Bandai Namco Holdings Inc.
Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2023

February 7, 2023

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

Bandai Namco Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
February 7, 2023

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2023 (Japanese GAAP)
Representative: Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director
Scheduled filing date of the quarterly security report:
February 13, 2023
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2022)

Third Quarter of the Fiscal YearEnding March 31, 2023
Third Quarter of the Fiscal Year
Ended March 31, 2022

Net sales¥ million
743,187%18.3

628,311

15.6

Profit attributable toowners of parent¥ million%
84,44436.9(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
106,203
15.2
116,961
22.4
92,153

26.4

Basic earnings per share

95,55827.2

Diluted earnings per
share¥
Third Quarter of the Fiscal Year
383.84Ending March 31, 2023
Third Quarter of the Fiscal Year61,70321.9
280.85Ended March 31, 2022
(Note) Comprehensive income: 105,000 million yen [69.1%] (FY2023.3 3Q), 62,078 million yen [(7.6)%] (FY2022.3 3Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of December 31, 2022
907,328
641,071
70.6
As of March 31, 2022
862,650
584,233
67.7(Reference) Equity: 640,630 million yen (as of December 31, 2022), 583,995 million yen (as of March 31, 2022)¥––

2. Cash Dividends
End offirst quarter
Fiscal Year Ended March 31, 2022
Fiscal Year Ending March 31, 2023

End ofsecond quarter–¥24.00–¥27.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥188.00

Total¥212.00

Fiscal Year Ending March 31, 2023–
¥27.00¥54.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2023: No
Concerning the projected amounts of the year-end cash dividend for the fiscal year ending March 31, 2023, 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, 2023, 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, 2023 (April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable to
Basic earnings
profitprofitper shareownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
940,000
5.7
128,000
2.0
139,000
4.0
95,0002.4
431.81(Note) Revision to the projections: No* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 11 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Changes in Accounting
Policies)” of “2. Consolidated Financial Statements and Significant Notes” on page 11 of the attached material.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
222,000,000 shares
As of December 31, 2022
As of March 31, 2022
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
1,983,150 shares
As of December 31, 2022
As of March 31, 2022
2,023,206 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
220,000,903 shares
For the Third Quarter of the Fiscal Year Ending March 31, 2023
For the Third Quarter of the Fiscal Year Ended March 31, 2022
219,699,622 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted 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 managementʼs estimates, assumptions and projections at thetime of publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A
number of factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation
Regarding Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated
Results for the Third Quarter” on page 3 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 February 7, 2023.

