Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2022

November 9, 2021

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

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
November 9, 2021

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2022 (Japanese GAAP)
Representative:
Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
November 11, 2021
Scheduled starting date for dividend payments:
December 7, 2021
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 Second Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2021)

Second Quarter of the Fiscal YearEnding March 31, 2022
Second Quarter of the Fiscal Year
Ended March 31, 2021

Net sales¥ million
393,646%16.8

337,122(3.5)

Profit attributable toowners of parent¥ million%
39,527
24.6(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
61,751
34.4
64,11135.8
45,930(4.2)

Basic earnings per share

47,193(3.2)

Diluted earnings per share¥
Second Quarter of the Fiscal Year
179.92Ending March 31, 2022
Second Quarter of the Fiscal Year
31,715(8.4)
144.38Ended March 31, 2021
(Note) Comprehensive income: 70,776 million yen [60.2%] (FY2022.3 2Q), 44,190 million yen [46.1%] (FY2021.3 2Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of September 30, 2021
797,233
562,11170.5
As of March 31, 2021
732,782
511,433
69.7(Reference) Equity: 561,716 million yen (as of September 30, 2021), 510,515 million yen (as of March 31, 2021)¥––

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥21.00¥24.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥91.00

Total

Fiscal Year Ended March 31, 2021–
¥112.00
Fiscal Year Ending March 31, 2022–
Fiscal Year Ending March 31, 2022–
¥24.00¥48.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2022: No
Concerning the projected amounts of the year-end cash dividend for the fiscal year ending March 31, 2022, the base dividend isstated based on the Company’s basic policy on the distribution of profits.
The year-end cash dividend for the fiscal year ending March 31, 2022 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, 2022 (April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable
Basic earnings
profitprofitto owners
per shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
795,000
7.3
90,000
6.3
93,000
6.1
58,00018.6
263.99(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2022 (announced on May 11, 2021) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Differences Between
Consolidated Projections and Actual Results and Revisions to Consolidated Projections” announced today (November 9, 2021).
* 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 9 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 9 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)
As of September 30, 2021
222,000,000 shares
222,000,000 shares
As of March 31, 2021b) Number of shares of treasury stock at the end of the period
As of September 30, 2021
2,282,724 shares
2,326,752 shares
As of March 31, 2021c) 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, 2022
219,692,126 shares
219,667,816 shares
For the Second Quarter of the Fiscal Year Ended March 31, 2021
* 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 management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation RegardingConsolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the Second 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 November 9, 2021.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Second 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 ................................................................ 5(1) Consolidated Balance Sheets.............................................................................................................................................. 5(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 7(Consolidated Statements of Operations) ........................................................................................................................... 7(Consolidated Statements of Comprehensive Income)....................................................................................................... 8(3) Notes to Consolidated Financial Statements ...................................................................................................................... 9(Notes on Premise of Going Concern) ............................................................................................................................... 9(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 9(Changes in Accounting Policies) ...................................................................................................................................... 9(Segment Information) ..................................................................................................................................................... 11(Significant Subsequent Events) ...................................................................................................................................... 14- 1 -1. Qualitative Information Regarding Consolidated Results for the Second Quarter(1) Explanation Regarding Operating Results
During the second quarter (six months) of the fiscal year ending March 31, 2022, the spread of the novel coronavirus
disease (COVID-19) continued to have an impact on the economy, society and consumer activity in Japan and overseas. As
part of our response against the spread of COVID-19, the Bandai Namco Group (“the Group”) has been giving the highest
priority to the safety of our various stakeholders, including employees and their families and our customers, while
implementing measures to prevent the spread of infection. We also promoted various measures to adapt to changes inlifestyles and preferences of customers such as by strengthening the sales and marketing that utilize digital strategies. In
addition, we have been taking advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning
characters and other intellectual property) to further strengthen the “IP axis strategy” that aims to maximize IP value throughthe provision of the optimal products and services at the optimal possible times and to expand the global deployment of thisstrategy. The measures also include an initiative to strengthen development in regions and businesses with high growthpotential and an initiative to realize the total capabilities of the Group in regions around the world under the ALL BANDAI
NAMCO concept.
The Group’s operating results for the second quarter (six months) exceeded those of the same period of the previous
fiscal year when each business was significantly impacted by the temporary closure of retail stores and amusement facilities,
the cancellation of events, etc. in many regions in Japan and overseas due to the spread of COVID-19. Despite the impact of
the spread of COVID-19, each business has quickly promoted various measures to adapt to changes in lifestyles andpreferences of customers, and the wide-ranging business portfolio of the Group has proven to be effective.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 393,646 million yen(year-on-year increase of 16.8%), operating profit of 61,751 million yen (year-on-year increase of 34.4%), recurring profitof 64,111 million yen (year-on-year increase of 35.8%), and profit attributable to owners of parent of 39,527 million yen(year-on-year increase of 24.6%).
Operating results by segment are as follows.
Effective from the first quarter of the fiscal year ending March 31, 2022, 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, home video games enjoyed favorable performance with the strong sales of the new titles
such as Tales of Arise, and strong repeat sales of existing titles due to ongoing measures targeting users. In addition, in
network content, the performance of key titles was stable, but did not reach the favorable level seen in the same period of theprevious fiscal year. During the second quarter (six months), initial expenses, such as development expenses, were recordedin advance due to the increase of launch of new major titles in comparison to the same period of the previous fiscal year.
As a result, net sales in the Digital Business were 149,597 million yen (year-on-year decrease of 10.7%), and segment
profit was 26,008 million yen (year-on-year decrease of 24.6%).
Toys and Hobby Business
As for the Toys and Hobby Business, products for the mature fan base such as plastic models of the Mobile Suit Gundam
series, collectible figures, and Lottery performed favorably as a result of sales and marketing that utilize digital strategies
and expansion of the Business overseas. In addition, product sales have recovered, including for prizes, etc. which wereaffected by the temporary closure of amusement facilities in the same period of the previous fiscal year. Moreover, in Japan,
long-established IP and new IP toys, as well as confectionery, capsule toys, trading cards for overseas markets and otherperipheral products were popular.
As a result, net sales in the Toys and Hobby Business were 178,123 million yen (year-on-year increase of 35.9%), andsegment profit was 33,092 million yen (year-on-year increase of 73.1%).
Visual and Music Business
As for the Visual and Music Business, in addition to the sales of IP related visual and music package software, including
the Mobile Suit Gundam series, the LoveLive! series and The iDOLM@STER series, IP related licensing revenue contributed
to performance. Furthermore, we proceeded with initiatives for new forms of live events that are suited to changes in thebusiness environment, such as by streaming the events and utilizing new technologies, and the number of events held
increased from the same period of the previous fiscal year.

