Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2008

August 1, 2007

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.

- 1 -Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
August 1, 2007

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2008
Representative:
Contact:

Takeo Takasu, President and Representative Director
Yuji Asako, General Manager, Corporate Administration Division

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2008
(April 1, 2007 ~ June 30, 2007)(1) Consolidated Operating Results
Net salesFirst Quarter of the Fiscal YearEnding March 31, 2008
First Quarter of the Fiscal Year
Ended March 31, 2007
Fiscal Year Ended March 31,
2007

Fiscal Year Ended March 31,
2007

Recurring income¥ million
96,100%(3.0)¥ million
4,473%(48.3)¥ million
5,556%(38.2)

99,119

−

8,656

−

8,993

−

459,132−

42,224−45,615−

Net income

First Quarter of the Fiscal YearEnding March 31, 2008
First Quarter of the Fiscal Year
Ended March 31, 2007

Operating income

Net income per share

Net income per share(diluted)¥ million
2,769%(32.1)

¥
10.82

¥
10.81

4,077

−

16.12

−

24,252

−

95.73

95.67

(2) Consolidated Financial Position
Total assets

First Quarter of the Fiscal YearEnding March 31, 2008
First Quarter of the Fiscal Year
Ended March 31, 2007
Fiscal Year Ended March 31,
2007

Net assets

Equity ratio

Net asset per
share¥ million
374,144¥ million
272,064%70.1¥
1,036.65

369,386

252,36766.0

963.92

408,490284,25467.1

1,063.29- 2 -(3) Consolidated Statement of Cash Flows
Operatingactivities

First Quarter of the Fiscal YearEnding March 31, 2008
First Quarter of the Fiscal Year
Ended March 31, 2007

¥ million
1,692¥ million(7,090)¥ million(15,631)

Cash and cash
equivalents atperiod-end¥ million
103,518

8,584(3,754)(14,475)

103,825

42,493(15,253)(18,856)

124,155

Fiscal Year Ended March 31,
2007

Investingactivities

Financing
activities

2. Dividend

Dividend record dates
Fiscal Year Ended March 31, 2007
Fiscal Year Ending March 31, 2008
Fiscal Year Ending March 31, 2008 (Projection)

End of Interim¥12.00−¥12.00

Dividend per share
Fiscal Year-end¥16.00−¥12.00Total¥28.00−¥24.00*1 NAMCO BANDAI Holdings Inc. does not provide dividend payment for the First Quarter.
*2 The fundamental policy on regarding appropriation of profits of the Company is to maintain the consolidated dividend payout
ratio at a level of 30%, based on stable annual dividend payments of ¥24 per share. The stable portion of the period-end dividend
is given in the projection based on the policy. Thus, the actual period-end dividend will be decided according to the consolidated
financial results.

3. Consolidated Projections for the Fiscal Year Ending March 2008
(April 1, 2007 ~ March 31, 2008)
Net sales
Operatingincome¥ million% ¥ million%
Interim Period
210,000
1.6
14,000(18.9)
Full Year
480,000
4.5
45,000
6.6

Recurringincome¥ million%
15,000(19.2)
47,000
3.0

Net income¥ million
7,500
26,500%(31.9)
9.3

Net income
per share¥
29.55
104.42

4. Other Information(1) Significant changes in scope of consolidation: No(2) Use of simplified accounting methods: Yes(3) Changes in accounting method from the most-recent consolidated fiscal year: Yes

Explanation regarding the appropriate use of forecasts of business results and other notes* Consolidated projections for the interim period of the fiscal year ending March 2008 (announced on May 9, 2007) are changedin this report.
* 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 from expectations.
* Figures are in millions of yen, rounded down, except where noted.

- 3 -【Qualitative Information and Financial Statements】
１． Consolidated Results of Operations
Although a global economic recovery was seen this first quarter, growth was slowed by such factors as soaring crude
oil prices. In Japan, despite concern about climbing interest rates, corporate earnings remained favorable while theeconomy showed a recovery trend.
In the entertainment industry, due to a purchasing-segment expansion in the home video game sector created by salesof software falling outside of traditional genres, such as educational and cultural titles, software for portable video game
consoles continued to do well. Meanwhile, the toys and hobby sector proved difficult due to the absence of hit products
to provide impetus for the industry as a whole, and the diversification of consumer needs.
In this environment, the BANDAI NAMCO Group (the Group) is pushing forward with strengthening, enriching, andexpanding its portfolio management, based on the 3-year medium-term management plan launched in the previous
fiscal year.
In terms of the Group’s business operations, performances of toys for boys featuring Masked Rider Den-O characters,
and of large-scale amusement facilities opened in Japan during the previous fiscal year were favorable for the Toys andHobby Business and the Amusement Facility Business, respectively. In the home video game software sector, Super
Robot Wars: Original Generations for the Sony PlayStation 2 became popular. As a result, overall performance was byand large in line with the plans set out in the beginning of the year. However, it was not at the level of that of the firstquarter of the previous fiscal year, which enjoyed favorable results centered on high-profitability products such as
in-house content and cards.
As a result, the Group’s consolidated operational results for the first quarter ended with net sales of ¥96,100 million,a decrease of 3.0% compared to the first quarter of the previous year; operating income of ¥4,473 million, a decrease of
48.3% compared to the first quarter of the previous year; recurring income of ¥5,556 million, a decrease of 38.2%
compared to the first quarter of the previous year; and quarterly net income of ¥2,769 million, a decrease of 32.1%
compared to the first quarter of the previous year.

