Consolidated Financial Report for the Fiscal Year Ended
March 31, 2020

May 20, 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/)
May 20, 2020

Consolidated Financial Report for the Fiscal Year Ended March 31, 2020 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 22, 2020
Scheduled starting date for dividend payments:
June 23, 2020
Scheduled filing date of the annual security report:
June 22, 2020
The Financial Highlights 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, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2020
Fiscal Year Ended
March 31, 2019

Net sales¥ million
723,989%(1.1)

732,347

8.0(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
78,775(6.3)
79,797(8.1)
84,045

Profit attributable toowners of parent¥ million%
57,665(9.0)

12.0

Basic earnings per share

86,863

15.2

Diluted earnings per share¥
Fiscal Year Ended
262.39March 31, 2020
Fiscal Year Ended
63,38317.1
288.40March 31, 2019
(Note) Comprehensive income: 53,312 million yen [(23.8)%] (FY2020.3), 69,952 million yen [24.9%] (FY2019.3)
ROE(Profit attributable toowners of parent / Net
assets)ROA(Recurring profit /Total assets)¥––

Operating margin(Operating profit /Net sales)%%%
Fiscal Year Ended
13.1
12.9
10.9
March 31, 2020
Fiscal Year Ended
15.5
15.1
11.5
March 31, 2019
(Reference) Gain or loss from application of equity method: (182) million yen (FY2020.3), 242 million yen (FY2019.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2020
619,819454,684
72.5
As of March 31, 2019
612,955
429,644
70.0(Reference) Equity: 449,292 million yen (as of March 31, 2020), 429,031 million yen (as of March 31, 2019)

Net assets
per share¥
2,045.25
1,952.00

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
43,131¥ million(23,067)¥ million(35,258)

Cash and cash
equivalents at endof period¥ million
188,667

79,811(24,899)(28,972)

206,270

Fiscal Year Ended
March 31, 2020
Fiscal Year Ended
March 31, 2019
2. Cash Dividends

Fiscal Year Ended
March 31, 2019
Fiscal Year Ended
March 31, 2020

End offirstquarter¥––

Annual cash dividends
End of
End ofFiscalsecondthird
year-endquarterquarter
¥
¥
¥
18.00
–
127.0020.00–

112.00Total¥
145.00Total
Payout ratio
Dividend /dividend(Consolidated) Net assets
payment(Consolidated)(Full year)¥ million%%
31,88850.3
7.8

132.0029,03450.3

6.6

Fiscal Year Ending
–
21.00
–
21.00
42.00
–
March 31, 2021
(Projections)(Note) 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)
Consolidated projections for the fiscal year ending March 31, 2021 are undetermined as it is difficult to accurately calculate earnings
forecasts given the diverse impacts of the spread of the novel coronavirus. The consolidated projections for the fiscal year ending March
31, 2021 will be disclosed promptly once it become possible to calculate them accurately.
* 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 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 (Changes in Accounting
Policies)” of “3. Consolidated Financial Statements and Significant Notes” on page 17 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, 2020
222,000,000 shares
As of March 31, 2019
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of March 31, 2020
2,324,320 shares
As of March 31, 2019
2,209,402 sharesc) Average number of shares during the period
For the Fiscal Year Ended March 31, 2020
219,770,515 shares
For the Fiscal Year Ended March 31, 2019219,781,288 shares

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2020
Fiscal Year Ended
March 31, 2019

Fiscal Year Ended
March 31, 2020
Fiscal Year Ended
March 31, 2019

Operating revenue¥ million%
32,41926.6(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
26,74729.7
27,55429.1

25,604

21.5

20,61630.0

Profit¥ million
27,177%28.3¥
123.56

Diluted earnings per share¥–

21,181

30.7

96.32

–

Basic earnings per share

21,341

31.5(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
414,488245,92159.3
As of March 31, 2019
411,545
254,128
61.7(Reference) Equity: 245,921 million yen (as of March 31, 2020), 254,128 million yen (as of March 31, 2019)
As of March 31, 2020

Net assets
per share¥
1,118.04
1,155.56* Consolidated Financial Reports are not required to be audited by certified public accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
Projections are undetermined as it is difficult to accurately calculate earnings forecasts given the diverse impacts of the spread of thenovel coronavirus. The projections will be disclosed promptly once it become possible to calculate them accurately.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on May 20, 2020.

