Bandai Namco Holdings Inc.
Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2024

February 14, 2024

DISCLAIMER- Bandai Namco 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” inJapanese shall prevail.
- This document contains forward-looking statements that are based on managementʼs estimates, assumptions
and projections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Bandai Namco Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
February 14, 2024

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2024 (Japanese GAAP)
Representative:
Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director
Scheduled filing date of the quarterly security report:
February 14, 2024
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2023)

Third Quarter of the Fiscal YearEnding March 31, 2024
Third Quarter of the Fiscal Year
Ended March 31, 2023

Net sales¥ million
772,035%
3.9(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
78,282(26.3)
89,630(23.4)

743,18718.3

106,203

Profit attributable toowners of parent¥ million%
60,398(28.5)

15.2

Basic earnings per share

116,961

22.4

Diluted earnings per
share

¥
¥
Third Quarter of the Fiscal Year
91.49–
Ending March 31, 2024
Third Quarter of the Fiscal Year84,44436.9
127.95–Ended March 31, 2023
(Note) Comprehensive income: 93,090 million yen [(11.3)%] (FY2024.3 3Q), 105,000 million yen [69.1%] (FY2023.3 3Q)(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous
fiscal year.
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of December 31, 2023
959,423
699,695
72.9
As of March 31, 2023
926,358
652,133
70.4(Reference) Equity: 699,257 million yen (as of December 31, 2023), 651,851 million yen (as of March 31, 2023)

2. Cash Dividends
End offirst quarter
Fiscal Year Ended March 31, 2023
Fiscal Year Ending March 31, 2024

End ofsecond quarter–¥27.00–¥10.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥179.00–

Total¥206.00

Fiscal Year Ending March 31, 2024
¥10.00¥20.00(Projections)(Notes) 1. Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2024: No
Concerning the projected amounts of the year-end cash dividend for the fiscal year ending March 31, 2024, the basedividend is stated based on the Company’s basic policy on the distribution of profits. The year-end cash dividend for the
fiscal year ending March 31, 2024, will be considered by the Company based on the basic policy on the distribution of
profits.
2. The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
The actual amount of dividends based on before the aforementioned share split is stated for the fiscal year ended March
31, 2023.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable to Basic earnings
profitprofitownersper shareof parent¥ million%¥ million%¥ million%¥ million%¥
Full Fiscal Year
1,000,000
1.0
82,000(29.6)
93,000(27.3)–––(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2024 (announced on November 7, 2023) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions toConsolidated and Non-consolidated Projections” announced today (February 14, 2024).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 12 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
666,000,000 shares
As of December 31, 2023
666,000,000 shares
As of March 31, 2023
b) Number of shares of treasury stock at the end of the period
As of December 31, 2023
5,813,649 shares
5,949,648 shares
As of March 31, 2023
c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Third Quarter of the Fiscal Year Ending March 31, 2024
660,131,861 shares
660,002,709 shares
For the Third Quarter of the Fiscal Year Ended March 31, 2023
(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023. Total
number of issued shares at the end of the period, number of shares of treasury stock at the end of the period, and average
number of shares during the period have been calculated assuming that the share split was conducted at the beginning of
the previous fiscal year.

* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public
accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on managementʼs estimates, assumptions and projections at thetime of publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A
number of factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation
Regarding Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated
Results for the Third Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on February 14, 2024.
(Reference) Non-consolidated Projections for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring profit
ProfitBasic earnings
per share¥ million%¥ million%¥ million%¥
Full Fiscal Year
60,00045.4
48,00046.6–––(Note) Revision to the projections: Yes
Non-consolidated projections for the full fiscal year ending March 31, 2024 (announced on May 10, 2023) are revised in thisdocument. For details of the revisions to the non-consolidated projections, please refer to “Notice Regarding Revisions toConsolidated and Non-consolidated Projections” announced today (February 14, 2024).

