous fiscal year to 206,270 million yen.
Below is the breakdown of cash flows by activities.
(Cash Flows from Operating Activities)
The amount of funds provided by operating activities totaled 79,811 million yen (year-on-year increase of 44.7%). As a
breakdown of funds used, income taxes paid was 21,186 million yen (compared with 19,709 million yen in the previous
fiscal year). However, overall, there was a net increase in funds due to profit before income taxes of 86,838 million yen(compared with 72,497 million yen in the previous fiscal year) and depreciation and amortization of 21,370 million yen(compared with 23,545 million yen in the previous fiscal year).
(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 24,899 million yen (year-on-year decrease of 60.7%). The main
breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 15,341 million yen(compared with 48,243 million yen in the previous fiscal year) and purchase of shares of subsidiaries and associates of 4,018
million yen (compared with 80 million yen in the previous fiscal year).

-3-

(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 28,972 million yen (year-on-year increase of 69.6%). The main
breakdown of funds used was cash dividends paid of 28,366 million yen (compared with 18,023 million yen in the previous
fiscal year).
(Reference) Cash Flow Indices
FY2015.3

FY2016.3

FY2017.3

FY2018.3

FY2019.3

Equity ratio (%)

68.6

70.6

71.3

71.5

70.0

Equity ratio (market capitalization basis) (%)

116.3

120.2

149.9

142.1

186.1

0.1

0.0

0.0

0.0

0.0

635.3

1,123.3

1,718.0

1,468.2

2,180.5

Cash flows to interest bearing debt ratio(years)Interest coverage ratio (times)

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(4) Future Outlook
Looking ahead, although Japanese and overseas economic trends remained steady, the business environment is expected
to remain beset by uncertainties, including the impact on personal consumption from uncertainties in the overall society andthe overall economy, as well as overseas political trends. 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, and also, even severe changes in the market environment and user preferences.
Facing these circumstances, the Group started a three-year Mid-term Plan in April 2018, under the Mid-term Vision of“CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution” which reflects our aspiration to achievechanges in all aspects to progress to a next stage without being bound by previous business models and established ideas. In
the Mid-term Plan, the Group will aim to evolve “IP Axis Strategy” further to maximize IP value through taking advantageof the worldview and unique characteristics of its IPs and providing the optimal products and services at the optimal possible
times, thereby achieving penetration and expansion in global markets. At the same time, we will also strengthen development
in regions and businesses with high growth potential. Furthermore, we will drive creation of new IP and pursue strategies by
unifying the efforts in each region across the Group under the ALL BANDAI NAMCO concept.
We will implement the following four strategies as the main strategies in the Mid-term Plan:
1. IP axis strategy “Accelerate evolution in IP axis strategy”
Boost capability to create IP (structural changes) / Invest aggressively in IP creation
2. Business strategy “Empower push into new entertainment”
Establish and enhance business infrastructure / Expand and strengthen business fields / Promote incubation
3. Region strategy “Gain momentum with ALL BANDAI NAMCO”
Make full-scale business expansion in the Chinese market / Establish system for ALL BANDAI NAMCO
4. Personnel strategy “Make personnel the core of the Group”
Establish environment to optimize employees’ performance by tapping their individual strengths, and to empower
new ventures
By implementing these main strategies, we aim to further strengthen the Group’s foundation so that we can make steadyprogress in an operating environment marked by dramatic change, and achieve growth in global markets.
Starting April 2018, the Group has changed its organizational structure to promote the advancement of each of thestrategies of the Mid-term Plan. The name of the units of aggregated business companies that are to execute the respective-4-

