Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2011

February 3, 2011DISCLAIMER- 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.

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

February 3, 2011

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2011 (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:
February 10, 2011
Scheduled starting date for dividend payments:
The additional materials of the Financial Results for the Third Quarter: Yes
The information session of the Financial Results for the Third Quarter: Yes (for investors and the press)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2011
(April 1, 2010 to December 31, 2010)(1) Consolidated Operating Results (For the third quarter ended December 31, 2010)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net sales

Third Quarter of the Fiscal
Year Ending March 31, 2011
Third Quarter of the Fiscal Year
Ended March 31, 2010

¥ million
288,030%
1.8¥ million
16,616%253.0¥ million
16,577%235.9

282,832(10.4)

4,706(76.3)

4,935(77.2)Net income

Third Quarter of the Fiscal
Year Ending March 31, 2011
Third Quarter of the Fiscal Year
Ended March 31, 2010

Net income per share

Net income per share(diluted)¥ million
3,673

%
–

¥
15.26

¥
15.25

(11,744)–(48.65)–(2) Consolidated Financial Position
Total assets

As of December 31, 2010
As of March 31, 2010

¥ million
311,874
325,935

Net assets

Equity ratio¥ million
217,291
229,012(Reference)
Equity: 215,652 million yen (as of December 31, 2010), 226,666 million yen (as of March 31, 2010)

%
69.1
69.5

Net assets per share¥
911.84938.74

2. Cash Dividend

End offirst quarter
Fiscal Year Ended March 31, 2010

Annual cash dividend
End ofFiscalthird quarteryear-end¥12.00–¥12.00¥12.00–End ofsecond quarter

Total¥24.00–Fiscal Year Ending March 31, 2011–
Fiscal Year Ending March 31, 2011¥12.00¥24.00(Projections)* Revision to the projections of cash dividend for the Fiscal Year Ending March 31, 2011: No* The stable portion of the cash dividend is given in the projections for the Fiscal year-end of the Fiscal Year Ending March 31, 2011 basedon the Company’s basic policy regarding appropriation of profits. Thus, the actual Fiscal year-end cash dividend will be decided
according to the consolidated financial results.

3. Consolidated Projections for the Fiscal Year Ending March 31, 2011 (April 1, 2010 to March 31, 2011)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
395,000
4.3
13,500616.6
13,500
607.6
1,800
–
7.51
* Revision to the projections: Yes

4. Other Information (For details, please refer to “2. Other Information” on page 5 of the Attached Material)(1) Changes in Significant Subsidiaries during the Third Quarter: No
Note: Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation(2) Application of Simplified Accounting and Special Accounting for the Third Quarter: Yes
Note: Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial
Statements(3) Changes in Accounting Policies, Procedures, and Methods of Presentationa) Changes due to revisions to accounting standards and other regulations: Yesb) Changes due to other reasons: No
Note: Change in Significant Accounting Policies, Procedures, and Methods, which are stated in “Change in Important Matters
in Preparing Quarterly Consolidated Financial Statements”.
(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, 2010
250,000,000 shares
As of March 31, 2010
250,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of December 31, 2010
13,498,808 shares
As of March 31, 2010
8,540,776 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Third Quarter ended December 31, 2010
240,802,544 shares
For the Third Quarter ended December 31, 2009
241,384,573 shares* Implementation status of quarterly review
This Consolidated Financial Report for the Third Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the third quarter disclosing, quarterly review for the quarterly financial statements are under way.
* Explanation on appropriate use of the projections of business results, etc.:
Consolidated projections for the fiscal year ending March 31, 2011 (announced on November 5, 2010) are revised in this report.
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. Please refer to the section of “(3) Qualitative Information Regarding Consolidated Projections” of “1. Qualitative Information
Regarding Consolidated Results for the Third Quarter” on pages 4-5 of the attached material to the quarterly financial results report for
matters pertaining to the earnings projections.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Third Quarter......................... 2(1) Qualitative Information Regarding Consolidated Operating Results...................................................................... 2(2) Qualitative Information Regarding Consolidated Financial Position ...................................................................... 4(3) Qualitative Information Regarding Consolidated Projections.................................................................................. 4

2. Other Information................................................................................................................................ 5(1) Summary of Changes in Significant Subsidiaries ...................................................................................................... 5(2) Summary of Simplified Accounting and Special Accounting .................................................................................... 5(3) Summary of Changes in Accounting Policies, Procedures, and Methods of Presentation...................................... 6

3. Consolidated Financial Statements..................................................................................................... 7(1) Quarterly Consolidated Balance Sheets ...................................................................................................................... 7(2) Quarterly Consolidated Statements of Operations .................................................................................................... 9(3) Notes on Premise of Going Concern .......................................................................................................................... 10(4) Segment Information .................................................................................................................................................. 10(5) Notes on Significant Changes in the Amount of Stockholders’ Equity ................................................................... 13

-1-

1.