〔By Business Segment〕
Net Sales （Millions of yen）
st

Prior 1
QuarterCurrent 1
Quarterst

Operating Income (Millions of yen)

Increase/
Decrease

Prior 1st
QuarterCurrent 1st
Quarter

Increase/
Decrease

Toys and Hobby

42,45940,061(2,398)

4,939

2,727

(2,211)

Amusement Facility

20,324

21,566

1,242

718

342

(375)

Game Contents

25,843

24,571(1,272)791

401( 390)

Network

2,920

2,873

(47)

311

174

(136)

Visual and Music Content

9,267

7,711

(1,556)

2,045

1,107

( 937)

Other

5,634

4,894

(739)

385

260

(124)

- 4 -

[Toys and Hobby Business]
In the Toys and Hobby Business, in Japan, satisfactory performance was achieved with boys’ toys featuring Masked
Rider Den-O characters, and girls’ toys featuring Yes! Pretty Cure 5 characters. Additionally, Daikaiju Battle: Ultra
Monsters was added to the DATA CARDDASS lineup to expand its target market. However, performance fell short of thelevel of the previous fiscal year’s first quarter, which enjoyed strong support focused on products such as theTamagotchi Plus series and DATA CARDDASS.
Overseas, the Tamagotchi series saw continued worldwide popularity, and the sales territory expansion of boys’ toys
featuring characters from BEN 10, which was developed in the United States, contributed to the performance for thisbusiness category.
As a result, net sales in the Toys & Hobby Business totaled ¥40,061 million, a 5.6% decrease compared to the same
period in the previous year; and operating income was ¥2,727 million, a 44.8% decrease compared to the same period in
the previous year.

[Amusement Facility Business]
In the Amusement Facility Business, large-scale facilities launched in the previous fiscal year, such as “NAMCO
Wonder Park Hero’s Base” (Kawasaki City, Kanagawa Prefecture), performed, for the most part, satisfactorily.
However, sales at existing facilities amounted to 93.4% of the previous fiscal year’s first quarter result. This, combinedwith start-up costs of facilities launched during this first quarter, resulted in sluggish profits.
Overseas, European business was favorable, centering mainly on hybrid facilities acquired in the previous fiscal year.
In the Americas, amidst a slow market environment, we focused on improving the efficiency of directly-managed
facilities as well as the expansion of revenue-sharing facilities.
As a result, net sales in the Amusement Facility Business totaled ¥21,566 million, a 6.1% increase compared to thesame period in the previous year; and operating income was ¥342 million, a 52.3% decrease compared to the same
period in the previous year.

Facilities as of June 30, 2007
Directly-managed

Revenue-sharing

facilities

facilities

448

1,199

Theme parks

Spa Resort

Total

6

4

1,657

[Game Contents Business]
With respect to home video game software in the Game Contents Business, Super Robot Wars: Original Generations for theSony PlayStation 2 enjoyed popularity in Japan, and we focused our efforts on strengthening our sales of software for portablevideo game consoles. In the Americas, we narrowed down our title releases and concentrated our efforts on improving profit
through repeat sales of software released in the previous fiscal year. Europe saw favorable sales centered on Dragon Ball Z:
Budokai Tenkaichi 2 for the Nintendo Wii, and Ridge Racer 7 for the Sony PlayStation 3.
For coin-operated game machines, due to our planned introduction of large machines starting in the second quarter,
performance for the first quarter did not reach that of the previous year. As for game content for mobile devices such as
cellular phones, satisfactory performance was achieved through the development of varied content to meet the diverse tastes- 5 -of users.
As a result, net sales in the Game Contents Business totaled ¥24,571 million, a 4.9% decrease compared to the same period
in the previous year; and operating income was ¥401 million, a 49.3% decrease compared to the same period in the previous
year.

