Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2010

November 5, 2009DISCLAIMER- 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 shallprevail.
- 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 from expectations.

1

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

November 5, 2009

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2010
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Executive Officer, Corporate Planning Division
Scheduled filing date of the quarterly security report:
November 13, 2009
Scheduled starting date for dividend payments:
December 7, 2009

1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2010
(April 1, 2009 to September 30, 2009)(1) Consolidated Operating Results (For the six months ended September 30, 2009)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net sales

Second Quarter of the Fiscal
Year Ending March 31, 2010
Second Quarter of the Fiscal
Year Ended March 31, 2009

¥ million
172,733%(9.5)¥ million(2,615)%¥ million(2,866)%–

190,795

–

5,576

–

7,275

–

Net income

Second Quarter of the Fiscal
Year Ending March 31, 2010
Second Quarter of the Fiscal
Year Ended March 31, 2009

Net income per share¥ million(6,038)%1,282

Net income per share(diluted)–¥(25.02)

¥

–

–

5.13

5.12

(2) Consolidated Financial Position
Total assets

As of September 30, 2009
As of March 31, 2009–

Net assets¥ million
355,835
363,444¥ million
258,146
260,579

Equity ratio
%
71.8
70.9

(Reference)
Equity: 255,462 million yen (as of September 30, 2009), 257,645 million yen (as of March 31, 2009)2

Net assets per
share¥
1,057.96
1,067.71

2. Dividend

End offirst quarterEnd ofsecond quarter¥12.00¥12.00

Dividend per share
End ofFiscalthird quarteryear-end–¥12.00Total–¥24.00Fiscal Year Ending March 31, 2010–
Fiscal Year Ending March 31, 2010–¥12.00¥24.00(Projections)*1 Revision to the projections of dividend for the Fiscal Year Ending March 31, 2010: No*2 The stable portion of the dividend is given in the projection for the Fiscal year-end for the Fiscal Year Ending March 31, 2010 based on
the company’s basic policy regarding appropriation of profits. Thus, the actual Fiscal year-end dividend will be decided according to theconsolidated financial results.
Fiscal Year Ended March 31, 2009

3. Consolidated Projections for the Fiscal Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
400,000(6.2)
15,000(32.9)
16,000(34.7)
8,500(28.1)
35.21* Revision to the projections: No
4. Other Information(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in Scope ofConsolidation): Yes
New: 4 companies (Distribution Partners S.A.S., Atari Asia Holdings Pty.Ltd., Atari Australia Pty.,Ltd., Atari UK Ltd.)
Excluded: 1 company (Bandai Networks Co., Ltd.)
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-11.
(2) Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-11.
(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated Financial
Statementsa) Changes due to revisions to accounting standards and other regulations: Nob) Changes due to other reasons: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-11.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of period (including treasury stock)
As of September 30, 2009
250,000,000 shares
As of March 31, 2009
250,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of September 30, 2009
8,532,539 shares
As of March 31, 2009
8,694,796 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Second Quarter of the Fiscal Year ending March 31, 2010
241,349,257 shares
For the Second Quarter of the Fiscal Year ended March 31, 2009250,264,456 shares

Explanation regarding the appropriate use of forecasts of business results and other notes* 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 fromexpectations.
* Figures are in millions of yen, rounded down, except where noted.

3

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Operating Results
The economic environment during the first six months of the fiscal year ending March 31, 2010 continued to be plagued
by a severe employment situation and weak individual consumption despite indications that the slowdown of the global
economy triggered by the financial crisis in the U.S. has stopped deteriorating. In addition, reduced consumption had
substantial impact on the entertainment industry, causing a difficult market environment.
In such environment, the BANDAI NAMCO Group (“the Group”) pressed ahead with its sights set on the medium- tolong-term Group vision of becoming a “Globally Recognized Entertainment Group.” By promoting up-front investment ingrowing business areas and improving profitability of businesses, the Group shall further develop its global managementfoundation, based on the three-year Mid-term Business Plan that started this fiscal year.
On the business front, although long-established character toys in the Toys and Hobby Business sold strongly in Japan,
overall performance did not reach the level of the same period of the previous fiscal year because of not only the fact that
products and service for this fiscal year are more concentrated in the second half but also the impact of weak individual
consumption.
In the current second quarter, NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries became consolidated subsidiaries
and this had a negative effect on profits for the second quarter as these companies’ business plans are lopsided towards thesecond half of the fiscal year.
Consequently, the Group’s consolidated results for the first six months were net sales of 172,733 million yen(year-on-year decrease of 9.5%), operating loss of 2,615 million yen (compared with an operating income of 5,576 million
yen for the same period of the previous fiscal year), recurring loss of 2,866 million yen (compared with a recurring income of
7,275 million yen for the same period of the previous fiscal year), and net loss of 6,038 million yen (compared with a net
income of 1,282 million yen for the same period of the previous fiscal year).