Qualitative Information Regarding Consolidated Results for the Third Quarter(1)

Qualitative Information Regarding Consolidated Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2011, while recovery was evident in theeconomy, there was also international financial instability, an unfavorable employment situation, a sharp rise in the yen andother factors. In the entertainment industry there continues to be uncertainty towards the economy on account of the effectof weak consumption.
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 it is further developing its global
management foundation, based on the three-year Mid-term Business Plan that started in April 2009. Moreover, the Group
commenced the “BANDAI NAMCO Group Restart Plan” in April 2010, for the purpose of a more assured implementationof this global management foundation, and it carried out steps to transform itself into a speedy Group, improve its
profitability and strengthen its financial standing.
On the business front, the long-established character toys and card products posted strong performances in the Toys andHobby Business in Japan. In addition, the Group benefitted from certain achievements, particularly in the Content Businessand the Amusement Facility Business, through a range of measures being implemented according to the Restart Plan.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 288,030 million
yen (year-on-year increase of 1.8%), operating income of 16,616 million yen (year-on-year increase of 253.0%), andrecurring income of 16,577 million yen (year-on-year increase of 235.9%). Concerning net income, extraordinary losses
were recognized in the first quarter from loss on valuation of investment securities and the loss on adjustment for changesof accounting standard for asset retirement obligations. There was also an increase in the payment of income taxes
accompanying a deepening deficit of certain subsidiaries, mostly sales companies overseas, as well as increased profits
mainly by subsidiaries in Japan. As a result, net income was 3,673 million yen (compared with a net loss of 11,744 million
yen for the same period of the previous fiscal year).
The Company acquired its own shares as follows in accordance with a decision made by the Board of Directors at a
meeting held on November 5, 2010.
(1) Acquisition period: November 11, 2010 to December 24, 2010
(2) Total number of shares acquired: 5,000,000 shares(3) Total amount paid for the stock acquisition: 4,169 million yen

Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys, such as the KAMEN RIDER OOO (pronounced“O’s”), HEART CATCH PRETTY CURE ! and Tamagotchi posted strong performance figures in Japan, mainly during
the Christmas shopping season. Another toy popular in Japan was VooV, the new toy vehicle that was launched to
expand the target population. The digital card game DATA CARDDASS and the card game PRO BASEBALL OWNERSLEAGUE that can be played in conjunction with an online game were also strong contributors to performance.
Performance also improved in peripheral businesses such as candy toys and children’s clothing as a result of horizontal
development of popular characters such as the KAMEN RIDER series.
Turning overseas, in North America and Europe, facing a struggling performance from the Power Rangers series
due to a decline in the frequency of TV broadcasts, the Group started to expand into new categories and content in the-2-aim of achieving growth in the medium- to long-term. However, performance did not reach the level of the same periodof the previous fiscal year, which enjoyed strong performance from BEN10.
As a result, net sales in the Toys and Hobby Business were 116,309 million yen, and segment profit was 13,561
million yen.

Content BusinessIn the Content Business, new titles in home video game software that were released as potential candidates for new
franchises, particularly overseas, performed below the planned targets. However, games such as GOD EATER BURST
and AKB1/48 Idol to Koishitara..., a dating simulation game, for PlayStation Portable enjoyed popularity in Japan
thanks to a speedier response to meet customer needs.
In arcade game machines, performance was solid, particularly with respect to Mobile Suit Gundam Extreme VS. andpopular character prizes. In visual and music content, favorable package software sales of Mobile Suit Gundam UC(Unicorn) and the management principles of selection and concentration of titles led to improved profitability. However,in the mobile content, a decline in fee-paying subscribers led to the posting of weak performance figures.
Note that due to impairment loss on goodwill related to certain subsidiaries that was recognized in the previous
fiscal year, amortization of goodwill for the third quarter (nine months) has declined compared with the same period of
the previous fiscal year. Fixed costs also declined due to the implementation of efficiency measures.
As a result, net sales in the Content Business were 130,261 million yen, and segment profit was 3,553 million yen.