business strategies has been changed from “SBUs” (Strategic Business Units) to “Units.” In addition, to enable swifteradvancement of the main strategies for each mission stated in the Mid-term Plan, the Group has shifted from its previous
three-SBU structure to a five-Unit structure. Specifically, the Network Entertainment SBU has been reorganized into the
Network Entertainment Unit, which develops business in fields such as network content and home video games, and the RealEntertainment Unit, which provides content for real-world based facilities, services, equipment, and so forth, unique to theGroup. Moreover, the IP Creation Unit has been established as a spin-off from the Visual and Music Production SBU to focus
on creating new IP.
In the fiscal year ending March 31, 2020, in light of the progress made during the fiscal year ended March 31, 2019, theGroup will continue to push forward implementation of main strategies of the Mid-term Plan. As part of the initiatives to be
implemented across the Units, we will strengthen our capability for new IP creation and cultivation in various ways including
creation of product and service-originated IP and visual product-originated IP, utilization of an internal idea posting system,
collaboration with partner companies, and making strategic investments. The Group also plans to push forward cross-Unit
initiatives in preparation for a full-scale business expansion in the Chinese market. In the Toys and Hobby Unit, we will
maintain and expand our domestic market share while strengthening the roll-out of products for the mature fan base in Japanand overseas. In the Network Entertainment Unit, we will further accelerate the worldwide roll-out of network content andhome video games, and also strengthen initiatives for creating new entertainment. In the Real Entertainment Unit, we will
strengthen our capability of providing venues, services and content leveraging unique strength of the Group. In the Visualand Music Production Unit, we will promote the IP expansion with visuals, music and live performance integrated. In the IP
Creation Unit, we will strengthen new IP creation through collaboration among Units over respective products and services.
We will strengthen the foundation for growth under the Mid-term Plan by implementing these initiatives. In light of theabove considerations, the consolidated projections of the fiscal year ending March 31, 2020 are as follows: net sales of
720,000 million yen (year-on-year decrease of 1.7%), operating profit of 70,000 million yen (year-on-year decrease of 16.7%),
recurring profit of 71,000 million yen (year-on-year decrease of 18.3%), and profit attributable to owners of parent of 50,000
million yen (year-on-year decrease of 21.1%).
(5) Basic Policy on the Distribution of Profits
The Company ranks the return of profits to shareholders as one of its highest priorities in its management. The Company
aims to further strengthen the Group’s competitiveness and, while maintaining a sound financial status, to achieve regular
distributions of dividends and improvement in the Company’s corporate value. Specifically, the Company follows a basic
policy of providing a return to shareholders that targets a total return ratio of 50% or more based on stable dividend payments
of 2% of DOE (dividends on equity). Under this policy, the Company strives to maintain long-term and stable dividend levels
and be more aware of capital cost.
For the annual cash dividend per share for the fiscal year ended March 31, 2019, a performance-based dividend of 109
yen will be added to a base dividend of 36 yen. In total, the annual cash dividend for the fiscal year will be 145 yen per share.
Since the Company paid an interim dividend of 18 yen per share on December 7, 2018, the year-end dividend will be 127
yen per share. The Company’s annual dividend forecast for the fiscal year ending March 31, 2020 is 40 yen per share, whichis the base dividend set in accordance with the Company’s basic policy on the distribution of profits. The year-end cash
dividend for the fiscal year ending March 31, 2020 will be considered by the Company based on the basic policy on the
distribution of profits.

2. Basic Concept Regarding Selection of Accounting Standards
The Group plans to continue using Japanese GAAP to prepare its consolidated financial statements for the time being, as
they facilitate comparison with previous consolidated financial statements and with other companies.
The Group’s policy on applying International Financial Reporting Standards is to take action as appropriate based on
considerations of various conditions in Japan and overseas.

-5-

3.

Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2018)(As of March 31, 2019)

AssetsCurrent assets
Cash and time deposits

185,517

213,851

Trade receivables

88,061

93,083Finished goods and merchandise

14,78019,062Work in process

37,68442,428Raw materials and supplies

3,216

3,580

Other current assets

22,52926,836

Allowance for doubtful receivables(1,172)(890)

Total current assets

350,618

397,951

Fixed assets
Property, plant and equipment
Buildings and structures

30,122

31,152

Accumulated depreciation(15,006)(16,084)

Buildings and structures, net

15,116

15,067

Amusement facilities and machines

63,00872,882

Accumulated depreciation(47,341)(55,275)

Amusement facilities and machines, net

15,666

17,60643,42042,677Land
Other property, plant and equipment

118,868

106,660(106,967)(94,418)

11,90012,242

86,10487,593

Intangible assets

9,475

11,845Investments and other assets
Investment securities

56,49574,023Net defined benefit asset

117

147

Deferred tax assets

22,246

24,819Other investments and assets

16,827

16,941

Allowance for doubtful receivables(1,394)(366)

Total investments and other assets

94,292

115,564

189,872

215,003

540,490

612,955

Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment

Total fixed assets
Total assets-6-(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2018)(As of March 31, 2019)

