Consolidated Financial Report for the Fiscal Year Ended
March 31, 2014

May 8, 2014DISCLAIMER- NAMCO BANDAI Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
May 8, 2014

Consolidated Financial Report for the Fiscal Year Ended March 31, 2014 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 23, 2014
Scheduled starting date for dividend payments:
June 24, 2014
Scheduled filing date of the annual security report:
June 24, 2014
The additional materials of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2014
Fiscal Year Ended
March 31, 2013

Net sales¥ million
507,679%
4.2

487,241

7.3

Net income(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
44,672(8.2)
47,456(5.0)
48,64240.6

Net income per share

49,97242.9

Net income per share(diluted)¥ million%¥
Fiscal Year Ended
25,054(22.6)
114.05
March 31, 2014
Fiscal Year Ended
32,38367.8
147.40March 31, 2013
(Note) Comprehensive income: 32,633 million yen [(21.4)%] (FY2014.3), 41,505 million yen [92.6%] (FY2013.3)
ROE(Net income / Net assets)

ROA(Recurring income /Total assets)¥
114.03–Operating margin(Operating income /Net sales)%%%
Fiscal Year Ended
9.7
12.2
8.8
March 31, 2014
Fiscal Year Ended
14.1
14.0
10.0
March 31, 2013
(Reference) Gain or loss from application of equity method: 1,169 million yen (FY2014.3), 341 million yen (FY2013.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2014
405,092
267,951
66.0
As of March 31, 2013
374,203
248,769
66.0(Reference) Equity: 267,521 million yen (as of March 31, 2014), 247,030 million yen (as of March 31, 2013)

Net assets
per share¥
1,217.74
1,124.45

(3) Consolidated Statements of Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
41,291¥ million(14,421)¥ million(15,070)

Cash and cash
equivalents at endof period¥ million
134,666

36,411(14,861)(12,500)

119,041

Fiscal Year Ended
March 31, 2014
Fiscal Year Ended
March 31, 2013
2. Cash Dividends

Fiscal Year Ended
March 31, 2013
Fiscal Year Ended
March 31, 2014

End offirstquarter¥––

Annual Cash Dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
33.00
12.00

–

23.00

Total

¥
45.00

Payout ratio
Dividend /Total(Consolidated) Net assets
dividend(Consolidated)
payment(Full year)¥ million
%
%
9,891
30.5
4.3

35.00

7,693

30.7

3.0

–
12.00
–
12.00
24.00
Fiscal Year Ending
18.8
March 31, 2015
(Projections)(Note) Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2015, the stable dividend portions are stated based on the Company’s basic policy regarding distribution of
surplus. The year-end cash dividend for the fiscal year ending March 31, 2015, will be considered by the Company inconsideration of the consolidated operating results and other factors.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
235,000
2.8
20,000 (24.2)
20,000 (30.0)
12,500 (36.2)
56.90
September 30, 2014
Full Fiscal Year
500,000(1.5)
45,0000.7
45,000(5.2)
28,00011.8
127.45* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Change in Accounting Policy)”of “3. Consolidated Financial Statements” on page 21 of the attached material.
(3) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2014
222,000,000 shares
As of March 31, 2013
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of March 31, 2014
2,312,098 shares
As of March 31, 2013
2,309,342 sharesc) Average number of shares during the period
For the Fiscal Year ended March 31, 2014
219,689,321 shares
For the Fiscal Year ended March 31, 2013
219,691,255 shares

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2014
Fiscal Year Ended
March 31, 2013

Operating revenue¥ million%
22,38323.1
18,18846.5

Net income

Fiscal Year Ended
March 31, 2014
Fiscal Year Ended
March 31, 2013

(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
19,442
27.6
19,70929.2
15,23354.9

Net income per share

15,25957.6

Net income per share(diluted)¥ million
19,787

%
29.3

¥
90.02

¥
90.01

15,298

–

69.60

–

(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
336,338
247,059
73.4
As of March 31, 2013
323,642
236,159
73.0(Reference) Equity: 247,015 million yen (as of March 31, 2014), 236,159 million yen (as of March 31, 2013)
As of March 31, 2014

Net assets
per share¥
1,123.81
1,074.40

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring income
Net income
Net income
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
24,0007.2
20,500
4.0
20,0001.1
90.99* Implementation status of audit
This Consolidated Financial Report was exempt from audit which was based on Financial Instruments and Exchange Law of Japan. Asof the fiscal year disclosing, audit for the financial statements is under way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(1) Analysis on Results ofOperations b. Outlook for the Fiscal Year Ending March 31, 2015” of “1. Analysis on Results of Operations and Financial Position” onpages 3-4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results will be posted on the Company’s website on May 8, 2014.

Attached Material
Index
1. Analysis on Results of Operations and Financial Position ................................................................ 2(1) Analysis on Results of Operations ...................................................................................................................................... 2(2) Analysis of Financial Position ............................................................................................................................................ 5(3) Fundamental Policy on Profit Sharing ................................................................................................................................ 6

2. Management Policies ............................................................................................................................ 7(1) Fundamental Management Policy ....................................................................................................................................... 7(2) Targets and Management Performance Indicators .............................................................................................................. 7(3) Medium- to Long-term Business Strategy .......................................................................................................................... 7(4) Issues to be Addressed ........................................................................................................................................................ 9

3. Consolidated Financial Statements ....................................................................................................11(1) Consolidated Balance Sheets ............................................................................................................................................ 11(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................. 13(Consolidated Statements of Operations) ......................................................................................................................... 13(Consolidated Statements of Comprehensive Income) ..................................................................................................... 14(3) Consolidated Statements of Changes in Net Assets .......................................................................................................... 15(4) Consolidated Statements of Cash Flows ........................................................................................................................... 17(5) Notes to Consolidated Financial Statements ..................................................................................................................... 19(Notes on Premise of Going Concern).............................................................................................................................. 19(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements) .......................... 19(Change in Accounting Policy)......................................................................................................................................... 21(Segment Information) ..................................................................................................................................................... 22(Per-Share Data) ............................................................................................................................................................... 28(Significant Subsequent Events) ....................................................................................................................................... 28

4. Other .................................................................................................................................................... 29
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 29-1-

1. Analysis on Results of Operations and Financial Position(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2013 to March 31, 2014)
During this fiscal year, although there were some bright signs in the economic environment in Japan against a backdropof economic policies and fiscal easing, such as improved corporate profitability and individual consumption, the economic
outlook remained uncertain due to concerns about impacts of the consumption tax increase in April 2014 and other factors.
In North America and Europe also, individual consumption remained weak and the economic environment continued to be
uncertain due to confusion over fiscal policy and severe problems with unemployment.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various measures aimed at medium- tolong-term growth, focusing on its IP (intellectual property; including intellectual property of characters) strategy, under theconcept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of the Group’s Mid-term Plan, started
in April 2012. On the business front, sales were favorable in the Content Business in areas including home video gamesoftware, visual and music content and network content. In addition, the Toys and Hobby Business performed favorably,
particularly its long-established IP products in Japan. In the Amusement Facility Business, an extraordinary loss wasrecorded in connection with the closure of stores and disposal of machines that were forecast to have low levels of usage.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 507,679 million yen (year-on-yearincrease of 4.2%), operating income of 44,672 million yen (year-on-year decrease of 8.2%), recurring income of 47,456
million yen (year-on-year decrease of 5.0%), and net income of 25,054 million yen (year-on-year decrease of 22.6%).
Operating results by segment are as follows.

Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed favorably thanks to cross-functional efforts undertaken
across all businesses for long-established IP such as Kyouryuger (the Power Rangers series), KAMEN RIDER GAIM
and DOKIDOKI! PRETTY CURE in addition to products of new IP Aikatsu! for girls. In addition, its new IP aimed atboys, Yokai Watch launched in January 2014, has proved to be a very popular product. Aside from that, the Group
strived to broaden the variety of its target customers by such means as stepping up development of products for babies
and pre-school children, and also for adults, thereby steadily moving toward achieving our objective of becoming No. 1
in each target and market in Japan by an overwhelming margin.
Overseas, in North America and Europe, products of the Power Rangers series sold steadily but overall sales ofNorth America and Europe were below the plan created at the beginning of the fiscal year. In the Asian region, toys,
plastic models, collectable toys for adults and card products became popular thanks to developments in conjunction
with Japan.
As a result, net sales in the Toys and Hobby Business were 186,390 million yen (year-on-year increase of 7.8%),
and segment income was 10,510 million yen (year-on-year decrease of 6.6%).

Content BusinessLooking at the Content Business, in the area of home video game software, in addition to the hits of DARK SOULS
II for overseas and GOD EATER 2 for Japan, there were favorable repeat sales of several products including Disney
MAGIC CASTLE MY HAPPY LIFE and the TAIKO: DRUM MASTER series, which was launched in the previous fiscal
year. In the area of network content, the key titles of social games such as ONE PIECE Grand Collection, the Mobile-2-

Suit Gundam series and THE IDOL M@STER series sold stably, and applications for smartphones such as the Mobile
Suit Gundam series and online games contributed to improve the performance as well.
In the area of visual and music content, strong sales were realized from multiple new titles such as SPACEBATTLESHIP YAMATO 2199, LoveLive! School idol project and GIRLS und PANZER, as well as animation related
music titles. The Group strived to maximize IP value through cross-functional efforts in the Content Business bylinking products and services with network functions and events.
As a result, net sales in the Content Business were 278,408 million yen (year-on-year increase of 5.6%), andsegment income was 37,248 million yen (year-on-year increase of 2.2%).

Amusement Facility BusinessIn the Amusement Facility Business, in Japan, the Group newly opened three indoor theme parks as a measure tobuild a new business pillar following the existing amusement facility businesses, while also promoting the development
of differentiated facilities that offer the experience of the Group’s distinctive worldview of specific IPs. Sales ofexisting facilities declined to 93.8% of the previous fiscal year.
As a result, net sales in the Amusement Facility Business were 58,199 million yen (year-on-year decrease of 3.3%),
and segment loss was 897 million yen (compared with segment income of 1,683 million yen for the previous fiscal
year).

Number of Facilities as of March 31, 2014
Directly Managed

Revenue-Sharing

Facilities

Facilities

247

1,044

Others

Total

4

1,295

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kindsof administration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU,
Content SBU, and Amusement Facility SBU. We are making efforts to manage such operations related to group support
in an efficient manner.
As a result, net sales in the Other Businesses were 27,350 million yen (year-on-year increase of 6.1%), and segment
income was 1,646 million yen (year-on-year decrease of 2.7%).

b. Outlook for the Fiscal Year Ending March 31, 2015
Looking ahead, although there are some bright signs in Japanese economic trends, the business environment is
expected to remain beset by uncertainties, including the impact on consumption from the consumption tax increase andeconomic trends in North America and Europe. Such factors are also expected to have an impact on the entertainment
industry, in which the Group is extensively involved, resulting in ongoing uncertainty in this business environment.
Facing these circumstances, the Group will develop and strengthen the foundations for medium- and long-term growth
for the Group in light of achievements and issues yet to be solved under the current Mid-term Plan, looking ahead to its
next Mid-term Plan starting in April 2015. On the business front, in the strongly performing Toys and Hobby Business inJapan and the Content Business, the Group will vigorously push forward with its IP strategy with the aim of further-3-

growing its share. Meanwhile, in the Toys and Hobby Business in North America and Europe and the Amusement Facility
Business, which are operating under difficult conditions, the Group will press ahead with measures to construct a stablebusiness foundation. In addition, a project will be started for the 35th anniversary of the Group’s mainstay IP, the Mobile
Suit Gundam series. The Group will work to maximize the IP value in the medium- and long-term by offering products andservices and holding events across the Group with a focus on new films.
In the Toys and Hobby Business, the Group’s plan for the Japanese market is to further strengthen the businessfoundation through the stable deployment of popular IP series such as Mobile Suit Gundam, Super Sentai (Power Rangers),
KAMEN RIDER, PRETTY CURE! and Aikatsu!. The Group will also expand its IP lineup by such means as introducing IP
for elementary-school-age boys and for adults, and launch products and services targeting a variety of customers, and will
aim to be No. 1 in Japan by an overwhelming margin. Overseas, in North America and Europe, the Group aims to develop
a stable portfolio with multiple IP by launching new IP products in addition to the Power Rangers series, the mainstay IP.
The Group will also strive to construct a business foundation in the regions of North America and Europe by pressing
forward with fundamental reform of the organizational framework and revenue structure. In Asian areas, the Group aims to
expand its IP lineup and areas of operation and achieve growth through developments in conjunction with Japan, focusing
on plastic models, collectable toys for adults and card products that are popular in Japan.
In the Content Business, to further enhance its IP strategy for offering products and services in a wide variety of
categories with a focus on IP, the Group will not only respond swiftly to changes in the business environment and newoutlets but also strengthen its creation and development of new IP. In addition, by fusion of the virtual and the real such as
through the synergistic linking of products and services with concerts and live events, the Group will strive to create new
added value and maximize IP value.
In the network content area, the Group will work to achieve stable development of content by launching new titles thatappeal to changing user tastes and releasing timely upgrades of existing titles. In home video game software, the Groupwill respond to new platforms by approaching them as new outlets in its IP strategy, while deploying a well-balanced
software lineup consisting of titles for Japan utilizing IP that is in vogue, titles released worldwide, and titles utilizing
network functions. In arcade game machines, the Group will work on the development and sale of popular game machines
and their prizes. In the area of visual and music content, the Group will work to create new IP with films, in addition to thesales of various new packages of software.
In the Amusement Facility Business, in Japan, the Group will strive to realize our unique capability by such means as
developing of facilities that can offer the experience of IP worldviews, and closely coordinated efforts with other Groupbusinesses including the arcade game machine business. In addition, the Group aims to build new business pillars bydirecting efforts toward the theme park business and new business formats.
In North America and Europe, the Group will strive to secure stable profitability by continuing to implement various
efficiency measures.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2015 are as
follows: net sales of 500,000 million yen (year-on-year decrease of 1.5%), operating income of 45,000 million yen(year-on-year increase of 0.7%), recurring income of 45,000 million yen (year-on-year decrease of 5.2%), and net incomeof 28,000 million yen (year-on-year increase of 11.8%).