Amusement Facility BusinessIn the Amusement Facility Business, amid the environment of the Japanese market bottoming out, the Group
implemented different marketing strategies for each customer segment. Specifically, solid performance figures wereposted, thanks to stores that have been differentiated by providing the experience of a unique world-view of characterssuch as Ultraman and Tamagotchi. As a result, existing-facility sales were 100.9% of the figure for the same period of
the previous fiscal year.
Overseas, although the Group posted weak performance figures in Europe amidst difficult market environment,
profitability in the Americas was improved due to the efficiency efforts that carried out in the previous fiscal year.
As a result, net sales in the Amusement Facility Business were 46,489 million yen, and segment profit was 1,454
million yen.

Facilities as of December 31, 2010
Directly Managed
Facilities

Revenue-Sharing
Facilities

Others

Total

277

837

3

1,117

Other Businesses
Other Businesses consist of companies that conduct operations, such as logistics support and building management
for each of the Group’s strategic business units. During the third quarter (nine months), efforts were made to improvethe efficiency of these operations related to group support.
As a result, net sales in the Other Businesses were 13,406 million yen, and segment profit was 796 million yen.

-3-

(2)

Qualitative Information Regarding Consolidated Financial Position
At the end of the third quarter of fiscal year ending March 31, 2011, total assets stood at 311,874 million yen, adecrease of 14,060 million yen from the end of the previous fiscal year. The main factors were as follows. Although there
was an increase of 12,867 million yen in trade receivables, this was offset by a decrease of 21,705 million yen in cash andtime deposits due to income taxes paid, cash dividends paid and repayment of borrowings.
Total liabilities amounted to 94,582 million yen, a decrease of 2,340 million yen from the end of the previous fiscal
year. The main factors of this decline were as follows. Although trade payables increased by 5,704 million yen, there weredecreases of 4,224 million yen in advances received included in other current liabilities, 2,888 million yen in short-termborrowings due to repayment, and 1,666 million yen in long-term borrowings included in other long-term liabilities due torepayment.
Total net assets stood at 217,291 million yen, a decrease of 11,720 million yen from the end of the previous fiscal year.
The main factors were decreases of 5,431 million yen in foreign currency translation adjustments due to currency
fluctuation and 2,136 million yen in retained earnings due to cash dividends paid etc., and the increase of 4,119 million yen
in treasury stock through the acquisition of the Company’s own shares on the market.
As a result, the equity ratio became 69.1% compared with 69.5% at the end of the previous fiscal year.
(3)

Qualitative Information Regarding Consolidated Projections
As for the future of the economy, taking into consideration the global financial instability, the weak individual

consumption and other factors, the current uncertainty is expected to continue and have an impact on the entertainment
industry, in which the Group is extensively involved.
Facing these circumstances, the Group intends to transform itself into a speedy Group, improve its profitability andstrengthen its financial standing based on the “BANDAI NAMCO Group Restart Plan” for the purpose of a more assured
implementation of the global management foundation adopted in the three-year Mid-term Business Plan that has been in
operation since April 2009.
Specifically, in the Toys and Hobby Business, our plan for Japan is to promote the popular KAMEN RIDER OOO(pronounced “O’s”), and in addition, to launch other new product series for long-established characters such as
GOKAIGER (Power Rangers series) and SUITE PRETTY CURE ♪. Furthermore, we plan to add strength to the popular
DATA CARDDASS and work to further popularize Battle Spirits and PRO BASEBALL OWNERS LEAGUE aiming for
expanding our share of the trading card market. Overseas, in addition to the BEN10 character toys, which have become along-established character series, we will place our attention on new products that can bring growth in the next fiscal year
and beyond such as POP PIXIE aimed at girls.
In the Content Business, the Group will carry out a speedier rollout of its business under a new virtual organization
based on the Group’s content. Specifically, in the fiscal year ending March 31, 2011, we plan to release three titles for thesoon-to-be-launched Nintendo 3DS including Ridge Racer 3D. In addition, we are working to deliver timely response to
new customer needs such as by developing for SNS (Social Networking Service) with a particular focus on GUNDAMROYALE, a service that commenced in December 2010 and which has got off to a favorable start. For the overseas home
video game software, which has been struggling, we have already undertaken structural reform, including revising thedevelopment system in the Americas.
For the Amusement Facility Business, the Group will pursue a strategy of differentiation through the promotion of store
operations that provide the experience of the Group’s unique world-view of characters in Japan, while strengthening
profitability by continuing to implement various efficiency measures in Japan and overseas.
-4-