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

2. Consolidated Financial Statements and Significant Notes ................................................... 7(1) Consolidated Balance Sheets ............................................................................................................................................ 7(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ............................. 9(Consolidated Statements of Operations) ........................................................................................................................ 9(Consolidated Statements of Comprehensive Income).................................................................................................. 10(3) Notes to Consolidated Financial Statements ................................................................................................................. 11(Notes on Premise of Going Concern) ............................................................................................................................. 11(Notes on Significant Changes in the Amount of Stockholdersʼ Equity) ........................................................................ 11(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)........................ 11(Changes in Accounting Policies) .................................................................................................................................... 11(Segment Information) .................................................................................................................................................... 12(Significant Subsequent Events) ..................................................................................................................................... 14- 1 -1. Qualitative Information Regarding Consolidated Results for the Third Quarter(1) Explanation Regarding Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2023, the future economic environment,
both in Japan and overseas remained uncertain. While measures were promoted to prevent the spread of the novel
coronavirus disease (COVID-19) and to relax restrictions on activities, the spread of COVID-19 variants, changes in thesocial situation, rising raw material and crude oil prices and the weakening of the yen, among other factors, affectedeconomies and society, as well as customer lifestyles and preferences.
Under such circumstances, from April 2022, with Purpose being the ultimate definition of who we are as a Group andthe introduction of the new logo, we began our new three-year Mid-term Plan. In the Mid-term Plan, toward the aims of
the Bandai Namco Group based on our Purpose, we have established a mid-term vision of “Connect with Fans” that aims
to constantly meet the needs of global fans, a wide range of business partners, Group employees, and communities
around the world and to foster broad, deep, multifaceted connections. As key strategies, we are promoting our “IP axis
strategy,” “personnel strategy,” and “sustainability.” By propelling the emphasis measures, we will take 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. We will also strengthen the global development of the “IP axis
strategy,” enhancing our sense of unity and collective strength under the ALL BANDAI NAMCO concept, in order toachieve continuous growth.
In the third quarter (nine months), in addition to taking swift measures in response to environmental changes, we
promoted various initiatives to foster broad, deep, and multifaceted connections with fans through efforts such as
strengthening collaboration among development of major IP in the media and our products and services. As a result,revenues and profit for all Businesses exceeded those of the same period of the previous fiscal year. Operating profit
grew worldwide due to strong repeat sales of home video games with high profit margins in the Digital Business, andfavorable sales of products for the mature fan base, card products and other products and services with high profit
margins in the Toys and Hobby Business. In addition, due to the weak yen, the increase in foreign exchange gains
associated with transactions denominated in foreign currencies boosted ordinary profit, and profit attributable toowners of parents exceeded that of the same period of the previous fiscal year.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 743,187 million
yen (year-on-year increase of 18.3%), operating profit of 106,203 million yen (year-on-year increase of 15.2%), recurring
profit of 116,961 million yen (year-on-year increase of 22.4%), and profit attributable to owners of parent of 84,444
million yen (year-on-year increase of 36.9%).
Operating results by segment are as follows.
Effective from the first quarter of the fiscal year ending March 31, 2023, the Group changed the classification of its
reportable segments. Consequently, in the following year-on-year comparisons, the figures for the same period of theprevious fiscal year have been restated into the figures for the classifications after the change.
Digital Business
As for the Digital Business, in home video games, repeat sales were strong mainly overseas for existing titles forworldwide distribution such as major title ELDEN RING launched in the previous fiscal year, contributing to results. In
addition, the sales of multiple new titles launched during the third quarter (nine months) were stable. In network content,
sales were strong for key titles such as the DRAGON BALL series and ONE PIECE, and those titles for which we launched
service in the previous fiscal year, as a result of collaboration with IP development in the media and ongoing measurestargeting users. Furthermore, given the intensifying competition in the market environment of this business, with thegoal of providing titles focused on quality, we recorded valuation losses, etc. on certain work in process.
As a result, net sales in the Digital Business were 288,571 million yen (year-on-year increase of 19.1%), and segment
profit was 46,642 million yen (year-on-year increase of 23.9%).
Toys and Hobby Business
As for the Toys and Hobby Business, while it was impacted by rising prices for raw materials and fuel caused byprogressing depreciation of the yen, products for the mature fan base such as plastic models of the Mobile Suit Gundam
series, collectible figures, and character lotteries performed favorably worldwide mainly due to the successful outcomesproduced by sales, marketing, and expansion of the product lineup. In addition, long-established IP toys, as well as card
products such as the ONE PIECE trading card game and digital cards of the Mobile Suit Gundam series, etc., confectionery
products such as Charapaki and capsule toys were popular.
- 2 -As a result, net sales in the Toys and Hobby Business were 345,128 million yen (year-on-year increase of 20.7%), andsegment profit was 52,953 million yen (year-on-year increase of 4.3%).
IP Production Business
As for the IP Production Business, we changed our organizational structure to integrate resources and know-how
related mainly to visual, music, and live events with the aim of reinforcing our IP creation. Under this new structure, in
relation to IPs such as the Mobile Suit Gundam series, the LoveLive! series, That Time I Got Reincarnated as a Slime andthe BLUELOCK, we produced and distributed video works, sold visual and music package software, held live events, andconducted licensing business.
Furthermore, with the progress in relaxation of COVID-19 restrictions in Japan, the business for live events and
GUNDAM FACTORY YOKOHAMA exceeded that of the previous fiscal year, and the overseas development of video
streaming and IP was strong.
As a result, net sales in the IP Production Business were 55,023 million yen (year-on-year increase of 0.8%), andsegment profit was 6,350 million yen (year-on-year increase of 20.6%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19 causing facilities closures in certain
regions and the impact of rising utilities costs caused by increased fuel costs, the facilities business saw recovery with
net sales of existing amusement facilities in Japan for the third quarter (nine months), amounting to 115.4% that of thesame period of the previous fiscal year. In addition, the Amusement Machines Sales Business performed favorably inEurope and the U.S. mainly. For the Amusement Business, in addition to continuing to improve efficiency, we will aim tostrengthen the revenue base by promoting initiatives that only the Bandai Namco Group can offer, such as store
development through collaboration with the Group’s products and services.
As a result, net sales in the Amusement Business were 75,478 million yen (year-on-year increase of 22.9%), andsegment profit was 6,936 million yen (year-on-year increase of 60.1%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds ofadministration and operational support for each of the Group companies. We have been making efforts to manage
such operations related to Group support in an efficient manner.
Net sales in the Other Businesses were 23,529 million yen (year-on-year increase of 12.0%), and segment profit was
1,140 million yen (year-on-year increase of 38.6%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2023, total assets stood at 907,328 million yen, an
increase of 44,677 million yen from the end of the previous fiscal year. The main factors were increases of 11,154
million yen in trade receivables and contract assets, 13,782 million yen in finished goods and merchandise, 16,342
million yen in work in process, 12,037 million yen in property, plant and equipment and 23,541 million yen in
investment securities, despite a decrease of 42,510 million yen in cash and time deposits.
Total liabilities amounted to 266,256 million yen, a decrease of 12,159 million yen from the end of the previous
fiscal year. The main factors were decreases of 7,640 million yen in accrued income taxes, and 7,051 million yen inother long-term liabilities mainly due to a decrease in long-term borrowings.
Total net assets stood at 641,071 million yen, an increase of 56,837 million yen from the end of the previous fiscal
year. The main factors were increases of 35,875 million yen in retained earnings, 14,781 million yen in valuationdifference on available-for-sale securities, net of tax, and 8,118 million yen in foreign currency translation adjustments.
As a result, the equity ratio became 70.6% compared with 67.7% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, the Group expects uncertainty to continue in various regions around the world. We also expect thechanges in the environment surrounding us such as the market as well as customers’ lifestyles and preferences tobecome even more intense.
Under these circumstances, adapting to escalating competitiveness in global markets and diversification inlifestyles and preferences of customers, in line with an IP axis strategy, the Bandai Namco Group will enhance oursense of unity and collective strength under the ALL BANDAI NAMCO concept, while utilizing the characteristics of eachbusiness. From April 2022, as Purpose being the ultimate definition of who we are as a Group and the introduction of- 3 -the new logo, to maintain continuous growth over medium to long term for the aims under our Purpose, the newthree-year Mid-term Plan has started.
1)