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(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2014, total assets stood at 405,092 million yen, an increase of 30,889
million yen from the end of the previous fiscal year. The main factors were increases of 12,270 million yen in cash andtime deposits, 4,360 million yen in finished goods and merchandise, 3,676 million yen in work in process, 4,716 million
yen in property, plant and equipment, 3,163 million yen in investment securities due to market valuation, and 2,285 million
yen in deferred tax assets.
Total liabilities amounted to 137,141 million yen, an increase of 11,707 million yen from the end of the previous fiscal
year. The main factors were increases of 5,153 million yen in trade payables and 5,326 million yen in accounts
payable-other, despite a decrease of 3,910 million yen in long-term borrowings included in other long-term liabilities due
to repayment. In line with a revision to the Accounting Standard for Retirement Benefits, net defined benefit liability
increased by 8,062 million yen while accrued retirement and severance benefits decreased by 3,724 million yen.
Total net assets stood at 267,951 million yen, an increase of 19,181 million yen from the end of the previous fiscal year.
The main factors were increases of 15,298 million yen in retained earnings thanks to the recording of net income throughfavorable consolidated results, and 7,049 million yen in foreign currency translation adjustments due to foreign exchange
fluctuation, despite cash dividends paid of 9,891 million yen.
As a result, the equity ratio is unchanged compared with 66.0% at the end of the previous fiscal year.

b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (hereafter “funds”) remaining on hand had increased by
15,624 million yen from the end of the previous fiscal year to 134,666 million yen. Below is the breakdown of cash flows
by activities.
(Cash Flows from Operating Activities)
The amount of funds provided by operating activities totaled 41,291 million yen (up 13.4% compared with the previous
fiscal year). As a main breakdown of funds used, income taxes paid was 18,219 million yen (compared with 20,378 million
yen in the previous fiscal year) and an increase in inventories was 7,167 million yen (compared with 1,558 million yen in
the previous fiscal year). However, overall, there was a net increase in funds due to income before income taxes andminority interests of 42,759 million yen (compared with 48,489 million yen in the previous fiscal year), depreciation andamortization of 21,725 million yen (compared with 20,415 million yen in the previous fiscal year), and a decrease in tradereceivables of 5,105 million yen (compared with an increase of 5,522 million yen in the previous fiscal year).

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 14,421 million yen (down 3.0% compared with the previous
fiscal year). The main breakdown of funds used was purchases of property, plant and equipment and intangible assets
totaling 15,602 million yen (compared with 13,531 million yen in the previous fiscal year).

(Cash Flows from Financing Activities)
The amount of funds used in financing activities amounted to 15,070 million yen (up 20.6% compared with theprevious fiscal year). The main factors for funds used were cash dividends paid of 9,891 million yen (compared with 5,714-5-million yen in the previous fiscal year) and repayment of long-term borrowings of 6,051 million yen (compared with 5,333
million yen in the previous fiscal year).

(Reference) Cash Flow Indices
FY2010.3

FY2011.3

FY2012.3

FY2013.3

FY2014.3

Equity ratio (%)

69.5

68.8

61.8

66.0

66.0

Equity ratio (market capitalization basis) (%)

67.5

69.6

76.7

97.8

132.5

1.2

0.2

0.5

0.4

0.2

32.9

42.0

338.4

244.8

308.0

Cash flows to interest bearing debt ratio(years)Interest coverage ratio (times)

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(3) Fundamental Policy on Profit Sharing
The Company places the return of profits to shareholders as one of its highest priorities in its management. The
Company assumes that its basic policy is to further strengthen the Group’s competitiveness and, while maintaining a soundfinancial status, to achieve regular distributions of dividends and improvement in the Company’s corporate value. In
concrete terms, the Company will provide a return to shareholders that targets a consolidated payout ratio of 30%, based onstable annual dividend payments of 24 yen per share. The Company plans to add a performance-based dividend of 11 yen
per share to the stable annual dividend of 24 yen per share and to pay 35 yen per share for the annual dividend for thisfiscal year (year ended March 31, 2014). At present, the Company’s annual dividend forecast for next fiscal year (yearending March 31, 2015) is the provision of the stable dividend of 24 yen per share, and this will be considered by theCompany in light of the consolidated operating results and other factors.
In addition, its fundamental policy is that part of any profit, after deduction of dividends, may be used to acquire
treasury stock, upon comprehensive consideration of the amount of funds on hand, performance trends, recent share pricetrends, the existence or nonexistence of major investment proposals, and other factors.

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2. Management Policies(1) Fundamental Management Policy
The Group mission is to offer “Dreams, Fun and Inspiration,” to people throughout the world, through the products andservices of the Group’s Toys and Hobby Business, Content Business and Amusement Facility Business, aiming at thevision of becoming “The Leading Innovator in Global Entertainment.” Under the three-year Mid-term Plan, which started
in April 2012, the Group will “Empower, Gain Momentum, Accelerate Evolution” in every aspect of its businesses,
including products, services, business models, operation, and numerical targets in order to achieve growth in the Japaneseand overseas markets.

(2) Targets and Management Performance Indicators
The Group has adopted ROE (Return on Equity) as management performance indicators. Looking ahead, the Groupshall strive to continue to secure ROE of 10% or more by aiming to further expand profits through execution of strategies
under the Mid-term Plan, as well as by effectively utilizing stockholders’ equity.