Operating Results by Business Segment(¥ million)

Current 2nd
Quarter

Net Sales
Prior 2nd
Quarter

Toys and Hobby

66,70073,213

Game Contents

57,181

61,657Visual and Music Content

15,46915,993

Amusement Facility

33,71740,542Other Businesses

8,895

9,514

Eliminations and Corporate(9,230)(10,125)

Consolidated

172,733

190,795

Change4

Decrease of
6,513
Decrease of
4,476
Decrease of523
Decrease of
6,824
Decrease of619
Increase of894
Decrease of
18,062

Operating Income (Loss)
Current 2ndPrior 2nd
ChangeQuarter
Quarter
Decrease of
3,765
4,416
650
Decrease of(6,769)501
7,271
Decrease of
362
654
292
Increase of
1,056
1,030
25
Decrease of
19
280
260
Increase of(1,050)(1,307)256
Decrease of(2,615)
5,576
8,191

Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys such as the MASKED RIDER series, Samurai Sentai
Shinkenger and FRESH PRETTY CURE ! posted strong performances in Japan. Although the DATA CARDDASS MASKED
RIDER BATTLE: GANBARIDE and card game Battle Spirits became popular, vending machine capsule products and otherperipheral toy categories struggled amidst the stagnation of individual consumption.
Overseas, despite the strong sales of BEN10 character toys, performance overall was weak, especially in the Americas
where the market was particularly difficult.
As a result, net sales in the Toys and Hobby Business were 66,700 million yen (year-on-year decrease of 8.9%), andoperating income was 3,765 million yen (year-on-year decrease of 14.7%).

Game Contents BusinessIn the Game Contents Business, sales of game titles and machines for this fiscal year are concentrated in the second half.
For home video game software in the current second quarter, in Japan, while game titles such as Tales of Vesperia for
PlayStation 3 became popular, sales of other minor game titles struggled as the sluggish market continued. Overseas, theperformance did not reach the level of the same period of the previous fiscal year in which localized game titles had soldstrongly. Sales for arcade game machines were robust thanks to repeat sales of machines released in the previous fiscal year.
So too were sales of game contents for mobile devices, thanks to the development of a wide variety of content to suitincreasingly diverse user preferences.
As a result, net sales in the Game Contents Business were 57,181 million yen (year-on-year decrease of 7.3%), andoperating loss was 6,769 million yen (compared with an operating income of 501 million yen in the same period of theprevious fiscal year). Note that due to changes in the business segments in the first quarter, in order to make year-on-yearcomparisons, the results of the second quarter of the previous fiscal year were reconfigured to reflect the post-change
segments.

Visual and Music Content BusinessIn the Visual and Music Content Business, although visual package software such as GUNDAM 30th ANNIVERSARYCOLLECTION, and Psalms of Planets Eureka Seven became popular in Japan, the visual package software businessstruggled overall amidst the continuing transition period for hardware. Sales of music package software, on the other hand,were strong, particularly for animation-related music. Overseas, the profitability of business in the Americas was improved
through greater efficiency.
As a result, net sales in the Visual and Music Content Business were 15,469 million yen (year-on-year decrease of 3.3%)
and operating income was 362 million yen (year-on-year decrease of 44.7%).

Amusement Facility BusinessIn the Amusement Facility Business, despite the implementation of marketing strategies for each customer segment inJapan, the domestic existing-facility sales was at 89.7% of the figure for the same period of the previous fiscal year in the
midst of a difficult market environment. Costs, on the other hand, were reduced as a result of the strategic closure or sale in
the previous fiscal year of 63 facilities, most of which were unprofitable, and the ongoing efforts to improve businessefficiency.

5Overseas, despite the efforts to improve operational efficiency in the Americas and business development centered oncomplex facilities in Europe, overall performance was sluggish amidst difficult market environments.
As a result, net sales in the Amusement Facility Business were 33,717 million yen (year-on-year decrease of 16.8%), andoperating income was 1,056 million yen (year-on-year increase of 2.5%).

Facilities as of September 30, 2009
Directly Managed Facilities

Revenue-Sharing Facilities

Theme Parks

Spa Facilities

Total

298

929

4

3

1,234

Other Businesses
Other Businesses consist of companies that conduct operations such as logistics support and building management to eachof the Group’s strategic business units. During the current second quarter, efforts were made to improve the efficiency ofthese operations related to group support. However, as a result of a decline in the amount of work handled, performance did
not reach the level of the same period of the previous fiscal year.
As a result, net sales in Other Businesses were 8,895 million yen (year-on-year decrease of 6.5%), and operating income
was 19 million yen (year-on-year decrease of 92.9%).