Formulation of Bandai Namcoʼs Purpose and introduction of the new logo

From April 2022, we have established our new Purpose as the ultimate definition of who we are as a Group,
conveying “the reason for our existence,” “why we conduct our businesses and corporate activities,” and “themeaningfulness we derive from working at Bandai Namco Group.” What we believe to be particularly importantelements in our Purpose are the ideas of “Connecting and working together to create things” and we will achieve “Funfor All into the Future” by Bandai Namco Group and our fans connecting through dreams, fun and inspiration.
<Bandai Namco’s Purpose>

From April 2022, we have introduced a new logo that expresses the spirit of Purpose. All companies with “Bandai
Namco” in their names will use this logo, and companies with and without “Bandai Namco” in their names will display
this new Group logo on all their products and services, in principle. This will enable us to bring together the value of all
our products, services, and labels under one logo, make the Group’s sense of unity and its total capabilities appeal
strongly, and elevate the brand value of the Bandai Namco Group in the global market.
<New logo>

2)

Purpose-driven aims

In accordance with the Purpose, the Bandai Namco Group aims to connect with IP fans, a wide range of business
partners, Group employees, and communities around the world. We will strive to connect more deeply with current
fans and more broadly with new fans. In addition, we will aim to foster multifaceted connections among current fansand new fans as well as communities of fans. In fostering connections with and among various fans, our highest
priority will be the quality of the connections. Under the Mid-term Plan, we will advance a variety of strategies andinitiatives focusing on broad, deep, and multifaceted connections with fans and on the quality of those connections.