Attached Material
Index
1. Overview of Operating Results and Others ....................................................................................... 2(1) Overview of Operating Results for the Period (April 1, 2019 to March 31, 2020) ............................................................ 2(2) Overview of Financial Position for the Period ................................................................................................................... 3(3) Overview of Cash Flows for the Period ............................................................................................................................. 3(4) Future Outlook ................................................................................................................................................................... 4(5) Basic Policy on the Distribution of Profits ......................................................................................................................... 5

2. Basic Concept Regarding Selection of Accounting Standards.......................................................... 6
3. Consolidated Financial Statements and Significant Notes ................................................................ 7(1) Consolidated Balance Sheets .............................................................................................................................................. 7(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 9(Consolidated Statements of Operations) ........................................................................................................................... 9(Consolidated Statements of Comprehensive Income)..................................................................................................... 10(3) Consolidated Statements of Changes in Net Assets ......................................................................................................... 11(4) Consolidated Statements of Cash Flows .......................................................................................................................... 15(5) Notes to Consolidated Financial Statements .................................................................................................................... 17(Notes on Premise of Going Concern) ............................................................................................................................. 17(Changes in Accounting Policies) .................................................................................................................................... 17(Segment Information) ..................................................................................................................................................... 18(Per-Share Data) ............................................................................................................................................................... 24(Significant Subsequent Events) ...................................................................................................................................... 25

4. Other .................................................................................................................................................... 28
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 28-1-

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Period (April 1, 2019 to March 31, 2020)
During the fiscal year ended March 31, 2020, the economy continued to moderately recover until the third quarter inJapan. However, overseas economies were showing a slowdown trend. In addition, the global economy as a whole wassignificantly affected by the spread of COVID-19 in the fourth quarter.
The BANDAI NAMCO Group (“the Group”) started a three-year Mid-term Plan in April 2018, under the Mid-term
Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” which reflects our aspirationto achieve changes in all aspects to progress to a next stage without being bound by previous business models and establishedideas. Aiming for medium- and long-term growth, the Group has been promoting a range of measures. As one of these
initiatives, we have 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 this fiscal year, although there were effects from the spread of COVID-19 in the fourth quarter, the Toys andHobby Business performed favorably, gaining in popularity in products for the mature fan base in Japan and overseas, andkey IP products and services in each business segment also performed stably.
Consequently, the Group’s consolidated results for the fiscal year ended March 31, 2020 were net sales of 723,989 million
yen (year-on-year decrease of 1.1%), operating profit of 78,775 million yen (year-on-year decrease of 6.3%), recurring profitof 79,797 million yen (year-on-year decrease of 8.1%), and profit attributable to owners of parent of 57,665 million yen(year-on-year decrease of 9.0%).
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 along with long-established IP toys and peripheral products, suchas the DRAGON BALL series, the KAMEN RIDER series, the Super Sentai series, and ONE PIECE. Overseas, in the Asian
region, products for the mature fan base and products such as the ULTRAMAN series gained in popularity. In the Americas
and Europe, the Group promoted efforts to strengthen sales and marketing of products for the mature fan base.
As a result, net sales in the Toys and Hobby Business were 253,714 million yen (year-on-year increase of 4.5%), andsegment profit was 26,733 million yen (year-on-year increase of 23.1%).
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
stably due to ongoing measures targeting users. In home video games, new titles such as DRAGON BALL Z KAKAROT and
CODE VEIN gained in popularity, and repeat sales of existing titles such as the DRAGON BALL series, TEKKEN 7, and the
DARK SOULS series enjoyed popularity, primarily overseas, due to ongoing measures targeting users.
As a result, net sales in the Network Entertainment Business were 328,079 million yen (year-on-year decrease of 3.8%),
and segment profit was 43,879 million yen (year-on-year decrease of 7.7%).
Real Entertainment Business
As for the Real Entertainment Business, in amusement facilities, net sales in existing facilities in Japan continued toperform stably, and we promoted the development of new business formats that provide venues where customers are able toenjoy experiences that only BANDAI NAMCO can offer. However, the business was affected by the closure of facilities
both in Japan and overseas due to the spread of COVID-19 in the fourth quarter. Performance of amusement machines did
not reach the level seen in the previous fiscal year when a new major title and a new version of a popular title were launched,owing to factors including the postponement of the launch of new products. In light of the current market environment, werecorded a loss on valuation such as works in process for amusement machines and a loss on impairment of fixed assets
related to certain facilities as extraordinary loss.
As a result, net sales in the Real Entertainment Business were 91,753 million yen (year-on-year decrease of 9.6%), andsegment loss was 1,502 million yen (segment profit for the previous fiscal year was 4,264 million yen).
-2-

