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

February 2, 2010DISCLAIMER- NAMCO BANDAI Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese shallprevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially from expectations.

1

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

February 2, 2010

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2010
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Executive Officer, Corporate Planning Division
Scheduled filing date of the quarterly security report:
February 10, 2010
Scheduled starting date for dividend payments:－

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

Net sales

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

¥ million
282,832%(10.4)¥ million
4,706%(76.3)¥ million
4,935%(77.2)

315,647–

19,841–

21,658–Net income

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

Net income per share¥ million(11,744)%

9,019

Net income per share(diluted)–¥(48.65)

¥

–

–

36.32

36.28

(2) Consolidated Financial Position
Total assets

As of December 31, 2009
As of March 31, 2009

Net assets¥ million
347,993363,444¥ million
246,547
260,579

Equity ratio
%
70.1
70.9

(Reference)
Equity: 243,858 million yen (as of December 31, 2009), 257,645 million yen (as of March 31, 2009)2

Net assets per
share¥
1,009.90
1,067.71

2. Dividend

End offirst quarterEnd ofsecond quarter¥12.00¥12.00

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

3. Consolidated Projections for the Fiscal Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
380,000 (10.9)
1,000(95.5)
500(98.0)(31,000)–(128.42)* Revision to the projections: Yes
4. Other Information(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in Scope ofConsolidation): Yes
New: 4 companies (Distribution Partners S.A.S., Atari Asia Holdings Pty.Ltd., Atari Australia Pty.,Ltd., Atari UK Ltd.)
Excluded: 1 company (Bandai Networks Co., Ltd.)
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-12.
(2) Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-12.
(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated Financial
Statementsa) Changes due to revisions to accounting standards and other regulations: Nob) Changes due to other reasons: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages
10-12.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of period (including treasury stock)
As of December 31, 2009
250,000,000 shares
As of March 31, 2009
250,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of December 31, 2009
8,533,279 shares
As of March 31, 2009
8,694,796 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Third Quarter of the Fiscal Year ending March 31, 2010
241,384,573 shares
For the Third Quarter of the Fiscal Year ended March 31, 2009
248,374,481 shares

Explanation regarding the appropriate use of forecasts of business results and other notes* Qualitative information regarding forward-looking statements:
Forward-looking statements that have been released prior to this document are based on management’s estimates, assumptions, projections
and information available at the time of its publications. A number of factors could cause actual results to differ materially fromexpectations.
* Figures are in millions of yen, rounded down, except where noted.

3

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Operating Results
The economic environment during the first nine months of the fiscal year ending March 31, 2010 continued to be plagued
by a severe employment situation and weak individual consumption despite indications that the slowdown of the global
economy triggered by the financial crisis in the U.S. has stopped deteriorating. In addition, reduced consumption had
substantial impact on the entertainment industry, causing a difficult market environment.
In such environment, the BANDAI NAMCO Group (“the Group”) pressed ahead with its sights set on the medium- tolong-term Group vision of becoming a “Globally Recognized Entertainment Group” and has started to further develop its
global management foundation, based on the three-year Mid-term Business Plan that started this fiscal year.
On the business front, although long-established character toys in the Toys and Hobby Business sold robustly in Japan,
amidst weak individual consumption world-wide, overall results were harsh, especially in the Game Contents Business.
Consequently, the Group’s consolidated results for the first nine months were net sales of 282,832 million yen(year-on-year decrease of 10.4%), operating income of 4,706 million yen (year-on-year decrease of 76.3%), recurring incomeof 4,935 million yen (year-on-year decrease of 77.2%).
In addition, as a result of strict examination of the future business plans of certain subsidiaries, an impairment loss on
goodwill was recognized, and there was a withdrawal of a fixed amount from deferred tax assets.
As a result, net loss was 11,744 million yen (compared with a net income of 9,019 million yen for the same period of theprevious fiscal year).