- 4 -3) Mid-term Vision

In accordance with the Purpose, as we work toward what the Bandai Namco Group aims to be, under the Mid-term
Plan we will strive to always meet the needs of IP fans, a wide range of business partners, Group employees, andcommunities around the world and to foster broad, deep, multifaceted connections.
4)

Main strategies and investment plan
IP axis strategy

The IP axis strategy, which is the Bandai Namco Groupʼs strength, is the core of the Mid-term Plan. We will aim forsustainable growth by implementing new initiatives to foster broad, deep, and multifaceted connections with fansaround the world; by accelerating evolution in the IP axis strategy; and by working to build businesses as we work
together under the ALL BANDAI NAMCO concept in regions around the world.
・ IP x Fans (connecting with fans through IP): New framework for connecting with fans
Based on the IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connectingwith fans. In this IP Metaverse, we are anticipating virtual spaces that will enable customers to enjoy a wide range
of entertainment surrounding IP, as well as frameworks that leverage Bandai Namco’s distinctive strengths to fusephysical products and venues with digital elements. We are aiming for open frameworks that provide venues forconnections with and among fans and business partners. Through the IP Metaverse, we will establish communities
among Bandai Namco and fans, as well as among fans themselves. Through these communities and content, we
will build broad, deep, multifaceted connections that continue for long periods of time, and we will focus on thequality of those connections. In this way, we will work to maximize IP value over the medium to long term.
・ IP x Value (enhancing IP value): Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among physical and digital elements, and we will redefine the optimal IP axis strategy for IP fans
and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.
・ IP x World (connecting the world through IP): Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in regions worldwide, wehave implemented such initiatives as organizational restructuring and base consolidation around the world.
Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.
・ Investment plan for accelerating evolution in the IP axis strategy
Over the three years of the Mid-term Plan, we will implement a total of 40.0 billion yen in strategic investment
to accelerate evolution in the IP axis strategy.
Strategic investment to maximize IP value: 25.0 billion yen
Investment to develop the IP Metaverse:
15.0 billion yen
Personnel strategy: Developing diverse human resources
In accordance with our Purpose, the Group strives to be a community of “Same Spirit, Diverse Talents,” where
diverse companies and people of different skills, individual characteristics and values can thrive. We will further focus
on recruiting and promoting individuals regardless of whether they are new graduates or mid-career hires andregardless of gender or nationality, in addition to which we will focus on developing systems and environments thatenable a diverse array of people to thrive and work in a way that is both physically and mentally healthy. Under the
Mid-term Plan, we will promote initiatives to support challenges taken on by employees and the development of
human resources to promote the IP axis strategy on a global scale, as well as new and diverse ways to work.
Sustainability: Connecting to a future of smiles
In accordance with our Purpose and the Bandai Namco Group Sustainability Policy, the Bandai Namco Group will
work together with fans to advance sustainability activities for the realization of a sustainable society in ways such as
working on the action plan in line with the newly specified material issues.

