Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2021

August 7, 2020

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” 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: https://www.bandainamco.co.jp/)
August 7, 2020

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2021 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 11, 2020
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 First Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to June 30, 2020)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2020)

First Quarter of the Fiscal YearEnding March 31, 2021
First Quarter of the Fiscal Year
Ended March 31, 2020

Net sales¥ million
145,035%(8.9)

159,251

5.5

Profit attributable toowners of parent¥ million%
13,181(22.1)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
19,915 (12.8)
20,412(14.3)
22,83027.6

Basic earnings per share

23,82922.2

Diluted earnings per share¥First Quarter of the Fiscal Year
60.01
Ending March 31, 2021
First Quarter of the Fiscal Year
16,924
15.6
77.00
Ended March 31, 2020
(Note) Comprehensive income: 16,401 million yen [19.4%] (FY2021.3 1Q), 13,732 million yen [(17.9) %] (FY2020.3 1Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of June 30, 2020
642,511442,000
68.6
As of March 31, 2020
619,819454,684
72.5(Reference) Equity: 440,671 million yen (as of June 30, 2020), 449,292 million yen (as of March 31, 2020)¥––

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥20.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥112.00

Total

Fiscal Year Ended March 31, 2020–¥132.00
Fiscal Year Ending March 31, 2021–
Fiscal Year Ending March 31, 2021
¥21.00–¥21.00¥42.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2021: No
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March 31,
2021, the base dividend 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, 2021, will be considered by the Company based on the basic policy on the distribution of
profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable
Basic earnings
profitprofitto owners
per shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
315,000(9.8)
30,000(37.4)
30,500(37.4)
20,000(42.2)
91.05
September 30, 2020
Full Fiscal Year
650,000(10.2)
50,000(36.5)
50,500(36.7)
33,000(42.8)
150.25(Note) Revision to the projections: Yes
For more details, 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 First Quarter” on page 3 of the attachedmaterial.
* 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 9 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)
As of June 30, 2020
222,000,000 shares
As of March 31, 2020
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of June 30, 2020
2,371,182 shares
As of March 31, 2020
2,324,320 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the First Quarter of the Fiscal Year Ending March 31, 2021
219,663,928 shares
For the First Quarter of the Fiscal Year Ended March 31, 2020
219,790,383 shares* 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 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 “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the First 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 August 7, 2020.

(Reference) Non-consolidated Projections for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring profit
ProfitBasic earnings
per share¥ million%¥ million%¥ million%¥
Full Fiscal Year
110,000
239.3
100,000
262.9
100,000
268.0
454.63

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the First 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 ................................................................ 5(1) Consolidated Balance Sheets.............................................................................................................................................. 5(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 7(Consolidated Statements of Operations) ........................................................................................................................... 7(Consolidated Statements of Comprehensive Income)....................................................................................................... 8(3) Notes to Consolidated Financial Statements ...................................................................................................................... 9(Notes on Premise of Going Concern) ............................................................................................................................... 9(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 9(Segment Information) ....................................................................................................................................................... 9-1-

