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

August 5, 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.

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

August 5, 2010

Consolidated Financial Report for the First 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:
August 11, 2010
Scheduled starting date for dividend payments:−
The additional materials of the Financial Results for the First Quarter : Yes
The information session of the Financial Results for the First Quarter : No
* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2011
(April 1, 2010 to June 30, 2010)(1) Consolidated Operating Results (For the first quarter ended June 30, 2010)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net salesFirst Quarter of the Fiscal YearEnding March 31, 2011
First Quarter of the Fiscal Year
Ended March 31, 2010

¥ million
81,912%
8.2¥ million
2,953

%
−

¥ million
2,942

%
−

75,729(15.8)(2,758)−(2,197)−

Net income

First Quarter of the Fiscal YearEnding March 31, 2011
First Quarter of the Fiscal Year
Ended March 31, 2010

Net income per share

Net income per share(diluted)¥ million(1,644)%−¥(6.81)¥−(2,846)−(11.80)−(2) Consolidated Financial Position
Total assets

As of June 30, 2010
As of March 31, 2010

¥ million
309,157
325,935

Net assets

Equity ratio¥ million
223,258
229,012(Reference)
Equity: 221,445 million yen (as of June 30, 2010), 226,666 million yen (as of March 31, 2010)

%
71.6
69.5

Net assets per share¥
917.13938.74

2. Cash Dividend

Fiscal Year Ended March 31, 2010

End offirst quarter−−End ofsecond quarter¥12.00

Annual cash dividend
End ofFiscalthird quarteryear-end−¥12.00Total¥24.00Fiscal Year Ending March 31, 2011
Fiscal Year Ending March 31, 2011¥12.00−¥12.00¥24.00(Projections)*1 Revision to the projections of dividend for the Fiscal Year Ending March 31, 2011: No*2 The stable portion of the dividend is given in the projections for the End of second quarter and Fiscal year-end for the Fiscal YearEnding March 31, 2011 based on the company’s basic policy regarding appropriation of profits. Thus, the actual Fiscal year-end
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%¥
Six Months Ending
175,000
1.3
1,500
−
1,500
−
(3,500)−(14.50)
September 30, 2010
Full Fiscal Year
400,000
5.7
11,000483.9
10,500
450.4
4,500
−
18.64
* Revision to the projections: Yes
4. Other Information (For details, please refer to “2. Other Information” on page 6 of the Attached Material)(1) Changes in Significant Subsidiaries during the First 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 First 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 June 30, 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 June 30, 2010
8,544,994 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 First Quarter of the Fiscal Year ending March 31, 2011
241,455,286 shares
For the First Quarter of the Fiscal Year ended March 31, 2010
241,304,602 shares* Implementation status of quarterly review
This Consolidated Financial Report for the First Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the first quarter disclosing, quarterly review for the quarterly financial statements are under way.
* Explanation on appropriate use of the projections of business results, etc.:
Consolidated projections for the Six Months of the fiscal year ending March 31, 2011 (announced on May 7, 2010) are revised in thisreport. 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 First 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 First Quarter .......................... 2(1) Qualitative Information Regarding Consolidated Operating Results...................................................................... 2(2) Qualitative Information Regarding Consolidated Financial Position ...................................................................... 3(3) Qualitative Information Regarding Consolidated Projections.................................................................................. 4

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

3. Consolidated Financial Statements..................................................................................................... 8(1) Quarterly Consolidated Balance Sheets ...................................................................................................................... 8(2) Quarterly Consolidated Statements of Operations .................................................................................................. 10(3) Notes on Premise of Going Concern .......................................................................................................................... 11(4) Segment Information .................................................................................................................................................. 11(5) Notes on Significant Changes in the Amount of Stockholders’ Equity ................................................................... 14

-1-

1.

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

Qualitative Information Regarding Consolidated Operating Results
During the first quarter of the fiscal year ending March 31, 2011, while there were visible signs of a partial recovery

amidst the persisting global economic recession, the economic conditions remained harsh due to, among other things,
continuing high rates of unemployment. Reduced consumption had a substantial impact on the entertainment industry,causing continued uncertainty in the industry as a whole.
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, in addition to long-established character toys and card products posting strong performances in
the Toys and Hobby Business in Japan, the Group benefitted in certain areas, particularly in the Content Business and theAmusement Facility Business, from cost-reduction efforts conducted according to the Restart Plan.
Consequently, the Group’s consolidated results for the first quarter were net sales of 81,912 million yen (year-on-yearincrease of 8.2%), operating income of 2,953 million yen (compared with an operating loss of 2,758 million yen for thesame period of the previous fiscal year), and recurring income of 2,942 million yen (compared with a recurring loss of
2,197 million yen for the same period of the previous fiscal year). Furthermore, as a result of recognizing extraordinary
loss from loss on valuation of investment securities and the loss on adjustment for changes of accounting standard for asset
retirement obligations, the Group recorded a net loss of 1,644 million yen (compared with a net loss of 2,846 million yen
for the same period of the previous fiscal year).

Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys, such as MASKED RIDER W (Double) and HEARTCATCH PRETTY CURE !, and the digital card game DATA CARDDASS posted strong performance figures in Japan,
and strongly contributed to earnings. In addition, the new HYPER YO-YO and VooV, both of which were launched to
expand the target population, also became popular.
Meanwhile, overseas, the BEN10 character toys posted solid performance figures. In North America and Europe,
the Group started to expand into new categories and content in the aim of achieving growth in the medium- tolong-term, but the results of such efforts were yet to appear in the first quarter.
As a result, net sales in the Toys and Hobby Business were 34,812 million yen, and segment profit was 4,110
million yen.

Content BusinessIn the Content Business, there were no new launches of major titles in home video game software during the firstquarter. Sales in Americas of the popular TEKKEN 6, which was launched for the PlayStation 3 and Xbox 360 previous
fiscal year, were recorded in this first quarter based on U.S. GAAP.
In arcade game machines, performance was solid, particularly with respect to Deadstorm Pirates, which began-2-

rollout in the previous fiscal year. In visual and music content, the application of the management principles of
selection and concentration led to improved profitability. However, in the mobile content, a decline in fee-paying
subscribers led to the posting of weak performance figures.
As a result, net sales in the Content Business were 32,948 million yen, and segment loss was 619 million yen.

Amusement Facility BusinessIn the Amusement Facility Business, the Group implemented different marketing strategies for each customer
segment in the continuing difficult market environment in Japan. As a result, it posted solid performance figures,
particularly thanks to stores that have been differentiated by providing the experience of a unique world-view ofcharacters. Existing-facility sales were 96.3% of the figure for the same period of the previous fiscal year. Meanwhile,
costs were reduced due to the various efficiency measures that have been continuing since 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 14,770 million yen, and segment profit was 157
million yen.

Facilities as of June 30, 2010
Directly Managed

Revenue-Sharing

Facilities

Facilities

281

869

Others

Total

4

1,154

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 first quarter, efforts were made to improve the efficiency ofthese operations related to group support.
As a result, net sales in the Other Businesses were 4,308 million yen, and segment profit was 179 million yen.

(2)

Qualitative Information Regarding Consolidated Financial Position
At the end of the first quarter of fiscal year ending March 31, 2011, total assets stood at 309,157 million yen, a decreaseof 16,777 million yen from the end of the previous fiscal year. The main factors were decreases of 11,682 million yen in
trade receivables and 8,502 million yen in cash and time deposits resulting from income taxes paid and cash dividends
paid.
Total liabilities amounted to 85,899 million yen, a decrease of 11,024 million yen from the end of the previous fiscal
year. The main factors were decreases of 6,020 million yen in trade payables and 4,139 million yen in advances received
included in other current liabilities.
Total net assets stood at 223,258 million yen, a decrease of 5,753 million yen from the end of the previous fiscal year.
The main factors were decreases of 4,556 million yen in retained earnings resulting from the cash dividends paid and therecording of net loss and 1,213 million yen in foreign currency translation adjustments due to currency fluctuation.
As a result, the equity ratio became 71.6% compared with 69.5% at the end of the previous fiscal year.

-3-

(3)

Qualitative Information Regarding Consolidated Projections
As for the future of the economy, the current uncertainty of weak individual consumption and employment instability

on a global environment is expected to continue. This, moreover, is having a global impact on the entertainment industry, inwhich 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 strengthen development of the long-establishedcharacter series aimed at existing users such as GOSEIGER (POWER RANGERS series) and MASKED RIDER series,
aimed at boys, and HEART CATCH PRETTY CURE !, aimed at girls, while strengthening others including Mobile Suit
Gundam plastic models, which celebrated its 30th anniversary, and the popular DATA CARDDASS. In addition, to expand
the target population for the purpose of aiming for the overwhelming position of No. 1 in Japan, we will focus on further
strengthening new products such as HYPER YO-YO and VooV. Overseas, in addition to the BEN10 character toys, whichhave become a long-established character series, we will place our attention on girls’ toys such as POP PIXIE andpre-school toys such as POCOYO in order to strengthen new categories and new content.
In the Content Business, the Group is focusing on developing game software that are potential candidates for new
franchise titles in the home video game software business, particularly for the North American and European markets.
Considering that this segment faced difficulties in Japan in the previous fiscal year, mainly with small to medium size game
titles, our plan for Japan is to more strictly scrutinize each title during the development process in order to strengthen our
profitability. Also, in April 2010, the Group integrated the existing Game Contents Business and Visual and Music Content
Business. This will allow the Group to respond swiftly to the increasing diversification of customer needs and to maximize
the value of the Group’s content.
For the Amusement Facility Business, the Group will strengthen profitability by continuing to implement various
efficiency measures in Japan and overseas, while pursuing 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.