(¥ million)

Operating Results by Business Segment
Current 3rd
Quarter

Net Sales
Prior 3rd
Quarter

Toys and Hobby

108,924

119,901

Game Contents

104,669

113,952

Visual and Music Content

21,99723,750

Amusement Facility

49,15959,096

Other Businesses

13,237

14,114

Eliminations and Corporate(15,157)(15,168)

Consolidated

282,832

315,647

Change4

Decrease of
10,976
Decrease of
9,283
Decrease of
1,752
Decrease of
9,937
Decrease of876
Increase of
10
Decrease of
32,815

Operating Income (Loss)
Current 3rdPrior 3rd
ChangeQuarter
Quarter
Decrease of
9,640
10,413772
Decrease of(3,372)
10,607
13,980Decrease of
(122)
162
284
Decrease of
37
48
11
Decrease of
198
426
227
Increase of(1,674)(1,815)141
Decrease of
4,706
19,841
15,135

Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys such as the MASKED RIDER series and FRESH
PRETTY CURE ! posted strong performances in Japan, mainly during the Christmas shopping season. Also, Tamagotchi, forwhich there were tie-ups to a made-for-television animation, and the DATA CARDDASS MASKED RIDER BATTLE:GANBARIDE became popular.
Overseas, despite the strong sales of BEN10 character toys, overall performance was weak, especially in the Americas
where the market was particularly difficult.
As a result, net sales in the Toys and Hobby Business were 108,924 million yen (year-on-year decrease of 9.2%), andoperating income was 9,640 million yen (year-on-year decrease of 7.4%).

Game Contents BusinessIn the Game Contents Business, for home video game software, while game titles such as Gundam VS. Gundam for
PlayStation Portable became popular in Japan, sales of other minor game titles struggled as the sluggish market continued.
Overseas, in the current third quarter, the performance was sluggish due to a lack of hit titles amongst home video gamesoftware.
Despite the new launch of a force-feedback battle party game TANK! TANK! TANK! for arcade game machines and thedevelopment of a wide variety of content to suit increasingly diverse user preferences for game contents for mobile devices,performance did not reach the level of the same period of the previous fiscal year. In addition, amortization of goodwill of
791 million yen was recorded in relation to NAMCO BANDAI Partners S.A.S. (game sales company), which became awholly owned subsidiary of the Company this fiscal year.
As a result, net sales in the Game Contents Business were 104,669 million yen (year-on-year decrease of 8.1%), andoperating loss was 3,372 million yen (compared with an operating income of 10,607 million yen in the same period of theprevious fiscal year). Note that due to changes in the business segments in the first quarter, in order to make year-on-yearcomparisons, the results of the third quarter of the previous fiscal year were reconfigured to reflect the post-change segments.

Visual and Music Content BusinessIn the Visual and Music Content Business, although visual package software such as GUNDAM 30th ANNIVERSARYCOLLECTION, and Psalms of Planets Eureka Seven became popular in Japan, the visual package software businessstruggled overall amidst the continuing transition period for hardware. Sales of music package software, on the other hand,were solid, particularly for animation-related music. Overseas, the profitability of business in the Americas was improved
through greater efficiency.
As a result, net sales in the Visual and Music Content Business were 21,997 million yen (year-on-year decrease of 7.4%)
and operating loss was 122 million yen (compared with an operating income of 162 million yen in the same period of theprevious fiscal year).

5

Amuse ment Facility BusinessIn the Amusement Facility Business, despite the implementation of marketing strategies for each customer segment inJapan, performance was weak with the domestic existing-facility sales at 90.3% of the figure for the same period of theprevious fiscal year in the midst of a difficult market environment. Costs, on the other hand, were reduced as a result of theclosure or sale in the previous fiscal year of 63 facilities, most of which were unprofitable, and the ongoing efforts to improvebusiness efficiency.
Overseas, amidst difficult market environment, the efforts to improve operational efficiency in the Americas and businessdevelopment centered on complex facilities in Europe were made.
As a result, net sales in the Amusement Facility Business were 49,159 million yen (year-on-year decrease of 16.8%), andoperating income was 37 million yen (year-on-year decrease of 22.9%).

Facilities as of December 31, 2009
Directly Managed Facilities

Revenue-Sharing Facilities

Theme Parks

Spa Facilities

Total

289

904

4

3

1,200

Other Businesses
Other Businesses consist of companies that conduct operations such as logistics support and building management to eachof the Group’s strategic business units. During the current third quarter, efforts were made to improve the efficiency of these
operations related to group support. However, as a result of a decline in the amount of work handled, performance did notreach the level of the same period of the previous fiscal year.
As a result, net sales in Other Businesses were 13,237 million yen (year-on-year decrease of 6.2%), and operating income
was 198 million yen (year-on-year decrease of 53.5%).