[Network Business]
In the Network Business, within the mobile content sector, we actively developed game content to suit the needs ofusers, providing high value-added content such as One Piece Mobile Jack, and casual games such as the Simple 100
series and the Zoo Keeper series. However, we continued to struggle with the marked effect of a decrease in the overall
number of subscribers for wallpaper and ring tones.
Performance in the solutions services sector was satisfactory due to factors such as the installation of the 2D Vector
Engine and the 3D Engine technology into new mobile phones, and the sales of implementation software forcorporations.
As a result, net sales in the Network Business totaled ¥2,873 million, a 1.6% decrease compared to the same period in
the previous year; and operating income was ¥174 million, a 44.0% decrease compared to the same period in theprevious year.

[Visual and Music Content Business]
In the Visual and Music Content Business, visual software packages including TV animation titles such as CODEGEASS: Lelouch of the Rebellion, and original animation titles such as FREEDOM – both of which have been
performing well since the previous fiscal year – together with memorial box sets such as ∀ (Turn A) GUNDAM andPatlabor -The Mobile Police- were well-received. Music software packages for artists such as Japanese band Ali
Project’s Soubikakei (Rose Crucifixion), and TV animation titles such as Lucky ☆ Star, enjoyed satisfactory
performances as well. Overall performance for this business, however, did not reach that of the first quarter of theprevious fiscal year, which was supported by the group synergy stemming from the favorable performance of the
Mobile Suit GUNDAM series.
As a result, net sales in the Visual and Music Content Business totaled ¥7,711 million, a 16.8% decrease compared tothe same period in the previous year; and operating income was ¥1,107 million , a 45.8% decrease compared to thesame period in the previous year.

[Other Business]
Other Business consists of companies that provide support to the Group’s strategic business units through operations
that include logistics, leasing, and building management. During the period under review, the business remained
focused in its efforts to improve the operational efficiency of these group support services.
As a result, net sales in Other Business totaled ¥4,894 million, a 13.1% decrease compared to the same period in theprevious year; and operating income was ¥260 million, a 32.3% decrease compared to the same period in the previous
year.

- 6 -

〔By Geographic Segment〕
Net Sales （Millions of yen）
st

Prior 1
QuarterCurrent 1
Quarterst

Operating Income (Millions of yen)

Increase/
Decrease

Prior 1st
QuarterCurrent 1st
Quarter

Increase/
DecreaseJapan

81,587

73,137(8,450)

8,448

2,359

(6,089)Americas10,867

11,605

738

(589)

187

777

Europe6,240

11,194

4,953

565

1,943

1,377

Asia

7,832

8,740

907

661

739

77

[Japan]The Toys and Hobby Business in Japan, despite the good performance of toys for boys featuring Masked Rider
Den-O characters and the like, did not do as well this quarter as same period of the previous fiscal year, which enjoyedan outstanding performance centering on the Tamagotchi Plus series and DATA CARDDASS.
Domestically in the Amusement Facility Business, although large-scale facilities launched in the previous fiscal year
performed satisfactorily, existing facilities were sluggish.
With respect to the Game Contents Business, home video game software enjoyed the popularity of Super Robot
Wars: Original Generations for the Sony PlayStation 2, and efforts were made to strengthen the sales of software forportable video game consoles. Meanwhile, for coin-operated game machines, due to the planned introduction of large
machines starting in the second quarter of the current fiscal year, performance for the current quarter did not reach thatof the prior year.
In the Network Business, within the mobile content sector, we aggressively developed game content, including highvalue-added content and casual games. Nevertheless, we continued to struggle with the marked effect of a decrease in
the overall number of subscribers for wallpaper and ring tones.
In the Visual and Music Content Business, good performance was achieved for software packages such as CODE GEASS:
Lelouch of the Rebellion. Nevertheless, performance fell short of that of the first quarter of the previous fiscal year, which was
supported by the group synergy generated by the favorable performance of the Mobile Suit GUNDAM series.

As a result, net sales in Japan totaled ¥73,137 million, a 10.4% decrease compared to the same period in the previous
year; and operating income was ¥2,359 million, a 72.1% decrease compared to the same period in the previous year.

[Americas]
In the Americas, the Toys and Hobby Business saw the continued popularity of Tamagotchi, and good performance
was achieved by boys’ toys featuring BEN 10 characters. In the Amusement Facility Business, amidst a slow market
environment, we set focused on improving the efficiency of directly-managed facilities as well as the expansion ofrevenue-sharing facilities. In the Game Contents Business, we narrowed down our home game software title releases
and concentrated our efforts on improving profit through repeat sales of software released in the previous fiscal year.
As a result, net sales in the Americas totaled ¥11,605 million, a 6.8% increase compared to the same period in theprevious year; and operating income was ¥187 million, the same period in the previous year had an operating loss of¥589 million.
- 7 -[Europe]
In Europe, in the Toys & Hobby Business, Tamagotchi and POWER RANGERS boys’ character toys sharedcontinued popularity. In the Amusement Facility Business, there was an increase in revenues due to factors that
included the reinforcement of operations in hybrid facilities acquired in the previous fiscal year. In the Game Contents
Business, good performance was achieved for home video game software, centered on Dragon Ball Z: Budokai
Tenkaichi 2 for the Nintendo Wii, and Ridge Racer 7 for the Sony PlayStation 3.
As a result, net sales in Europe totaled ¥11,194 million, a 79.4% increase compared to the same period in the previous
year; and operating income was ¥1,943 million, a 243.3% increase compared to the same period in the previous year.