In its projections for the current fiscal year, the Group has upwardly revised its consolidated projections for the six
months of the fiscal year ending March 31, 2011 announced in Consolidated Financial Report for the Fiscal Year Ended
March 31, 2010 on May 7, 2010 in light of the strong performance of the Toys and Hobby Business in Japan over the firstquarter and more recently. Please see page 5 for the details of the revision.
In its consolidated projections for the full fiscal year, the Group has taken into account that the main products andservices provided mainly by the Toys and Hobby Business and the Content Business are concentrated from the third
quarter onward, and that the entertainment industry is expected to continue to experience a difficult business environment
as mentioned above, and no changes have been made to the previously announced projections.

-4-Revision to the consolidated projections for the six months(April 1, 2010 to September 30, 2010)
Net Sales(¥ million)

Operating
Income (Loss)

Recurring
Income (Loss)

Net Lossper Share

Net Loss

Previous projections (A)175,000(1,000)(1,000)(3,500)(14.50) yen

Revised projections (B)175,000

1,500

1,500

(3,500)(14.50) yen

Change in amount (B–A)

–

2,500

2,500

–

–

Change (%)

–

–

–

–

–

172,733(2,615)(2,866)(6,038)(25.02) yen

Reference: Results for thesame period of the previous
fiscal year
(April 1, 2009 to September 30,
2009)

-5-

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
first 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 first 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
income before income taxes and minority interests for the fiscal year including the current first quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.
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 current first quarter.
As a result of this change, gross profit, operating income and recurring income have each decreased by 21 million
yen and income before income taxes and minority interests decreased by 1,227 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), “Accounting-6-

Standard 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 current first quarter.

-7-

3.

Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets(¥ million)
Current 1st Quarter
As of June 30, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

AssetsCurrent assets
Cash and time deposits

88,14596,647

Trade receivables

41,04352,726

Short-term investments

5,185

2,037

Finished goods and merchandise

11,67812,817Work in process

28,371

23,805

Raw materials and supplies

4,682

4,334

Other current assets

25,76926,532

Allowance for doubtful receivables(1,009)(1,138)

Total current assets

203,867

217,762

46,32246,014

Other intangible assets

11,64912,501

Total intangible assets

11,64912,501Other investments and assets

49,11451,463

Allowance for doubtful receivables(1,796)(1,807)

Total investments and other assets

47,31849,656

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets

105,290108,172

309,157

325,935

Trade payables

29,93635,956

Short-term borrowings

8,657

8,876

Accrued income taxes

7,548

8,239

Total assets
Liabilities
Current liabilities

Provision

1,767

3,204

Other current liabilities

26,38730,326

Total current liabilities

74,29786,604Long-term borrowings

3,333

3,333

Provision

2,627

2,565

Other long-term liabilities

5,641

4,420

11,602

10,31985,89996,923Long-term liabilities

Total long-term liabilities
Total liabilities-8-(¥ million)
Current 1st Quarter
As of June 30, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,96079,960Retained earnings

158,897

163,454

Treasury stock(9,456)(9,455)

Total stockholders’ equity

239,401

243,958

Unrealized gains or losses on other securities, net of tax

488

19

Deferred gains or losses on hedges, net of tax

159

79

Valuation difference and foreign currency translation
adjustments

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

Foreign currency translation adjustments(12,113)(10,900)

Total valuation difference and foreign currency translation
adjustments(17,956)(17,292)

95

810

1,718

1,535

223,258

229,012309,157

325,935

Stock subscription rights
Minority interests
Total net assets
Total liabilities and net assets

-9-

(2)

Quarterly Consolidated Statements of Operations(¥ million)
Prior 1st Quarter(From April 1, 2009
to June 30, 2009)

Current 1st Quarter(From April 1, 2010
to June 30, 2010)