(3) Medium- to Long-term Business Strategy
Under the three-year Mid-term Plan, which started in April 2012, we will promote five Focus Strategies. These consistof three Business Area Strategies, which will be applied to each business (strategic business unit (“SBU”)), and two
Functional Strategies, which will be applied commonly across all businesses.

Business Area Strategies
Under the Mid-term Plan, we will classify the Group’s businesses into three areas and implement strategies for each of
them.

a. Basic Business Area
Because each of the businesses in Japan has already secured stable market share and profit, these businesses havebeen classified as the Basic Business Area. The Group will aim to achieve No. 1 position in each of these businesses byexecuting strategies aimed at profit growth.

b. Profit Recovering Area
Although currently facing various challenges, the businesses in North America and Europe have high future growthpotential. The Group has classified these businesses as the Profit Recovering Area and aims to build a solid profit basefor this area.

c. New Growth Area
The businesses in the Asian region have been classified as the New Growth Area, and the Group aims to foster andgrow these businesses as a new growth pillar of the Group.

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Functional Strategies
Included in the strategies to be commonly implemented by each SBU will be the Group-wide Network Strategy, which
is aimed at constructing new business models which are unique to the Group, and the Human Resources Strategy, aimed atdeveloping the personnel who can work successfully at a global level.

a. Group-wide Network Strategy
We will construct unique business models by using the various websites and network services that the Group isdeveloping and expanding as a marketing tool to send information directly to users.

b. Human Resources Strategy
We will be promoting our hiring and training of valuable personnel from a medium-term perspective by hiring more
new graduates on a global basis and by implementing strategic personnel transfers across different businesses andregions. We will also promote employees based overseas more actively and offer training programs that take into
account the Group’s global development.

Strategies by Business
Focus strategies in each SBU to advance the Group’s Business Area Strategies are as follows.

a. Toys and Hobby SBU• Carry out integrated brand management of the U.S. and Europe• Conduct Japan-originated business activities simultaneously in Asia
• Become overwhelming No. 1 in Japan• Enhance competitiveness through value chain reformb. Content SBU• Reconstruct existing business: Strategy of achieving No. 1 share• Maximize business integration using IP as an axis
• Form a network strategy schemec. Amusement Facility SBU• Advance marketing by customer segment• Establish chain store management• Develop models to utilize IP at facilities• Explore overseas markets-8-(4) Issues to be Addressed
The Group and this industry must address many important, long-term issues, including (i) diversifying consumer needs,(ii) reacting to changes in the market and the environment, and (iii) increasingly intense competition on a global scale. The
Group is applying the focus strategies defined in its Mid-term Plan to address these issues swiftly.

a. Common Issues Faced by All Strategic Business Units (“SBUs”)
Efforts Toward Maximizing the Value of IP
The Group is strengthening its IP creation and acquisition, development, and utilization functions in order to respond tochanges in the environment such as development of oligopolies in the distribution and media fields, the widespread
penetration of networks, and technological improvements. Specifically, the Group will maximize the value of its individual
IP through holding meetings across the Group. It will also facilitate IP creation, acquisition and development through, forexample, creation of IP by its products and services and operation of an IP posting system by the Group employees and soon.

Efforts Toward CSR (Corporate Social Responsibility)
The Group’s corporate philosophy is to continue to provide “Dreams, Fun and Inspiration” to people around the world,
through entertainment based on creativity and boundless enthusiasm. To ensure that we can continue to provide “Dreams,
Fun and Inspiration,” we have formulated the CSR initiatives across the Group which include three types of
responsibilities: environmental and social contribution responsibilities, economic responsibilities, and legal and ethicalresponsibilities. In accordance with these fundamental principles, the Group CSR Committee and its sub-committee, theGroup CSR Subcommittee, as well as the Group Risk Compliance Committee, the Group Information Security Committee,
and the Internal Control Committee hold meetings and have been striving to implement a range of measures.

b. Issues Specific to Each SBU
Toys and Hobby SBU
This unit’s industry is facing issues, such as a “shrinking Japanese market due to the falling birthrate” and “increasingly
diverse consumer needs.” This unit is addressing these issues by aiming for the position as the overwhelming No. 1 inJapan, working at expanding its target population segment and creating new businesses, while reinforcing its coordinateddeployment of IP popular in Japan in the rest of Asia. In the North American and European markets, in addition to
improving profitability through strengthening the expansion of its major IP, it is working to expand its IP lineup and theregions in which it is operating, with a view to achieving medium-term growth. In addition, on the development andproduction side, improvements in the value chain will enable more speedy and price-competitive product development.

Content SBU
This unit’s industry is facing issues that include “evolution of platforms and networks” and “increasingly diverse
customer needs.” The Group is reviewing development based on its existing business categories and promoting its IP
strategy of launching products and services at the optimal timing and in the optimal areas and categories, thereby achievinga speedy response to changing customer needs throughout the world while working to maximize IP value. Specifically, in
the Japanese market, it is aiming to secure the No. 1 position in each of its main business categories. For overseas, it isreinforcing deployment of its arcade game machines in developing countries, mainly in Asia, and is carrying out the-9-world-wide launch of carefully selected home video game software titles developed in Japan, seeking to improve
profitability. On the development front, it will put in place and improve the development environment from a medium- andlong-term perspective, such as by implementing measures to respond swiftly to technological progress and changes in theenvironment.
Amusement Facility SBU“Increasingly diverse consumer preferences,” “weak individual consumption,” and “revision of consumption tax rate”
are among the issues for this unit’s industry. To address these issues, in Japan, this unit will conduct business operations
focusing on profitability within basic business segments, and creating new business structures by enhancing thedevelopment of facilities to differentiate the Group, such as theme parks utilizing our IP and new forms of amusement
facilities blending our IP with sales of merchandise and food and drink.
Overseas, the unit will stably operate its business through continuing to select and concentrate businesses and improve
management efficiency.