[Asia]In Asia, the Toys & Hobby Business reported good performance with POWER RANGERS and MASKED RIDER
boys’ toys, and plastic models in the Mobile Suit GUNDAM series. In the Amusement Facility Business, initiatives
surrounding prize games and Group products continued to do well.
As a result, net sales in Asia totaled ¥8,740 million, an 11.6% increase compared to the same period in the previous
year; and operating income was ¥739 million, an 11.8% increase compared to the same period in the previous year.

２． Consolidated Financial Position
At the end of this first quarter ended June 30, 2007, consolidated total assets totaled ¥374,144 million, a decreaseof ¥34,345 million compared to the end of the previous consolidated fiscal year. Due to treasury stock acquisitions
as well as dividends and income taxes paid, cash and time deposits showed a decrease of ¥19,409 million, and tradereceivables showed a decrease of ¥23,435 million. On the other hand, inventory assets showed an increase of ¥4,856
million.
Consolidated total liabilities decreased ¥22,156 million compared with the end of the previous consolidated fiscal
year to ¥102,079 million. This was due in large part to factors such as an ¥18,160 million decrease in trade payables,
accounts payable—other, and accrued income taxes.
Consolidated net assets decreased ¥12,189 million compared with the end of the previous consolidated fiscal yearto ¥272,064 million.
As a result, the stockholders’ equity ratio rose from 67.1％ at the end of the previous consolidated fiscal year to70.1%.

Cash and cash equivalents (“cash”) at the end of this first quarter ended June 30, 2007, totaled ¥103,518 million, a¥20,637 million decrease compared to the end of the previous consolidated fiscal year. Cash flows were as follows.
(Cash Flows from Operating Activities)
Operating activities provided cash of ¥1,692 million, an 80.3% decrease compared to the same period in the previous
year. This was mainly due to the fact that even though there was a ¥23,287 million decline in trade receivables (adecrease of ¥15,600 million in the first quarter of the previous fiscal year), there were ¥10,142 million in income taxes
paid (¥5,940 million was paid in the first quarter of the previous fiscal year), a decrease of ¥6,417 million in trade- 8 -payables (a decrease of ¥1,008 million in the first quarter of the previous fiscal year), an increase of ¥5,833 million ininventory assets (an increase of ¥2,494 million in the first quarter of the previous fiscal year), and other factors.
(Cash Flows from Investment Activities)
Investment activities used cash of ¥7,090 million, an 88.8% increase compared to the same period in the previous year.
This was due to ¥4,180 million in purchases of property, plant, and equipment and intangible assets (purchases were¥2,658 million in the first quarter of the previous fiscal year), ¥1,891 million in purchase of investment securities inshares of Fujiya Co., Ltd. and others (purchase was ¥221 million in the first quarter of the previous fiscal year), andother factors.
(Cash Flows from Financing Activities)
Financing activities used cash of ¥15,631 million, an 8.0% increase compared to the same period in the previous year.
This was due to ¥9,964 million in purchase of treasury stock (purchase was ¥2 million in the first quarter of theprevious fiscal year), ¥4,127 million in dividends paid (dividends paid were ¥3,036 million in the first quarter of theprevious fiscal year), and other factors.