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Third Quarter ..................... 2(1) Explanation Regarding Operating Results ........................................................................................................................ 2(2) Explanation Regarding Financial Position ........................................................................................................................ 3(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements .......................................... 3

2. Consolidated Financial Statements and Significant Notes ................................................... 8(1) Consolidated Balance Sheets ............................................................................................................................................ 8(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ........................... 10(Consolidated Statements of Operations) ...................................................................................................................... 10(Consolidated Statements of Comprehensive Income).................................................................................................. 11(3) Notes to Consolidated Financial Statements ................................................................................................................. 12(Notes on Premise of Going Concern) ............................................................................................................................. 12(Notes on Significant Changes in the Amount of Stockholdersʼ Equity) ........................................................................ 12(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)........................ 12(Segment Information) .................................................................................................................................................... 12(Significant Subsequent Events) ..................................................................................................................................... 14- 1 -1. Qualitative Information Regarding Consolidated Results for the Third Quarter(1) Explanation Regarding Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2024, the future of the economic
environment around the world remained uncertain mainly as a result of changes in the social situation, rising raw
material and fuel prices, and exchange rate fluctuations, despite revitalization of socioeconomic activities due to therelaxation of restrictions on activities and other measures implemented due to the novel coronavirus disease (COVID19) pandemic.
Under such circumstances, from April 2022, with the introduction of our Purpose “Fun for All into the Future” as theultimate definition of who we are as a Group and the introduction of a new logo, the Bandai Namco Group began our
new three-year Mid-term Plan. In the Mid-term Plan, in order to achieve the medium- to long-term aims of the Bandai
Namco Group based on our Purpose “Fun for All into the Future,” we have established a Mid-term Vision of “Connect
with Fans” that aims to constantly meet the needs of global IP fans, a wide range of business partners, Group employees,
and communities around the world and to foster broad, deep, and multifaceted connections. As priority strategies, weare promoting our IP axis strategy, personnel strategy, and sustainability. By propelling the priority strategies, we willtake advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning characters and otherintellectual property) to further evolve the IP axis strategy that aims to maximize IP value through the provision of the
optimal products and services at the optimal times. We will also strengthen the global development of the IP axis
strategy and enhance our sense of unity and collective strength under the ALL BANDAI NAMCO concept in order toachieve continuous growth.
In the third quarter (nine months), we strengthened our efforts united under the ALL BANDAI NAMCO concept, with
our IP axis strategy at the core of our efforts, working across the Group and in cooperation with each region and business.
In the Toys and Hobby Business, products for the mature fan base, card products, capsule toys and other items were
popular, which contributed to the Group’s overall performance. In the Digital Business, in addition to valuation losses,
including a new title in online games launched this fiscal year, a loss on disposal was recorded due to changes in thecomposition of titles with a view to the next Mid-term Plan.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 772,035 million
yen (year-on-year increase of 3.9%), operating profit of 78,282 million yen (year-on-year decrease of 26.3%), recurring
profit of 89,630 million yen (year-on-year decrease of 23.4%), and profit attributable to owners of parent of 60,398 million
yen (year-on-year decrease of 28.5%).
Operating results by segment are as follows.
Digital Business
As for the Digital Business, in network content, sales were stable in Japan and overseas due to ongoing measurestargeting users for key app titles such as the DRAGON BALL series and ONE PIECE. In contrast, a new online game title fell
far short of plan. In home console games, ARMORED CORE VI FIRES OF RUBICON, a new title for worldwide distribution,
became popular. In home console games overall, results were impacted by the difference in the product mix from thesame period of the previous year, which received significant contribution from repeat sales of ELDEN RING among
existing titles.
In the Digital Business, in addition to valuation losses, including a new title in online games launched this fiscal year,
a loss on disposal was recorded due to changes in the composition of titles with a view to the next Mid-term Plan. Goingforward, we will build an optimal and well-balanced portfolio of titles, conduct an examination of our development
structure, and strengthen development with an emphasis on quality.
As a result, net sales in the Digital Business were 263,012 million yen (year-on-year decrease of 8.9%), and segment
profit was 1,615 million yen (year-on-year decrease of 96.5%).
Toys and Hobby Business
As for the Toys and Hobby Business, while impacted by rising prices for raw materials and fuel, the performanceremained strong due to efforts to expand the product lineup in categories that are doing well, advance global businessdevelopment, strengthen production operations and expand touch points through real events and stores. Specifically,
products for the mature fan base such as model kits of the Gundam series, collectible figures, and character lotteries
performed favorably mainly due to the successful outcomes produced by sales, marketing, and expansion of the productlineup. In addition, card products such as the ONE PIECE trading card game, capsule toys, confectionery and foods, andother products contributed to earnings by strengthening the product lineup, fan base and customer touch points.