1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2021, the spread of the novel coronavirus
disease (COVID-19) continued to have a big impact on the overall economy and consumer activity in Japan and overseas.
As part of our response against the spread of COVID-19, the Group has been giving the highest priority to the safety of our
stakeholders, including employees and their families, and customers, while implementing measures to prevent the spread of
infection. We also promoted measures suited to the changes in lifestyles and preferences of customers by strengthening thesales and marketing that utilize digital strategies. In accordance with our three-year Mid-term Plan started in April 2018, in
which we set forth the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,”
we have also been taking advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning
characters and other intellectual property) to further evolve the “IP Axis Strategy” that aims to maximize IP value throughthe provision of the optimal products and services at the optimal possible times. The measures also include an initiative tostrengthen development in regions and businesses with high growth potential and an initiative to realize the total capabilitiesof the Group in regions around the world under the ALL BANDAI NAMCO concept.
During the first quarter (three months), although each business was impacted by the spread of COVID-19, the Toys andHobby Business saw increased popularity for products for the mature fan base in Japan and overseas while the Network
Entertainment Business enjoyed strong repeat sales of home video game titles.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 145,035 million yen(year-on-year decrease of 8.9%), operating profit of 19,915 million yen (year-on-year decrease of 12.8%), recurring profit of
20,412 million yen (year-on-year decrease of 14.3%), and profit attributable to owners of parent of 13,181 million yen (yearon-year decrease of 22.1%).
Operating results by segment are as follows.
Toys and Hobby Business
As for the Toys and Hobby Business, in Japan, products for the mature fan base such as plastic models of the Mobile Suit
Gundam series and collectible figures performed favorably as a result of getting successful outcomes from sales, marketing,etc. that utilize digital strategies. Popularity was also gained for long-established IP products such as the KAMEN RIDER
series, as well as for peripheral products utilizing new IP. However, prizes and digital card products, etc. that are operated
through amusement facilities were impacted by the temporary closures of facilities in response to the spread of COVID-19.
Overseas, in the Asian region, products for the mature fan base performed stably while in the Americas and Europe, business
was affected by the temporary closures of retail stores.
As a result, net sales in the Toys and Hobby Business were 54,421 million yen (year-on-year decrease of 4.3%), andsegment profit was 6,338 million yen (year-on-year decrease of 6.9%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as the
DRAGON BALL series and ONE PIECE, and key titles in Japan such as The iDOLM@STER series, continued to perform
favorably due to ongoing measures targeting users. In home video games, repeat sales of existing titles such as the DRAGONBALL series titles including DRAGON BALL Z: KAKAROT, along with the TEKKEN 7, and the DARK SOULS series, enjoyedpopularity, primarily overseas, due to ongoing measures targeting users and increased demand for digital sales.
As a result, net sales in the Network Entertainment Business were 77,850 million yen (year-on-year increase of 9.3%),
and segment profit was 19,515 million yen (year-on-year increase of 35.2%).
Real Entertainment Business
As for the Real Entertainment Business, the temporary closures of amusement facilities in Japan and overseas in responseto the spread of COVID-19 had a big impact on facilities operations and the sale of arcade games. Fixed costs incurred during
the temporary closures of facilities etc. in response to the official requests from the national and local governments have beenrecognized under extraordinary loss as “loss on temporary store closures and other related to COVID-19.”
As a result, net sales in the Real Entertainment Business were 6,602 million yen (year-on-year decrease of 69.5%), andsegment loss was 5,663 million yen (segment loss for the same period of the previous fiscal year was 36 million yen).
Visual and Music Production Business
As for the Visual and Music Production Business, sales were conducted for long-established IP related visual and music
package software, among others, but live events were canceled due to the spread of COVID-19. Several visual and music-2-

package software titles had their launch postponed due to delays in production schedules, among other reasons, which
impacted business performance.
As a result, net sales in the Visual and Music Production Business were 4,024 million yen (year-on-year decrease of
56.2%), and segment profit was 158 million yen (year-on-year decrease of 88.0%).
IP Creation Business
As for the IP Creation Business, we stirred up public attention by disseminating information on video works and IP suchas the Mobile Suit Gundam series and LoveLive! series, leading to those series gaining popularity. However, profits did notreach the level seen in the same period of the previous fiscal year, due to factors including differences in the product mix oflicensing revenue.
As a result, net sales in the IP Creation Business were 4,628 million yen (year-on-year increase of 41.8%), and segment
profit was 814 million yen (year-on-year decrease of 28.6%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group companies. We are making efforts to manage such operations
related to group support in an efficient manner.
Net sales in the Other Businesses were 7,011 million yen (year-on-year decrease of 4.0%), and segment profit was 113
million yen (year-on-year decrease of 63.1%).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2021, total assets stood at 642,511 million yen, an
increase of 22,691 million yen from the end of the previous fiscal year. The main factors were increases of 3,822 million yen
in finished goods and merchandise, 9,392 million yen in work in process, 3,021 million yen in goodwill mainly due to theacquisition of additional shares of SOTSU CO., LTD., a consolidated subsidiary of the Company, and 3,380 million yen in
investment securities, despite a decrease of 12,365 million yen in cash and time deposits mainly due to cash dividends paid.
Total liabilities amounted to 200,510 million yen, an increase of 35,375 million yen from the end of the previous fiscal
year. The main factor was an increase of 34,796 million yen in short-term loans payable.
Total net assets stood at 442,000 million yen, a decrease of 12,683 million yen from the end of the previous fiscal year.
The main factor was a decrease of 11,424 million yen in retained earnings mainly due to cash dividends paid.
As a result, the equity ratio became 68.6% compared with 72.5% 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 countries around the world due to the impact of the spreadof COVID-19 on society, the overall economy, people’s daily lives and consumption. Furthermore, we expect the changes
occurring in the market environment and in user preferences to become more extreme.
Under these circumstances, the Group will continue carrying out initiatives to prevent the spread of COVID-19, giving
the highest priority to the safety of our stakeholders, including employees and their families, and customers. Moreover, as amember of society, we wish to respond to the requests from society and our customers under our Group’s mission to offer“Dreams, Fun and Inspiration” to people around the world through products and services. On the business front, the Groupis working to minimize the impact that the spread of COVID-19 is having on society, the overall economy, people’s daily
lives and consumption, and the impact from the change in the market environment and user preferences, by continuing tocollect information and take flexible countermeasures.
The forecast for the fiscal year ending March 31, 2021 had remained undetermined up until now as it was deemed too
difficult to calculate due to the impact of the spread of COVID-19; however, the Company hereby discloses businessperformance projections calculated based on information currently available such as trends in the market environment, theimpact of the spread of COVID-19 on business operations*, results for the first quarter (three months), and plans for future
products and services.
In terms of the future outlook, uncertainties are expected to remain for society and the overall economy, and changes inmarket conditions and other factors may affect our business results. Should any matters requiring disclosure arise in the
future, the Company will promptly disclose them.
* For your reference, we are experiencing or expect to experience the following impacts on business operations from the
spread of COVID-19.
-3-