- 5 -<Specified Material Issues>

5)·

Harmonious coexistence with the natural environment·

Provision of appropriate products and services·

Appropriate utilization and protection of intellectual property·

Establishment of work environments that facilitate mutual respect·

Harmonious coexistence with communities
System for promotion of the Mid-term Plan

・ Strengthening the governance system of Bandai Namco Holdings
In order to further increase corporate value by strengthening our corporate governance system and implementing
rapid decision-making and business execution, we have made the transition to a company with an Audit & Supervisory
Committee.
・ Partial changes of the Unit structure
From April 2022, we restructured the IP Production Unit and also integrated the Visual and Music Business and theCreation Business into the IP Production Business. In the IP Production Unit, Bandai Namco Filmworks Inc. will serve asa business management company upon having combined three companies that engage in the visual business within
the IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., and Bandai Namco Rights
Marketing Inc.
6)

Numerical targets, shareholder return policy・ Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales:
Consolidated operating profit:
ROE:

1,100.0 billion yen
125.0 billion yen
12% or moreIn the future, Bandai Namco Group aims to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connection, and eachbusiness around the world will further work as one under the ALL BANDAI NAMCO concept on the priority strategies,
consisting of the IP axis strategy, Personnel strategy, and Sustainability, under the Mid-term Plan.
Our outlook for the fourth quarter of the fiscal year ending March 31, 2023 continues to be uncertain in each region,but in addition to continuing to respond quickly to changes in the business environment, we will promote various
initiatives including developing products, services, and marketing that connects with our fans in a broad, deep, andmultifaceted way. Furthermore, for the consolidated projections for the full fiscal year ending March 31, 2023, there are
no changes to the figures announced on November 10, 2022.

- 6 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current 3rd Quarter(As of December 31, 2022)

AssetsCurrent assets
Cash and time deposits

279,401

236,890

Trade receivables and contract assets

122,742

133,896

Finished goods and merchandise

33,051

46,834Work in process

86,292

102,634

Raw materials and supplies

4,905

5,762

Other current assets

52,81456,816

Allowance for doubtful receivables(2,001)(1,017)

Total current assets

577,206

581,818

92,450104,487

14,887

15,174

Fixed assets
Property, plant and equipment
Intangible assets
Goodwill
Other intangible assets

19,54020,781

Total intangible assets

34,42835,956

Investment securities

113,261

136,803

Other investments and assets

Investments and other assets
46,08849,087

Allowance for doubtful receivables

(784)

(824)

Total investments and other assets

158,565

185,066

285,443

325,509862,650

907,328

Total fixed assets
Total assets- 7 -(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current 3rd Quarter(As of December 31, 2022)

Liabilities
Current liabilities
Trade payables

99,810106,250

Short-term borrowings

10,810

11,393

Accrued income taxes

22,891

15,251

Provision

3,745

3,661

Other current liabilities

106,104

102,066

Total current liabilities

243,362

238,623

Long-term liabilities
Provision

249

139

Net defined benefit liability

5,261

5,003

Other long-term liabilities

29,542

22,491

Total long-term liabilities

35,053

27,633

278,416

266,256

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

52,57452,897Retained earnings

482,147

518,023

Treasury stock(2,140)(2,101)

Total stockholdersʼ equity

542,581

578,81945,03759,818901(1,808)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, netof taxDeferred gains or losses on hedges, net of tax
Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments

1,886

10,004Remeasurements of defined benefit plans, net of tax(2,394)(2,186)

Total accumulated other comprehensive income

41,413

61,811

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

- 8 -

237

440

584,233

641,071862,650

907,328

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 3rd Quarter(From April 1, 2021
to December 31, 2021)

Current 3rd Quarter(From April 1, 2022
to December 31, 2022)

Net sales

628,311743,187

Cost of sales

379,648457,854

Gross profit

248,663

285,332

Selling, general and administrative expenses

156,509179,129

Operating profit

92,153106,203

909

2,369

Foreign exchange gains

1,082

5,137

Other non-operating income

2,146

3,555

Total non-operating income

4,137

11,061

Interest expense

277

248

Other non-operating expenses

455

55

Non-operating income
Share of profit of entities accounted for using equity
methodNon-operating expenses

Total non-operating expenses
Recurring profit

732

303

95,558116,9612

516

Extraordinary income
Gain on sales of shares of subsidiaries and associates
Other extraordinary income

3,587

175

Total extraordinary income

3,590

691

666

286

Extraordinary loss
Loss on impairment of fixed assets
Loss on valuation of investment securities

