Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2019

November 7, 2018DISCLAIMER- 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 management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
November 7, 2018

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2019 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, 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 9, 2018
Scheduled starting date for dividend payments:
December 7, 2018
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, 2019
(April 1, 2018 to September 30, 2018)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2018)

Second Quarter of the Fiscal YearEnding March 31, 2019
Second Quarter of the Fiscal Year
Ended March 31, 2018

Net sales¥ million
334,665%
8.4

308,846

4.8

Profit attributable toowners of parent¥ million%
34,18821.3(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
43,93525.7
45,802
28.3
34,941(10.2)

Basic earnings per share

35,690(6.8)

Diluted earnings per share¥
Second Quarter of the Fiscal Year155.56
Ending March 31, 2019
Second Quarter of the Fiscal Year
28,196(6.5)
128.35Ended March 31, 2018
(Note) Comprehensive income: 39,034 million yen [4.5%] (FY2019.3 2Q), 37,343 million yen [77.6%] (FY2018.3 2Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of September 30, 2018551,452
402,124
72.9
As of March 31, 2018
540,490387,354
71.5(Reference) Equity: 401,811 million yen (as of September 30, 2018), 386,556 million yen (as of March 31, 2018)¥–
128.312. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00¥18.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥111.00

Total

Fiscal Year Ended March 31, 2018–¥123.00
Fiscal Year Ending March 31, 2019–
Fiscal Year Ending March 31, 2019–¥18.00¥36.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2019: No
Concerning the projected amount of the year-end cash dividend for the fiscal year ending March 31, 2019, 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, 2019, 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, 2019 (April 1, 2018 to March 31, 2019)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
profitprofitto ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
650,000(4.2)
60,000(20.0)
61,000(19.1)
43,000(20.5)
195.65(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 8 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: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(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, 2018
222,000,000 shares
222,000,000 shares
As of March 31, 2018b) Number of shares of treasury stock at the end of the period
2,209,011 shares
As of September 30, 2018
2,239,901 shares
As of March 31, 2018c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,773,204 shares
For the Second Quarter of the Fiscal Year Ending March 31, 2019219,680,633 shares
For the Second Quarter of the Fiscal Year Ended March 31, 2018
* 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 7, 2018.

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 ................................................................ 4(1) Consolidated Balance Sheets.............................................................................................................................................. 4(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 6(Consolidated Statements of Operations) ........................................................................................................................... 6(Consolidated Statements of Comprehensive Income)....................................................................................................... 7(3) Notes to Consolidated Financial Statements ...................................................................................................................... 8(Notes on Premise of Going Concern) ............................................................................................................................... 8(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 8(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 8(Segment Information) ....................................................................................................................................................... 8(Significant Subsequent Events) ...................................................................................................................................... 10-1-

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, 2019, the economy continued to moderately
recover both in Japan and overseas. However, the outlook for the overall economy remained uncertain.
In this environment, the BANDAI NAMCO Group (“the Group”) has started a three-year Mid-term Plan in April 2018,
under the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” whichreflects our aspiration to achieve changes in all aspects to progress to a next stage rather than being bound by previous
business models and established ideas. Aiming for medium- and long-term growth, the Group has been promoting a range ofmeasures. As one of these initiatives, we have been taking advantage of the worldview and unique characteristics of IP(Intellectual Property: meaning characters and other intellectual property) to further evolve the “IP Axis Strategy” that aims
to maximize IP value through the provision of the best products and services at the best possible times. These measures also
include an initiative to strengthen development in regions and businesses with high growth potential and an initiative torealize the total capabilities of the Group in regions around the world under the ALL BANDAI NAMCO concept.
During the second quarter (six months), there were impacts from differences in the title lineup in the Network
Entertainment Business compared with the same period of the previous fiscal year; however, the Toys and Hobby Businessand the Visual and Music Production Business performed favorably. The key IP and products and services in each businesssegment also performed stably.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 334,665 million yen(year-on-year increase of 8.4%), operating profit of 43,935 million yen (year-on-year increase of 25.7%), recurring profit of
45,802 million yen (year-on-year increase of 28.3%), and profit attributable to owners of parent of 34,188 million yen (yearon- year increase of 21.3%).
Operating results by segment are as follows.
Effective from the first quarter ended June 30, 2018, the Group changed the classification of its reportable segments.
Consequently, in year-on-year comparisons the figures for the same period of the previous fiscal year shown below havebeen restated into the figures for the classifications after the change.
Toys and Hobby Business
As for the Toys and Hobby Business, products for the mature fan base in Japan and overseas, and card related products
for DRAGON BALL and other series gained in popularity. In Japan, products for the mature fan base such as plastic modelsof the Mobile Suit Gundam series and collectible figures performed favorably, along with long-established IP products suchas the DRAGON BALL series, the KAMEN RIDER series, and the PRETTY CURE! series. Overseas, in the Asian region,
products of the Mobile Suit Gundam series and ULTRAMAN series, and other products gained in popularity, and we took
steps to strengthen business development in the Chinese market. In Americas and Europe, we continued with the roll-out of
products for the mature fan base, such as card products of DRAGON BALL series and collectible figures.
As a result, net sales in the Toys and Hobby Business were 112,321 million yen (year-on-year increase of 14.5%), andsegment profit was 12,842 million yen (year-on-year increase of 131.1%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as DRAGONBALL Z DOKKAN BATTLE and ONE PIECE Treasure Cruise, and in Japan, key titles such as The iDOLM@STER seriescontinued to perform stably due to ongoing measures targeting users, while DRAGON BALL LEGENDS made a strong start.
We also undertook initiatives to create new services, such as starting up a new platform. In home video games, performance
was impacted by a difference in the lineup compared with the same period of the previous fiscal year, when major new titles
distributed worldwide were sold. It was possible to absorb this impact on performance thanks to the fact that repeat sales ofexisting titles and sales of mainly new titles in Japan were favorable.
As a result, net sales in the Network Entertainment Business were 154,612 million yen (year-on-year increase of 2.4%),
and segment profit was 23,414 million yen (year-on-year decrease of 3.1%).
Real Entertainment Business
As for the Real Entertainment Business, in regard to arcade games, sales of new series for a popular IP were favorable.
In amusement facilities, we opened stores in new business formats providing spaces to enjoy experiences that are unique tothe Group. However, performance did not reach the level seen in the same period of the previous fiscal year, when existing
stores in Japan performed favorably.