- 10 -

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

Current Fiscal Year(As of March 31, 2014)

AssetsCurrent assets
Cash and time deposits

119,132

131,403

Trade receivables

77,06976,587

Short-term investments

4,379

4,423

Finished goods and merchandise

10,915

15,276Work in process

19,597

23,274

Raw materials and supplies

6,130

6,463

Deferred tax assets

10,5799,913

17,483

17,650

(484)

(594)

264,804

284,398

25,31826,763

Accumulated depreciation(14,915)(15,644)

Buildings and structures, net

10,403

11,118

Amusement facilities and machines

60,99959,886

Accumulated depreciation(47,992)(46,069)

Amusement facilities and machines, net

Other current assets
Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

13,007

13,816

Land

11,537

11,630

Other property, plant and equipment

86,537

99,418

Accumulated depreciation(74,229)(84,011)

Other property, plant and equipment, net

12,307

15,40747,25551,972Intangible assets

8,497

10,145Investments and other assets
Investment securities

25,40428,568

Total property, plant and equipment

Net defined benefit asset–

47

Deferred tax assets

8,398

11,350

Other investments and assets

21,18019,625

Allowance for doubtful receivables(1,338)(1,015)

Total investments and other assets

53,64658,576109,399

120,694374,203

405,092

Total fixed assets
Total assets- 11 -

(¥ million)
Prior Fiscal Year(As of March 31, 2013)

Current Fiscal Year(As of March 31, 2014)

Liabilities
Current liabilities
Trade payables

46,471

51,625

Short-term borrowings

5,596

5,501

Accounts payable-other

22,49527,821

Accrued income taxes

7,852

8,827

Provision for directors’ bonuses

1,173

1,094

352

607

Provision for sales returns

1,344

1,241

Other current liabilities

23,10523,415

Total current liabilities

108,391

120,134

3,724–

Provision for losses from business restructuring

Long-term liabilities
Accrued retirement and severance benefits
Net defined benefit liability

–

8,062

590

516

Other long-term liabilities

12,727

8,427

Total long-term liabilities

17,042

17,006

125,433

137,141

10,00010,000

Deferred tax liabilities for land revaluation

Total liabilities
Net assets
Stockholders’ equity
Common stock
Additional paid-in capital

52,24552,245Retained earnings

199,118

214,416

Treasury stock(2,385)(2,390)Total stockholders’ equity

258,979

274,271

5,212

6,226

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

642

194

Revaluation reserve for land, net of tax

Deferred gains or losses on hedges, net of tax(5,608)(5,743)Foreign currency translation adjustments(12,194)(5,145)Remeasurements of defined benefit plans–(2,282)(11,948)(6,749)–44

Minority interests

1,738

385

Total net assets

248,769

267,951374,203

405,092

Total accumulated other comprehensive income
Subscription rights to shares

Total liabilities and net assets- 12 -

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)

Net sales

Prior Fiscal Year
(From April 1, 2012
to March 31, 2013)
487,241

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)
507,679

Cost of sales

304,162

316,850

Gross profit

183,078

190,829

Selling, general and administrative expenses

134,435

146,156

Operating income

48,642

44,672

Interest income

193

221

Dividend income

264

494

Equity in gain of affiliated companies

341

1,169

Foreign exchange gain

264

655

Reversal of allowance for doubtful accounts

107

458

Non-operating income

Other non-operating income

464

799

Total non-operating income

1,634

3,797

Interest expense

141

124

Loss on investments in partnerships

90

383

Provision of allowance for doubtful accounts–

173

Provision for loss on guarantees–

263

Other non-operating expenses

72

68

Non-operating expenses

305

1,013

49,97247,456

Gain on sales of investments in affiliated companies

34–

Gain on negative goodwill

24

101

State subsidy

51

93

Gain on forgiveness of debts–

200

Other extraordinary income

6386

Total extraordinary income

173

481

505

2,002

0

984

Provision for losses from business restructuring

401

559

Other extraordinary loss

748

1,631

Total non-operating expenses
Recurring income
Extraordinary income

Extraordinary loss
Loss on impairment of fixed assets
Loss on liquidation of business

1,656

5,178

Income before income taxes and minority interests

48,48942,759Corporate income, inhabitant and enterprise taxes

19,64919,193Adjustment for income taxes(3,611)(1,321)

Total income taxes

16,03817,872

Income before minority interests

32,451

24,887

Total extraordinary loss

Minority interests in income (loss)
Net income- 13 -

68(167)

32,38325,054

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2012
to March 31, 2013)
Income before minority interests

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

32,451

24,8872,325

986

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

412

(449)

6,283

7,159

32

50

9,053

7,746

41,50532,633Comprehensive income attributable to owners of the parent

41,30432,670Comprehensive income attributable to minority interests

200

(36)

Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to- 14 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Stockholders’ equity
Additional paid-in

Common stock
10,000

Balance as of April 1, 2012

Retained earnings

capital52,245

Treasury stock

173,250

Total stockholders’equity(2,383)

233,112

Changes during the period
Cash dividends(5,714)(5,714)

Net income

32,38332,383Purchase of treasury stock(0)

Disposal of treasury stock
Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land

(1)

(1)

0

0

0

0

(800)

(800)

Net changes in the period
other than changes instockholders’ equity
Total changes during the period–(0)25,868(1)

25,866

Balance as of March 31, 2013

10,00052,245

199,118(2,385)258,979

Accumulated other comprehensive income
Unrealized gains
or losses onother securities,
net of tax

Balance as of April 1, 2012

2,867

Deferred gains
or losses onhedges,net of tax

229

Revaluation
reserve for land,
net of tax

Foreigncurrencytranslation
adjustments(6,408)(18,357)

Total accumulated Subscription Minority interests Total net assets
Remeasurements
rights to shares
otherof defined benefit
comprehensive
plansincome–(21,669)–

1,682

213,125

Changes during the period
Cash dividends(5,714)

Net income

32,383Purchase of treasury stock(1)

Disposal of treasury stock0

Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied

0

Reversal of revaluation
reserve for land

800

–

800

Net changes in the period
other than changes instockholders’ equity

2,344

412

–

6,163

–

8,921

–

56

8,977

Total changes during the period

2,344

412

800

6,163

–

9,721

–

56

35,644

Balance as of March 31, 2013

5,212

642

(5,608)(12,194)–(11,948)–

1,738

248,769- 15 -

Current Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Stockholders’ equity
Additional paid-in

Common stock

capital10,000

Balance as of April 1, 2013

52,245Retained earnings

Treasury stock

199,118

Total stockholders’equity(2,385)258,979

Changes during the period
Cash dividends(9,891)(9,891)

Net income

25,05425,054Purchase of treasury stock0

Disposal of treasury stock
Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land

(6)

(6)

0

0

0

0

134

134

Net changes in the period
other than changes instockholders’ equity
Total changes during the period–

015,298(5)

15,292

Balance as of March 31, 2014

10,00052,245

214,416(2,390)274,271

Accumulated other comprehensive income
Unrealized gains
or losses onother securities,
net of tax

