Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2014

August 2, 2013

DISCLAIMER- NAMCO BANDAI Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
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/)
August 2, 2013

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2014 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 8, 2013
Scheduled starting date for dividend payments:－
The additional materials 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 First Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to June 30, 2013)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2013)

First Quarter of the Fiscal YearEnding March 31, 2014
First Quarter of the Fiscal Year
Ended March 31, 2013

Net sales¥ million
105,867%(2.6)

108,695

23.2

Net income

First Quarter of the Fiscal YearEnding March 31, 2014
First Quarter of the Fiscal Year
Ended March 31, 2013
(Note)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
13,347(17.4)
14,438(12.4)
16,160155.3

Net income per share

16,475149.4

Net income per share(diluted)¥ million
9,508

%
(7.0)

¥
43.28

¥
43.28

10,225

214.8

46.55

–

Comprehensive income: 13,341 million yen [38.4%] (FY2014.3 1Q), 9,637 million yen [65.8%] (FY2013.3 1Q)(2) Consolidated Financial Position

As of June 30, 2013
As of March 31, 2013
(Reference)

Total assets¥ million
361,175
374,203

Net assets¥ million
253,929
248,769

Equity ratio
%
70.1
66.0

Equity: 253,027 million yen (as of June 30, 2013), 247,030 million yen (as of March 31, 2013)

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥33.00Fiscal Year Ended March 31, 2013–
Fiscal Year Ending March 31, 2014–
Fiscal Year Ending March 31, 2014¥12.00–(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2014: No¥12.00Total¥45.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
228,000
2.4
19,000(31.5)
19,500(30.5)
12,500(27.8)
56.90
September 30, 2013
Full Fiscal Year
480,000(1.5)
40,000(17.8)
40,500(19.0)
26,000(19.7)
118.35(Note) Revision to the projections: Yes
Consolidated projections for the six months ending September 30, 2013 and full fiscal year ending March 31, 2014 (announced on May
9, 2013) are revised in this document. For more details, 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 First
Quarter” on page 4 of the attached material.
* 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 “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Notes)” on page 5 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 June 30, 2013
222,000,000 shares
As of March 31, 2013
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of June 30, 2013
2,309,991 shares
As of March 31, 2013
2,309,342 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the First Quarter of the Fiscal Year Ending March 31, 2014
219,690,279 shares
For the First Quarter of the Fiscal Year Ended March 31, 2013
219,691,588 shares* Implementation status of quarterly review
This Consolidated Financial Report for the First Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the first quarter disclosing, quarterly review for the quarterly consolidated financial statements isunder way.
* 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 First Quarter” on page 4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results for the Quarter will be posted on the Company’s website on August 2, 2013.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the First Quarter ........................... 2(1) Explanation Regarding Operating Results .......................................................................................................................... 2(2) Explanation Regarding Financial Position.......................................................................................................................... 3(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements .............................................. 4

2. Matters Regarding Summary Information (Notes) ........................................................................... 5(1) Changes in Significant Subsidiaries during the Period ....................................................................................................... 5(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements ................................. 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Quarterly Consolidated Balance Sheets .............................................................................................................................. 6(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income.... 8(Quarterly Consolidated Statements of Operations)........................................................................................................... 8(Quarterly Consolidated Statements of Comprehensive Income) ...................................................................................... 9(3) Notes to Consolidated Financial Statements..................................................................................................................... 10(Notes on Premise of Going Concern) ............................................................................................................................. 10(Notes on Significant Changes in the Amount of Stockholders’ Equity) ......................................................................... 10(Segment Information) ..................................................................................................................................................... 10-1-