Liabilities
Current liabilities
Trade payables

69,55574,804

Accrued income taxes

8,597

17,495

Provision for directors’ bonuses

1,803

1,835

629

–

1,653

1,669

Provision for contract loss
Other provision
Other current liabilities

53,96468,087

Total current liabilities

136,202

163,893

8,485

10,383Long-term liabilities
Net defined benefit liability

348

333

Other long-term liabilities

Deferred tax liabilities for land revaluation

8,099

8,700

Total long-term liabilities

16,933

19,417

153,135

183,311

10,00010,000Total liabilities
Net assets
Stockholders’ equity
Common stock
Capital surplus

52,19652,308Retained earnings

334,264

369,315

Treasury stock(2,326)(2,298)

Total stockholders’ equity

394,133

429,326

11,69620,190(300)

5Revaluation reserve for land, net of tax(5,887)(5,920)Foreign currency translation adjustments(8,330)(8,864)Remeasurements of defined benefit plans, net of tax(4,756)(5,705)

Total accumulated other comprehensive income(7,577)(294)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax

Non-controlling interests
Total net assets
Total liabilities and net assets

-7-

797

612

387,354429,644

540,490

612,955

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2017
to March 31, 2018)

Current Fiscal Year
(From April 1, 2018
to March 31, 2019)

Net sales

678,312732,347

Cost of sales

436,730

469,791

Gross profit

241,581262,555

Selling, general and administrative expenses

166,557

178,510

Operating profit

75,024

84,045Interest income

269

536

Dividend income

334

584

Rent income

338

398

Non-operating income

Gain on valuation of derivatives–

753

Other non-operating income

1,496

701

Total non-operating income

2,438

2,973

Interest expense

37

36

Loss on valuation of derivatives

817–

Non-operating expenses

Loss on cancellation of rental contracts–

25

Other non-operating expenses

1,228

93

Total non-operating expenses

2,083

155

75,38086,863Gain on sales of fixed assets

72

2,109

Other extraordinary income

6228

Total extraordinary income

79

2,338

Loss on impairment of fixed assets

1,463

954

Loss on disposal of fixed assets

766

325

–

781

731

302

Recurring profit
Extraordinary income

Extraordinary loss

Loss on disposal of receivables on affiliated companies
Other extraordinary loss
Total extraordinary loss

2,961

2,362

Profit before income taxes

72,497

86,838

Corporate income, inhabitant and enterprise taxes

19,86729,566

Adjustment for income taxes(1,258)(5,361)

Total income taxes

18,60924,205

Profit53,88862,632

Loss attributable to non-controlling interests
Profit attributable to owners of parent

-8-

(220)

(751)

54,10963,383

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2017
to March 31, 2018)
ProfitCurrent Fiscal Year
(From April 1, 2018
to March 31, 2019)

53,88862,632

Valuation difference on available-for-sale securities, net of
tax

3,611

8,685

Deferred gains or losses on hedges, net of tax

(509)

305

Other comprehensive income

Foreign currency translation adjustments

395

(531)

Remeasurements of defined benefit plans, net of tax(1,560)(948)

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

199

(190)

2,136

7,319

56,02469,952Comprehensive income attributable to owners of parent

56,24570,700Comprehensive income attributable to non-controllinginterests

(220)

(747)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to-9-(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)(¥ million)
Stockholders’ equity

Balance at beginning of year

Common stock

Capital surplus

10,00052,064Retained earnings
297,984

Treasury stock(2,423)

Total stockholders’equity357,626

Changes during the period
Cash dividends(18,023)(18,023)

Profit attributable to ownersof parent

54,10954,109(0)(0)

Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment–

Purchase of treasury stock131

Disposal of treasury stock
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

(4)

(4)

100

232

0

0

193

193

Net changes of items otherthan stockholders’ equity
Total changes during the period
Balance at end of year–131

36,27996

36,507

10,00052,196334,264(2,326)394,133- 10 -

(¥ million)
Accumulated other comprehensive income
Valuation
Remeasurements Total accumulateddifference on Deferred gains or
Revaluation
Foreign currencyof defined
otheravailable-for-sale losses on hedges, reserve for land,translation
benefit plans, net comprehensive
securities, net of
net of tax
net of tax
adjustmentsof taxincometax