Balance as of April 1, 2013

5,212

Deferred gains
or losses onhedges,net of tax

642

Revaluation
reserve for land,
net of tax

Foreigncurrencytranslation
adjustments(5,608)(12,194)

Remeasurementsof defined
benefit plans–

Total accumulated Subscription Minority interests Total net assets
rights to shares
othercomprehensive
income(11,948)–

1,738

248,769

Changes during the period
Cash dividends(9,891)

Net income

25,054Purchase of treasury stock(6)

Disposal of treasury stock0

Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied

0

Reversal of revaluation
reserve for land

(134)

–

(134)

Net changes in the period
other than changes instockholders’ equity

1,014

(447)

–

7,049

(2,282)5,333

44(1,353)

4,024

Total changes during the period

1,014

(447)

(134)

7,049

(2,282)

5,198

44(1,353)

19,181

Balance as of March 31, 2014

6,226

194

(5,743)(5,145)(2,282)(6,749)44385

267,951- 16 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

Cash flows from operating activities
Income before income taxes and minority interests

48,48942,759Depreciation and amortization

20,41521,725

Loss on impairment of fixed assets

505

2,002

Amortization of goodwill

289

120

Gain on negative goodwill

(24)

(101)

Increase (decrease) in allowance for doubtful receivables

(571)

(513)

Increase (decrease) in provision for losses from businessrestructuring

266

224

Increase (decrease) in provision for sales returns

71

(239)

Increase (decrease) in provision for directors’ bonuses

(522)

(80)

Increase (decrease) in accrued retirement and severance
benefits

567

–

–

626

(7)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for loss on disaster
Interest and dividend income

(457)

–
(715)

Interest expense

141

124

Foreign exchange loss (gain)

(251)

(106)

Equity in loss (gain) of affiliated companies(341)(1,169)Loss on disposal of fixed assets

203

154

Loss (gain) on sales of fixed assets, net

30

(23)

Loss on disposal of amusement facilities and machines

406

579

Loss (gain) on sales of investment securities, net

(49)

(11)

21

262

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables(5,522)

5,105

Decrease (increase) in inventories(1,558)(7,167)

Acquisition of amusement facilities and machines(3,516)(5,132)

Increase (decrease) in trade payables(4,264)812

Increase (decrease) in accounts payable-other

2,235

3,845

Increase (decrease) in consumption tax payables

107(1,140)

Other

(188)

(3,031)

Subtotal

56,476

58,910Interest and dividends received

461

735

Interest paid

(148)

(134)

Income taxes paid

(20,378)(18,219)

Net cash provided by operating activities

36,411

41,291- 17 -

(¥ million)
Prior Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

Cash flows from investing activities
Payments for deposit in time deposits(4,272)(711)

Proceeds from withdrawal from time deposits

1,920

4,230

Purchases of property, plant and equipment(8,842)(10,414)271

99

Sales of property, plant and equipment
Purchases of intangible assets(4,689)(5,187)Purchases of investment securities

(102)

(503)

Sales of investment securities

101

144

Proceeds from redemption of investment securities

73–

Proceeds from liquidation of subsidiaries–

575

Purchase of investments in subsidiaries(249)(2,743)

Proceeds from sales of shares of subsidiaries–

8

Payments for investments in capital of affiliated companies

–

(300)

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

–

327

(228)

(328)

Payments of loans receivableCollection of loans receivable

676

834

Payments of guarantee money deposited

(609)

(919)

Collection of guarantee money deposited

1,174

688

(84)

(222)

(14,861)(14,421)(1,317)313

Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net
Proceeds from long-term borrowings
Repayment of long-term borrowings–

710(5,333)(6,051)

Payment of lease obligations

(83)

(128)

Purchase of treasury stock

(1)

(6)

Proceeds from disposal of treasury stock00(5,714)(9,891)

(49)

(16)

Cash dividends paid
Cash dividends paid to minority interests
Net cash used in financing activities(12,500)(15,070)

Effect of exchange rate changes on cash and cash equivalents

2,664

3,824

Net increase (decrease) in cash and cash equivalents

11,714

15,624

Cash and cash equivalents at beginning of year

107,327

119,041

Cash and cash equivalents at end of year

119,041

134,666- 18 -

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements)
1. Information Concerning the Scope of Consolidation(1) Total Number of Consolidated Subsidiaries:
Prior Fiscal Year:70 companies

Current Fiscal Year: 66 companies
Names of Principal Consolidated Subsidiaries:
Bandai Co., Ltd., NAMCO BANDAI Games Inc., NAMCO LIMITED, NAMCO BANDAI Holdings(USA) Inc., BANDAI S.A., BANDAI NAMCO Holdings UK LTD. and BANDAI (H.K.) CO., LTD.
Due to the additional acquisition of shares of Sun-Star Stationery Co., Ltd., to which the equity method wasapplied in the fiscal year ended March 31, 2013, it became a subsidiary and has been included in the scope of
consolidation for this consolidated fiscal year.
Due to being merged into a consolidated subsidiary of the Company by an absorption-type merger, BANDAIENTERTAINMENT INC. and NAMCO BANDAI Partners Italia S.p.A., which were consolidated subsidiaries in
the fiscal year ended March 31, 2013, have been excluded from the scope of consolidation.
Since BANDAI ASIA CO., LTD., NAMCO BANDAI Partners Brazil Ltda., NAMCO BANDAI Partners
Benelux B.V. were liquidated, those companies have been excluded from the scope of consolidation.
NAMCO Holdings UK LTD. has changed its trade name to BANDAI NAMCO Holdings UK LTD.
(2) Names etc. of the Principal Non-Consolidated Subsidiaries:
Principal Non-Consolidated Subsidiaries:
SHANGHAI NAMCO LTD. and BANDAI LOGIPAL (H.K.) LTD.
Non-consolidated subsidiaries have been excluded from the scope of consolidation. As the scale of the businessconducted by each of those companies is small and the total assets, net sales, net income or loss and retained
earnings, etc. corresponding to the ownership held by the Company of each non-consolidated subsidiary have nomaterial impact on the consolidated financial statements.
2. Information Concerning Application of the Equity Method(1) Number of Non-Consolidated Subsidiaries to Which the Equity Method Was Applied:
1 company
Name of the Company:
SHANGHAI NAMCO LTD.