３． Qualitative Information Related to Consolidated Operating Forecasts
The economic climate is expected to continue to experience a gradual trend of recovery, driven by improving
corporate earnings and private consumption. However, there is concern regarding factors such as another rise in crude
oil prices and climbing interest rates. In the entertainment business environment which surrounds the Group, we arefacing a period of major changes including technological innovation, a continuing consumer trend toward increased
diversification, and fewer boundaries between industries.
In this setting, the Group will push forward with strengthening, enriching, and expanding its portfolio management,
based on the 3-year medium-term management plan launched in the previous fiscal year.
Specifically, with the launch of the TV animation Mobile Suit GUNDAM 00 (produced by Sunrise Inc., a Group
Company), set to premiere in October of 2007, we will create ongoing group synergy through the use of merchandisingdevelopment.
In the Toys and Hobby Business, domestically, we will further promote long-established characters through popular
titles such as Masked Rider Den-O and Yes! Pretty Cure 5, as well as a Tamagotchi movie planned for this winter. We
are also working to further expand the target market for DATA CARDDASS through the introduction of new content,such as Utatte (Let’s Sing)! Pretty Cure Dream Live. Overseas, we intend to continue to strengthen operations, primarily
focusing on POWER RANGERS, Tamagotchi and BEN 10.
In the Amusement Facility Business, domestically, we plan to work to expand the scale of our revenues by suchmeasures as actively launching large-scale amusement facilities, and introducing new, large-scale coin-operated
machines at existing locations in order to revitalize them. We will also make efforts to increase profit by sharing our
expertise in low-cost business operations. Overseas, we will continue to aim at extending our operational performancethrough development suited to the characteristics of each region.
In the Game Contents Business, in order to respond rapidly to the changes in the domestic and overseas environmentsof the home video game software field, we will carry out a balanced multi-platform strategy that thoroughly explores
the consumer’s needs, as well as work to improve sales efficiency and development efficiency. We intend to put- 9 -coin-operated game machines on the market aimed at a wide spectrum of users, including the latest installment in the
popular Wangan Midnight Maximum Tune 3 series.
In the Network Business, our goal in the mobile content sector is to reinforce the profit base via efficientdevelopment and operations. In the solutions services sector, we will actively carry out development, making full use of
our planning and technical expertise in mobile content.
In the Visual and Music Content Business, we aim to increase business results through products such as Mobile Suit
Gundam Wing and Space Battleship Yamato (Theatrical Release) DVD box sets, and packaged software for the TV
animation The Idol M@ster: Xenoglossia, a group synergy product. We also plan to release, both domestically andoverseas, the Group’s top theatrical works, on both HD DVD and Blu-ray Disc (BD), starting in the second quarter ofthis fiscal year.
Based on the foregoing, in accordance with this first quarter performance and the latest operational trends, the Groupamended its financial forecasts, released on May 9, 2007, for the interim period projections for the fiscal year ending
March 31, 2008. These are presented in the charts that follow.
The Group maintains its unamended financial forecasts, released May 9, 2007, for projections for the full fiscal year
ending March 31, 2008.

Consolidated Forecasts （April 1, 2007 〜 September 30, 2007）
Forecasts for interim period（Millions of yen）

Net Sales

Operating Income

Recurring Income

Previous Forecasts（A）

210,000

13,00014,0007,500

Revised Forecasts（B）

210,000

14,00015,000

7,500

（B−A）

−

1,000

1,000

−

（B／A）

−

7.7％

7.1％

−

480,000

45,00047,00026,500

Reference (announced on May 9, 2007)

Net Income

Full Fiscal Year Forecasts

４．Other Information(1) Significant changes in scope of consolidation:
None.

(2) Use of Simplified Accounting Methods
Income Taxes are calculated based on a simplified method, by application of the effective statutory tax rate.

(3) Changes in Accounting Method from the Most-Recent Consolidated Fiscal YearDue to corporation tax law amendments, starting with this consolidated fiscal year (with the exception of certain
consolidated subsidiary companies), we will be calculating the depreciation and amortization of property, plant andequipment, acquired on or after April 1, 2007, in accordance with the amortization methods provided for in the
aforementioned amended corporation tax laws.
The effect of this change on profit or loss will be negligible.
- 10 -

５．（Summary）Quarterly Consolidated Financial Statements(1) （Summary）Quarterly Consolidated Balance Sheets

Prior 1st Quarter
As of June 30, 2006
Millions of yen(%)

Current 1st Quarter
As of June 30, 2007
Millions of yen(%)（Reference）Prior Fiscal YearAs of March 31, 2007
Millions of yen(%)(Assets)
I

Current assets
1. Cash and time deposits

97,81894,300113,710

2. Trade receivables

56,42054,99478,429

3. Short-term investments

7,824

11,086

12,191

4. Inventories

30,26937,14832,291

5. Deferred tax assets

7,037

5,709

5,717

6. Other current assets

24,07820,17816,816

Allowance for doubtful receivables

Total current assets(941)
222,508(1,801)
60.2

221,616(1,947)59.2

257,209

63.0

II Fixed assets
1. Property, plant and equipment(1) Buildings and structures

14,26912,812

12,007(2) Amusement facilities and24,417

26,49926,123(3) Land

22,092

20,094

20,597(4) Other property, plant and

14,447

15,935

16,22675,22675,341

74,955(1) Goodwill

10,636

9,082

9,739

(2) Other intangible assets

7,270

10,2909,729

Total intangible assets

17,906

19,372

19,468(1) Investment securities

20,81729,47528,817(2) Guarantee money deposited

25,15021,46721,022(3) Deferred tax assets

4,272

4,114

4,141

(4) Other investments and assets

4,667

4,040

4,171

Allowance for doubtful receivables(1,162)(1,283)(1,296)