(¥ million)

Operating Results By Geographic Segment
Current 3rd
Quarter

Net Sales
Prior 3rd
QuarterJapan

226,278

249,008

Americas23,81535,779Europe35,682

34,176

Asia

28,971

27,323Eliminations and Corporate(31,915)(30,640)

Consolidated

282,832

315,647

Change6

Decrease of
22,730Decrease of
11,963
Increase of
1,505
Increase of
1,648
Decrease of
1,275
Decrease of
32,815

Operating Income (Loss)
Current 3rdPrior 3rd
ChangeQuarter
Quarter
Decrease of
9,933
13,292
3,358
Decrease of(5,049)1,697
6,747
Decrease of
(277)
5,421
5,698
Increase of
2,447
1,790
657
Increase of(2,347)(2,360)12
Decrease of
4,706
19,841
15,135

JapanIn the Toys and Hobby Business, mainly during the Christmas shopping season, long-established character toys such as
the MASKED RIDER series and FRESH PRETTY CURE !, as well as Tamagotchi and the DATA CARDDASS among others
became popular. In the Game Contents Business, while home video game software titles such as Gundam VS. Gundam for
PlayStation Portable became popular, sales of other minor game titles struggled as the sluggish market continued.
In the Visual and Music Content Business, the visual package software business struggled amidst the continuing transition
period for hardware. In the Amusement Facility Business, although domestic existing-facility sales were weak under difficult
market environment, costs were reduced as a result of the efforts to improve business efficiency.
As a result, net sales in Japan were 226,278 million yen (year-on-year decrease of 9.1%) and operating income was 9,933
million yen (year-on-year decrease of 25.3%).
Americas
In the Toys and Hobby Business, the BEN10 character toys performed solidly, but overall the business struggled due tothe weak market and the lack of other hit products. The Game Contents Business struggled due to the lack of hit titles
amongst home video game software in the current third quarter. On the other hand, efforts on cutting costs by improving
operational efficiency continued in the Visual and Music Content Business and the Amusement Facility Business.
As a result, net sales in Americas were 23,815 million yen (year-on-year decrease of 33.4%) and operating loss was 5,049
million yen (compared with an operating income of 1,697 million yen in the same period of the previous fiscal year).
EuropeIn the Toys and Hobby Business, although the BEN10 character toys performed well, overall business was sluggish in the
midst of a difficult market environment. The Game Contents Business struggled due to the lack of hit titles amongst home
video game software in the current third quarter, and the Amusement Facility Business performed weakly under the impact of
the economic downturn. Also, NAMCO BANDAI Partners S.A.S. (game sales company) became a wholly owned subsidiaryof the Company this fiscal year, and while sales increased, amortization of goodwill of 791 million yen was recorded.
As a result, net sales in Europe were 35,682 million yen (year-on-year increase of 4.4%) and operating loss was 277
million yen (compared with an operating income of 5,421 million yen in the same period of the previous fiscal year).
Asia
In the Toys and Hobby Business, in addition to long-established character products such as Mobile Suit Gundam, theBEN10 character toys became popular. In the Amusement Facility Business, performance was solid, particularly with respect
to Wonder Park Plus, a large-scale amusement facility in Hong Kong.
In addition, NAMCO BANDAI Partners S.A.S. (game sales company) became a wholly owned subsidiary of theCompany this fiscal year, and its Asian subsidiaries contributed to the sales and profit of the Game Contents Business.
As a result, net sales in Asia were 28,971 million yen (year-on-year increase of 6.0%) and operating income was 2,447
million yen (year-on-year increase of 36.7%).

7

2. Qualitative Information Regarding Consolidated Financial Position
At the end of the third quarter of fiscal year ending March 31, 2010, total assets stood at 347,993 million yen, a decreaseof 15,451 million yen from the end of the previous fiscal year. The main factors of this decline were as follows.
Notwithstanding increases such as a 5,195 million yen increase of merchandise and finished goods as a result ofconsolidation of NAMCO BANDAI Partners S.A.S. (game sales company) and its 18 subsidiaries this fiscal year, and a
3,569 million yen increase of work in process due to the arcade game machines and other products in the Game Contents
Business that are scheduled for sale in the fourth quarter, cash and time deposits decreased by 19,506 million yen as a resultof income taxes paid and dividends paid and short-term investments decreased by 2,592 million yen.
Total liabilities amounted to 101,445 million yen, a decrease of 1,420 million yen from the end of the previous fiscal year.
The main factors of this decline were as follows. Although trade payables increased by 3,404 million yen, long-term debt was
reduced by 4,335 million yen through partial repayments.
Total net assets stood at 246,547 million yen, a decrease of 14,031 million yen from the end of the previous fiscal year.
The main factors of this decline were as follows. While there was an increase of 1,869 million yen in translation adjustments
due to currency fluctuation and an increase of 1,618 million yen in other securities valuation difference, there was a decreaseof 17,398 million yen in retained earnings as a result of the dividends paid and the recording of net loss.
As a result, the equity ratio became 70.1% compared with 70.9% at the end of the previous fiscal year.