- 19 -

(2) Number of Affiliated Companies to Which the Equity Method Was Applied:
Prior Fiscal Year:

6 companies

Current Fiscal Year: 5 companies
Names of the Principal Companies:
Happinet Corporation, Sotsu Co., Ltd. and People Co., Ltd.
Due to the additional acquisition of shares of Sun-Star Stationery Co., Ltd., it became a subsidiary and wastherefore removed from the scope of companies to which the equity method was applied.
(3) Non-Consolidated Subsidiaries and Affiliated Companies to Which the Equity Method Was Not Applied:
The equity method was not applied to non-consolidated subsidiaries and affiliated companies such as BANDAI
LOGIPAL (H.K.) LTD., because it was deemed that the exclusion of those companies from the application of theequity method would have little, and no material impact on the consolidated financial statements of the Company
and it seemed unimportant as a whole in consideration of net income or loss and retained earnings, etc.
corresponding to the Company’s equity share in it.
(4) If any of the companies to which the equity method is applied has a fiscal year that differs from the consolidated
fiscal year, then the financial statements for the fiscal year of that company are used.
3. Information Concerning the Fiscal Year, etc. for Consolidated Subsidiaries
The fiscal year closing dates for BANDAI (GUANGZHOU) CO., LTD. and BANDAI (SHENZHEN) CO., LTD.
are December 31, and their financial data as of their respective closing dates are used. The fiscal year closing date for
Sun-Star Stationery Co., Ltd is June 30 and its financial data is based on a provisional closing as of December 31
pursuant to procedures for the fiscal year-end closing.
Necessary adjustments on a consolidated basis are made when transactions of material importance occur between
the reported closing date and the consolidated closing date.
From this consolidated fiscal year, the closing date has been changed to March 31 for BANDAI (H.K.) CO., LTD.
and four other companies whose closing date had been December 31. In connection with those changes, the number ofmonths included in this consolidated fiscal year for each of those companies is 15 months.
4. Information Concerning the Basis for Accounting Treatment
Method of accounting for retirement benefits
a. Method of attributing expected retirement benefits to periods
In calculating the retirement benefit obligations, the straight-line basis is used in determining the amount of the
expected retirement benefit obligations attributed to the period up to the end of this consolidated fiscal year.
b. Method of recognizing actuarial gains and losses and past service costs
The entire amount of past service costs is recognized in gain or loss in the fiscal year during which it arises, andis amortized on a straight-line basis over a period (10 years), which is within the average remaining years of serviceof the eligible employees.
- 20 -

Actuarial gains and losses are recognized in gain or loss in the year following the year in which a respective gain orloss arises, and are amortized proportionally on a straight-line basis over a certain period (9 to 19 years) that is within
the average remaining period of service of the eligible employees.
Apart from the information contained above, other important information constituting the basis for preparation of
consolidated financial statements has been omitted as no significant changes have occurred since this information waspresented in the most recent annual security report (filed on June 25, 2013).

(Change in Accounting Policy)(Application of Accounting Standard for Retirement Benefits)
Effective from the year ended March 31, 2014, the Company and its consolidated domestic subsidiaries haveapplied the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the“Statement No. 26”)) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,
2012 (hereinafter, the “Guidance No. 25”)) except the article 35 of the Statement No. 26 and the article 67 of the
Guidance No. 25 and actuarial gains and losses and past service costs that are yet to be recognized have beenrecognized and the difference between retirement benefit obligations and plan assets has been recognized as net
defined benefit asset and net defined benefit liability.
In accordance with the article 37 of the Statement No. 26, the effect of the change in accounting policies arisingfrom initial application has been recognized in remeasurements of defined benefit plans in accumulated othercomprehensive income.
As a result of the application, net defined benefit asset of 47 million yen and net defined benefit liability of 8,062
million yen have been recognized, deferred tax assets has increased by 1,183 million yen and accumulated othercomprehensive income has decreased by 2,282 million yen, at the end of the current fiscal year.
Furthermore, net assets per share decreased by 10.39 yen.

- 21 -

(Segment Information)a. 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 and Hobby
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 the planningand 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, andAmusement Facility Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys and production for vending
machines. The Content Business conducts distribution services for network content, manufacturing and sales of arcade
game machines, and production and sales of home video game software and video related products. The Amusement
Facility Business conducts the operation of amusement facilities.

2. Method for calculating the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
The accounting method used for the business segments reported is the same as the accounting method stated in“Important Information Constituting the Basis for Preparation of Consolidated Financial Statements.”
The income of reportable segments is measured by operating income.
The inter-segment transactions are based on prevailing market prices.

- 22 -

3. Information regarding the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

60,112477,860

9,381

487,241–

487,241

11,80573

18,89816,40635,305(35,305)–

172,977

263,595

60,185496,758

25,788522,546(35,305)

487,241

Segment income

11,25536,438

1,683

49,377

1,692

51,069(2,427)

48,642

Segment assets

103,783

152,129

34,745

290,658

21,348312,006

62,196374,203

Depreciation andamortization

12,288

2,539

5,692

20,519482

21,001(585)

20,415

Amortization of
goodwill

–

150

–

150

–

150

142

293

Impairment loss

178

12

229

420

–

420

84

505

Investment inassociates accounted
for using equity
method

517

–

130

648

7,580

8,228

–

8,228

Increase in property,
plant and equipment
and intangible assets

11,560

4,635

5,017

21,213489

21,702

2,133

23,835

Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers
Total

Content
Business

Amusement
Facility
Business

165,957

251,790

7,020(Note 2)

(Note 3)

Net sales

Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 2,427 million yen deducted from segment income as adjustment are an addition of 842
million yen in inter-segment eliminations, and a deduction of 3,269 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 62,196 million yen added to segment assets as adjustment are a deduction of 19,159
million yen in inter-segment eliminations, and an addition of 81,355 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 585 million yen deducted from depreciation and amortization as adjustment are adeduction of 1,644 million yen in inter-segment eliminations, and an addition of 1,058 million yen in
depreciation and amortization related to the administration division that has not been attributed to areportable segment.
(4)
Included in the 142 million yen added to amortization of goodwill as adjustment is amortization related
to goodwill that cannot be allocated to any reportable segment.
(5)
Included in the 84 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(6)
Included in the 2,133 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

- 23 -

Current Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Reportable Segments
Toys and
Hobby
Business

To external customers

Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

58,137497,527

10,152507,679–

507,679

16,84562

25,472

17,19842,670(42,670)–

Content
Business

Amusement
Facility
Business

177,825

261,563Inter-segment sales
and transfers

8,564(Note 2)

(Note 3)

Net sales

Total

186,390

278,408

58,199522,999

27,350550,349(42,670)

507,679

Segment income (loss)

10,51037,248(897)

46,861

1,646

48,507(3,834)

44,672

Segment assets

117,772

158,924

36,817

313,514

23,958337,473

67,619405,092

Depreciation andamortization

11,758

4,138

5,663

21,561449

22,010(284)