Operating Results By Geographic Segment(¥ million)
Net Sales

Operating Income (Loss)

Current 2nd
QuarterPrior 2nd
QuarterJapan

140,305

154,133

Americas15,044

18,463

Europe17,89920,366

Asia

16,115

16,481Eliminations and Corporate(16,631)(18,649)

Consolidated

172,733

190,795

ChangeDecrease of
13,828Decrease of
3,418
Decrease of
2,467
Decrease of366
Increase of
2,017
Decrease of
18,062Current 2nd
QuarterPrior 2nd
Quarter

2,682

4,282

(3,808)

(813)

(819)

2,742

904

931

(1,574)(1,564)(2,615)5,576

ChangeDecrease of
1,599
Decrease of
2,994
Decrease of
3,561
Decrease of
26
Decrease of
9
Decrease of
8,191

Japan
In the Toys and Hobby Business, although there were strong sales performances from long-established character toys,
such as the MASKED RIDER series and FRESH PRETTY CURE !, and card games, the peripheral toy categories struggled
under the impact of the economic downturn.
In the Game Contents Business, while home video game software titles such as Tales of Vesperia for PlayStation 3
became popular, sales of other minor game titles struggled as the sluggish market continued. Furthermore, because sales ofgame titles and machines for this fiscal year are concentrated in the second half, performance did not reach the level of thesame period of the previous fiscal year. In the Visual and Music Content Business, although visual package software such as
GUNDAM 30th ANNIVERSARY COLLECTION, and Psalms of Planets Eureka Seven became popular, the visual package
software business struggled overall amidst the continuing transition period for hardware.

6

While the Amusement Facility Business also struggled under difficult market environment, particularly existing facilities,
costs were slashed as a result of the existing facility closures that were carried out in the previous fiscal year and otherfactors.
As a result, net sales in Japan were 140,305 million yen (year-on-year decrease of 9.0%) and operating income was 2,682
million yen (year-on-year decrease of 37.4%).
Americas
In the Toys and Hobby Business, the BEN10 character toys performed solidly, but overall the business struggled in the
midst of a difficult market environment. In the Game Contents Business, performance did not reach the level of the same
period of the previous fiscal year not only because the game titles for this fiscal year are concentrated in the second half, butalso due to the strong sales of localized game titles that occurred in the same period of the previous fiscal year. On the other
hand, in the Visual and Music Content Business, profitability improved as a result of changes to the business model, while in
the Amusement Facility Business, efforts continued to be on cutting costs by improving operational efficiency in the midst ofa difficult market environment.
As a result, net sales in Americas were 15,044 million yen (year-on-year decrease of 18.5%) and operating loss was 3,808
million yen (compared with an operating loss of 813 million yen in the same period of the previous fiscal year).
EuropeIn the Toys and Hobby Business, performance remained solid, particularly the performance of the BEN10 character toys.
In the Game Contents Business, performance did not reach the level of the same period of the previous fiscal year not only
because the game titles for this fiscal year are concentrated in the second half, but also due to the strong sales of localized
game titles that occurred in the same period of the previous fiscal year. Also, the Amusement Facility Business performed
weakly under the impact of the economic downturn.
As a result, net sales in Europe were 17,899 million yen (year-on-year decrease of 12.1%) and operating loss was 819
million yen (compared with an operating income of 2,742 million yen in the same period of the previous fiscal year).
Asia
In the Toys and Hobby Business, in addition to long-established character products such as Mobile Suit Gundam, theBEN10 character toys newly became popular. Also, in the Amusement Facility Business, performance was solid, particularly
with respect to Wonder Park Plus, a large-scale amusement facility in Hong Kong.
As a result, net sales in Asia were 16,115 million yen (year-on-year decrease of 2.2%) and operating income was 904
million yen (year-on-year decrease of 2.8%).
2. Qualitative Information Regarding Consolidated Financial Position
At the end of the second quarter of fiscal year ending March 31, 2010, total assets stood at 355,835 million yen, adecrease of 7,608 million yen from the end of the previous fiscal year. The main factors of this decline were as follows.
Notwithstanding increases such as a 10,074 million yen increase of inventories, including work in process affected byconcentration of products of the Game Contents Business in the second half of the fiscal year, and a 4,582 million yen
increase of goodwill as a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries from thecurrent second quarter, cash and time deposits decreased by 12,457 million yen and trade receivables decreased by 12,208
million yen.
7

Total liabilities amounted to 97,689 million yen, a decrease of 5,175 million yen from the end of the previous fiscal year.
The main factors of this decline were as follows. Although provision increased by 1,382 million yen, long-term debt was
reduced by 4,335 million yen through partial repayments and accounts payable–other, which is included in other current
liabilities, decreased by 2,647 million yen.
Total net assets stood at 258,146 million yen, a decrease of 2,432 million yen from the end of the previous fiscal year. The
main factors of this decline were as follows. While there was an increase of 4,609 million yen in translation adjustments due
to currency fluctuation, and an increase of 1,602 million yen in other securities valuation difference, there was a decrease of
8,793 million yen in retained earnings as a result of the recording of dividends paid and net loss.
As a result, the equity ratio became 71.8% compared with 70.9% at the end of the previous fiscal year.