-2-

As a result, net sales in the Real Entertainment Business were 46,074 million yen (year-on-year increase of 3.1%), andsegment profit was 2,045 million yen (year-on-year decrease of 4.0%).
Visual and Music Production Business
As for the Visual and Music Production Business, products such as visual and music package software of LoveLive!
Sunshine!! and The iDOLM@STER series gained in popularity. Meanwhile, IP live events such as IDOLiSH 7 and associatedproduct sales performed favorably.
As a result, net sales in the Visual and Music Production Business were 20,551 million yen (year-on-year increase of
25.8%), and segment profit was 4,740 million yen (year-on-year increase of 79.3%).
IP Creation Business
As for the IP Creation Business, the TV program and movie of the Mobile Suit Gundam series and the TV program of
the Aikatsu! series were broadcasted/launched, and they all gained popularity. In addition, we built up public interest in
related IP ahead of the new movie release of LoveLive! Sunshine!!.
As a result, net sales in the IP Creation Business were 9,364 million yen (year-on-year increase of 36.5%), and segment
profit was 2,514 million yen (year-on-year increase of 4.3%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group companies. We are making efforts to manage such operations
related to group support in an efficient manner.
Net sales in the Other Business were 14,225 million yen (year-on-year increase of 10.3%), and segment profit was 559
million yen (year-on-year increase of 156.1%).
(2) Explanation Regarding Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2019, total assets stood at 551,452 million yen, an
increase of 10,962 million yen from the end of the previous fiscal year. The main factors were increases of 4,547 million yen
in finished goods and merchandise, 9,578 million yen in work in process, and 7,152 million yen in investment securities,
despite a decrease of 16,116 million yen in cash and time deposits mainly due to cash dividends paid and the purchases ofinvestment securities.
Total liabilities amounted to 149,328 million yen, a decrease of 3,807 million yen from the end of the previous fiscal year.
The main factor was a decrease of 6,084 million yen in other current liabilities mainly due to a decrease in accounts payableother.
Total net assets stood at 402,124 million yen, an increase of 14,769 million yen from the end of the previous fiscal year.
The main factors were increases of 9,780 million yen in retained earnings due to the recording of 34,188 million yen in profit
attributable to owners of parent despite cash dividends paid of 24,407 million yen, 2,108 million yen in valuation difference
on available-for-sale securities, net of tax, and 2,427 million yen in foreign currency translation adjustments.
As a result, the equity ratio became 72.9% compared with 71.5% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, in the first year of our three-year Mid-term Plan, which started in April 2018, we will move ahead withmeasures under our main strategies—the IP axis strategy, business strategy, region strategy, and personnel strategy. By
implementing these main strategies, we aim to further strengthen the Group’s business foundation and achieve growth inglobal markets.
The Company has not revised its consolidated projections for the fiscal year ending March 31, 2019, after giving
consideration to the planned launch of multiple new home video game titles, which will receive world-wide releases fromthe third quarter onward, the coming Christmas and New Year selling season, the largest selling season of the year for the
Toys and Hobby Business, and the continuation of wildly fluctuating market conditions. Going forward, the Company plansto closely scrutinize the situation, giving special attention to what impact these trends will have on business results.