Balance at beginning of year

7,884

210

(5,693)(8,725)(3,195)(9,519)Shareacquisitionrights99

Non-controllinginterests

577

Total net assets

348,784

Changes during the period
Cash dividends(18,023)

Profit attributable to ownersof parent

54,109Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment

(0)
(7)

(7)

(7)

Purchase of treasury stock(4)

Disposal of treasury stock

232

Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

0

(193)

(193)

–

Net changes of items otherthan stockholders’ equity

3,811

(510)

–

403

(1,560)

2,144

(99)

220

2,264

Total changes during the period

3,811

(510)

(193)

395

(1,560)

1,942

(99)

220

38,570

Balance at end of year

11,696(300)(5,887)(8,330)(4,756)(7,577)–797

387,354- 11 -

Current Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Stockholders’ equity

Balance at beginning of year

Common stock

Capital surplus

10,00052,196

Retained earnings
334,264

Treasury stock(2,326)

Total stockholders’equity394,133

Changes during the period
Cash dividends(28,366)(28,366)

Profit attributable to ownersof parent

63,38363,383

Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment––

Purchase of treasury stock

112

Disposal of treasury stock
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

(5)

(5)

33

145

0

0

33

33

Net changes of items otherthan stockholders’ equity
Total changes during the period
Balance at end of year–

112

35,051

28

35,192

10,00052,308369,315(2,298)429,326- 12 -

(¥ million)
Accumulated other comprehensive income
Valuation
Remeasurements Total accumulateddifference on Deferred gains or
Revaluation
Foreign currencyof defined
otheravailable-for-sale losses on hedges, reserve for land,translation
benefit plans, net comprehensive
securities, net of
net of tax
net of tax
adjustmentsof taxincometax

Balance at beginning of year

11,696(300)(5,887)(8,330)(4,756)(7,577)

Shareacquisitionrights–Non-controllinginterests

797

Total net assets

387,354

Changes during the period
Cash dividends(28,366)

Profit attributable to ownersof parent

63,383

Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment–

Purchase of treasury stock(5)

Disposal of treasury stock

145–

Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

0

(33)

(33)

–

Net changes of items otherthan stockholders’ equity

8,494

305

–

(534)

(948)

7,316

–

(185)

7,131

Total changes during the period

8,494

305

(33)

(534)

(948)

7,282

–

(185)

42,289Balance at end of year

20,1905(5,920)(8,864)(5,705)

(294)

–

612

429,644- 13 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2017
to March 31, 2018)

Current Fiscal Year
(From April 1, 2018
to March 31, 2019)

Cash flows from operating activities
Profit before income taxes

72,497

86,838Depreciation and amortization

23,545

21,370Loss on impairment of fixed assets

1,463

954

Amortization of goodwill

190

177

Increase (decrease) in allowance for doubtful receivables

1,121(1,321)

Increase (decrease) in provision for directors’ bonuses

(17)

31

Increase (decrease) in provision for contract loss

515

(629)

Increase (decrease) in other provision

89

87

Increase (decrease) in net defined benefit liability

388

648

Interest and dividend income(603)(1,121)

Interest expense3736

Foreign exchange losses (gains)

261

126

Equity in loss (gain) of affiliated companies

(930)

(242)

Loss (gain) on valuation of derivatives

817

(753)

Loss on disposal of fixed assets

766

325

Loss (gain) on sales of fixed assets, net(32)(2,078)Loss on disposal of amusement facilities and machines

533

161

Loss (gain) on sales of investment securities, net

(1)

(226)

Loss on disposal of receivables on affiliated companies–

781

Decrease (increase) in trade receivables(13,048)(4,965)Decrease (increase) in inventories(9,008)(7,689)Acquisition of amusement facilities and machines(7,349)(10,187)

Increase (decrease) in trade payables

5,412

5,270

Increase (decrease) in accounts payable-other

1,435

(196)

Increase (decrease) in consumption tax payables

(579)

326

Increase (decrease) in other current liabilities

1,837

13,972

Other(5,066)(1,752)

Subtotal

74,27599,945Interest and dividends received

610

1,088

Interest paid

(37)

(36)

Income taxes paid

(19,709)(21,186)

Net cash provided by operating activities

55,13879,811- 14 -

(¥ million)
Prior Fiscal Year
(From April 1, 2017
to March 31, 2018)