As of the end of the second quarter, cash and cash equivalents (hereafter “funds”) remaining on hand had decreased by
11,700 million yen from the end of the previous fiscal year to 98,336 million yen. Below is the breakdown of cash flows by
activities.

Cash Flows from Operating Activities
The amount of funds used in operating activities amounted to 458 million yen (down 83.5% compared with the same
period of the previous fiscal year). Out of this, the main factor providing funds was a decrease in trade receivables of 16,581
million yen (compared with 16,291 million yen in the same period of the previous fiscal year), while the main factors using
funds were a decrease in trade payables of 7,541 million yen (compared with 5,035 million yen in the same period of theprevious fiscal year), an increase in inventories of 6,707 million yen (compared with 4,763 million yen in the same period of
the previous fiscal year), and a decrease in accounts payable–other of 4,160 million yen (compared with 7,563 million yen in
the same period of the previous fiscal year).

Cash Flows from Investing Activities
The amount of funds used in investing activities totaled 7,584 million yen (an increase of 669 million yen compared withthe same period of the previous fiscal year). As a breakdown of funds used, there were purchases of property, plant andequipment and intangible assets of 4,886 million yen (compared with 4,713 million yen in the same period of the previous
fiscal year), purchase of subsidiary shares affecting the scope of consolidation of 1,821 million yen (non-existent in the same
period of the previous fiscal year) and advances of loans receivable of 1,049 million yen (compared with 60 million yen in
the same period of the previous fiscal year).

Cash Flows from Financing Activities
The amount of funds used in financing activities amounted to 7,141 million yen (down 56.0% compared with the same
period of the previous fiscal year). The main factors for funds used were repayment of long-term debt of 4,425 million yen(compared with 2,669 million yen in the same period of the previous fiscal year) and dividends paid of 2,896 million yen(compared with 3,053 million yen in the same period of the previous fiscal year).

83. Qualitative Information Regarding Consolidated Projections
As for the future of the economy, despite signs of partial improvement such as recovery in capital investment andproduction, the environment continues to be affected by the high yen, the uncertain employment situation and weak
individual consumption and under such conditions, it is extremely difficult to make economic forecasts.
While these circumstances continue, the business environment of entertainment industry, in which the Group isextensively involved, is also expected to remain uncertain.
Amidst these conditions, the Group will press ahead with its sights set on the medium- to long-term Group vision of
becoming a “Globally Recognized Entertainment Group.” By promoting up-front investment in growing business areas andimproving profitability of businesses, the Group shall further develop its global management foundation, based on thethree-year Mid-term Business Plan that started this fiscal year.
Specifically, for the Toys and Hobby Business, the Group’s attention in Japan will be to strengthening the development oflong-established character series such as Mobile Suit Gundam, which is celebrating its 30th anniversary, MASKED RIDER W(Double) and Tamagotchi, both of which started airing on TV from this autumn. The Group will also strengthen thedevelopment of its long-established character series such as Samurai Sentai Shinkenger and FRESH PRETTY CURE ! Also
overseas, aiming for dynamic growth in the medium- to long-term, the Group will strengthen new categories of merchandise
such as girls’ toys and preschoolers’ toys.
In the Game Contents Business, the Group will place particular focus on the home video game software business in North
America and Europe. In addition to the popular series game titles originated in Japan such as Tekken 6, developed for
PlayStation 3, Xbox360 and PlayStation Portable, the world-wide focus will also include casual games such as the “Family”
series, for the Wii. In arcade games machines, the Group will strengthen in the second half of the fiscal year, concentrating on
major casual games such as TANK! TANK! TANK!
In the Visual and Music Content Business, focusing on package software to commemorate the 30th anniversary of Mobile
Suite Gundam, the Group will aim to boost profitability by ensuring a balance of content for all target groups.
For the Amusement Facility Business, the Group will improve profitability by executing marketing strategies aimed ateach customer segment and further promoting operational efficiency.
As a result, the Group has not revised its consolidated projections for the full fiscal year of the fiscal year ending March
31, 2010 announced on August 4, 2009.