1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2014, although there were some bright signs
in the economic environment in Japan such as heightened expectations regarding economic policies and improved
corporate profitability, the overall economic outlook remained uncertain as a result of factors that individual consumption
trends in North America and Europe continued to be affected by the economic environment.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various measures aimed at medium- tolong-term growth under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of theGroup’s Mid-term Plan, started in April 2012. On the business front, sales were favorable in the Content Business in areas
including home video game software, visual and music content and network content. In addition, Toys and Hobby Businessperformed favorably, particularly for long-established character products in Japan.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 105,867 million
yen (year-on-year decrease of 2.6%), operating income of 13,347 million yen (year-on-year decrease of 17.4%), recurringincome of 14,438 million yen (year-on-year decrease of 12.4%), and net income of 9,508 million yen (year-on-year
decrease of 7.0%).
Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, domestically, sales performed favorably thanks to cross-functional efforts undertaken
across all businesses for long-established character toys such as Kyouryuger (Power Rangers series) and DOKIDOKI!
PRETTY CURE in addition to Aikatsu! new characters for girls. Although the gross margin ratio declined as a result of
increased costs in line with yen depreciation, the Group made steady efforts toward broadening the variety of customers
targeted by such means as stepping up development of products for adults.
Overseas, in North America and Europe, products of the Power Rangers series sold favorably. In the Asian region,
character toys, plastic models, collectable toys for adults and card products became popular thanks to developments inconjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 37,034 million yen (year-on-year decrease of 7.3%), andsegment income was 1,913 million yen (year-on-year decrease of 51.6%).
Content BusinessLooking at the Content Business, in the area of home video game software, domestically, there were favorable sales of
new title GUNDAM BREAKER in addition to the favorable repeat sales of several products including the TAIKO: DRUM
MASTER series and Dragon Ball series, which were launched in the previous fiscal year. Sales in overseas markets were
down year on year, reflecting the launches of major titles in North America in the same period of the previous fiscal year.
In the area of network content, social games such as ONE PIECE Grand Collection, Mobile Suit Gundam series and
THE IDOL M@STER series, as well as the online game of Mobile Suit Gundam series, sold stably and contributed toperformance.
In the area of visual and music content, launches of new visual packages such as OUTRAGE BEYOND and SPACEBATTLESHIP YAMATO 2199 as well as repeat sales of previously launched titles performed favorably.
As a result, net sales in the Content Business were 57,051 million yen (year-on-year increase of 0.1%), and segment
income was 12,092 million yen (year-on-year decrease of 2.2%).

-2-

Amusement Facility BusinessIn the Amusement Facility Business, domestically, despite a steady performance mainly by differentiated facilities
located in shopping centers that offer customers the opportunity to experience the distinctive worldview of specificcharacters, sales of existing facilities declined to 93.4% from the same period of the previous fiscal year.
As a result, net sales in the Amusement Facility Business were 12,950 million yen (year-on-year decrease of 6.8%), andsegment loss was 705 million yen (compared with segment income of 6 million yen for the same period of the previous
fiscal year).
Number of Facilities as of June 30, 2013
Directly Managed
Revenue-Sharing
Facilities
Facilities
257
1,021

Others

Total

2

1,280

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’s strategic business units. We are making efforts to manage
such operations related to group support in an efficient manner.
As a result, net sales in the Other Businesses were 6,219 million yen (year-on-year increase of 0.2%), and segment
income was 422 million yen (year-on-year decrease of 26.6%).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2014, total assets stood at 361,175 million yen, adecrease of 13,027 million yen from the end of the previous fiscal year. The main factors were decreases of 11,329 million
yen in cash and time deposits mainly due to payments of cash dividends and income taxes, and 16,407 million yen in tradereceivables while there were increases of 2,000 million yen in finished goods and merchandise, 4,725 million yen in workin process, and 2,331 million yen in property, plant and equipment.
Total liabilities amounted to 107,246 million yen, a decrease of 18,187 million yen from the end of the previous fiscal
year. The main factors were decreases of 5,871 million yen in accrued income taxes included in other current liabilities
mainly due to income taxes paid, and 8,454 million yen in accrued employee bonuses included in other current liabilities
mainly due to employee bonuses paid.
Total net assets stood at 253,929 million yen, an increase of 5,159 million yen from the end of the previous fiscal year.
The main factors were increases of 2,254 million yen in retained earnings thanks to the recording of net income, and 2,685
million yen in foreign currency translation adjustments due to foreign exchange fluctuation, despite cash dividends paid of
7,253 million yen.
As a result, the equity ratio became 70.1% compared with 66.0% at the end of the previous fiscal year.