• Impact on consumption due to factors including the closure of sales outlets• Postponement or cancellation of events and an associated impact on promotion• Impact on the development schedule of products• Impact on the production schedule of the Group’s factories and other cooperating factories• Impact on the development schedule of home video games and network content and on operation systems• Impact from the closure of amusement facilities• Impact on the schedules or releases of visual productions and package launch scheduled
The Company has decided to postpone the start date of the next three-year Mid-term Plan, which originally was scheduled
to start from the fiscal year ending March 31, 2022 (April 2021), by one year to the fiscal year ending March 31, 2023 (April
2022). In preparation for that, the Company has decided to restructure the business units effective April 2021. For details,
please refer to the news release “Notice Regarding Postponement in Starting the Next Mid-term Plan and Reorganization of
the Group Structure.”-4-

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2020)

Current 1st Quarter(As of June 30, 2020)

AssetsCurrent assets
Cash and time deposits

189,856

177,490

Trade receivables

83,75477,290Finished goods and merchandise

22,282

26,104Work in process

51,09860,491

Raw materials and supplies

3,409

3,486

Other current assets

34,65854,165

Allowance for doubtful receivables(1,398)(1,561)

Total current assets

383,662

397,465

96,90697,920Goodwill

15,704

18,726

Other intangible assets

11,718

11,997

Total intangible assets

27,42330,723

Investment securities

66,453

69,834

Other investments and assets

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets
45,80747,004

Allowance for doubtful receivables

(432)

(437)

Total investments and other assets

111,827

116,401

236,157

245,045619,819642,511

Total fixed assets
Total assets-5-(¥ million)
Prior Fiscal Year(As of March 31, 2020)

Current 1st Quarter(As of June 30, 2020)

Liabilities
Current liabilities
Trade payables
Short-term loans payable

70,16963,053946

35,743

Provision

3,892

1,655

Other current liabilities

67,49877,356

Total current liabilities

142,506

177,808

Net defined benefit liability

9,840

9,668

Other long-term liabilities

12,78813,033Long-term liabilities

Total long-term liabilities

22,62822,701

165,135

200,510

Common stock

10,00010,000Capital surplus

52,00452,004Retained earnings

394,699383,274

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(3,634)(3,945)

Total stockholders’ equity

453,069

441,333

16,837

19,775

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax

250

182

Revaluation reserve for land, net of tax(3,902)(3,902)Foreign currency translation adjustments(12,321)(12,258)

Remeasurements of defined benefit plans, net of tax(4,639)(4,459)Total accumulated other comprehensive income(3,776)

(661)

5,392

1,329

454,684

442,000

619,819642,511

Non-controlling interests
Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st Quarter(From April 1, 2019
to June 30, 2019)

Current 1st Quarter(From April 1, 2020
to June 30, 2020)