- 2 -As a result, net sales in the Toys and Hobby Business were 390,212 million yen (year-on-year increase of 13.1%), andsegment profit was 69,717 million yen (year-on-year increase of 31.7%).
IP Production Business
As for the IP Production Business, we produced several new works in video production, including TV animation
programs and theatrical productions. Among those, Mobile Suit Gundam the Witch from Mercury brought in a new fanbase and led to strong sales of the Group’s products and services. In addition, the performances of licensing businesses
and video streaming related to works, such as the Gundam series, the LoveLive! series, IDOLiSH7, That Time I Got
Reincarnated as a Slime, and BLUELOCK, were stable, and GUNDAM FACTORY YOKOHAMA, which captured inbounddemand, etc., was favorable.
As a result, net sales in the IP Production Business were 55,585 million yen (year-on-year increase of 1.0%), andsegment profit was 6,801 million yen (year-on-year increase of 7.1%).
Amusement Business
As for the Amusement Business, net sales for existing amusement facilities in Japan increased to 102.4% year on year.
In addition, store development unique to Bandai Namco and linked to the Group’s products and services, such as theBandai Namco Cross Store and the GASHAPON Department Store, saw strong performance. In arcade games, sales of
the new product Mobile Suit Gundam Extreme Vs. 2 Overboost and Update kit for the popular series were strong. In
addition, we continued our efforts to improve efficiency in light of changes in the external environment, such as risingfuel prices.
As a result, net sales in the Amusement Business were 88,310 million yen (year-on-year increase of 17.0%), andsegment profit was 7,560 million yen (year-on-year increase of 9.0%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds ofadministration and operational support for each of the Group companies. We have been making efforts to manage suchoperations related to Group support in an efficient manner.
Net sales in the Other Businesses were 24,571 million yen (year-on-year increase of 4.4%), and segment profit was
1,268 million yen (year-on-year increase of 11.2%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2024, total assets stood at 959,423 million yen, an
increase of 33,065 million yen from the end of the previous fiscal year. The main factors were increases of 39,863
million yen in trade receivables and contract assets, 11,073 million yen in property, plant and equipment, and 31,337
million yen in investment securities, despite a decrease of 51,819 million yen in cash and time deposits.
Total liabilities amounted to 259,727 million yen, a decrease of 14,496 million yen from the end of the previous
fiscal year. The main factors were decreases of 3,258 million yen in trade payables and 10,229 million yen in accrued
income taxes.
Total net assets stood at 699,695 million yen, an increase of 47,562 million yen from the end of the previous fiscal
year. The main factors were increases of 14,399 million yen in retained earnings, 20,670 million yen in valuationdifference on available-for-sale securities, net of tax, and 11,435 million yen in foreign currency translation
adjustments.
As a result, the equity ratio became 72.9% compared with 70.4% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, the Group expects uncertainty to continue in various regions around the world. We also expect thechanges in the environment surrounding us such as the market as well as customer lifestyles and preferences to become
even more intense.
Under these circumstances, adapting to escalating competitiveness in global markets and diversification in lifestyles
and preferences of customers, in line with our IP axis strategy, the Bandai Namco Group will enhance sense of unity andcollective strength under the ALL BANDAI NAMCO concept, while utilizing the characteristics of each business. From April
2022, with the introduction of our Purpose “Fun for All into the Future” as the ultimate definition of who we are as aGroup and the introduction of the new logo, to maintain continuous growth over medium to long term for the aims under
our Purpose, the three-year Mid-term Plan has started.