Total investments and other assets

53,74557,81356,857

machines

equipment
Total property, plant and equipment

2. Intangible assets

3. Investments and other assets

Total fixed assets
Total assets

146,87839.8

152,52840.8

151,28137.0

369,386

100.0

374,144100.0

408,490

100.0- 11 -

Prior 1st Quarter
As of June 30, 2006
Millions of yen(%)

Current 1st Quarter
As of June 30, 2007
Millions of yen（Reference）Prior Fiscal YearAs of March 31, 2007(%)

Millions of yen(%)（Liabilities）
I Current liabilities
1. Trade payables

40,17840,65447,097

2. Short-term borrowings

4,433

1,425

2,169

3. Bonds—current portion

5,000

10,00010,0004. Accounts payable—other

15,495

18,212

22,334

5. Accrued income taxes

5,490

3,277

10,875147--

7. Other current liabilities

19,986

16,23018,353

Total current liabilities

90,731

6. Provision for losses frombusiness restructuring

24.6

89,80124.0

110,829

27.1

II Long-term liabilities
1. Bonds

10,000--2. Long-term debt

2,154

625

1,133

3. Deferred tax liabilities

6,341

4,977

5,194

4. Deferred tax liabilities,

690

591

591

2,087

1,730

2,223

908

31

525

7. Other long-term liabilities

4,105

4,322

3,738

Total long-term liabilities

26,287

7.1

12,2783.3

13,4073.3

117,01931.7

102,079

27.3

124,23630.4

land revaluation difference
5. Accrued retirement andseverance benefits
6. Directors’ and auditors’ retirement and severance benefits

Total liabilities- 12 -

Prior 1st Quarter
As of June 30, 2006
Millions of yen

Current 1st Quarter
As of June 30, 2007(%)

Millions of yen（Reference）Prior Fiscal YearAs of March 31, 2007(%)

Millions of yen(%)（Net assets）
I Stockholders’ equity
1. Common stock

10,00010,00010,0002. Additional paid-in capital

95,772

88,957

97,142

3. Retained earnings

165,158

180,899

182,389

4. Treasury stock(11,170)(5,732)(3,952)

Total stockholders’ equity
II259,75970.3

274,12473.3

285,578

69.9

Valuation difference andtranslation adjustments
3,353

3,824

4,100

17

44

91

3. Land revaluation difference(21,459)(21,286)(21,286)

4. Translation adjustment

2,156

5,426

5,684

Total valuation difference and(15,931)(4.3)(11,990)(3.2)(11,409)

(2.8)

-

-

646

0.1

577

0.2

IV Minority interests

8,539

2.3

9,284

2.5

9,507

2.3

Total net assets

252,36768.3

272,06472.7

284,25469.6

369,386

100.0

374,144100.0

408,490

100.0

1. Other securities valuationdifference
2. Deferred gains or losses
on hedges

translation adjustments
III

Stock subscription rights

Total liabilities and net assets- 13 -

(2) （Summary）Quarterly Consolidated Statements of Income

Prior 1st Quarter(Apr 1 〜Jun 30, 2006)

Current 1st Quarter(Apr 1 〜Jun 30, 2007)

Millions of yen

Millions of yen

(%)

(%)

（Reference）Prior Fiscal Year
(Apr 1, 2006 〜Mar 31, 2007)
Millions of yen(%)

I

Net sales

99,119100.0

96,100100.0459,132

100.0

II

Cost of sales

61,96562.5

61,83664.3

291,052

63.4

Gross profit

37,15437.5

34,26435.7

168,079

36.6

III Selling, general andadministrative expenses

28,49828.8

29,79031.0

125,855

27.4

Operating income

8,656

8.7

4,473

4.7

42,224

9.2

IV Non-operating income
1. Interest income

279

504

1,448

2. Dividend income

83

106

639

3. Operation consignment income

105

59

349

4. Other non-operating income

302

521

1,595

Total non-operating income

771

0.8

1,191

1.2

4,032

0.9

V Non-operating expenses
1. Interest expense

63

38

237

2. Other non-operating expenses

370

69

403

Total non-operating expenses

433

0.4

107

0.1

641

0.2

8,993

9.1

5,556

5.8

45,615

9.9

Recurring income- 14 -

Prior 1st Quarter(Apr 1 〜Jun 30, 2006)

Current 1st Quarter(Apr 1 〜Jun 30, 2007)

Millions of yen

Millions of yen

(%)

(%)

（Reference）Prior Fiscal Year
(Apr 1, 2006 〜Mar 31, 2007)
Millions of yen(%)