Current Fiscal Year
(From April 1, 2018
to March 31, 2019)

Cash flows from investing activities
Payments for deposit in time deposits(4,934)(7,510)

Proceeds from withdrawal from time deposits

993

4,482

Purchases of property, plant and equipment(42,850)(10,093)

601

2,980

Purchases of intangible assets(5,392)(5,247)Purchases of investment securities(11,461)(1,574)

Sales of investment securities

53

347

Purchase of shares of subsidiaries and associates(80)(4,018)Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

385

–

–

(1,991)(2,273)(1,385)

Sales of property, plant and equipment

Payments for acquisition of businesses
Payments of loans receivableCollection of loans receivable

2,727

892

Payments of guarantee money deposited(1,703)(2,135)

Collection of guarantee money deposited

633

541

Other

(36)

(185)

(63,338)(24,899)

5

94

Proceeds from long-term loans payable

790

639

Repayments of long-term loans payable(217)(1,266)

Repayments of lease obligations

(77)

(67)

Purchase of treasury stock

(4)

(5)

Proceeds from share issuance to non-controllingshareholders

441–

Cash dividends paid

(18,023)(28,366)

Net cash used in financing activities(17,086)(28,972)

Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Effect of exchange rate changes on cash and cash equivalents

351

(501)

Net increase (decrease) in cash and cash equivalents(24,935)

25,438Cash and cash equivalents at beginning of year

205,667

180,83199–

180,831206,270

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of year

- 15 -

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Company are components of the Group whose separate financial information is available
and which are periodically evaluated by the Board of Directors in deciding how to allocate management resources and inassessing the performance.
The Group is made up of (1) five Units, one for each business domain, namely the Toys and Hobby Unit, the Network
Entertainment Unit, the Real Entertainment Unit, the Visual and Music Production Unit, and the IP Creation Unit, and(2) the affiliated business companies that mainly serve a supporting role for these Units. The core company of each Unit
leads the planning and promotion of the business strategies of the unit for Japan and overseas.
Accordingly, the Group has the following five reportable segments: Toys and Hobby Business, Network Entertainment
Business, Real Entertainment Business, Visual and Music Production Business, and IP Creation Business.
The Toys and Hobby Business conducts production and sales of toys, candy toys and products for vending machines.
The Network Entertainment Business conducts planning, development and distribution of network content, and planning,development and distribution of home video games, etc. The Real Entertainment Business conducts planning, production
and sales of arcade games, etc., and planning and operation of amusement facilities. The Visual and Music Production
Business conducts planning, production and sales of visual and music content and package software, and live
entertainment operations. The IP Creation Business conducts planning and development of animations, etc., andmanagement and administration of copyrights and other rights, etc.
2. Information regarding changes to reportable segments, etc.
Effective from the current fiscal year, the Group has changed its organizational structure to promote the advancementof each of the strategies of the Mid-term Plan. The name of the units of aggregated business companies that are to
execute the respective business strategies has been changed from “SBUs” to “Units.” In addition, to enable swifteradvancement of the main strategies for each mission stated in the Mid-term Plan, the Group has shifted from its previous
three-SBU structure to a five-Unit structure.
In conjunction with this organizational restructure, effective from the current fiscal year, the reportable segments havebeen changed from the Toys and Hobby Business, Network Entertainment Business, and the Visual and Music
Production Business to the Toys and Hobby Business, Network Entertainment Business, Real Entertainment Business,
Visual and Music Production Business, and IP Creation Business.
Segment information of the prior fiscal year is prepared and disclosed based on the reportable segment classifications
after the change.
3. Method for calculating the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment
The accounting method used for the business segments reported is the same as the accounting method stated in“Important Information Constituting the Basis for Preparation of Consolidated Financial Statements” presented in the- 16 -

most recent annual security report (filed on June 18, 2018).
The profit of reportable segments is measured by operating profit.
The inter-segment transactions are based on prevailing market prices.