- 3 -

1)

Formulation of Bandai Namcoʼs Purpose “Fun for All into the Future” and introduction of the new logo

From April 2022, we have established our new Purpose “Fun for All into the Future” as the ultimate definition of who
we are as a Group, conveying “the reason for our existence,” “why we conduct our businesses and corporate activities,”and “the meaningfulness we derive from working at Bandai Namco Group.” What we believe to be particularly importantelements in our Purpose are the ideas of “Connecting and working together to create things” and we will achieve “Funfor All into the Future” by Bandai Namco Group and our fans connecting through dreams, fun and inspiration.
Furthermore, the Group CEO’s desire to promote “Fun for All into the Future” is expressed in the phrase, “Creating aworld of smiles and happiness together,” and we will spread this message together with Bandai Namco’s Purpose.
<Bandai Namco’s Purpose>

From April 2022, we have introduced a new logo that expresses the spirit of our Purpose. All companies with “Bandai
Namco” in their names will use this logo, and companies with and without “Bandai Namco” in their names will display
this new Group logo on all their products and services, in principle. This will enable us to bring together the value of all
our products, services, and labels under one logo, make the Group’s sense of unity and its total capabilities appeal
strongly, and elevate the brand value of the Bandai Namco Group in the global market.
<New logo>

2)

Our aims driven by our Purpose “Fun for All into the Future”

In accordance with our Purpose, the Bandai Namco Group aims to connect with IP fans, a wide range of business
partners, Group employees, and communities around the world. We will strive to connect more broadly with new fansand more deeply with current fans. In addition, we will aim to foster multifaceted connections among current fans andnew fans as well as communities of fans. In fostering connections with and among various fans, our highest priority willbe the quality of the connections. Under the Mid-term Plan, we will advance a variety of strategies and initiatives focusing
on broad, deep, and multifaceted connections with fans and on the quality of those connections.
3)

Mid-term Vision

In accordance with our Purpose “Fun for All into the Future,” as we work toward what the Bandai Namco Group aims
to be, under the Mid-term Plan we will strive to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connections.
4)

Main strategies and investment plan
IP axis strategy

The IP axis strategy, which is the Bandai Namco Group’s strength, is the core of the Mid-term Plan.
- 4 -We will aim for sustainable growth by implementing new initiatives to foster broad, deep, and multifaceted
connections with fans around the world; by accelerating evolution in the IP axis strategy; and by working to build
businesses as we work together under the ALL BANDAI NAMCO concept in regions around the world.
・IP x Fans (connecting with fans through IP): New framework for connecting with fans

Based on the IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connectingwith fans. In this IP Metaverse, we are anticipating virtual spaces that will enable customers to enjoy a wide range
of entertainment surrounding IP, as well as frameworks that leverage Bandai Namco’s distinctive strengths to fusephysical products and venues with digital elements. We are aiming for open frameworks that provide venues forconnections with and among fans and business partners. Through the IP Metaverse, we will establish communities
among Bandai Namco and fans, as well as among fans themselves. Through these communities and content, we
will build broad, deep, multifaceted connections that continue for long periods of time, and we will focus on thequality of those connections. In this way, we will work to maximize IP value over the medium to long term.
・ IP x Value (enhancing IP value): Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among physical and digital elements, and we will redefine the optimal IP axis strategy for IP fans
and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.
・ IP x World (connecting the world through IP): Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in regions worldwide, wehave implemented such initiatives as organizational restructuring and base consolidation around the world.
Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.
・ Investment plan for accelerating evolution in the IP axis strategy
Over the three years of the Mid-term Plan, we will implement a total of 40.0 billion yen in strategic investment
to accelerate evolution in the IP axis strategy.
Strategic investment to maximize IP value: 25.0 billion yen
Investment to develop the IP Metaverse:
15.0 billion yen
Personnel strategy: Developing diverse human resources
In accordance with our Purpose “Fun for All into the Future,” the Group strives to be a corporate group of “SameSpirit, Diverse Talents,” where diverse people with various talents, personalities, and values can thrive. We will further
focus on recruiting and promoting human resources regardless of whether they are new graduates or mid-career hires
and regardless of gender, age, nationality, race, religion, or sexual orientation. In addition, we will focus on developing
systems and environments that enable a diversity of people to thrive and work in a way that is both physically andmentally healthy. Under the Mid-term Plan, we will promote initiatives to support challenges taken on by employees
and the development of human resources to promote the IP axis strategy on a global scale, as well as new and diverse
ways to work.
In addition, we will actively engage in cooperation and collaboration with external human resources.
Sustainability: Connecting to smiles into the future
Under our Purpose “Fun for All into the Future” and “Bandai Namco Group Sustainability Policy,” the Group has
identified five themes that need to be addressed with particular importance as Material Issues. We are promoting various
specific action plans linked to our businesses, such as initiatives to introduce electricity derived from renewable energy,
eliminate petroleum-derived plastics, and promote the collection and recycling of model kit runners and empty capsules.
Furthermore, to respond to the natural environmental problems that society is facing, we will set targets and steps for
reduction of carbon dioxide emissions from the use of energy and strive to advance efforts toward decarbonization.
<Bandai Namco Group’s Sustainability Policy>
Based on the IP axis strategy, the Bandai Namco Group will work together with fans to advance sustainability
activities that focus on the social issues that the Group should address.