- 2 -As a result, net sales in the Visual and Music Business were 23,627 million yen (year-on-year increase of 69.7%), andsegment profit was 3,059 million yen (year-on-year increase of 183.8%).
Creation Business
As for the Creation Business, there was an increase of revenue from production due to increase of releases of new video
works such as the Mobile Suit Gundam series and the LoveLive! series, but the impact on profits was limited due to thebusiness model of recording initial expenses in advance. Although revenue from merchandising rights was strong due toincreased popularity of Gundam, GUNDAM FACTORY YOKOHAMA, which disseminates information on IP, was impacted
by the spread of COVID-19.
As a result, net sales in the Creation Business were 15,696 million yen (year-on-year increase of 64.2%), and segment
profit was 909 million yen (year-on-year decrease of 52.5%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19, there were signs of a recovery and net
sales of existing amusement facilities in Japan increased 139.1% compared with the same period of the previous fiscal year,
and amusement facilities in Europe and Asia recovered compared with the same period of the previous fiscal year. For
Amusement Business, in addition to continuing to improve efficiency, we will promote initiatives that only the Bandai
Namco Group can offer, such as strengthening the use of Group products and services, aiming to strengthen the revenue base.
As a result, net sales in the Amusement Business were 39,005 million yen (year-on-year increase of 60.4%), and segment
profit was 2,447 million yen (segment loss for the same period of the previous fiscal year was 8,022 million yen).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds of administrationand 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 13,642 million yen (year-on-year increase of 18.0%), and segment profit was 580
million yen (year-on-year increase of 60.4%).
(2) Explanation Regarding Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2022, total assets stood at 797,233 million yen, an
increase of 64,451 million yen from the end of the previous fiscal year. The main factors were increases of 9,152 million yen
in finished goods and merchandise, 9,876 million yen in work in process, and 44,546 million yen in investment securities.
Total liabilities amounted to 235,122 million yen, an increase of 13,773 million yen from the end of the previous fiscal
year. The main factors were increases of 4,533 million yen in trade payables and 10,295 million yen in accrued income taxes.
Total net assets stood at 562,111 million yen, an increase of 50,678 million yen from the end of the previous fiscal year.
The main factors were increases of 19,710 million yen in retained earnings mainly due to the recording of 39,527 million
yen in profit attributable to owners of parent despite cash dividends paid of 19,996 million yen, and 30,451 million yen invaluation difference on available-for-sale securities, net of tax.
As a result, the equity ratio became 70.5% compared with 69.7% 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 despite anticipating that the economy and personal
consumption will recover due to the promotion of measures against COVID-19 infection and COVID-19 vaccinations invarious regions around the world.
Under these circumstances, the Group will continue carrying out initiatives to prevent the spread of COVID-19, giving
the highest priority to the safety of our stakeholders, including employees and their families, and customers. Moreover, as amember of society, we wish to respond to the requests and expectation from society and our customers under our Group’s
mission to offer “Dreams, Fun and Inspiration” to people around the world through products and services. On the business
front, the Group is working to minimize the impact that the spread of COVID-19 is having on society, the overall economy,
people’s daily lives and consumption, and the impact from the change in the market environment and user preferences, bycontinuing to collect information and take flexible countermeasures.
For the fiscal year ending March 31, 2022, the Group will accelerate the integration and cooperation more than before
on a global scale for all businesses worldwide under the ALL BANDAI NAMCO concept to prepare the business foundationand organizational structure for the next Mid-term Plan to start in April 2022 and sustainable growth in the medium to longterm. In addition, the Group will strengthen the creation of new IP and development of existing IP, further expand the IP axis
- 3 -