In its consolidated projections for the full fiscal year ending March 31, 2011, taking into account the operating results
for the third quarter (nine months) and the recent trends in financial performance, the Group has revised its projections thatwere announced in the Consolidated Financial Report for the second quarter on November 5, 2010. Please see below for
the details of the revision.
Revision to the consolidated projections for the full fiscal year
(April 1, 2010 to March 31, 2011)
Net Sales

Operating
Income(¥ million)
Recurring
IncomeNet Income(Loss)Net Income(Loss) per SharePrevious projections (A)400,000

11,00010,5001,800

7.45 yen

Revised projections (B)395,000

13,50013,5001,800

7.51 yen

Change in amount (B–A)(5,000)

2,500

3,000

–

–

Change (%)(1.3%)

22.7%

28.6%

–

–

378,547

1,883

1,907

(29,928)(123.98) yen

Reference: Results for theprevious fiscal year
(April 1, 2009 to March 31, 2010)

2.

Other Information(1)

Summary of Changes in Significant Subsidiaries
No items to report(2)

Summary of Simplified Accounting and Special Accounting
a. Simplified accounting
i. 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 calculatedusing the debt default ratio and the like at the end of the previous fiscal year.

ii. Inventory valuation method
With respect to the calculation of inventories at the end of the current third quarter, physical inventories wereomitted 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.

iii. 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.

b. Special accounting
Calculation of taxes
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against-5-

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.

(3)

Summary of Changes in Accounting Policies, Procedures, and Methods of Presentation
a. Application of “Accounting Standard for Asset Retirement Obligations”“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidanceon Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) were applied
from the first quarter.
As a result of this change, gross profit, operating income and recurring income have each decreased by 64 million
yen and income before income taxes and minority interests decreased by 1,269 million yen. Also, the change in theamount of asset retirement obligations arising from the application of this accounting standard is 1,637 million yen.

b. Application of accounting standards for business combinations“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, December 26, 2008), “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, December 26, 2008), “Partial Amendments
to Accounting Standard for Research and Development Costs” (ASBJ Statement No. 23, December 26, 2008),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, December 26, 2008), “Accounting Standard
for Equity Method of Accounting for Investments” (ASBJ Statement No. 16, December 26, 2008) and “Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ GuidanceNo. 10, December 26, 2008) were applied from the first quarter.

-6-

3.

Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets(¥ million)
Current 3rd Quarter
As of December 31, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

AssetsCurrent assets
Cash and time deposits

74,94296,647

Trade receivables

65,59352,726

Finished goods and merchandise

13,563

12,817Work in process

28,40023,805

Raw materials and supplies

4,686

4,334

Other current assets

22,03928,570(948)(1,138)208,278

217,762

45,67546,014

Other intangible assets

9,367

12,501

Total intangible assets

9,367

12,501Other investments and assets

50,35751,463

Allowance for doubtful receivables(1,803)(1,807)

Total investments and other assets

48,55349,656

103,596

108,172

311,874

325,935

41,66035,956

Short-term borrowings

5,988

8,876

Accrued income taxes

7,174

8,239

Provision

2,533

3,204

Other current liabilities

27,26130,326

Total current liabilities

84,61786,604

Provision

2,885

2,565

Other long-term liabilities

7,079

7,753

Total long-term liabilities

9,965

10,31994,582

96,923

Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities
Trade payables

Long-term liabilities

Total liabilities-7-(¥ million)
Current 3rd Quarter
As of December 31, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,99979,960Retained earnings

161,317

163,454

Treasury stock(13,575)(9,455)

Total stockholders’ equity

237,741

243,958

Valuation difference and foreign currency translation
adjustments
Unrealized gains or losses on other securities, net of tax