As of the end of the third quarter, cash and cash equivalents (hereafter “funds”) remaining on hand had decreased by
21,948 million yen from the end of the previous fiscal year to 88,088 million yen. Below is the breakdown of cash flows by
activities.

Cash Flows from Operating Activities
The amount of funds used in operating activities amounted to 3,447 million yen (compared with 2,261 million yen
increase in the same period of the previous fiscal year). Out of this, the main factor providing funds was depreciation andamortization of 13,968 million yen (compared with 16,191 million yen in the same period of the previous fiscal year) and
impairment loss on goodwill of 5,711 million yen (non-existent in the same period of the previous fiscal year), while the main
factors using funds were loss before income taxes and minority interests of 2,371 million yen (compared with income before
income taxes and minority interests of 20,074 million yen in the same period of the previous fiscal year), income taxes paidof 8,372 million yen (compared with 12,474 million yen in the same period of the previous fiscal year), an increase ininventories of 7,838 million yen (compared with 7,132 million yen in the same period of the previous fiscal year), and adecrease in accounts payable–other of 5,221 million yen (compared with 5,627 million yen in the same period of the previous
fiscal year).

Cash Flows from Investing Activities
The amount of funds used in investing activities totaled 9,670 million yen (compared with 271 million yen increase in thesame period of the previous fiscal year). As a breakdown of funds used, there were purchases of property, plant andequipment and intangible assets of 7,560 million yen (compared with 7,381 million yen in the same period of the previous
fiscal year) and purchase of subsidiary shares affecting the scope of consolidation of 1,821 million yen (non-existent in thesame period of the previous fiscal year).

8Cash Flows from Financing Activities
The amount of funds used in financing activities amounted to 10,633 million yen (down 55.2% compared with the same
period of the previous fiscal year). The main factors for funds used were dividends paid of 5,795 million yen (compared with
6,009 million yen in the same period of the previous fiscal year) and repayment of long-term debt of 4,425 million yen(compared with 2,669 million yen in the same period of the previous fiscal year).

3. Qualitative Information Regarding Consolidated Projections
As for the future of the economy, corporate capital investment still remains stringent, and the environment continues to beaffected by the uncertain employment situation and weak individual consumption and under such conditions, it is extremely
difficult to make economic forecasts.
While these circumstances continue, the business environment of entertainment industry, in which the Group isextensively involved, is also expected to remain uncertain.
Amidst these conditions, in the Toys and Hobby Business, the Group’s attention in Japan will focus on not only the
popular long-established character series, but also starting development of HYPER YO-YO, a new product mainly targeting
elementary-school-aged boys. Also overseas, aiming for dynamic growth in the medium- to long-term, the Group will
strengthen the development of new categories such as girls’ toys and preschoolers’ toys.
In the Game Contents Business, the Group will merchandise the popular series game titles such as Tekken 6, developedfor PlayStation 3, Xbox360 and PlayStation Portable. In the Visual and Music Content Business and the Amusement Facility
Business, amidst a difficult market environment, the Group will strive to implement various efficiency measures aimed at
improving profitability.
However, with respect to consolidated projections for the fiscal year ending March 31, 2010, the Company revised thesales plan for the fourth quarter, based on consolidated results for the first nine months of the fiscal year and recent
performance trends. The Company incorporated an allowance for distribution inventories and an estimated valuation loss
resulting from stricter inventory reviews for game software and visual package software in Japan and overseas at this fiscal
year end into consolidated projections of operating income and recurring income. In addition, the Company will post special
additional retirement benefits as extraordinary losses (approximately 2 billion yen) required for workforce reduction aimed atachieving greater organizational efficiency. Moreover, the Company will record a loss on the closure of amusement facilities
and others scheduled for the next and subsequent fiscal years (approximately 6 billion yen), and impairment loss on goodwill(approximately 12.5 billion yen) following a strict examination of future business plans of certain subsidiaries (Bandai Visual
Co., Ltd. which became wholly owned subsidiary in the fiscal year ended March 31, 2008, and two other subsidiaries) basedon their performance trends in the second half, as well as withdrawal of a fixed amount (approximately 3.5 billion yen) fromdeferred tax assets, of which the Company partially recorded in the third quarter results.