VI Extraordinary income
16

22

160

22

−

498

3. Government subsidy income

102

−

102

4. Reversal of allowance for

31

10

145

−

478

−

6.Other extraordinary income

−

−

4,931

Total extraordinary income

172

1. Gain on sale of property,
plant and equipment
2. Gain on sale of investment
securities

doubtful receivables
5. Reversal of accrued retirement
and severance benefits

0.2

511

0.5

5,837

1.3

VII Extraordinary loss
44

120

406

186

60

690

−

61

5,069

100

−

100

5. Other extraordinary loss

−

2

1,473

Total extraordinary loss

331

0.4

244

0.2

7,739

1.7

8,834

8.9

5,823

6.1

43,713

9.5

4,385

4.4

2,911

3.0

17,569

3.8

371

0.4

143

0.2

1,891

0.4

4,077

4.1

2,769

2.9

24,252

5.3

1. Loss on disposal of property,
plant and equipment
2. Loss on valuation of
investment securities
3. Loss on impairment of
fixed assets
4. Loss for deferring income tax of depreciation of property, plant and equipment

Net income before income taxes
and minority interests

Income taxes
Minority interests
Net income- 15 -

(3) （Summary）Quarterly Consolidated Statements of Cash Flows
Prior 1st Quarter(Apr 1 〜
Jun 30, 2006)

Current 1st Quarter(Apr 1 〜
Jun 30, 2007)

Millions of yen

Millions of yen（Reference）
Prior Fiscal Year
(Apr 1, 2006 〜
Mar 31, 2007)
Millions of yen

Cash Flows from Operating Activities

I

Income before income taxes and minority interests

8,834

5,823

43,713

Depreciation and amortization

4,238

5,211

20,954

563

613

2,399

Increase (decrease) in allowance for doubtful receivables

(614)

(150)

473

Interest and dividend income

(362)

(610)

(2,087)

63

38

237

Decrease (increase) in trade receivables

15,60023,287(3,111)

Decrease (increase) in inventories(2,494)(5,833)(3,636)

Investment for amusement facilities and machines(2,293)(2,229)(10,601)

Increase (decrease) in trade payables(1,008)(6,417)

3,465

Increase (decrease) in accounts payable—other(10,333)(4,098)(2,574)2,316(4,275)

5,089

14,50911,36054,322

Interest and dividends received

365

516

2,077

Interest paid

(349)

(41)

(235)

Income taxes paid

(5,940)(10,142)(13,670)

Net cash provided by operating activities

8,584

1,692

42,493(1,978)(3,016)(9,730)Purchases of intangible assets(680)(1,164)(4,789)Purchases of investment securities(221)(1,891)(7,594)

Acquisition of shares in consolidated(1,099)(2)(1,102)224(1,014)

7,964(3,754)(7,090)(15,253)

Amortization of goodwill

Interest expense

Other
SubtotalII

Cash Flows from Investing Activities
Purchases of property, plant and equipment

subsidiaries, net of cash acquired
Other
Net cash used in investing activities- 16 -

Prior 1st Quarter(Apr 1 〜
Jun 30, 2006)

Current 1st Quarter(Apr 1 〜
Jun 30, 2007)

Millions of yen

Millions of yen（Reference）
Prior Fiscal Year
(Apr 1, 2006 〜
Mar 31, 2007)
Millions of yen

III Cash Flows from Financing Activities(10,600)(280)(13,112)

Repayment of long-term debt

(613)

(969)

(2,434)Purchases of treasury stock(2)(9,964)(11)(3,036)(4,127)(6,073)

(222)

(290)

2,775

(14,475)(15,631)(18,856)

274

(94)

2,548

(9,371)(21,123)

10,932

113,186

124,155

113,186

10

485

15

−

−

21

103,825

103,518

124,155

Net increase (decrease) in short-term borrowings

Dividends paid
Other
Net cash used in financing activities
IV Effect of exchange rate changes on cash andcash equivalents
V

Net increase (decrease) in cash and cash
equivalents

VI

Cash and cash equivalents at beginning of
periodVII Increase in cash and cash equivalents due toconsolidation of additional subsidiaries
VIII Increase in cash and cash equivalents due tomerger of consolidated subsidiaries
IX

Cash and cash equivalents at end of period- 17 -

(4) Segment Information〔By Business Segment〕
Prior 1st Quarter (April 1, 2006 – June 30, 2006)

Millions of yen

Toys and Amusement Game Contents Network
Hobby
Facility

Visual andMusic
Content

Other

Total

Eliminations Consolidated
and Corporate

Net sales(1) To external customers

41,087

20,28023,103

2,843

9,037

2,766

99,119−99,119(2) Inter-segment

1,371

43

2,739

76

230

2,868

7,330

(7,330)−42,45920,32425,843

2,920

9,267

5,634

106,449(7,330)99,11937,52019,60525,052

2,609

7,222

5,249

97,259(6,795)90,463

4,939

718

791

311

2,045

385

9,190

(534)

8,656

transactions
Total
Operating expenses
Operating income

Current 1st Quarter (April 1, 2007 – June 30, 2007)