- 5 -<Specified Material Issues>Harmonious coexistence with the natural environmentProvision of appropriate products and services



Appropriate utilization and protection of intellectual property



Establishment of work environments that facilitate mutual respectHarmonious coexistence with communities

In addition, on November 1, 2023, the Bandai Namco Group Human Rights Policy was established, which clearlystipulates the Bandai Namco Group’s policy regarding respect for human rights. Going forward, we will fulfill our
responsibility to respect the human rights of all stakeholders involved in the Group’s business activities by aiming tocontinue to create a brighter future with people around the world through entertainment that awakens our humanity
and connects us with others, with society, and with the world, as represented by Bandai Namco’s Purpose “Fun for All
into the Future.”
5)

System for promotion of the Mid-term Plan
・Strengthening the governance system of Bandai Namco Holdings

In order to further increase corporate value by strengthening our corporate governance system and implementing
rapid decision-making and business execution, we made the transition to a company with an Audit & Supervisory
Committee in June 2022.
・ Partial changes of the Unit structure
From April 2022, we restructured the IP Production Unit and also integrated the Visual and Music Business and theCreation Business into the IP Production Business. In the IP Production Unit, Bandai Namco Filmworks Inc. will serve asa business management company upon having combined three companies that engage in the visual business within the
IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., and Bandai Namco Rights
Marketing Inc.
6)

Numerical targets, shareholder return policy・ Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales:
Consolidated operating profit:
ROE:

1,100.0 billion yen
125.0 billion yen
12% or moreIn the future, the Bandai Namco Group aims to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connection, and eachbusiness around the world will further work as one under the ALL BANDAI NAMCO concept on the priority strategies,
consisting of the IP axis strategy, Personnel strategy, and Sustainability, under the Mid-term Plan.

- 6 -In the Company’s consolidated projections for the full fiscal year ending March 31, 2024, the projections for
operating profit and recurring profit have been revised due to valuation losses, including a new title in online games
launched this fiscal year, as well as the recording of loss on disposal of titles following a review of the composition of
the titles with the next Mid-term Plan in mind in the Digital Business. Also, the Company considered the actual resultsof the third quarter (nine months) and the development of the IP and the rollout of products and services in eachbusiness for the fourth quarter. As a result, the Company has revised the consolidated projections announced on
November 7, 2023 and the non-consolidated projections announced on May 10, 2023.
The Company expects to record extraordinary income (gain on sale of investment securities) upon partial sale ofinvestment securities in the fourth quarter of the fiscal year ending March 31, 2024. At the present time, because thesale price of investment securities has not been determined, “profit attributable to owners of parent” and “basic
earnings per share” in the consolidated projections for the full fiscal year ending March 31, 2024 as well as “profit” and“basic earnings per share” in the non-consolidated projections for the full fiscal year ending March 31, 2024 have notbeen determined.
The Company will promptly disclose the effect this transaction will have on its business results for the fiscal year
ending March 31, 2024 once the sale price has been determined. For details, please refer to “Notice Regarding Partial
Sale of Investment Securities and Expected Recording of Extraordinary Income” announced today (February 14, 2024).
Revisions to consolidated projections for the full fiscal year ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Net sales

Operating profit

Recurring profit

Profitattributable toowners of parent

Basic earnings
per share¥ million¥ million¥ million¥¥ million

Previous projections (A)1,000,000

125,000

134,000

91,000137.85

Revised projections (B)1,000,000

82,00093,000––Change in amount (B-A)