9As a result, the Group has revised its consolidated projections for the full fiscal year of the fiscal year ending March 31,
2010 as described in the following table.

(¥ million)

Previous projections (A)400,000

Operating
Income15,000

Revised projections (B)380,000

1,000

500

(31,000)(128.42) yen

Change in amount (B–A)(20,000)(14,000)(15,500)(39,500)–

Change (%)(5.0%)(93.3%)(96.9%)––

Reference: Results for theprevious fiscal year

426,399

22,34824,513

11,83047.95 yen

Net Sales

Recurring
Income16,000Net Income(Loss)
8,500

Net Income(Loss) per Share
35.21 yen

(April 1, 2008 to March 31, 2009)

Based on “The BANDAI NAMCO Group Restart Plan” announced today, effective the start of the next fiscal year, theGroup will integrate the Game Contents Business with the Visual and Music Content Business. Also, the various expenses
stated above are for the purpose of promoting the smooth implementation of the Restart Plan, which as the objective ofimproving its profitability and strengthening its financial standing. (Please refer to “The BANDAI NAMCO Group RestartPlan” for details.)

4. Others(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in
Scope of Consolidation)
On April 1, 2009, Bandai Networks Co., Ltd., a specified subsidiary of the Company, was merged by absorption-typemerger with NAMCO BANDAI Games Inc., a specified subsidiary of the Company. As a result of this merger, Bandai
Networks Co., Ltd. is an extinct company and is not included within the scope of specified subsidiary from the firstquarter.
Also, on July 7, 2009, NAMCO BANDAI Games Europe S.A.S., the Company’s wholly owned subsidiary, made an
additional acquisition of 66% of the shares of Distribution Partners S.A.S. held by Atari Europe S.A.S. and it now holds
100% of said company’s shares.

10

As a result of these changes, Distribution Partners S.A.S. and its 18 subsidiaries have become consolidated
subsidiaries from the second quarter. The following four companies now fall under the definition of a specified
subsidiary of the Company because the amount of their common stock is equivalent to 10% or more of the Company’scommon stock.
Name
NAMCO BANDAI Partners S.A.S. (Distribution Partners S.A.S.)
NAMCO BANDAI Partners Asia Holdings Pty.Ltd. (Atari Asia Holdings Pty.Ltd.)NAMCO BANDAI Partners Australia Pty.Ltd. (Atari Australia Pty.Ltd.)NAMCO BANDAI Partners UK Ltd. (Atari UK Ltd.)Note:

In the table above, the trading names stated are the trading names of the companies after they became wholly
owned subsidiaries, and the former names are written in parentheses.

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

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

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

d. Calculation of taxes
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
income before income taxes and minority interests for the fiscal year including the current third quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.
Also, adjustment for income taxes is included in income taxes.

11(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated
Financial Statements
Changes in Accounting Treatments
Changes in presented segments
In the Amusement Facility Business, the costs of supportive operations at the rear of the store was treated as costof sales. However, commencing in the first quarter, these costs are now presented as selling, general andadministrative expenses.
The reason for this change is as follows. After conducting reviews of the store operation methods and the role ofoperations staff to address intensifying competition in the Amusement Facility Business, a better understanding ofstore management operations was obtained. From the perspective of having a corresponding relationship between
sales and cost of sales, it was decided to present the costs relating to store management operations using more
appropriate categorization.
As a result of this change, compared to if the previous standard was applied, the cost of sales decreased by 1,551
million yen, resulting in an increase in gross profit of the same amount. Selling, general and administrative expenses
rose by the same amount.
This change does not impact operating income, recurring income and loss before income taxes and minority
interests.
It also does not impact the operating results presented in segment information.

125. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Current 3rd Quarter
As of December 31, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

AssetsCurrent assets
Cash and time deposits

87,240106,747

Trade receivables

65,34362,518

Short-term investments

1,833

4,426

Merchandise and finished goods

16,837

11,642Work in process

25,22321,653

Raw materials and supplies

5,636

4,354

Other current assets

25,18225,190Allowance for doubtful receivables

(935)

(446)

226,363

236,085

49,65951,991

Goodwill

10,661

12,054

Other intangible assets

9,747

10,230Total intangible assets

20,40922,285

Other investments and assets

52,791

54,336

Allowance for doubtful receivables(1,230)(1,254)

Total investments and other assets

51,56153,081

121,629

127,359

347,993363,444

Trade payables

40,16536,760

Short-term borrowings

9,194

8,857

Accrued income taxes

5,717

6,374

Provision

2,829

1,701

Other current liabilities

28,72030,609Total current liabilities

86,62784,303Long-term debt

7,655

11,990

Provision

2,449

1,953

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

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities

Long-term liabilities

Negative goodwill

179

246

Other long-term liabilities

4,533

4,371

Total long-term liabilities

14,81818,561

101,445

102,865

Total liabilities13(¥ million)
Current 3rd Quarter
As of December 31, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,96079,887Retained earnings

182,055

199,453

Treasury stock(9,443)(9,624)

Total stockholders’ equity

262,571279,717

Other securities valuation difference(293)(1,911)

Deferred gains or losses on hedges, net of taxes

(234)

(105)

(6,299)(6,299)Translation adjustments(11,885)(13,755)

Total valuation difference and translation adjustments(18,713)(22,071)

Stock subscription rights

1,206

1,468

Minority interests

1,483

1,465

Total net assets

246,547

260,579

347,993363,444

Valuation difference and translation adjustments

Land revaluation

Total liabilities and net assets

14

(2) Quarterly Consolidated Statements of Income(¥ million)
Prior 3rd Quarter(From April 1, 2008
to December 31, 2008)

Current 3rd Quarter(From April 1, 2009
to December 31, 2009)

Net sales

315,647

282,832

Cost of sales

202,538

185,332

Gross profit

113,109

97,499Selling, general and administrative expenses

93,267

92,792

Operating income

19,841

4,706Interest income

1,430

312

Dividend income

305

184

Amortization of negative goodwill

86

92

Equity in gain of affiliated companies

281–

Other non-operating income

654

360

Total non-operating income

2,758

950

138

247

Non-operating income

Non-operating expenses
Interest expense
Equity in loss of affiliated companies–

116

Foreign exchange loss

652

155

Other non-operating expenses

152

202

Total non-operating expenses

942

721

21,658

4,935

46

33

Reversal of accrued retirement and severance benefits–

11

Gain on reversal of stock subscription rights

25

6

1,634

12

Gain on liquidation of subsidiaries–

49

Other extraordinary income

802

Total extraordinary income

1,787

115

Recurring income
Extraordinary income
Reversal of allowance for doubtful receivables

Gain on sales of fixed assets

Extraordinary loss
Loss on sales of fixed assets

109Loss on impairment of fixed assets

48

942

Impairment loss on goodwill

–

5,711

Loss on valuation of investment securities

955–

Special retirement expenses

651

–

1,083

–

Litigation settlement
Other extraordinary loss

621

759

Total extraordinary loss

3,370

7,423

Income (loss) before income taxes and minority interests

20,074(2,371)

Income taxes

10,875

9,267

Minority interests

178

104

Net income (loss)

9,019(11,744)15

(3) Quarterly Consolidated Statements of Cash Flows(¥ million)
Prior 3rd Quarter(From April 1, 2008
to December 31, 2008)

Current 3rd Quarter(From April 1, 2009
to December 31, 2009)

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Loss on impairment of fixed assets

20,074
16,19148(2,371)
13,968942

Amortization of goodwill
Impairment loss on goodwill

3,049
–

3,837
5,711

Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in provisionInterest and dividend income

(124)
186
(1,735)148(1,033)
(497)

138
(36)

247
–

(281)
146
(1,624)

116
169
(2)

635
(66)

304
(2)

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories

979(5,280)(7,132)85
737(7,838)Investment for amusement facilities and machines
Increase (decrease) in trade payables(6,157)
3,509(3,200)(2,598)

Increase (decrease) in accounts payable–other
Increase (decrease) in consumption tax payables
Other(5,627)(1,295)(2,510)(5,221)(71)
1,262

Subtotal

13,086

4,694Interest and dividends received

1,754

492

(104)
(12,474)(262)(8,372)