9

4. Others(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in
Scope of Consolidation)
On April 1, 2009, Bandai Networks Co., Ltd., a specified subsidiary of the Company, was merged by absorption-typemerger with NAMCO BANDAI Games Inc., a specified subsidiary of the Company. As a result of this merger, Bandai
Networks Co., Ltd. is an extinct company and is not included within the scope of specified subsidiary from the firstquarter.
Also, on July 7, 2009, NAMCO BANDAI Games Europe S.A.S., the Company’s wholly owned subsidiary, made an
additional acquisition of 66% of the shares of Distribution Partners S.A.S. held by Atari Europe S.A.S. and it now holds
100% of said company’s shares.
As a result of these changes, Distribution Partners S.A.S. and its 18 subsidiaries have become consolidated
subsidiaries from the current second quarter. The following four companies now fall under the definition of a specified
subsidiary of the Company because the amount of their common stock is equivalent to 10% or more of the Company’scommon stock.
Name
NAMCO BANDAI Partners S.A.S. (Distribution Partners S.A.S.)
NAMCO BANDAI Partners Asia Holdings Pty.Ltd. (Atari Asia Holdings Pty.Ltd.)NAMCO BANDAI Partners Australia Pty.Ltd. (Atari Australia Pty.Ltd.)NAMCO BANDAI Partners UK Ltd. (Atari UK Ltd.)Note:

In the table above, the former names of the companies before they became wholly owned subsidiaries are
written in parentheses.

(2) Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial
Statements
a. Calculation of debt default estimate for general receivables
As it is deemed that there is no material change in the debt default ratio and the like at the end of the current second
quarter from what was calculated at the end of the previous fiscal year, debt default estimate was calculated using thedebt default ratio and the like at the end of the previous fiscal year.

b. Inventory valuation method
With respect to the calculation of inventories at the end of the current second quarter, physical inventories wereomitted and a reasonable calculation method based on the physical inventories at the end of the previous fiscal year was
employed.
In addition, concerning the write-down of the book value of inventories, only for those items whose drop in
profitability was apparent, was an estimate of net selling price made and were book values written down.

c. Calculation of depreciation of fixed assets
For fixed assets to which the declining-balance method is applied, the amount of depreciation for the fiscal year is
proportionally divided up into amounts for the quarterly period.

10

d. 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 second quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.
Also, adjustment for income taxes is included in income taxes.

(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated
Financial Statements
Changes in Accounting Treatments
Changes in presented segments
In the Amusement Facility Business, the costs of supportive operations at the rear of the store was treated as costof sales. However, commencing in the first quarter, these costs are now presented as selling, general andadministrative expenses.
The reason for this change is as follows. After conducting reviews of the store operation methods and the role ofoperations staff to address intensifying competition in the Amusement Facility Business, a better understanding ofstore management operations was obtained. From the perspective of having a corresponding relationship between
sales and cost of sales, it was decided to present the costs relating to store management operations using more
appropriate categorization.
As a result of this change, compared to if the previous standard was applied, the cost of sales decreased by 1,034
million yen, resulting in an increase in gross profit of the same amount. Selling, general and administrative expenses
rose by the same amount.
This change does not impact operating loss, recurring loss and loss before income taxes and minority interests.
It also does not impact the operating results presented in segment information.

11

5. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Current 2nd Quarter
As of September 30, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

AssetsCurrent assets
Cash and time deposits

94,289106,747

Trade receivables

50,31062,518

Short-term investments

5,020

4,426

Merchandise and finished goods

16,233

11,642Work in process

26,714

21,653

Raw materials and supplies

4,777

4,354

Other current assets

29,49525,190Allowance for doubtful receivables

(903)

(446)

225,937

236,085

51,211

51,991

16,637

12,054

Other intangible assets

9,732

10,230Total intangible assets

26,36922,285

Other investments and assets

53,561

54,336

Allowance for doubtful receivables(1,245)(1,254)

Total investments and other assets

52,31653,081

129,897

127,359

355,835

363,444

Trade payables

35,131

36,760

Short-term borrowings

10,025

8,857

Accrued income taxes

5,187

6,374

Provision

3,084

1,701

Other current liabilities

29,74730,609Total current liabilities

83,17584,303Long-term debt

7,655

11,990

Provision

2,190

1,953

210

246

Other long-term liabilities

4,457

4,371

Total long-term liabilities

14,513

18,561

97,689102,865

Total current assets
Fixed assets
Property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities

Long-term liabilities

Negative goodwill

Total liabilities12(¥ million)
Current 2nd Quarter
As of September 30, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,96079,887Retained earnings

190,659

199,453

Treasury stock(9,442)(9,624)