strategy utilizing the Group’s wide range of businesses and promote business development in global markets. From the next
Mid-term Plan, the Group has decided to replace the Group’s existing Mission and Vision with a new Purpose that expresses
the reason for our existence and why we conduct our businesses and corporate activities, and introduce a new corporate logothat embodies our new Purpose. Through this, we will aim to increase the value of the Group brand by increasing the Group’s
sense of unity and its total capabilities in various regions more than ever while utilizing the characteristics of each Group
company. The vision and strategy of the next Mid-term Plan also will be formulated based on our Purpose.
The Company has revised its consolidated projections for the full fiscal year ending March 31, 2022 to reflect the actual
results for the second quarter (six months) of the fiscal year ending March 31, 2022, as well as the uncertain market
environment, the current trends of its businesses, the marketing plans of the products and services scheduled in the third
quarter onward and other factors.
*For your reference, we are experiencing or expect to experience the following impacts on business operations from the
spread of COVID-19.
• Impact on consumption due to factors including the closure of sales outlets• Postponement or cancellation of events and an associated impact on promotion• Impact on the development schedule of products• Impact on the production schedule of the Group’s factories and other cooperating factories• Impact on the development schedule of home video games and network content and on operation systems• Impact from the closure of amusement facilities• Impact on the schedules or releases of visual productions and package launch scheduled
Revisions to consolidated projections for the full fiscal year ending March 31, 2022
(April 1, 2021 to March 31, 2022)

Previous projections (A)(¥ million)
750,000(¥ million)
75,000(¥ million)
76,000

Profitattributable toowners ofparent(¥ million)
52,000

Revised projections (B)795,000

90,00093,00058,000263.99Change in amount (B-A)

45,00015,00017,000

6,000

–

6.0

20.0

22.4

11.5

–

740,903

84,65487,612

48,894222.58Net sales

Change (%)

OperatingprofitRecurringprofitBasicearnings per
share
(¥)
236.72(Reference)
Results for the previous fiscal year
(Fiscal year ended March 31, 2021)- 4 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current 2nd Quarter(As of September 30, 2021)

AssetsCurrent assets
Cash and time deposits

204,326

Trade receivables

91,765–Trade receivables and contract assets

206,401–

103,938

Finished goods and merchandise

28,994

38,147Work in process

73,816

83,693

Raw materials and supplies

4,075

5,387

Other current assets

53,87245,866

Allowance for doubtful receivables(1,639)(1,881)