Millions of yen

Toys and Amusement Game Contents Network
Hobby
Facility

Visual andMusic
Content

Other

Total

Eliminations
and Corporate Consolidated

Net sales(1) To external customers(2) Inter-segment

transactions
Total
Operating expenses
Operating income

39,301

21,50522,680

2,812

7,478

2,321

96,100−96,100

759

60

1,891

60

233

2,572

5,577

(5,577)−40,061

21,566

24,571

2,873

7,711

4,894

101,678(5,577)

96,10037,333

21,224

24,170

2,698

6,603

4,633

96,664(5,036)

91,627

2,727

342

401

174

1,107

260

5,014

(540)

4,473

（Reference） Prior Fiscal Year (April 1, 2006 – March 31, 2007)

Millions of yen

Toys and Amusement Game Contents Network
Hobby
Facility

Visual andMusic
Content

Other

Total

Eliminations
and Corporate Consolidated

Net sales(1) To external customers(2) Inter-segment

transactions
Total
Operating expenses
Operating income

179,473

87,862

127,389

12,081

41,954

10,369459,132−

459,132

6,112

333

11,798407

1,051

10,53030,234(30,234)−

185,586

88,196

139,187

12,48943,006

20,900489,366(30,234)

459,132

168,183

84,192

127,677

11,60833,50919,882445,054(28,145)416,908

17,403

4,004

11,509

880

9,496

1,017

44,312(2,088)42,224Notes
1. The industry segments used above are those used for internal management purposes.
2. Main products and business in each business segment:
Toys, candy toys, products for vending machines, cards, plastic models, apparel, sundries,(1) Toys and Hobby
stationery and other products(2) Amusement Facility
Amusement facility operations, and other operations(3) Game Contents(4) Network

Home-use video game software, commercial-use video game machines, prizes foramusement arcade machines and other products
Mobile content and other services

Video products, video software, on-demand video distribution and other products andservices
Transportation and storage of products, leases, real estate management, printing,(6) Otherdevelopment and sale of environmental devices and other activities
3. Unallocatable operating expense included in the “Eliminations and Corporate” column under “Operating expenses” was ¥561 million,(5) Visual and Music Content¥700 million, and ¥2,538 million in prior 1st quarter, current 1st quarter, and prior fiscal year respectively. The majority of these costs
represent administrative costs incurred by the general administration department of the Company, and NAMCO BANDAI Holdings（USA）Inc.

- 18 -

〔By Geographic Segment〕
Prior 1st Quarter (April 1, 2006 – June 30, 2006)
Japan

Millions of yen

Asia

Total

Eliminations and Consolidated
Corporate

Americas

Europe79,16910,454

6,240

3,254

99,119−99,119Net sales(1) To external customers(2) Inter-segment

transactions
Total

2,418

412

−

4,578

7,409

(7,409)−81,587

10,867

6,240

7,832

106,528(7,409)99,119Operating expenses

73,13911,457

5,674

7,171

97,443(6,979)90,463Operating income/loss

8,448

(589)

565

661

9,085

(429)

8,656

Current 1st Quarter (April 1, 2007 – June 30, 2007)
Japan

Millions of yen

Asia

Total

Eliminations and Consolidated
Corporate

Americas

Europe70,37911,221

11,191

3,308

96,100−96,100Net sales(1) To external customers(2) Inter-segment

transactions
Total

2,757

384

2

5,432

8,577

(8,577)−

73,137

11,605

11,194

8,740

104,678(8,577)

96,100Operating expenses

70,778

11,418

9,251

8,000

99,449(7,821)

91,627

Operating income

2,359

187

1,943

739

5,228

(755)

4,473

（Reference） Prior Fiscal Year (April 1, 2006 – March 31, 2007)

Japan

Millions of yen

Asia

Total

Eliminations and Consolidated
Corporate

Americas

Europe356,248

52,31537,76312,805459,132−

459,132

11,1991,673−

24,25537,129(37,129)−

367,447

53,98937,76337,060496,261(37,129)

459,132

Operating expenses

334,320

50,61232,51034,330451,773(34,865)

416,908

Operating income

33,127

3,376

5,253

2,730

44,487(2,263)42,224

Net sales(1) To external customers(2) Inter-segment

transactions
Total

Notes:
1. 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, interrelation of businessactivities, etc.
(2) The main countries and regions in each geographic segment are as follows:(i) Americas:
United States and Canada(ii) Europe:
France, United Kingdom and Spain(iii) Asia:
Hong Kong, Thailand and South Korea

2. Unallocatable operating expense included in the “Eliminations and Corporate” column under “Operating expenses” was ¥561
million, ¥700 million, and ¥2,538 million in prior 1st quarter, current 1st quarter, and prior fiscal year respectively. The majority ofthese costs represent administrative costs incurred by the general administration department of the Company, and NAMCO
BANDAI Holdings（USA）Inc.

- 19 -