–

283

1,275

–

Other extraordinary loss

1,864

378

Total extraordinary loss

3,806

948

Profit before income taxes

95,342

116,704

Income taxes

26,84632,100Extra retirement payments

Income taxes for prior periods

6,792

–

Profit

61,70384,6040

159

61,70384,444

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 9 -(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 3rd Quarter(From April 1, 2021
to December 31, 2021)
ProfitCurrent 3rd Quarter(From April 1, 2022
to December 31, 2022)

61,70384,604(2,356)

14,804

Deferred gains or losses on hedges, net of tax(588)(2,704)Foreign currency translation adjustments

2,987

8,117

Remeasurements of defined benefit plans, net of tax

435

208

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

(103)

(28)

Total other comprehensive income

375

20,396

62,078105,000

62,079104,842(0)

158

Other comprehensive income
Valuation difference on available-for-sale securities, net oftax

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 10 -

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholdersʼ Equity)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current third quarter, and next by multiplying the profit
before income taxes by such estimated effective tax rate.
(Changes in Accounting Policies)(Application of US GAAP Accounting Standards Update (ASU) No. 2016-02 “Leases”)
Effective from the first quarter of the fiscal year ending March 31, 2023, the Companyʼs consolidated subsidiaries in
the United States have applied the US GAAP ASU No. 2016-02 “Leases.”
ASU No. 2016-02 requires the lessee to recognize both the right-of-use assets, which is the right to use theunderlying assets, and the lease liabilities, which is the obligation to make lease payments, for all leases in principle. In
applying this update, the Company used the method in which it recognizes the cumulative effect of retrospective
adjustments as of the commencement date of application.
As a result of this change, in the consolidated balance sheets for the third quarter under review, property, plant andequipment increased by 1,740 million yen, current liabilities increased by 214 million yen, and long-term liabilities
increased by 1,526 million yen. Furthermore, the application of the update had only a minimal effect on operating
profit, recurring profit, and profit before income taxes in the nine months ended December 31, 2022. Moreover, theapplication had no impact on the opening balance of retained earnings.
(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021) effective from the beginning of the first quarter of the fiscal year ending March
31, 2023, and it has applied the new accounting policy provided for in the Implementation Guidance on AccountingStandard for Fair Value Measurement prospectively in accordance with the transitional treatment provided for inparagraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement. There is no
impact on the quarterly consolidated financial statements.

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(Segment Information)
I

Prior 3rd Quarter (From April 1, 2021 to December 31, 2021)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)628,311–628,311

16,53536,953(36,953)–644,261

21,002665,264(36,953)628,31198,000822

98,823(6,670)92,153

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

238,962

278,516

45,90860,457

623,8444,466Inter-segment sales
and transfers

3,359

7,440

8,678

938

20,417

Total

242,321285,957

54,586

61,395

Segment profit

37,63350,765

5,267

4,333

Total

Net sales
To externalcustomers

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

Included in the 6,670 million yen deducted from segment profit as adjustment are an addition of 143 million
yen in inter-segment eliminations, and a deduction of 6,814 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

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

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II Current 3rd Quarter (From April 1, 2022 to December 31, 2022)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)

743,187–

743,187

18,35244,543(44,543)–764,201

23,529787,730(44,543)

743,187

112,883

1,140

114,024(7,821)

106,203

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

285,277

334,30343,826

74,603738,009

5,177

Inter-segment sales
and transfers

3,293

10,824

11,197875

26,191

Total

288,571345,128

55,02375,478Segment profit

46,642

52,953

6,350

6,936

Total

Net sales
To externalcustomers

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

Included in the 7,821 million yen deducted from segment profit as adjustment are a deduction of 96 million
yen in inter-segment eliminations, and a deduction of 7,724 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.
3. Information regarding changes to reportable segments, etc.
(Change to reportable segments)
From the first quarter of the fiscal year ending March 31, 2023, Units of the Group comprising operatingcompanies were restructured such that the Visual and Music Business and the Creation Business of the IP
Production Unit have been integrated into the IP Production Business.
In conjunction with this organizational restructure, the reportable segments were changed from the Digital
Business, Toys and Hobby Business, Visual and Music Business, Creation Business, and Amusement Business to
the Digital Business, Toys and Hobby Business, IP Production Business, and Amusement Business.
Segment information of the prior third quarter (from April 1, 2021 to December 31, 2021) is prepared anddisclosed based on the reportable segment classifications after the change.