-3-(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, although there are some bright signs in Japan’s economic trend, the business environment is expected
to remain beset by uncertainties including individual consumption trends and economic trends in North America andEurope. Such factors are also expected to have an impact on the entertainment industry, in which the Group is extensively
involved, resulting in ongoing uncertainty in this business environment.
Facing these circumstances, the Group started its three-year Mid-term Plan in April 2012, and will steadily implement
the strategies in this plan. Specific areas of focus include obtaining new IP (intellectual property) such as characters,developing products and services, and working to construct new business models with the aim of medium-to long-term
growth, in addition to strengthening the business foundation further to stabilize and improve profitability.
In the Toys and Hobby Business, our plan for the Japanese market is to strengthen development through coordinatedsales of products in the variety of categories revolving around long-established characters, such as the Super Sentai series(Power Rangers series), PRETTY CURE! series, KAMEN RIDER series, whose new program is scheduled to begin
broadcasting on TV from October 2013, and Mobile Suit Gundam series. We will also expand our character lineup by suchmeans as developing the new Aikatsu! characters for girls through cross-functional efforts undertaken across all businesses
and launching new characters for boys. In tandem with this, we will aim to be No. 1 in Japan by an overwhelming margin
by introducing new products and services such as card games, plastic models, and collectable toys for adults targeting avariety of customers. Overseas, in North America and Europe where the market environment continues to be harsh, theGroup will strive to improve profitability by strengthening integrated brand management structure of North America andEurope and developing product sales with a focus on content for boys such as the mainstay Power Rangers series. In Asianmarkets, the Group aims to achieve growth through developments in conjunction with Japan, focusing on plastic models,collectable toys for adults and card products that are popular in Japan.
In the Content Business, the Group will enhance its IP strategy for offering products and services in a wide variety of
categories with a focus on IP. To this end, the Group will supplement its existing IP lineup by cultivating new properties
mainly through various business operations centered around PAC-MAN and the Ghostly Adventures, a new animated seriesscheduled to be broadcast primarily in North America and Europe. Furthermore, the Group will put in place and improvethe development environment from a medium- and long-term perspective, such as by implementing measures to respondswiftly to technological progress and changes in the environment.
Looking at approaches by business, in the network content area, the Group will work to achieve stable deployment ofsocial games and online games through the launch of new games and timely upgrades of existing content. In the area ofhome video game software, the Group will introduce popular series while also taking a more proactive approach to new
initiatives that make use of network functions such as download-only titles. For arcade game machines, in addition todevelopment and sale of popular game machines such as MARIOKART ARCADE GP DX, launched this summer, theGroup will work to diversify sales methods through approaches including a system in which fees vary according to theamount of use. In the area of visual and music content, the Group will work to supplement sales of the popular series suchas Mobile Suit Gundam series by taking a proactive approach to creating new IP like the Aikatsu! characters.
In the Amusement Facility Business, in Japan, the Group will plan and operate facilities and services aimed at eachtarget customer through reinforcement of its marketing by customer segment. The Group will also continue to promote thedevelopment of differentiated facilities that offer the experience of the Group’s distinctive worldview of specific characterswhile opening new facilities including an indoor theme park based on popular creations from the comic book Weekly
Shonen Jump. These various facilities will be operated as promotional venues for the entire Group. The Group will also
strive to improve profitability by implementing various efficiency measures in North America and Europe.
In light of results in the first quarter (three months) and the recent market climate, in addition to the product lineup andbusiness trends, the Group has revised its consolidated projections for the six months ending September 30, 2013 and thefull fiscal year ending March 31, 2014 that were announced in the Consolidated Financial Report for the Fiscal Year Ended
March 31, 2013 on May 9, 2013. Please see page 5 for the details of the revision.

-4-

Revision to the consolidated projections for the six months(April 1, 2013 to September 30, 2013)
Operating
Net Sales
Income(¥ million)(¥ million)
Previous projections (A)218,000
18,000
Revised projections (B)228,000
19,000Change in amount (B–A)
10,0001,000
Change (%)
4.6
5.6
Reference: Results for thesame period of the previous
fiscal year
222,61027,753

Recurring
Income(¥ million)
18,00019,500
1,500
8.3

Net
Income(¥ million)
11,50012,5001,000
8.7

28,05017,320Recurring
Income(¥ million)
40,00040,500500
1.3Net
Income(¥ million)
26,00026,0000
0.0

49,97232,383Net Income
per Share
52.35 yen
56.90 yen––

78.84 yen

(April 1, 2012 to September 30,
2012)

Revision to the consolidated projections for the full fiscal year
(April 1, 2013 to March 31, 2014)
Operating
Net Sales
Income(¥ million)(¥ million)
Previous projections (A)480,000
40,000
Revised projections (B)480,000
40,000Change in amount (B–A)
00Change (%)
0.0
0.0
Reference: Results for theprevious fiscal year
487,241
48,642Net Income
per Share
118.35 yen
118.35 yen––
147.40 yen(April 1, 2012 to March 31, 2013)

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.

(2) 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
income before income taxes and minority interests for the fiscal year including the current first quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.

-5-3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2013)

Current 1st quarter(As of June 30, 2013)

AssetsCurrent assets
Cash and time deposits

119,132

107,802

Trade receivables

77,06960,661

Short-term investments

4,379

5,119

Finished goods and merchandise

10,915

12,916Work in process

19,597

24,323

Raw materials and supplies

6,130

5,299

Other current assets

28,06332,962

Allowance for doubtful receivables

(484)

(940)

264,804

248,145

Property, plant and equipment

47,25549,586

Intangible assets

8,497

9,104

54,98454,981

Total current assets
Fixed assets

Investments and other assets
Other investments and assets
Allowance for doubtful receivables(1,338)(643)

Total investments and other assets

53,64654,338109,399

113,029374,203361,175

Total fixed assets
Total assets-6-(¥ million)
Prior Fiscal Year(As of March 31, 2013)