Net sales

159,251

145,035

Cost of sales

96,05386,861Gross profit

63,19858,173

Selling, general and administrative expenses

40,367

38,257

Operating profit

22,83019,915

Dividend income

540

562

Share of profit of entities accounted for using equity method

412–

Other non-operating income

433

351

Total non-operating income

1,387

913

Non-operating income

Non-operating expenses
Share of loss of entities accounted for using equity method–

93

Foreign exchange losses

350

220

Other non-operating expenses

37

102

Total non-operating expenses

388

417

23,82920,412

Reversal of provision for loss on liquidation of affiliatedcompanies

21–

Subsidies for employment adjustment and other related to
COVID-19–

198

Other extraordinary income

818

Total extraordinary income

30

216

Loss on valuation of stocks of affiliated companies

63–

Loss on temporary store closures and other related to
COVID-19–

1,977

Other extraordinary loss

28

18

Recurring profit
Extraordinary income

Extraordinary loss

Total extraordinary loss

91

1,995

Profit before income taxes

23,767

18,633

Income taxes

6,727

5,402

Profit17,04013,231

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

-7-

115

49

16,924

13,181

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st Quarter(From April 1, 2019
to June 30, 2019)
ProfitCurrent 1st Quarter(From April 1, 2020
to June 30, 2020)

17,04013,231

(792)

2,947

Other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax

(378)

(67)

(2,186)59

Remeasurements of defined benefit plans, net of tax

41

180

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

951Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income(3,307)

3,170

13,732

16,401

13,634

16,29698

105

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-8-

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

(Notes on Significant Changes in the Amount of Stockholders’ 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 first quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.

(Segment Information)
I. Prior 1st quarter (From April 1, 2019 to June 30, 2019)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Network
Real
Visual andToys andIP
Entertain- Entertain- Music
Hobby
Creationmentment Production
Business
Business
Business Business Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

55,081

70,137

21,339

8,222

2,204

156,984

2,266

159,251–

159,251

Inter-segment sales
and transfers

1,761

1,084

273

969

1,058

5,148

5,034

10,182(10,182)–

Total

56,842

71,222

21,613

9,191

3,263

162,133

7,301

169,434(10,182) 159,251

Segment profit (loss)

6,807

14,431

(36)

1,323

1,141

23,666307

23,973(1,143)

Notes: 1.

22,830The “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 companies are classified.

2.

Included in the 1,143 million yen deducted from segment profit (loss) as adjustment are an addition of 150 million
yen in inter-segment eliminations, and a deduction of 1,293 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

Segment profit (loss) 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.

-9-II. Current 1st quarter (From April 1, 2020 to June 30, 2020)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Network
Real
Visual andToys andIP
Entertain- Entertain- Music
Hobby
Creationmentment Production
Business
Business
Business Business Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

53,407

77,192

6,492

3,639

2,111

142,843

2,191

145,035–

145,035

Inter-segment sales
and transfers

1,014

658

109

384

2,517

4,684

4,819

9,503

(9,503)–

Total

54,421

77,850

6,602

4,024

4,628

147,527

7,011

154,539(9,503) 145,035

Segment profit (loss)

6,338

19,515(5,663)

158

814

21,164

113

21,277(1,361)

Notes: 1.

19,915The “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 companies are classified.

2.

Included in the 1,361 million yen deducted from segment profit (loss) as adjustment are an addition of 132 million
yen in inter-segment eliminations, and a deduction of 1,493 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

Segment profit (loss) 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)In the IP Creation Business, goodwill increased 3,676 million yen due to the acquisition of additional shares of
SOTSU CO., LTD., a consolidated subsidiary of the Company.
(Material gains on negative goodwill)
Not applicable.
3. Information regarding changes to reportable segments, etc.
Effective the first quarter of the fiscal year ending March 31, 2021, the classification of SOTSU CO., LTD., which
previously was classified as a business belonging to the Other segment, was changed to a business belonging to the IP
Creation Business in order to strengthen the IP Axis Strategy.
As SOTSU CO., LTD. changed from being an associate accounted for using the equity method to a consolidated
subsidiary in the previous fiscal year on the deemed acquisition date of November 30, 2019, the operating results of thatcompany are not included in the first quarter of the fiscal year ended March 31, 2020.

- 10 -