0(43,000)(41,000)

–

–

0.0

(34.4)(30.6)––

990,089

116,472

128,006

90,345136.88Change (%)(Reference)
Results for the previous fiscal year
(Fiscal year ended March 31, 2023)

Note: The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023. Basicearnings per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal year.
(Reference)

Revisions to non-consolidated projections for the full fiscal year ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Operatingrevenue

Recurring profit

Basic earnings
per share

Profit¥ million¥ million¥ million

Previous projections (A)60,00048,00048,00072.70

Revised projections (B)60,00048,000––Change in amount (B-A)

0

0

–

–

0.0

0.0

–

–

41,26032,75232,315

48.95

Change (%)¥(Reference)
Results for the previous fiscal year
(Fiscal year ended March 31, 2023)

Note: The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023. Basicearnings per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

- 7 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2023)

Current 3rd Quarter(As of December 31, 2023)

AssetsCurrent assets
Cash and time deposits

280,226

228,407

Trade receivables and contract assets

99,007

138,871

Finished goods and merchandise

41,32445,739Work in process

104,835

105,978

Raw materials and supplies

6,063

7,906

Other current assets

62,26666,803

Allowance for doubtful receivables(1,086)(1,152)

Total current assets

592,637

592,553

107,458

118,531

14,561

12,176

Fixed assets
Property, plant and equipment
Intangible assets
Goodwill
Other intangible assets

21,622

20,465

Total intangible assets

36,18332,641

Investment securities

140,706

172,043

Other investments and assets

50,02944,366

Allowance for doubtful receivables

(656)

(712)

Total investments and other assets

190,078

215,697

333,720

366,870926,358

959,423

Investments and other assets

Total fixed assets
Total assets- 8 -(¥ million)
Prior Fiscal Year(As of March 31, 2023)

Current 3rd Quarter(As of December 31, 2023)

Liabilities
Current liabilities
Trade payables

99,244

95,986

Accrued income taxes

26,022

15,793

Provision

4,078

1,921

Other current liabilities

117,977

117,365

Total current liabilities

247,323

231,066

118

18

Long-term liabilities
Provision
Net defined benefit liability

3,710

3,111

Other long-term liabilities

23,071

25,531

Total long-term liabilities

26,901

28,660274,224

259,727

10,00010,000Total liabilities
Net assets
Stockholdersʼ equity
Common stock
Capital surplus

52,89753,321Retained earnings

523,923

538,323

Treasury stock(2,102)(2,055)

Total stockholdersʼ equity

584,718

599,589

62,671

83,342

(656)

(501)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, netof taxDeferred gains or losses on hedges, net of tax
Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments

11,04922,484Remeasurements of defined benefit plans, net of tax(1,915)(1,640)Total accumulated other comprehensive income

67,132

99,668Non-controlling interests
Total net assets
Total liabilities and net assets

- 9 -

282

438

652,133

699,695

926,358

959,423

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Current 3rd Quarter(From April 1, 2023
to December 31, 2023)

Prior 3rd Quarter(From April 1, 2022
to December 31, 2022)
Net sales

743,187

772,035

Cost of sales

457,854489,222

Gross profit

285,332

282,813

Selling, general and administrative expenses

179,129

204,531

Operating profit

106,20378,282Non-operating income
Foreign exchange gains

5,137

4,761

Other non-operating income

5,924

6,848

Total non-operating income

11,061

11,610248217

Non-operating expenses
Interest expenses
Other non-operating expenses

55

44

Total non-operating expenses

303

261

116,961

89,630Recurring profit
Extraordinary income
Compensation income–

508

Other extraordinary income

691

144

Total extraordinary income

691

652

286

610

–

550

Extraordinary loss
Loss on impairment of fixed assets
Provision for loss on land remediation
Other extraordinary loss

661

575

Total extraordinary loss

948

1,735

Profit before income taxes

116,704

88,547

Income taxes

32,10027,994

Profit

84,60460,552

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

159

154

84,44460,398(Consolidated Statements of Comprehensive Income)(¥ million)
Current 3rd Quarter(From April 1, 2023
to December 31, 2023)