1,012

19

Deferred gains or losses on hedges, net of tax

(278)

79

Land revaluation, net of tax(6,491)(6,491)

Foreign currency translation adjustments(16,331)(10,900)

Total valuation difference and foreign currency translation
adjustments(22,089)(17,292)4810

Minority interests

1,635

1,535

Total net assets

217,291

229,012311,874

325,935

Stock subscription rights

Total liabilities and net assets

-8-

(2)

Quarterly Consolidated Statements of Operations(¥ million)
Prior 3rd Quarter(From April 1, 2009
to December 31, 2009)

Current 3rd Quarter(From April 1, 2010
to December 31, 2010)

Net sales

282,832

288,030

Cost of sales

185,332

183,377

Gross profit

97,499104,652

Selling, general and administrative expenses

92,792

88,036

Operating income

4,706

16,616

Interest income

312

125

Non-operating income
Dividend income

184

204

Amortization of negative goodwill

92–

Equity in gain of affiliated companies–

88

Other non-operating income

360

402

Total non-operating income

950

821

247

126

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

116–

Foreign exchange loss

155

658

Other non-operating expenses

202

75

Total non-operating expenses

721

859

4,935

16,577

Gain on sales of fixed assets

12

232

Recurring income
Extraordinary income
Gain on liquidation of subsidiaries

49–

Gain on transfer of business–

405

Reversal of allowance for doubtful receivables

33

118

Reversal of accrued retirement and severance benefits

11–

Reversal of provision for losses from business restructuring–

22

Gain on reversal of stock subscription rights

6715

Other extraordinary income

2

144

Total extraordinary income

115

1,638

9

3

Extraordinary loss
Loss on sales of fixed assets
Loss on impairment of fixed assets

942

236

5,711

–

Loss on valuation of investment securities

–

2,059

Loss on adjustment for changes of accounting standard for
asset retirement obligations

–

1,205

Other extraordinary loss

759

811

Total extraordinary loss

7,423

4,317

Income (loss) before income taxes and minority interests(2,371)

13,898

Income taxes

9,267

10,054

Impairment loss on goodwill

Income before minority interests

–

3,843

Minority interests

104

169

Net income (loss)(11,744)

3,673

-9-

(3)

Notes on Premise of Going Concern
No items to report(4)

Segment Information[By Business Segment]
Prior 3rd quarter (From April 1, 2009 to December 31, 2009)

Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total
Operating income(loss)

Notes: 1.
2.

3.

(¥ million)

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

106,692

100,379

21,312

48,987

5,460

282,832–

282,832

2,232

4,290

685

171

7,777

15,157(15,157)–

108,924

104,669

21,99749,15913,237

297,989(15,157)

282,832

9,640(3,372)

(122)

37

198

6,381

(1,674)

4,706

Amusement
Facility
Business

Other
Businesses

Total

Eliminations
andConsolidated
Corporate

The industry segments used above are those used for internal management purposes.
Main products in each business segment:(1) Toys and Hobby Business:
Toys, candy toys, products for vending machines, cards, plastic
models, apparel, sundries(2) Game Contents Business:
Home-use video game software, arcade game machines, mobile
contents, prizes for amusement arcade machines(3) Visual and Music Content Business: Video contents, video 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
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 third quarter (nine months) of the previous fiscal year (businesssegment information) under the new business segments.
(¥ million)

Net sales(1) To externalcustomers(2) Inter-segment sales
and transfers
Total
Operating income

4.

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

Amusement
Facility
Business

Other
Businesses

117,985

109,353

23,08658,8286,394

315,647–

315,647

1,916

4,599

664

268

7,720

15,168(15,168)–

119,901
10,413113,952
10,60723,750162

59,09648

14,114426

330,815
21,657(15,168)(1,815)

315,647
19,841

Total

Eliminations
andConsolidated
Corporate

In the second quarter, due to the new consolidation of NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, total assets in the Game Contents Business increased by 17,386 million yen.
- 10 -

[By Geographic Segment]
Prior 3rd quarter (From April 1, 2009 to December 31, 2009)
Japan
Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total
Operating income(loss)

Note:

Americas

Europe(¥ million)Asia,
excluding Japan

Total

Eliminations
and Corporate

Consolidated

213,433

21,18935,261

12,947

282,832–

282,832

12,844

2,626

421

16,024

31,915(31,915)–226,278

23,81535,682

28,971

314,747(31,915)

282,832

9,933(5,049)

(277)

2,447

7,054

(2,347)

4,706

Definition of geographic segments and main countries and regions in geographic segments:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States and Canadab.