2,261(3,447)(1,393)(106)

Proceeds from withdrawal from time deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment

4,030(5,377)3,907

256(5,342)24

Purchases of intangible assets
Purchases of investment securities(2,003)(140)(2,217)
(394)

233

209

(31)

(81)

–

(1,821)

Advances of loans receivableCollection of loans receivable

(60)
278

(1,071)
140

Guarantee money deposited
Proceeds from collection of guarantee money deposited
Other

(999)
1,835
(5)

(345)
1,044
33

271

(9,670)Interest expense
Foreign exchange loss (gain)
Equity in loss (gain) of affiliated companies
Loss on disposal of fixed assets
Loss (gain) on sales of fixed assets
Loss on disposal of amusement facilities and machines
Loss (gain) on sales of investment securities

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for deposit in time deposits

Proceeds from sales of investment securities
Acquisition of shares in consolidated subsidiaries, net ofcash acquired
Purchase of subsidiary shares affecting the scope of
consolidation

Net cash provided by (used in) investing activities16(¥ million)
Prior 3rd Quarter(From April 1, 2008
to December 31, 2008)

Current 3rd Quarter(From April 1, 2009
to December 31, 2009)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

157

(295)

(2,669)(4,425)–(63)

Payments into fund trust for purchase of treasury stock(17,500)–

Proceeds from withdrawal of fund trust for purchase oftreasury stock

2,376

–

(6)

(2)

Repayment of long-term debt
Repayment of lease obligations

Purchase of treasury stock
Dividends paid

(6,009)(5,795)

Dividends paid to minority interests

(76)

(51)

Net cash used in financing activities(23,726)(10,633)

Effect of exchange rate changes on cash and cash equivalents(5,921)

1,515

Net increase (decrease) in cash and cash equivalents(27,114)(22,235)

Cash and cash equivalents at beginningof period

129,289

110,037

1,142

270

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

61

Decrease in cash and cash equivalents due to company split

–

(45)

103,31788,088

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

Cash and cash equivalents at end of period17(4) Notes on Premise of Going Concern
No items to report(5) Segment Information[By business segment]
Prior 3rd quarter (From April 1, 2008 to December 31, 2008)(¥ million)

Toys and
Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

NetworkBusiness

Visual andMusic
Content
Business

Other
Businesses

117,985

58,828

101,607

7,745

23,086

6,394

315,647–

315,647(2) Inter-segment
sales and transfers

1,916

268

4,590

279

664

7,720

15,439(15,439)–

Total

119,901

59,096106,198

8,025

23,750

14,114331,086(15,439)

315,647

10,41348

10,162

445

162

426

21,657(1,815)

19,841

Total

Eliminations
andConsolidated
Corporate

Net sales(1) To externalcustomers

Operating income

Current 3rd quarter (From April 1, 2009 to December 31, 2009)(¥ million)

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

Amusement
Facility
Business

Other
Businesses

106,692

100,379

21,312

48,9875,460(2) Inter-segment
sales and transfers

2,232

4,290

685

171

Total

108,924

104,669

21,997

Operating income (loss)

9,640(3,372)(122)

Eliminations
andCorporate

Consolidated

282,832–

282,832

7,777

15,157(15,157)–

49,15913,237

297,989(15,157)

282,832

37

198

6,381

(1,674)

4,706

Total

Net sales(1) To externalcustomers

Notes:

1.
2.

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

18

3.

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

Toys and
Hobby
Business

Game
Contents
Business

Eliminations
andConsolidated
Corporate

117,985

109,353

23,08658,8286,394

315,647–

315,647(2) Inter-segment
sales and transfers

1,916

4,599

664

268

7,720

15,168(15,168)–

Total

119,901

113,952

23,75059,096

14,114

330,815(15,168)

315,647

10,413

10,607

162

48

426

21,657(1,815)

19,841Total

Net sales(1) To externalcustomers

Operating income

4.

Change in accounting policies
Prior 3rd quarter (From April 1, 2008 to December 31, 2008)
As set out in 4. (3) Changes in Accounting Treatments c. of Qualitative Information and Financial
Statements, we apply the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (PITF Practical Solution No. 18, ASBJ, May 17, 2006)
from the first quarter.
These changes had the following effect on operating income for each segment.
(¥ million)

Operatingincome5.