Prior 3rd Quarter(From April 1, 2022
to December 31, 2022)
Profit

84,60460,552

Valuation difference on available-for-sale securities, net oftax

14,804

20,534

Deferred gains or losses on hedges, net of tax(2,704)155

Foreign currency translation adjustments

8,117

11,436

Remeasurements of defined benefit plans, net of tax

208

275

Share of other comprehensive income of associates
accounted for using equity method

(28)

135

Other comprehensive income

Total other comprehensive income
Comprehensive income

20,39632,537105,000

93,090104,842

92,934

158

155

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 11 -

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholdersʼ Equity)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current third quarter, and next by multiplying the profit
before income taxes by such estimated effective tax rate.
(Segment Information)
I

Prior 3rd Quarter (From April 1, 2022 to December 31, 2022)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)

743,187–

743,187

18,35244,543(44,543)–764,201

23,529787,730(44,543)

743,187

112,883

1,140

114,024(7,821)

106,203

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

285,277

334,30343,826

74,603738,009

5,177

Inter-segment sales
and transfers

3,293

10,824

11,197875

26,191

Total

288,571345,128

55,02375,478Segment profit

46,642

52,953

6,350

6,936

Total

Net sales
To externalcustomers

Notes: 1. The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.
2. Included in the 7,821 million yen deducted from segment profit as adjustment are a deduction of 96 million
yen in inter-segment eliminations, and a deduction of 7,724 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
3. Segment profit is adjusted with operating profit in the consolidated statements of operations.
2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 12 -

II Current 3rd Quarter (From April 1, 2023 to December 31, 2023)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)772,035–

772,035

20,17849,657(49,657)–

797,121

24,571

821,693(49,657)

772,035

85,694

1,268

86,963(8,681)

78,282

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

258,225

376,277

45,59787,542

767,6434,392Inter-segment sales
and transfers

4,786

13,935

9,987

768

29,478

Total

263,012390,21255,58588,310

Segment profit

1,615

69,717

6,801

7,560

Total

Net sales
To externalcustomers

Notes: 1. The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.
2. Included in the 8,681 million yen deducted from segment profit as adjustment are an addition of 31 million
yen in inter-segment eliminations, and a deduction of 8,712 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
3. Segment profit is adjusted with operating profit in the consolidated statements of operations.
2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 13 -

(Significant Subsequent Events)(Sales of investment securities)
At a meeting of the Board of Directors held on February 14, 2024, the Company has resolved to sell a portion ofshares held as cross-shareholdings. Accordingly, extraordinary income (gain on sale of investment securities) is
expected to be recorded in the fourth quarter of fiscal year ending March 31, 2024.
1. Reason for sales of investment securities
In accordance with the requirements of the Corporate Governance Code, the Company is striving to reduce andliquidate cross-shareholdings. Amid these efforts, the Company received a proposal to sell the shares of Toei
Animation Co., Ltd. (hereinafter referred to as “Toei Animation”) the Company owns, and as a result ofcomprehensive consideration, decided to take part as a selling shareholder.
2. Description of sales of investment securities(1)

Shares to be sold:

Listed securities, 1 share (Common stock of Toei
Animation)(2)

Number of shares to be sold:

3,113,300 shares(3)

Sale price:

Undetermined (to be determined on a certain date
between February 27, 2024 and March 4, 2024)

Note: Accompanying the secondary offering of shares of common stock of Toei Animation (hereinafterreferred to as the “Secondary offering”) to be conducted by Toei Animation, in light of domestic
demand and other conditions, SMBC Nikko Securities Inc., a Japanese lead manager of theSecondary offering, may sell in Japan an over-allotment of a maximum 583,900 shares of common
stock of Toei Animation it will borrow from the Company (hereinafter referred to as the “Salethrough over-allotment”). In regard to the Sale through over-allotment, the Company plans to issue
options to acquire additional shares of common stock of Toei Animation it owns (greenshoe
options) to SMBC Nikko Securities Inc. for a maximum of 583,900 shares, with a deadline for exercise
on March 25, 2024.
(4)

Timing of gain on sale of investment securities:

Fourth quarter of fiscal year ending March 31, 2024

(5)

Gain on sale of investment securities:

Undetermined- 14 -