Total stockholders’ equity

271,177

279,717(308)(1,911)40(105)

Valuation difference and translation adjustments
Other securities valuation difference
Deferred gains or losses on hedges, net of taxes
Land revaluation(6,299)(6,299)Translation adjustments(9,146)(13,755)

Total valuation difference and translation adjustments(15,714)(22,071)

Stock subscription rights

1,206

1,468

Minority interests

1,477

1,465

258,146

260,579

355,835

363,444

Total net assets
Total liabilities and net assets

13

(2) Quarterly Consolidated Statements of Income(¥ million)
Prior 2nd Quarter(From April 1, 2008
to September 30, 2008)

Current 2nd Quarter(From April 1, 2009
to September 30, 2009)

Net sales

190,795

172,733

Cost of sales

124,098

114,197

Gross profit

66,69658,536

Selling, general and administrative expenses

61,11961,151

Operating income (loss)

5,576(2,615)Interest income

1,067

242

Non-operating income
Dividend income

260

143

Amortization of negative goodwill

57

61

Equity in gain of affiliated companies

181–

Other non-operating income

328

256

Total non-operating income

1,895

704

Non-operating expenses
Interest expense

80

158

Foreign exchange loss–

356

Equity in loss of affiliated companies–

360

Expense related to rental assets

47–

Other non-operating expenses

68

80

Total non-operating expenses

196

956

7,275

(2,866)

Recurring income (loss)
Extraordinary income

1,582

11

Reversal of allowance for doubtful receivables

Gain on sales of fixed assets

47

17

Reversal of accrued retirement and severance benefits–

12

Gain on reversal of stock subscription rights–

6

Gain on liquidation of subsidiaries–

49

Other extraordinary income

80–

Total extraordinary income

1,709

97

Loss on sales of fixed assets

6

8Loss on impairment of fixed assets

43

156

Extraordinary loss–

109

Loss on valuation of investment securities

Loss on disposal of fixed assets

880–

Special retirement expenses

651–

Litigation settlement

520–

Other extraordinary loss

213

204

Total extraordinary loss

2,317

479

Income (loss) before income taxes and minority interests

6,667(3,249)

Income taxes

5,255

2,678

Minority interests

128

110

Net income (loss)

1,282(6,038)14

(3) Quarterly Consolidated Statements of Cash Flows(¥ million)
Prior 2nd Quarter(From April 1, 2008
to September 30, 2008)

Current 2nd Quarter(From April 1, 2009
to September 30, 2009)

Cash flows from operating activities
Income (loss) before income taxes and minority interests

6,667(3,249)Depreciation and amortization

10,351

8,819

43

156

Amortization of goodwill

2,029

2,363

Increase (decrease) in allowance for doubtful receivables

(240)

118

Loss on impairment of fixed assets

Increase (decrease) in provision

(372)

(579)

Interest and dividend income(1,327)(385)

Interest expense

80

158

Foreign exchange loss (gain)

(29)

95

Equity in loss (gain) of affiliated companies

(181)

360

Loss on disposal of fixed assets
Loss (gain) on sales of fixed assets

76

109

(1,575)(2)
67

Loss on disposal of amusement facilities and machines

283

Loss (gain) on sales of investment securities

(66)

–

Loss (gain) on valuation of investment securities

880

17

Decrease (increase) in trade receivables

16,291

16,581

Decrease (increase) in inventories(4,763)(6,707)

Investment for amusement facilities and machines(4,543)(1,804)

Increase (decrease) in trade payables(5,035)(7,541)

Increase (decrease) in accounts payable–other(7,563)(4,160)

Increase (decrease) in consumption tax payables(1,369)

(304)

Other

(4,158)554
4,669

Subtotal

5,475Interest and dividends received

1,355

352

Interest paid

(69)

(95)

Income taxes paid

(9,542)(5,385)

Net cash used in operating activities(2,780)(458)

Cash flows from investing activities
Payments for deposit in time deposits(1,155)(95)

Proceeds from withdrawal from time deposits

2,108

257

Purchases of property, plant and equipment(3,430)(3,716)

Proceeds from sales of property, plant and equipment

3,492

15

Purchases of intangible assets(1,283)(1,169)Purchases of investment securities

(139)

(378)

Proceeds from sales of investment securities

233

3

Acquisition of shares in consolidated subsidiaries, net ofcash acquired

(25)

(18)

–

(1,821)(60)(1,049)Purchase of subsidiary shares affecting the scope of
consolidation
Advances of loans receivableCollection of loans receivable

268

56

Guarantee money deposited

(384)

(285)

Proceeds from collection of guarantee money deposited

1,052

611

Other

(5)