Total current assets

455,210

481,553

88,341

91,883

Goodwill

17,06915,966

Other intangible assets

15,944

16,982

Total intangible assets

33,01432,948Investment securities

121,208

165,754

Other investments and assets

35,42525,504

Allowance for doubtful receivables

(418)

(411)

Total investments and other assets

156,215

190,847

277,571

315,680

732,782

797,233

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets
Total assets- 5 -(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current 2nd Quarter(As of September 30, 2021)

Liabilities
Current liabilities
Trade payables

82,47487,007

Accrued income taxes

6,820

17,116

Provision

3,547

1,372

Other current liabilities

83,07880,287

175,920

185,783

20,234

20,224

Total current liabilities
Long-term liabilities
Long-term borrowings
Provision

301

301

Net defined benefit liability

7,212

6,695

Other long-term liabilities

17,67922,116

Total long-term liabilities

45,42849,338221,348

235,122

Common stock

10,00010,000Capital surplus

52,232

52,421Retained earnings

414,487

434,197

Treasury stock(3,905)(3,861)

472,814492,758

51,58782,038

Total liabilities
Net assets
Stockholders’ equity

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

988

481

Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments(7,438)(6,415)Remeasurements of defined benefit plans, net of tax(3,419)(3,128)37,701

68,958917

395

511,433

562,111

732,782

797,233

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 2nd Quarter(From April 1, 2020
to September 30, 2020)
337,122

Current 2nd Quarter(From April 1, 2021
to September 30, 2021)
393,646

Cost of sales

206,645

233,119

Gross profit

130,477

160,527

Selling, general and administrative expenses

84,546

98,776

Operating profit

45,93061,751

1,145

728

–

612

Net sales

Non-operating income
Dividend income
Share of profit of entities accounted for using equity method
Other non-operating income

631

1,253

Total non-operating income

1,777

2,594

Interest expense

91

188

Foreign exchange losses

354–

Other non-operating expenses

6845

Non-operating expenses

Total non-operating expenses

514

234

47,19364,111Gain on sales of fixed assets

87

2,728

Other extraordinary income

1,193

449

Total extraordinary income

1,280

3,178

–

1,270

3,415

1,182

Recurring profit
Extraordinary income

Extraordinary loss
Extra retirement payments
Other extraordinary loss
Total extraordinary loss

3,415

2,453

Profit before income taxes

45,05964,836

Income taxes

13,411

18,523–

6,792

31,64739,520(68)(7)

31,71539,527

Income taxes for prior periods
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 7 -(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 2nd Quarter(From April 1, 2020
to September 30, 2020)
31,647

Current 2nd Quarter(From April 1, 2021
to September 30, 2021)
39,52012,24830,515

(306)

(505)

Foreign currency translation adjustments

95

1,022

Remeasurements of defined benefit plans, net of tax

356

290

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

148

(66)

12,543

31,25644,19070,77644,21170,784(20)(8)

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

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 8 -(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholders’ Equity)
Not applicable.
(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 second quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending March 31,
2022, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at
the amount expected to be received upon exchange of those goods or services. As a result of this application, revenue mainly
for network content and home video games with online functions, which was previously recognized when items used in thecontent or video game software was sold, etc., will be recognized by calculating the estimated sales value for undelivered
elements if there were elements that were not delivered to customers and recognizing an amount equivalent to that value as
the revenue over the reasonably estimated period for which performance obligations are expected to be satisfied.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to thetransitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to the beginning of the first quarter of the current fiscal year was added to or deducted from the beginning balance ofretained earnings of the first quarter of the current fiscal year, and thus the new accounting policy was applied from such
beginning balance; provided, however, that the new accounting policy was not retrospectively applied to contracts for which
nearly all the revenue amounts had been recognized according to the previous treatment in periods prior to the beginningof the first quarter of the current fiscal year, by applying the method provided for in paragraph 86 of the Accounting Standard
for Revenue Recognition.
As a result of this change, for the second quarter (six months) of the current fiscal year, net sales decreased by 47 million
yen, cost of sales decreased by 1,507 million yen, and selling, general and administrative expenses increased by 1,227
million yen. Operating profit, recurring profit and profit before income taxes each increased by 231 million yen. In addition,
the beginning balance of retained earnings increased by 179 million yen.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, “Trade
receivables” under current assets of the consolidated balance sheets as of the end of the previous fiscal year has been
included in “Trade receivables and contract assets” under current assets from the consolidated balance sheets as of the endof the first quarter of the current fiscal year. In accordance with the transitional treatment provided for in paragraph 89-2 of- 9 -the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordancewith the new approach to presentation.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending March 31,
2022 and, in accordance with the transitional treatment provided for in paragraph 19 of the Accounting Standard for Fair
Value Measurement and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019), the new accounting policy provided for in the accounting standard and relevant ASBJ regulations will beapplied prospectively. There is no impact on the quarterly consolidated financial statements.