-3-

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 2nd quarter(As of September 30, 2018)

AssetsCurrent assets
Cash and time deposits

185,517

Trade receivables

169,400

88,061

84,611Finished goods and merchandise

14,78019,327Work in process

37,68447,263

Raw materials and supplies

3,216

3,951

Other current assets

22,52926,873

Allowance for doubtful receivables(1,172)(836)

Total current assets

350,618

350,591

Property, plant and equipment

86,104

89,179Intangible assets

9,475

9,953

Investment securities

56,49563,648Other investments and assets

39,191

39,922

Allowance for doubtful receivables(1,394)(1,843)

Total investments and other assets

94,292

101,727

Fixed assets

Investments and other assets

Total fixed assets
Total assets-4-

189,872

200,860

540,490

551,452(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 2nd quarter(As of September 30, 2018)

Liabilities
Current liabilities
Trade payables

69,555

Accrued income taxes

8,597

8,116

Provision

4,085

7,182

Other current liabilities

53,96447,880Total current liabilities

136,202

131,494

Net defined benefit liability

8,485

8,355

Other long-term liabilities

8,447

9,478

68,315Long-term liabilities

Total long-term liabilities

16,933

17,833

153,135

149,328

Common stock

10,00010,000Additional paid-in capital

52,19652,308Retained earnings

334,264

344,044

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,326)(2,296)

Total stockholders’ equity

394,133

404,056

11,696

13,805

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

(300)

227

Revaluation reserve for land, net of tax(5,887)(5,887)

Foreign currency translation adjustments(8,330)(5,902)Remeasurements of defined benefit plans, net of tax(4,756)(4,488)

Total accumulated other comprehensive income(7,577)(2,245)797

312

387,354402,124

540,490

551,452

Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 2nd quarter(From April 1, 2017
to September 30, 2017)

Current 2nd quarter(From April 1, 2018
to September 30, 2018)

Net sales

308,846

334,665

Cost of sales

198,430

210,049

Gross profit

110,415

124,615

Selling, general and administrative expenses

75,47480,680Operating profit

34,941

43,935Non-operating income
Gain on valuation of derivatives–

741

Other non-operating income

1,510

1,625

Total non-operating income

1,510

2,367

Provision of allowance for doubtful accounts

537

448

Other non-operating expenses

223

52

Total non-operating expenses

761

500

35,69045,802Gain on sales of investment securities–

231

Other extraordinary income

45

20

Total extraordinary income

45

252

Loss on impairment of fixed assets

458

145

Loss on disposal of fixed assets

109

139

Other extraordinary loss

6

165

Total extraordinary loss

574

451

Profit before income taxes

35,16245,602

Income taxes

7,012

11,899Profit28,14933,702Non-operating expenses

Recurring profit
Extraordinary income

Extraordinary loss

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

-6-

(47)

(485)

28,19634,188(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 2nd quarter(From April 1, 2017
to September 30, 2017)
ProfitCurrent 2nd quarter(From April 1, 2018
to September 30, 2018)28,14933,702

5,997

2,180

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

42

526

2,702

2,427

Remeasurements of defined benefit plans, net of tax

270

268

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

180

(70)

Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income

9,194

5,331

37,34339,03437,39039,520

(47)

(485)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-7-

(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.
(Segment Information)
I. Prior 2nd quarter (From April 1, 2017 to September 30, 2017)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Visual andRealNetwork
IP
Toys andEntertain- Entertain- Music
Creation
Hobby
ment Production
mentBusiness
Business
Business Business Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

93,969148,219

44,145

14,217

3,715

304,267

4,578

308,846–

308,846

Inter-segment sales
and transfers

4,166

2,759

553

2,113

3,145

12,7398,316

21,055(21,055)–

Total

98,135150,979

44,69916,331

6,860

317,006

12,894

329,901(21,055) 308,846

Segment profit

5,557

24,175

2,131

2,644

2,411

36,919218

37,138(2,196)

Notes: 1.
2.

3.

34,941The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group companies are classified.
Included in the 2,196 million yen deducted from segment profit as adjustment are an addition of 240 million yen
in inter-segment eliminations, and a deduction of 2,436 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.
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.

-8-II. Current 2nd quarter (From April 1, 2018 to September 30, 2018)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Adjustments(Note 2)

Consolidated
Total(Note 3)334,665–334,665

9,594

22,485(22,485)–

342,925

14,225357,150(22,485) 334,665

45,558559

46,117(2,182)Visual andRealNetwork
IP
Toys andEntertain- Entertain- Music
Creation
Hobby
ment Production
mentBusiness
Business
Business Business Business

Subtotal

108,473

151,171

45,891

17,563

6,933

Inter-segment sales
and transfers

3,848

3,440

183

2,987

Total

112,321

154,61246,074

Segment profit

12,842

23,414

2,045

Other
(Note 1)

Total

330,034

4,630

2,431

12,891

20,551

9,364

4,740

2,514

Net sales
To externalcustomers

Notes: 1.
2.