6

Net cash provided by (used in) investing activities

669(7,584)15

(¥ million)
Prior 2nd Quarter(From April 1, 2008
to September 30, 2008)

Current 2nd Quarter(From April 1, 2009
to September 30, 2009)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term debt
Repayment of lease obligations–

283(2,669)(4,425)–(50)

Payments into fund trust for purchase of treasury stock(12,000)–

Proceeds from withdrawal of fund trust for purchase oftreasury stock

1,555

–

(5)

(1)

Purchase of treasury stock
Dividends paid

(3,053)(2,896)

Dividends paid to minority interests

(76)

(51)

Net cash used in financing activities(16,248)(7,141)

Effect of exchange rate changes on cash and cash equivalents(2,342)

3,197

Net increase (decrease) in cash and cash equivalents(20,701)(11,987)

Cash and cash equivalents at beginningof period

129,289

110,037

1,142

270

Increase in cash and cash equivalents due to merger with
non-consolidated subsidiaries–

61

Decrease in cash and cash equivalents due to company split

–

(45)

109,731

98,336

Increase in cash and cash equivalents due to consolidation of
additional subsidiaries

Cash and cash equivalents at end of period16(4) Notes on Premise of Going Concern
No items to report(5) Segment Information[By business segment]
Prior 2nd quarter (From April 1, 2008 to September 30, 2008)(¥ million)

Toys and
Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

NetworkBusiness

Visual andMusic
Content
Business

Other
Businesses(1) To externalcustomers

71,86540,33053,5255,201

15,6194,253

190,795–

190,795(2) Inter-segment
sales and transfers

1,348

211

2,964

154

373

5,260

10,313(10,313)–

Total

73,21340,54256,4905,355

15,9939,514

201,109(10,313)

190,795

4,416

1,030

123

378

654

280

6,883

(1,307)

5,576

Total

Eliminations
Consolidated
andCorporate

Net sales

Operating income

Current 2nd quarter (From April 1, 2009 to September 30, 2009)(¥ million)

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business(1) To externalcustomers

65,22755,047

14,94433,593

3,919(2) Inter-segment
sales and transfers

1,472

2,133

524

123

Total

66,70057,181

15,469Operating income (loss)

3,765(6,769)362

Amusement
Facility
Business

Other
Businesses

Eliminations
andCorporate

Consolidated

172,733–

172,733

4,976

9,230

(9,230)–33,717

8,895

181,963(9,230)172,733

1,056

19(1,564)(1,050)(2,615)Total

Net sales

Notes: 1.
2.

Business segment classifications are in accordance with classifications adopted for internal management
purposes.
Principal products in each business segment:(1) Toys and Hobby Business:
Toys, candy toys, production for vending machines, cards, plastic
models, apparel, sundries(2) Game Contents Business:
Home-use video game software, commercial-use video gamemachines, mobile content, prizes for amusement arcade machines(3) Visual and Music Content Business: Video products, visual software, on-demand video distribution,
music software(4) Amusement Facility Business:
Amusement facilities operation(5) Other Businesses:
Transportation and storage of products, leases, real estate
management, printing, sales of environmental devices

17

3.

Changes in business segments
On April 1, 2009, for the further growth expected in the network-related market, an absorption-type merger
was executed between the Company’s consolidated subsidiary Bandai Networks Co., Ltd. (the extinct company)
and the Company’s consolidated subsidiary NAMCO BANDAI Games Inc., (the surviving company). As aresult of a review of business segments that accompanied this merger, it was decided to merge the Network
Business segment with the Game Contents Business segment from the first quarter because they had similarbusiness characteristics such as contents of services, content development, and support for multiple media.
The table below presents the results of the first six months of the previous fiscal year (business segment
information) under the new business segments.
(¥ million)
Visual andAmusement
Music
Other
Facility
Businesses
Content
Business
Business

Eliminations
Consolidated
andCorporate

Toys and
Hobby
Business

Game
Contents
Business(1) To externalcustomers

71,86558,727

15,61940,3304,253

190,795–

190,795(2) Inter-segment
sales and transfers

1,348

2,930

373

211

5,260

10,125(10,125)–

Total

73,21361,657

15,99340,5429,514

200,920(10,125)

190,795

4,416

501

654

1,030

280

6,883

(1,307)

5,576

Total

Net sales

Operating income[By geographic segment]
Prior 2nd quarter (From April 1, 2008 to September 30, 2008)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers

Americas(¥ million)

Europe

Asia

Total

Eliminations
Consolidated
andCorporate

146,599

17,371

20,358

6,465

190,795–

190,795

7,534

1,091

7

10,015

18,649(18,649)–

Total

154,133

18,463

20,366

16,481

209,444(18,649)

190,795

Operating income (loss)

4,282

(813)

2,742

931

7,141

(1,564)

5,576

Current 2nd quarter (From April 1, 2009 to September 30, 2009)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers

Americas

Europe(¥ million)
Asia

Total

Eliminations
Consolidated
andCorporate

134,457

13,414

17,8207,041

172,733–

172,733

5,848

1,630

78

9,073

16,631(16,631)–

Total

140,305

15,044

17,89916,115

189,364(16,631)

172,733

Operating income (loss)

2,682(3,808)

(819)

904

(1,040)(1,574)(2,615)

Note:

Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as degree of geographic closeness, similarities in
economic activities, and mutual relationship of business activities.