- 17 -

4. Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)(¥ million)
Reportable Segments
Visual andRealNetwork
IP
Toys andMusic
Entertain- EntertainCreation
Hobby
Production
ment
ment
Business
Business
Business Business Business

213,296319,567

89,87735,831

Inter-segment sales
and transfers

9,121

6,969

672

Total

222,417

326,537

90,549Subtotal

Other(Note 1)

Total

10,345668,917

9,394

4,860

6,624

28,247

40,691

16,970697,165

Adjust- Consoliments dated Total(Note 2)

(Note 3)

678,312–678,312

18,24546,493(46,493)–

27,640724,805(46,493) 678,312

Net sales
To externalcustomers

Segment profit

14,47650,150

3,168

6,618

5,264

79,678767

80,445(5,421)75,024

Segment assets

127,923

145,101

58,20328,391

18,190377,809

29,203407,013

133,477

540,490

Depreciation andamortization

12,716

2,829

6,431

563

48

22,590411

23,002542

23,545

Amortization of
goodwill

82

0

28

79

–

190

–

190

–

190

Loss on impairmentof fixed assets

816

–

638

–

–

1,454

–

1,454

8

1,463

Investment inassociates
accounted for using
equity method

844

–

–

–

–

844

13,254

14,099–14,099

Increase inproperty, plant andequipment andintangible assets

11,1152,805

11,611597

61

26,192506

26,69833,80260,501Others

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 companies are classified.
The details of adjustment amounts are as follows:(1)
Included in the 5,421 million yen deducted from segment profit as adjustment are an addition of 662 million
yen in inter-segment eliminations, and a deduction of 6,083 million yen in corporate expenses that cannot
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.
(2)
Included in the 133,477 million yen added to segment assets as adjustment are a deduction of 27,450
million yen in inter-segment eliminations, and an addition of 160,927 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed to areportable segment.
(3)
Included in the 542 million yen added to depreciation and amortization as adjustment are a deduction of
616 million yen in inter-segment eliminations, and an addition of 1,159 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 8 million yen added to loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot be allocated to any reportable segment.
(5)
Included in the 33,802 million yen added to increase in property, plant and equipment and intangible assets
as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 18 -

Current Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Reportable Segments
Visual andRealNetwork
IP
Toys andMusic
Entertain- EntertainCreation
Hobby
Production
ment
ment
Business
Business
Business Business Business

234,924

333,805

100,699

37,425Inter-segment sales
and transfers

7,941

7,121

793

Total

242,865

340,927

Segment profit

21,710

Segment assets

Subtotal

Other(Note 1)

Total

16,186

723,041

9,305

8,093

6,278

30,228

101,493

45,51822,46447,534

4,264

8,797

127,726

158,563

65,876

Depreciation andamortization

10,877

1,522

Amortization of
goodwill

126

Loss on impairmentof fixed assets

Adjust- Consoliments dated Total(Note 2)

(Note 3)732,347–

732,347

20,45950,687(50,687)–

753,269

29,764

783,034(50,687) 732,347

5,020

87,328

1,197

88,526(4,480)84,04534,215

21,764

408,145

33,708441,853

171,101

612,955

7,461

635

47

20,544455

21,000370

21,370

0

28

21

–

177

–

177

–

177

278

44

628

–

0

951

–

951

2

954

Investment inassociates
accounted for using
equity method

969

–

–

–

–

969

15,87916,849–16,849

Increase inproperty, plant andequipment andintangible assets

12,002

2,587

12,342633

29

27,595430

28,025991

29,016

Net sales
To externalcustomers

Others

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 companies are classified.
The details of adjustment amounts are as follows:(1)
Included in the 4,480 million yen deducted from segment profit as adjustment are an addition of 1,381
million yen in inter-segment eliminations, and a deduction of 5,861 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.
(2)
Included in the 171,101 million yen added to segment assets as adjustment are a deduction of 36,069
million yen in inter-segment eliminations, and an addition of 207,171 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed to areportable segment.
(3)
Included in the 370 million yen added to depreciation and amortization as adjustment are a deduction of
745 million yen in inter-segment eliminations, and an addition of 1,115 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 2 million yen added to loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot be allocated to any reportable segment.
(5)
Included in the 991 million yen added to increase in property, plant and equipment and intangible assets as
adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 19 -

b. Related Information
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas478,281

Europe79,277

Asia

60,054

Total
60,699678,312

Note: Net sales are classified by country and region based on customer location.
(2) Property, plant and equipment(¥ million)
Japan

Americas74,612Europe

2,155

Asia
4,428

Total
4,907

86,104

3. Information by major customer(¥ million)
Name of customer

Net sales

Names of related segments

Apple Inc.