3.

43,935The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group companies are classified.
Included in the 2,182 million yen deducted from segment profit as adjustment are an addition of 595 million yen
in inter-segment eliminations, and a deduction of 2,778 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.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding changes to reportable segments, etc.
Effective from the first quarter ended June 30, 2018, the Group has changed its organizational structure to promote
the advancement of each of the strategies of the Mid-term Plan. The name of the units of aggregated businesscompanies that are to execute the respective business strategies has been changed from “SBUs” (Strategic Business
Units) to “Units.” In addition, to enable swifter advancement of the main strategies for each mission stated in the Midterm Plan, the Group has shifted from its previous three-SBU structure to a five-Unit structure.
In conjunction with this organizational restructure, effective from the first quarter ended June 30, 2018, thereportable segments have been changed from the Toys and Hobby Business, Network Entertainment Business, andthe Visual and Music Production Business to the Toys and Hobby Business, Network Entertainment Business, RealEntertainment Business, Visual and Music Production Business, and IP Creation Business.
Segment information of the previous second quarter (six months) is prepared and disclosed based on the reportablesegment classifications after the change.
3. 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.

-9-(Significant Subsequent Events)(Establishment of significant subsidiaries)
Based on resolutions made at the Board of Directors meeting held on September 19, 2018, the Company establishedsubsidiaries as follows.
1.

Establishment of subsidiary for purpose of enhancing development of business geared to the mature fan baseof the Toys and Hobby Business in North America(1) Purpose of establishment
In the Group’s Mid-term Plan, the main strategies of the Toys and Hobby Business call for us to further
enhance the Group’s marketing and promotion efforts, both in Japan and overseas, and to develop products
for the mature fan base. In the North American market where many fans support the IP for which the Groupdevelops products, the Group is aiming to further enhance its operations and achieve swifter progress by
establishing a company, with its North American business partner NIPPON IMPORTS, LLC, that specializes
in selling products geared to the Group’s mature fan base.
(2) Overview of the established subsidiary(i) Name
BANDAI NAMCO Collectibles LLC(ii) LocationUSA(iii) Description of business Sales of products for the mature fan base such as plastic models and collectible
figures, etc.
(iv) Capital
27 million US dollars (planned)(v) Date of establishment October 19, 2018(vi) Ownership ratio
BANDAI NAMCO Holdings USA Inc.
(wholly-owned subsidiary of the Company)
80%
Steve Fujimura (currently Founder & CEO, NIPPON IMPORTS, LLC) 20%
At the time of the subsidiary’s establishment, capital was 300,000 US dollars and BANDAI NAMCO
Holdings USA Inc.’s ownership ratio was 100%. Capital and ownership ratio are planned to reach the values
listed above following mainly future capital increases.

2. Establishment of BANDAI NAMCO Content Fund LLP(1) Purpose of establishment
Based on one of the main strategies in the Group’s Mid-term Plan, “accelerate evolution in IP axis strategy,”
the purpose of the establishment of this subsidiary is to ensure that the “IP Axis Strategy” remains strong
throughout even the medium- and long-term future, with the aim of facilitating the Group’s active investment
and production over the long term and from the perspective of overall optimization with respect to visual
products and other content that yield IP.
(2) Overview of the established subsidiary(i) Name
BANDAI NAMCO Content Fund LLP(ii) Location
Minato-ku, Tokyo(iii) Description of business Investment in content, production of content, and management of intellectual
property rights(iv) Investment
5,000 million yen (planned)(v) Date of establishment November 1, 2018(vi) Percentage of total investment
BANDAI NAMCO Holdings Inc. (the Company)
90%
BANDAI CO., LTD. (wholly-owned subsidiary of the Company)
2%
BANDAI NAMCO Entertainment Inc.
(wholly-owned subsidiary of the Company)
2%- 10 -

BANDAI NAMCO Amusement Inc.
(wholly-owned subsidiary of the Company)
2%
BANDAI NAMCO Arts Inc. (wholly-owned subsidiary of the Company) 2%
SUNRISE INC. (wholly-owned subsidiary of the Company)
2%
At the time of the subsidiary’s establishment, investment was 1,000 million yen, and the Company’s
percentage of total investment was 50% while the percentage of total investment of each of the above-listedcompanies, other than the Company, was 10%. Investment and percentage of total investment are planned toreach the values listed above following further investment going forward.

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