- 10 -

(Segment Information)
I. Prior 2nd Quarter (From April 1, 2020 to September 30, 2020)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

DigitalBusiness

Toys and Visual andAmuseCreation
Hobby
Music
ment
Business
Business BusinessBusiness

Subtotal

165,885

127,451

12,398

4,637

23,922334,295

2,827

337,122–

337,122

Inter-segment sales
and transfers

1,542

3,597

1,524

4,921

397

11,984

8,735

20,720(20,720)–

Total

167,427

131,049

13,923

9,559

24,320346,280

11,562357,843(20,720) 337,122

Segment profit (loss)

34,475

19,114

1,077

1,914

(8,022)

48,558362

48,920(2,990)Net sales
To externalcustomers

Notes: 1.

45,930The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services for each of the Group companies are classified.

2.

Included in the 2,990 million yen deducted from segment profit (loss) as adjustment are an addition of 174 million
yen in inter-segment eliminations, and a deduction of 3,164 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

Segment profit (loss) 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)In the Creation Business, goodwill increased 3,676 million yen due to the acquisition of additional shares of SOTSU
CO., LTD., a consolidated subsidiary of the Company.
(Material gains on negative goodwill)
Not applicable.

- 11 -

II. Current 2nd Quarter (From April 1, 2021 to September 30, 2021)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

DigitalBusiness

Toys and Visual andAmuseCreation
Hobby
Music
ment
Business
Business BusinessBusiness

Subtotal

147,642

173,353

21,502

9,781

38,585

390,865

2,781

393,646–

393,646

Inter-segment sales
and transfers

1,954

4,770

2,125

5,914

420

15,184

10,861

26,046(26,046)–

Total

149,597

178,123

23,627

15,69639,005406,050

13,642

419,692(26,046) 393,646

Segment profit

26,00833,092

3,059

909

2,447

65,517580

66,098(4,347)

Net sales
To externalcustomers

Notes: 1.

61,751The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services for each of the Group companies are classified.

2.

Included in the 4,347 million yen deducted from segment profit as adjustment are an addition of 128 million yen
in inter-segment eliminations, and a deduction of 4,476 million yen in corporate expenses that cannot be allocatedto 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)
The Group reorganized the structure based on Units comprising operating companies from the first quarter of the
fiscal year ending March 31, 2022, from its previous five Unit structure to a three Unit structure ahead of the start of thenext Mid-term Plan from April 2022.
In conjunction with this organizational restructure, the reportable segments were changed from the Toys and Hobby
Business, Network Entertainment Business, Real Entertainment Business, Visual and Music Production Business, and
IP Creation Business to the Digital Business, Toys and Hobby Business, Visual and Music Business, Creation Business,and Amusement Business.
Segment information of the prior second quarter (from April 1, 2020 to September 30, 2020) is prepared anddisclosed based on the reportable segment classifications after the change.
(Application of Accounting Standard for Revenue Recognition, etc.)
As described in “(Changes in Accounting Policies),” the Company has applied the Accounting Standard for Revenue
Recognition and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending- 12 -

March 31, 2022, and changed the accounting treatment for revenue recognition. Accordingly, the Company has changed
the method of measuring profit or loss of business segments.
For the second quarter (six months) of the current fiscal year, as a result of this change, and compared with thefigures obtained by the previous method, net sales decreased by 962 million yen and segment profit increased by 205
million yen in the Digital Business; net sales and segment profit increased by 1,171 million yen and 26 million yen,respectively, in the Toys and Hobby Business; net sales increased by 74 million yen in the Visual and Music Business;
net sales decreased by 253 million yen in the Creation Business; and net sales decreased by 78 million yen in the
Amusement Business.