18

(2) Principal countries and regions belonging to each geographic segmenta.

Americas:

United States and Canadab.

Europe:France, United Kingdom, Spain, Germany, etc.

c.

Asia:

Hong Kong, Thailand, South Korea, China, Australia, etc.

As a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries in the current second
quarter, Germany has been added to the segment of Europe and Australia has been added to the segment of Asia.
[Overseas sales]
Prior 2nd quarter (From April 1, 2008 to September 30, 2008)
Americas
I.

Overseas sales (¥ million)

II.

Consolidated sales (¥ million)

Europe

Asia

Total

18,07621,0298,399

47,505–––

190,795

9.5

11.0

4.4

24.9

III. Overseas sales as a ratio ofconsolidated sales (%)

Current 2nd quarter (From April 1, 2009 to September 30, 2009)
Americas
I.

Overseas sales (¥ million)

II.

Consolidated sales (¥ million)

III. Overseas sales as a ratio ofconsolidated sales (%)
Notes: 1.
2.

Europe

Asia

Total

14,66718,001

8,797

41,467–––

172,733

8.5

10.4

5.1

24.0

Overseas sales represent the total of sales generated in countries and regions other than Japan by the Company
and its consolidated subsidiaries.
Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as degree of geographic closeness,similarities in economic activities, and mutual relationship of business activities.
(2) Principal countries and regions belonging to each geographic segmenta.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, Germany, the Middle East, Africa, etc.

c.

Asia:

Hong Kong, Singapore, Thailand, South Korea, Australia, China, Taiwan, etc.

As a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries in the current
second quarter, Germany has been added to the segment of Europe.
(6) Notes on Significant Changes in the Amount of Stockholders’ Equity
No items to report19(7) Significant Subsequent Event(Capital increase in subsidiary)
The Company decided by the resolution at the Board of Directors’ meeting held on October 29, 2009 to increase thecapital of consolidated subsidiaries BANDAI S.A., NAMCO BANDAI Games Europe S.A.S., NAMCO BANDAI Partners
S.A.S. and 10 subsidiaries of NAMCO BANDAI Partners S.A.S.

1. Purpose for the capital increases
The purpose of the capital increases is to improve the financial standing of part of the subsidiaries of NAMCO
BANDAI Partners S.A.S.

2. Method of the capital increases
The main method used to increase capital will be by debt equity swap (hereinafter “DES”).

3. Details of capital increases of major subsidiaries(1) BANDAI S.A.
a. Common stock before capital increase: 15,000 thousand euros
b. Amount of capital increase:

30,000 thousand euros (of which 30,000 thousand euros is DES)

c. Recipient:

NAMCO BANDAI Holdings Inc. (the Company)(2) NAMCO BANDAI Games Europe S.A.S.
a. Common stock before capital increase: 34,241 thousand euros
b. Amount of capital increase:

30,000 thousand euros (of which 30,000 thousand euros is DES)

c. Recipient:

BANDAI S.A.

(3) NAMCO BANDAI Partners S.A.S.
a. Common stock before capital increase: 35,037 thousand euros
b. Amount of capital increase:44,963 thousand euros (of which 44,963 thousand euros is DES)

c. Recipient:

NAMCO BANDAI Games Europe S.A.S.

(4) NAMCO BANDAI Partners France S.A.S.
a. Common stock before capital increase: 530 thousand euros
b. Amount of capital increase:

7,069 thousand euros (of which 3,107 thousand euros is DES)

c. Recipient:

NAMCO BANDAI Partners S.A.S.

(5) NAMCO BANDAI Partners UK Ltd.
a. Common stock before capital increase: 18,306 thousand British pounds
b. Amount of capital increase:

6,693 thousand British pounds(of which 3,465 thousand British pounds is DES)

c. Recipient:

NAMCO BANDAI Partners S.A.S.

20

4. Schedule of capital increases
The circumstances of the capital increase procedures of each consolidated subsidiary shall be examined with respect
to the laws and regulations and corporate tax practices of the relevant countries and the Company plans to execute thecapital increases by March 31, 2010.

21