Toys and
Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

NetworkBusiness

Visual andMusic
Content
Business

Other
Businesses

(17)

–

(1)

–

–

–

Total

(19)

Eliminations
andConsolidated
Corporate–

As a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries from the second
quarter, total assets in the Game Contents Business increased by 17,386 million yen.

19

(19)

[By geographic segment]
Prior 3rd quarter (From April 1, 2008 to December 31, 2008)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers
Total
Operating income

Americas(¥ million)

Europe

Asia

Total

Eliminations
andConsolidated
Corporate

237,532

33,861

34,164

10,088315,647–

315,647

11,476

1,918

11

17,23430,640(30,640)–

249,008

35,77934,17627,323346,288(30,640)

315,647

13,292

1,697

5,421

1,790

22,201(2,360)19,841

Current 3rd quarter (From April 1, 2009 to December 31, 2009)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers
Total
Operating income (loss)
Notes:

1.

Americas

Europe(¥ million)
Asia

Total

Eliminations
andConsolidated
Corporate

213,433

21,18935,261

12,947

282,832–

282,832

12,844

2,626

421

16,024

31,915(31,915)–226,278
9,933

23,815(5,049)35,682(277)

28,971
2,447

314,747
7,054(31,915)(2,347)

282,832
4,706

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

Americas:

United States, Canada, etc.

b.

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

c.

Asia:

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

As a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries in the second
quarter, Germany has been added to the segment of Europe and Australia has been added to the segment of
Asia.
2.

Change in accounting policies
Prior 3rd quarter (From April 1, 2008 to December 31, 2008)
As set out in 4. (3) Changes in Accounting Treatments c. of Qualitative Information and Financial
Statements, we apply the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (PITF Practical Solution No. 18, ASBJ, May 17, 2006)
from the first quarter.
These changes had the following effect on operating income for each segment.
(¥ million)Japan
OperatingincomeAmericas–

Europe

–

(15)

20

Asia

Total
(4)

(19)

Eliminations
andConsolidated
Corporate–(19)

[Overseas sales]
Prior 3rd quarter (From April 1, 2008 to December 31, 2008)
Americas
I.

Overseas sales (¥ million)

Europe

Asia

Total

35,72035,036

12,98583,742–––

315,647

11.3

11.1

4.1

26.5

II. Consolidated sales (¥ million)
III. Overseas sales as a ratio ofconsolidated sales (%)

Current 3rd quarter (From April 1, 2009 to December 31, 2009)
Americas
I.
II.

Overseas sales (¥ million)
Consolidated sales (¥ million)

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

1.
2.

Europe

Asia

Total

22,878–35,496–

15,874–74,249282,832

8.1

12.6

5.6

26.3

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

Americas:

United States, Canada and Latin Americab.

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

c.

Asia:

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

As a result of consolidation of NAMCO BANDAI Partners S.A.S. and its 18 subsidiaries in the second
quarter, Germany has been added to the segment of Europe.
(6) Notes on Significant Changes in the Amount of Stockholders’ Equity
No items to report21

(7) Significant Subsequent Event(Solicitation of voluntary retirement)
The Company, at its Board of Directors’ meeting held on February 2, 2010, passed a resolution concerning solicitation ofvoluntary retirement to be implemented by NAMCO BANDAI Games Inc., a consolidated subsidiary of the Company.

1. Overview of solicitation of voluntary retirement(1) Reason for solicitation of voluntary retirement:

Given the ongoing challenges confronting the global economic
environment, the objective of making solicitation of voluntary
retirement and review of optimum personnel structure is toimprove profitability of the Group.

(2) Targets of solicitation:

Employees of NAMCO BANDAI Games Inc.

(3) Target number:

200 (Number of employees as of December 31, 2009: 1,927)(4) Solicitation period:

From February 8, 2010 to February 26, 2010

(5) Retirement date:

March 31, 2010

2. Expected losses from voluntary retirement
Through the payment of special additional retirement benefits related to the solicitation of voluntary retirement of
NAMCO BANDAI Games Inc., the Company expects to record an extraordinary loss of approximately 1,200 million yen
for this fiscal year (ending March 31, 2010).
Furthermore, due to payments including additional early retirement benefits by utilizing existing voluntary early
retirement programs at the Group Administrative Headquarter (shared service function) of the Company, Bandai Visual
Co., Ltd. and other companies, a total extraordinary loss of approximately 2,000 million yen is expected.

22