- 13 -

(Significant Subsequent Events)(Reorganization of subsidiaries)
In order to further strengthen the IP axis strategy that is a core strategy of the Group, the Company decided at its Boardof Directors meeting held October 19, 2021 to reorganize the companies belonging to Visual and Music Business andCreation Business of the IP Production Unit on April 1, 2022 by combining three companies in the visual business into one
company and combining three companies in the music and live event businesses into one company.
1.

PurposeThe IP Production Unit, whose most important mission is to create IP, produces and develops worldviews for IP

through coordination among the visual, music and live event businesses. Furthermore, the Company aims to maximize
the value of IP by coordinating with each Unit in the Group.
By combining the companies in the visual, music and live event businesses of the IP Production Unit, the companies
will be able to share the different expertise, strengths, external partner networks, etc. of each company engaged increating and developing IP, and effectively utilize the Company’s IP and music. In addition, through personnel
exchanges, etc., the Company will strengthen the development of human resources involved in IP creation andproduction. With these initiatives, the Company aims to further strengthen the IP creation and production capabilities,
which are at the core of the IP axis strategy.
2.

Reorganization in the visual businessTransactions conducted by commonly controlled entities(1) Overview of transaction(i) Overview of absorption-type company split with SUNRISE INC. as the successor companya)b)Name and description of business involved in absorption-type company split
Name of business:

Visual business of BANDAI NAMCO Arts Inc.

Description of business:

Planning, production, management, etc. of visual content

Date of business combination
April 1, 2022 (planned)c)Legal form of business combination
Absorption-type company split with BANDAI NAMCO Arts Inc. as the splitting company and
SUNRISE INC. as the successor company

d)Company name after combination
Undetermined(ii) Overview of absorption-type merger with SUNRISE INC. as the surviving companya)Name and description of business of the company involved in combination
Merging company (surviving company)
Name:

SUNRISE INC.

Description of business:

Planning and production of animation; management andadministration of copyrights- 14 -

Merged company (disappearing company)
Name:

BANDAI NAMCO Rights Marketing Inc.

Description of business:

Development, operation and sales of online video distribution
platform services; development, operation, and sales of various
community services and related toolsb)Date of business combination
April 1, 2022 (planned)c)Legal form of business combination
Absorption-type merger with SUNRISE INC. as the surviving company and BANDAI NAMCO
Rights Marketing Inc. as the disappearing company

d)Company name after combination
Undetermined(2) Overview of accounting process
The accounting process will be carried out as transactions conducted by commonly controlled entities, inaccordance with the Accounting Standard for Business Combinations and Guidance on the Accounting Standard
for Business Combinations and the Accounting Standard for Business Divestitures.
3.

Reorganization in the music and live event businesses
Transactions conducted by commonly controlled entities(1) Overview of transaction(i) Name and description of business of the company involved in combination
Merging company (surviving company)
Name:

BANDAI NAMCO Arts Inc.

Description of business:

Planning, production, and management of visual and music content, artist
discovery and development, production of live events, etc.

Merged company (disappearing company)
Name:

BANDAI NAMCO Live Creative Inc.

Description of business:

Planning and production of live performances and events; ticket sales;planning, production, and sales of goods; management of live viewings,
etc.

Merged company (disappearing company)
Name:

SUNRISE Music INC.

Description of business:

Production of music related to animations and planning and use of music
and masters, centered on SUNRISE and BANDAI NAMCO Pictures(ii) Date of business combination
April 1, 2022 (planned)(iii) Legal form of business combination
Absorption-type merger with BANDAI NAMCO Arts Inc. as the surviving company and BANDAI
NAMCO Live Creative Inc. and SUNRISE Music INC. as the disappearing companies- 15 -

(iv) Company name after combination
Undetermined(2) Overview of accounting process
The accounting process will be carried out as transactions conducted by commonly controlled entities, inaccordance with the Accounting Standard for Business Combinations and Guidance on the Accounting Standard
for Business Combinations and the Accounting Standard for Business Divestitures.

- 16 -