21,725

Amortization of
goodwill

–

66

–

66

–

66

56

122

Impairment loss

279

20

1,697

1,996

1

1,998

4

2,002

Investment inassociates accounted
for using equity
method

439

–

27

467

8,579

9,046

–

9,046

Increase in property,
plant and equipment
and intangible assets

16,712

3,383

7,366

27,462440

27,902

1,076

28,979Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 3,834 million yen deducted from segment income (loss) as adjustment are a deduction of
626 million yen in inter-segment eliminations, and a deduction of 3,208 million yen in corporate
expenses that cannot be allocated to any reportable segment. The corporate expenses are mainly costs
related to the administration division that has not been attributed to a reportable segment.
(2)
Included in the 67,619 million yen added to segment assets as adjustment are a deduction of 25,208
million yen in inter-segment eliminations, and an addition of 92,827 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 284 million yen deducted from depreciation and amortization as adjustment are adeduction of 1,390 million yen in inter-segment eliminations, and an addition of 1,105 million yen in
depreciation and amortization related to the administration division that has not been attributed to areportable segment.
(4)
Included in the 56 million yen added to amortization of goodwill as adjustment is amortization related togoodwill that cannot be allocated to any reportable segment.
(5)
Included in the 4 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(6)
Included in the 1,076 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income (loss) is adjusted with operating income in the consolidated statements of operations.
- 24 -

b. Related Information
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas399,261

Europe35,803

Asia

28,568

Total

23,607487,241

Note: Net sales are classified by country and region based on customer location.
(2) Property, plant and equipment(¥ million)
Japan

Americas39,156

Europe

2,039

Asia

1,877

Total

4,183

47,255

3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% ormore of net sales in the consolidated statements of operations.
Current Fiscal Year (From April 1, 2013 to March 31, 2014)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas419,803

Europe30,832

Asia

28,225

Total

28,817

507,679

Note: Net sales are classified by country and region based on customer location.
(2) Property, plant and equipment(¥ million)
Japan

Americas41,753

Europe

2,228

Asia

2,564

Total

5,426

51,972

3. Information by major customer(¥ million)
Name of customer
Happinet Corporation

Net sales

Names of related segments

54,954

Toys and Hobby Business and Content Business- 25 -

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Toys and
Hobby
Business
Loss onimpairment of
fixed assets

Amusement
Facility
Business

Content
Business

178

12

Eliminations
and Corporate(Note)

Other

229

–

Total

84

505

Note: The amount of “Eliminations and Corporate” is the amount related to corporate assets that cannot be allocated to
any reportable segment.
Current Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Toys and
Hobby
Business
Loss onimpairment of
fixed assets

Amusement
Facility
Business

Content
Business279

20

Eliminations
and Corporate(Note)

Other

1,697

1

4

Total

2,002

Note: The amount of “Eliminations and Corporate” is the amount related to corporate assets that cannot be allocated to
any reportable segment.
d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

–

150

–

–

142

293

Unamortizedbalance

–

4

–

–

56

60

Note: The amount of “Eliminations and Corporate” is the amount for investment securities etc. that were transferredfrom domestic consolidated subsidiaries to the Company as a result of business combinations.
Note that the amortized amounts and unamortized balance of negative goodwill that were recognized as a result of
business combinations conducted before April 1, 2010 are as follows.
(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

3

–

–

–

3

Unamortizedbalance

–

2

–

–

–

2

- 26 -

Current Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

–

66

–

–

56

122

Unamortizedbalance

412

248

–

–

–

661

Note: The amount of “Eliminations and Corporate” is the amount for investment securities etc. that were transferredfrom domestic consolidated subsidiaries to the Company as a result of business combinations.
Note that the amortized amounts and unamortized balance of negative goodwill that were recognized as a result of
business combinations conducted before April 1, 2010 are as follows.
(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

2

–

–

–

2

Unamortizedbalance

–

0

–

–

–

0

- 27 -

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2012 to March 31, 2013)
No significant items to be reported.

Current Fiscal Year (From April 1, 2013 to March 31, 2014)
No significant items to be reported.

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2012 to March 31, 2013)(From April 1, 2013 to March 31, 2014)

Net assets per share

1,124.45 yen

1,217.74 yen

Net income per share

147.40 yen

114.05 yen–

114.03 yen

Diluted net income per share

Notes: 1. Diluted net income per share for the prior fiscal year is not presented because there are no potential shares.
2. The basis of calculating net income per share and diluted net income per share figure is as follows:
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2012 to March 31, 2013)(From April 1, 2013 to March 31, 2014)

32,38325,054––32,38325,054

219,691,255

219,689,321

Net income adjustment (¥ million)––

Increase in number of common stock(shares)–

27,755[Subscription rights to shares (shares)]–[27,755]

Net income per share
Net income (¥ million)
Amount not applicable to common
stockholders (¥ million)
Net income available to common stock(¥ million)
Average number of common stock
outstanding (shares)

Diluted net income per share

Summary of potential shares not includedin the calculation of diluted net income
per share as they do not have a diluting–

effect.

(Significant Subsequent Events)
Not applicable.

- 28 -–

4. Other
Changes in Directors and Audit & Supervisory Board Members(1) Change in Representative
Not applicable.
(2) Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Directors
Director

Hitoshi Hagiwara (current position: Executive Officer of the Company, President andRepresentative Director of NAMCO LIMITED)

Director (Outside)

Yuzuru Matsuda (current position: Head of Kato Memorial Bioscience Foundation)

Retiring Directors
Director

Masahiro Tachibana

Director (Outside)

Manabu Tazaki

New candidates for Audit & Supervisory Board Members
Audit & Supervisory Board Member

Kazuo Asami (current position: Adviser of the Company)

Audit & Supervisory Board Member (Outside)

Katsuhiko Kamijo (current position: Professor at Faculty of
Law of Teikyo University)

Retiring Audit & Supervisory Board Members
Audit & Supervisory Board Member

Koichiro Honma

Audit & Supervisory Board Member (Outside)

Kouji Yanase(3) Responsible Area of Directors (Effective June 23, 2014)
Shukuo Ishikawa

President and Representative Director

Kazunori Ueno

Executive Vice President and Representative Director in charge of Toys and Hobby
SBU

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Satoshi Oshita

Director (Part-time) in charge of Content SBU

Hitoshi Hagiwara

Director (Part-time) in charge of Amusement Facility SBU

Nobuo Sayama

Director (Outside)

Tomohisa Tabuchi

Director (Outside)

Yuzuru Matsuda

Director (Outside)- 29 -