Europe:France, United Kingdom, Spain and Germanyc.

Asia, excluding Japan:

Hong Kong, Thailand, Korea, China and Australia

In the second quarter, due to the new consolidation of NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, Germany was added to the Europe geographic segment and Australia to the Asia geographic
segment.
[Foreign Sales]
Prior 3rd quarter (From April 1, 2009 to December 31, 2009)
AmericasAsia,
excluding Japan

EuropeTotal

I

Foreign sales (¥ million)

22,87835,496

15,87474,249II

Consolidated sales (¥ million)

–

–

–

282,832

III

Share of sales to customers
outside Japan (%)

8.1

12.6

5.6

26.3

Notes: 1.
2.

Foreign sales are defined as total sales by the Company and its consolidated subsidiaries in countries andregions other than Japan.
Segmentation by country or by region and the main countries and regions in each geographic segment are as
follows:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, Germany, Middle East and Africac.

Asia, excluding Japan: Hong Kong, Singapore, Thailand, Korea, Australia, China and Taiwan

In the second quarter, due to the new consolidation of NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, Germany was added to the Europe geographic segment.

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[Segment Information]
1. Overview of reportable segments
The reportable segments of the Company are components of the Group whose separate financial information isavailable. These segments are periodically evaluated by the Board of Directors in deciding how to allocate management
resources and in assessing the performance.
The Group is made up of (1) three strategic business units, one for each business domain, namely the Toys andHobby SBU, the Content SBU, and the Amusement Facility SBU, and (2) the affiliated business companies that mainly
serve a supporting role for these strategic business units. The major company of each strategic business unit leads theplanning and promotion of the business strategies of the strategic business unit for Japan and overseas.
Accordingly, the Group has the following three reportable segments: Toys and Hobby Business, Content Business,and Amusement Facility Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys and products for vending
machines. The Content Business conducts production and sales of home-use video game software and video related
products, and the manufacturing and sales of arcade game machines. The Amusement Facility Business conducts theoperation of amusement facilities.

2. Information regarding the amounts of net sales and profit/loss by reportable segment
Current 3rd quarter (From April 1, 2010 to December 31, 2010)(¥ million)

Reportable Segments

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Other
Businesses
Total

Total

(Note 1)

Adjustment(Note 2)

Amountrecorded in
the quarterly
consolidated
statements ofoperations(Note 3)

Net sales
To external customers

113,659

123,01246,432

283,104

4,926

288,030−

288,030

Inter-segment sales andtransfers

2,649

7,249

57

9,956

8,479

18,436(18,436)−

Total

116,309130,261

46,489293,060

13,406306,467(18,436)

288,030

Segment profit

13,561

3,553

1,454

18,569796

19,365(2,749)16,616

Notes: 1.

2.

3.

The “Other Businesses” category is a business segment not included in reportable segments under which
operations such as logistics support and building management for each of the Group’s strategic business units
are classified.
Included in the 2,749 million yen deducted from segment profit as adjustment are 565 million yen as
inter-segment eliminations, and 2,184 million yen as corporate expenses that cannot be allocated to any
reportable segment. The corporate expenses are mainly costs related to the administrative division that have notbeen attributed to a reportable segment.
Segment profit is adjusted with operating income in the quarterly consolidated statements of operations.

3. Information regarding loss on impairment of fixed assets and goodwill by reportable segment
In the current third quarter (nine months), there was no recognition of any material loss on impairment of fixed
assets, nor was there recognition of any material changes in the amount of goodwill or material gains on negative
goodwill.

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(Additional information)“Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement
No. 17, March 27, 2009) and “Guidance on the Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information” (ASBJ Guidance No. 20, March 21, 2008) were applied from the first quarter.

(5)

Notes on Significant Changes in the Amount of Stockholders’ Equity
During the third quarter (nine months), in accordance with a decision made by the Board of Directors at a meeting held

on November 5, 2010, the Company acquired 5,000,000 of its own shares at a purchase price of 4,169 million yen, raising
the value of treasury stock as of the end of the third quarter to 13,575 million yen.

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