Net sales

75,72981,912

Cost of sales

50,37450,974Gross profit

25,35430,938Selling, general and administrative expenses

28,11327,984

Operating income (loss)(2,758)2,953

Interest income

130

44

Non-operating income
Dividend income

105

118

Amortization of negative goodwill

30–

Equity in gain of affiliated companies

173–

Gain on valuation of derivatives

168–

Other non-operating income

143

170

Total non-operating income

752

332

Interest expense

5340

Equity in loss of affiliated companies

–

28

117

228

Non-operating expenses

Foreign exchange loss
Other non-operating expenses

20

45

Total non-operating expenses

190

343

(2,197)

2,942

Recurring income (loss)
Extraordinary income
Gain on sales of fixed assets

68Gain on transfer of business–

405

Reversal of allowance for doubtful receivables

16

61

Reversal of provision for losses from business restructuring–

21

Gain on reversal of stock subscription rights

2715

Other extraordinary income–

19

Total extraordinary income

25

1,230

Loss on sales of fixed assets

51

Loss on disposal of fixed assets

48

33

Loss on valuation of investment securities

–

2,052

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

–

1,205

Other extraordinary loss

14

81

Total extraordinary loss

68

3,374

Extraordinary loss

Income (loss) before income taxes and minority interests(2,240)

798

513

2,271

Loss before minority interests–(1,473)

Minority interests

92

171

(2,846)(1,644)

Income taxes

Net loss- 10 -

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

Segment Information[By Business Segment]
Prior 1st quarter (From April 1, 2009 to June 30, 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

Amusement
Facility
Business

Other
Businesses

Total

31,073

19,177

7,691

15,787

1,998

75,729–75,729

668

1,032

305

48

2,485

4,540

(4,540)–31,741

20,210

7,997

15,835

4,484

80,269(4,540)75,7291,874(4,136)

(13)

(45)

36

(2,284)(474)(2,758)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 current first quarter because they had
similar business characteristics such as contents of services, content development, and support for multiple
media.
The table below presents the results of the first quarter of the previous fiscal year (business segment
information) under the new business segments.
(¥ million)

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

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

Amusement
Facility
Business

Other
Businesses

Total

34,77926,673

6,993

19,3492,183

89,979–89,979

611

1,336

253

121

2,639

4,961

(4,961)–35,39028,0107,247

19,470

4,822

94,941(4,961)

89,979

1,994

(40)

(234)

69

206

1,996

(467)

1,528

- 11 -

Eliminations
andConsolidated
Corporate[By Geographic Segment]
Prior 1st quarter (From April 1, 2009 to June 30, 2009)
Japan
Net sales(1) To externalcustomers(2) Inter-segment sales
and transfers
Total
Operating income(loss)

Note:(¥ million)Asia,
excluding Japan

Eliminations
Consolidated
and Corporate

Total

Americas

Europe57,941

7,691

6,940

3,155

75,729–75,729

3,025

866

11

4,769

8,672

(8,672)–60,966

8,558

6,951

7,924

84,401(8,672)75,729(1,393)(1,860)547

562(2,143)(615)(2,758)

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 and Spainc.

Asia, excluding Japan:

Hong Kong, Thailand, Korea and China[Foreign Sales]
Prior 1st quarter (From April 1, 2009 to June 30, 2009)
AmericasAsia,
excluding Japan

EuropeTotal

I

Foreign sales (¥ million)

8,270

7,050

3,599

18,920II

Consolidated sales (¥ million)

–

–

–

75,729

III

Share of sales to customers
outside Japan (%)

10.9

9.3

4.8

25.0

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, Middle East and Africac.

Asia, excluding Japan: Hong Kong, Singapore, Thailand, Korea, Australia, China and Taiwan- 12 -

[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 Businessand Amusement Facility Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys, products for vending
machines and other products. The Content Business conducts production and sales etc. of home-use video gamesoftware and video related products, and the manufacturing and sales of arcade game machines and others. The
Amusement Facility Business conducts the operation etc. of amusement facilities.

2. Information regarding the amounts of net sales and profit/loss by reportable segment
Current 1st quarter (From April 1, 2010 to June 30, 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

33,98531,557

14,75480,297

1,615

81,912–

81,912

Inter-segment sales andtransfers

827

1,391

15

2,234

2,692

4,927

(4,927)–

Total

34,812

32,948

14,77082,532

4,308

86,840(4,927)

81,912

4,110

(619)

157

3,647

179

3,827

(873)

2,953

Segment profit (loss)

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 873 million yen deducted from segment profit as adjustment are 26 million yen as inter-segment
eliminations, and 847 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 not been attributed to areportable segment.
Segment profit (loss) is adjusted with operating income in the quarterly consolidated statements of operations.

3. Information regarding impairment loss of fixed assets and goodwill. by reportable segment
No items to report- 13 -

(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 current first quarter.

(5)

Notes on Significant Changes in the Amount of Stockholders’ Equity
No items to report- 14 -