Current 1st quarter(As of June 30, 2013)

Liabilities
Current liabilities
Trade payables

46,471

41,869

Short-term borrowings

5,596

5,599

Provision

3,281

2,197

Other current liabilities

53,041

40,710Total current liabilities

108,391

90,377Long-term borrowings

7,500

7,500

Accrued retirement and severance benefits

3,724

3,836

Other long-term liabilities

5,817

5,531

Total long-term liabilities

17,042

16,868125,433

107,246

Common stock

10,00010,000Additional paid-in capital

52,24552,245Retained earnings

199,118

201,372

Treasury stock(2,385)(2,386)

Total stockholders’ equity

258,979

261,232

5,212

6,118

Long-term liabilities

Total liabilities
Net assets
Stockholders’ equity

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax

642

794

Revaluation reserve for land, net of tax(5,608)(5,608)Foreign currency translation adjustments(12,194)(9,508)

Total accumulated other comprehensive income(11,948)(8,204)

Subscription rights to shares–

44

Minority interests

1,738

857

Total net assets

248,769

253,929374,203361,175

Total liabilities and net assets-7-

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Operations)(¥ million)
Prior 1st quarter(From April 1, 2012
to June 30, 2012)

Current 1st quarter(From April 1, 2013
to June 30, 2013)

Net sales

108,695

105,867

Cost of sales

63,216

62,764Gross profit

45,478

43,102

Selling, general and administrative expenses

29,31829,754

Operating income

16,16013,347

185

343

–

363

Non-operating income
Dividend income
Foreign exchange gain
Other non-operating income

421

470

Total non-operating income

606

1,177

Interest expense4431

Foreign exchange loss

237

–

–

34

Other non-operating expenses

9

19

Total non-operating expenses

291

86

16,475

14,4380–

18

Gain on sales of investment securities
Other extraordinary income–

6

Total extraordinary income

035

Loss on impairment of fixed assets

167–

Loss on disposal of fixed assets

18

5Loss on valuation of investment securities

29

Non-operating expenses

Loss on investments in partnerships

Recurring income
Extraordinary income
Gain on sales of fixed assets

11

Extraordinary loss

Other extraordinary loss

26

0

Total extraordinary loss

214

15

Income before income taxes and minority interests

16,261

14,459

Income taxes

5,971

4,898

Income before minority interests

10,289

9,560

Minority interests
Net income

-8-

64

52

10,2259,508

(Quarterly Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st quarter(From April 1, 2012
to June 30, 2012)
Income before minority interests

Current 1st quarter(From April 1, 2013
to June 30, 2013)

10,289

9,560

Unrealized gains or losses on other securities, net of tax

(943)

891

Deferred gains or losses on hedges, net of tax

(13)

152

Foreign currency translation adjustments

327

2,712

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

(22)

23

Other comprehensive income

Total other comprehensive income

(652)

3,780

9,637

13,341

Comprehensive income attributable to owners of the parent

9,522

13,251

Comprehensive income attributable to minority interests

115

89

Comprehensive income
Comprehensive income attributable to-9-(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.

(Segment Information)
Segment Information
I. Prior 1st quarter (From April 1, 2012 to June 30, 2012)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

13,882

106,272

2,422

108,695–

108,695

2,367

9

4,539

3,781

8,321

(8,321)–

39,95056,96813,892

110,8126,204

117,016(8,321)

108,695

3,953

12,367

6

16,326575

16,902(742)

16,160Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

To external customers

37,78854,601

Inter-segment sales
and transfers

2,161

Total

(Note 2)

(Note 3)

Net sales

Segment income

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and building management for each of the Group’s strategic business units are classified.

2.

Included in the 742 million yen deducted from segment income as adjustment are an addition of 159 million yen
in inter-segment eliminations, and a deduction of 901 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division thathas not been attributed to a reportable segment.

3.

Segment income is adjusted with operating income in the quarterly 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.

- 10 -

II. Current 1st quarter (From April 1, 2013 to June 30, 2013)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

12,935

103,461

2,405

105,867–

105,867

1,867

14

3,574

3,814

7,388

(7,388)–37,03457,051

12,950107,036

6,219

113,255(7,388)105,867

1,913

12,092(705)

13,300422

13,723(375)

13,347

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

To external customers
Inter-segment sales
and transfers

35,341

55,184

1,692

Total
Segment income (loss)(Note 2)

(Note 3)

Net sales

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.

2.

Included in the 375 million yen deducted from segment income (loss) as adjustment are an addition of 256
million yen in inter-segment eliminations, and a deduction of 632 million yen in corporate expenses that cannot
be allocated 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 income (loss) is adjusted with operating income in the quarterly 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.

- 11 -