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(Significant Subsequent Events)(Share Split and Partial Amendments to the Articles of Incorporation in Conjunction with Share Split)
At a meeting of the Board of Directors held on February 7, 2023, the Company has resolved to conduct share split
and make partial amendments to the Articles of Incorporation in conjunction the share split.
1. Purpose of share split
In accordance with the purpose of “Fun for All into the Future,” the Bandai Namco Group aims to foster
broad, deep, multifaceted connections with society and all stakeholders, such as IP fans around the world, allbusiness partners and Group employees. The Company aims to further increase the liquidity of its shares andbroaden its shareholder base in addition to connecting with shareholders in an even broader manner bylowering the price per investment unit through this share split.
2. Overview of share split(1) Method of share split
The Company shall conduct a share split at a ratio of three shares for every one share of common stock heldby shareholders listed or recorded on the final shareholder register on March 31, 2023, the record date.
(2)

Number of shares to be increased by share split
Total number of issued shares before the share split

222,000,000 shares

Number of shares to be increased by the share split

444,000,000 shares

Total number of issued shares after the share split

666,000,000 shares

Total number of shares authorized to be issued after the share split
(3)

(4)

2,500,000,000 shares

Timetable of share split
Date of public notice of record date

March 13, 2023

Record date

March 31, 2023

Effective date

April 1, 2023

Impact on per-share information
Below we have provided the per-share information assuming that the share split was conducted at the

beginning of the previous fiscal year.
Prior 3rd Quarter (From April 1, Current 3rd Quarter (From April 1,
2021 to December 31, 2021)
2022 to December 31, 2022)
Basic earnings per share¥93.62¥127.95––

Diluted earnings per share

3. Partial amendments to the Articles of Incorporation in conjunction with share split(1) Reason for the amendments to the Articles of Incorporation
As a result of this share split, pursuant to the provisions of Article 184, Paragraph 2 of the Companies Act,the total number of shares authorized to be issued in Article 5 of the Companyʼs Articles of Incorporation will beamended effective April 1, 2023.
(2) Detail of the amendments to the Articles of Incorporation- 14 -

The details of the amendments are as follows.
(The amendments are underlined.)
Before amendments

After amendments(Total number of shares authorized to be issued)
Article 5
The total number of shares authorized to
be issued by the Company shall be
1,000,000,000 shares.

(Total number of shares authorized to be issued)
Article 5
The total number of shares authorized to
be issued by the Company shall be
2,500,000,000 shares.

(3) Timetable of the amendments to the Articles of Incorporation
Date of resolution of the Board of Directors
Effective dateFebruary 7, 2023
April 1, 2023

4. Other(1) Change in the amount of capital
There will be no change to the amount of the Companyʼs capital as a result of the share split.
(2) Dividends
As the effective date for this share split is April 1, 2023, the year-end dividends for the fiscal year ending
March 31, 2023, the record date for which is March 31, 2023, will be based on the number of shares before theshare split.
There is no change to the Companyʼs basic policy for shareholder returns. The Company continues to rank
the return of profits to shareholders as one of its highest priorities in its management. The Company aims tofurther strengthen the Groupʼs competitiveness and, while maintaining a sound financial status, to achieve
regular distributions of dividends and improvement in the Companyʼs corporate value. Specifically, theCompany follows a basic policy of providing a return to shareholders that targets a total return ratio of 50% ormore based on stable dividend payments of 2% of DOE (dividends on equity). Under this policy, the Company
strives to maintain long-term and stable dividends and be more aware of capital cost.

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