95,259

Network Entertainment Business, and Visual andMusic Production Business
Toys and Hobby Business, Network Entertainment

Google Inc.

82,370Business, and Visual and Music Production
Business

Note: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to these companies
are usage fees, etc. for users (ordinary users) of game services provided by the Group.

Current Fiscal Year (From April 1, 2018 to March 31, 2019)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan
519,068

Americas

Europe84,274

63,384

Note: Net sales are classified by country and region based on customer location.

- 20 -

Asia

Total
65,619732,347

(2) Property, plant and equipment(¥ million)
Japan

Americas76,196

Europe

2,135

Asia
4,461

Total
4,799

87,593

3. Information by major customer(¥ million)
Name of customer

Net sales

Names of related segments
Toys and Hobby Business, Network Entertainment

Apple Inc.

103,883

Business, and Visual and Music Production
Business
Toys and Hobby Business, Network Entertainment

Google Inc.

84,677

Business, and Visual and Music Production
Business

Note: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to these companies
are usage fees, etc. for users (ordinary users) of game services provided by the Group.

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2018 to March 31, 2019)
This information is omitted because the same information has been presented in Segment Information.

d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Real
Visual andEntertainMusic
ment
Production
Business
Business

Amortized
amount

82

0

28

79

–

–

–

190

Unamortizedbalance

82

0

57

82

–

–

–

222

- 21 -IP
Creation
Business

Eliminations andCorporate

Other

Total

Current Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Real
Visual andEntertainMusic
ment
Production
Business
Business

Amortized
amount

126

0

28

21

–

–

–

177

Unamortizedbalance

843

–

29

60

–

–

–

933

IP
Creation
Business

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2017 to March 31, 2018)
Not applicable.
Current Fiscal Year (From April 1, 2018 to March 31, 2019)
Not applicable.

- 22 -

Eliminations andCorporate

Other

Total

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2017 to March 31, 2018)(From April 1, 2018 to March 31, 2019)

1,758.99 yen

1,952.00 yen

Basic earnings per share246.29 yen

288.40 yen

Diluted earnings per share246.23 yen– yen

Net assets per share

Notes: 1. Diluted earnings per share for the fiscal year ended March 31, 2019 is not presented since no potential shares exist.
2. The basis of calculating basic earnings per share and diluted earnings per share is as follows:

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2017 to March 31, 2018)(From April 1, 2018 to March 31, 2019)54,10963,383––

54,10963,383

219,698,981

219,781,288

Profit attributable to owners of parent
adjustment (¥ million)––

Increase in number of common stock(shares)

53,463–[Share acquisition rights (shares)][53,463][–]

Basic earnings per share
Profit attributable to owners of parent(¥ million)
Amount not applicable to common
stockholders (¥ million)
Profit attributable to owners of parent
available to common stock (¥ million)
Average number of common stock
outstanding (shares)

Diluted earnings per share

Summary of potential shares not includedin the calculation of diluted earnings per
share as they do not have a diluting effect.

–- 23 -–

4. Other
Changes in Directors and Audit & Supervisory Board Members(1) Change in Representative
Not applicable.
(2) Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Director
Director

Makoto Asanuma (current position: Executive Officer of
the Company and President and Representative Director of
SUNRISE INC.)

Director (Outside)

Koichi Kawana (current position: Vice Chairman of JGC
CORPORATION)

Retiring Director
Director

Satoshi Oshita (Scheduled to assume office as Adviser of
the Company)(3) Scheduled Date of Assuming Office and Retirement
June 24, 2019(4) Responsible Area of Directors (Effective June 24, 2019)
Mitsuaki Taguchi

President and Representative Director

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Masaru Kawaguchi

Director (Part-time) in charge of Toys and Hobby Unit

Yasuo Miyakawa

Director (Part-time) in charge of Network Entertainment Unit

Hitoshi Hagiwara

Director (Part-time) in charge of Real Entertainment Unit

Kazumi Kawashiro

Director (Part-time) in charge of Visual and Music Production Unit

Makoto Asanuma

Director (Part-time) in charge of IP Creation Unit

Yuzuru Matsuda

Director (Outside)

Satoko Kuwabara

Director (Outside)

Mikiharu Noma

Director (Outside)

Koichi Kawana

Director (Outside)- 24 -