Visual and Music Production Business
As for the Visual and Music Production Business, we stirred up public attention through the development of IP
productions, such as the sales of visual and music package software and the holding of live events of The iDOLM@STER
series, LoveLive! Sunshine!! and IDOLiSH 7, and the cinematic release of a new GIRLS und PANZER movie, leading to thoseseries gaining popularity. However, profits did not reach the level seen in the previous fiscal year when the Company launchedseveral high-added-value package software products, due to differences in the product mix and the postponement orcancellation of events in response to the spread of COVID-19 in the fourth quarter.
As a result, net sales in the Visual and Music Production Business were 46,951 million yen (year-on-year increase of
3.1%), and segment profit was 8,032 million yen (year-on-year decrease of 8.7%).
IP Creation Business
As for the IP Creation Business, in visual production, we stirred up public attention around IP by releasing a new movie
and disseminating various information for the Mobile Suit Gundam series, which marked its 40th anniversary, and otherseries, which brought greater popularity to those series. We also took steps such as those to strengthen our Group-wide
initiatives and animation production structure with a view to enhancing IP creation. Profits were up year on year due tofactors including differences in the product mix.
As a result, net sales in the IP Creation Business were 19,750 million yen (year-on-year decrease of 12.1%), and segment
profit was 5,758 million yen (year-on-year increase of 14.7%).
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 have been making efforts to manage suchoperations related to group support in an efficient manner.
Net sales in the Other Businesses were 35,752 million yen (year-on-year increase of 20.1%), and segment profit was
1,864 million yen (year-on-year increase of 55.7%).
(2) Overview of Financial Position for the Period
At the end of the fiscal year ended March 31, 2020, total assets stood at 619,819 million yen, an increase of 6,864 million
yen from the end of the previous fiscal year. The main factors were increases of 8,670 million yen in work in process, 9,313
million yen in property, plant and equipment such as construction in progress, 14,771 million yen in goodwill mainly due to
SOTSU CO., LTD. becoming a consolidated subsidiary, despite a decrease of 23,995 million yen in cash and time deposits.
Total liabilities amounted to 165,135 million yen, a decrease of 18,175 million yen from the end of the previous fiscal
year. The main factor was a decrease of 17,138 million yen in other current liabilities mainly due to a decrease in accrued
income taxes.
Total net assets stood at 454,684 million yen, an increase of 25,040 million yen from the end of the previous fiscal year.
The main factor was an increase of 25,383 million yen in retained earnings due to the recording of 57,665 million yen in
profit attributable to owners of parent, despite cash dividends paid of 32,328 million yen.
As a result, the equity ratio became 72.5% compared with 70.0% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Period
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand had decreased by 17,603 million
yen from the end of the previous fiscal year to 188,667 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 43,131 million yen (year-on-year decrease of 46.0%). As a
breakdown of funds used, income taxes paid was 36,079 million yen (compared with 21,186 million yen in the previous
fiscal year). However, overall, there was a net increase in funds due to profit before income taxes of 78,753 million yen(compared with 86,838 million yen in the previous fiscal year) and depreciation and amortization of 23,239 million yen(compared with 21,370 million yen in the previous fiscal year).

-3-

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 23,067 million yen (year-on-year decrease of 7.4%). The main
breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 22,629 million yen(compared with 15,341 million yen in the previous fiscal year).
(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 35,258 million yen (year-on-year increase of 21.7%). The main
breakdown of funds used was cash dividends paid of 32,328 million yen (compared with 28,366 million yen in the previous
fiscal year).
(Reference) Cash Flow Indices
FY2016.3

FY2017.3

FY2018.3

FY2019.3

FY2020.3

Equity ratio (%)

70.6

71.3

71.5

70.0

72.5

Equity ratio (market capitalization basis) (%)

120.2

149.9

142.1

186.1

185.8

0.0

0.0

0.0

0.0

0.1

1,123.3

1,718.0

1,468.2

2,180.5

345.8

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.
(4) Future Outlook
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 Group is 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 anduser preferences, by continuing to collect information and take flexible countermeasures. Furthermore, the Group will clearly
identify the achievements and challenges of the key strategies of the Mid-term Plan currently underway (*) and reflect themin the strategies of the next Mid-term Plan to start in April 2021.
In the fiscal year ending March 31, 2021, the outlook of the social and economic impacts from the spread of COVID-19
in countries around the world is expected to continue to be unclear. If the spread of infection continues, the Group’sbusinesses may become subject to the following major impacts in Japan and overseas:• 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
In light of the above circumstances, projection calculations of the consolidated earnings forecasts for the fiscal year
ending March 31, 2021 have been deemed too difficult and left undetermined at this present time. Going forward, the Group-4-

will implement various initiatives to mitigate the impacts from the spread of COVID-19 and will promptly disclose theconsolidated projections for the fiscal year ending March 31, 2021 once it becomes possible to calculate them reasonably.
* Mid-term Plan of the BANDAI NAMCO Group (From April 2018 to March 2021)
In our Mid-term Plan, we have been proceeding under the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain
Momentum, and Accelerate Evolution,” which reflects our aspiration to achieve changes in all aspects to progress to a nextstage without being bound by previous business models and established ideas. In the Mid-term Plan, the Group will aim to
evolve “IP Axis Strategy” further to maximize IP value through taking advantage of the worldview and unique characteristics
of its IPs and providing the optimal products and services at the optimal possible times, thereby achieving penetration andexpansion in global markets. At the same time, we will also strengthen development in regions and businesses with highgrowth potential. Furthermore, we will drive creation of new IP and pursue strategies by unifying the efforts in each region
across the Group under the ALL BANDAI NAMCO concept.
We will implement the following four strategies as the main strategies in the Mid-term Plan:
1. IP axis strategy “Accelerate evolution in IP axis strategy”
To further solidify the IP axis strategy, the Group’s greatest strength, we will drive creation of new IP while
continuing to innovate long-established IP.
Boost capability to create IP (structural changes) / Invest aggressively in IP creation
2. Business strategy “Empower push into new entertainment”
To empower a push into new entertainment, we will upgrade and enhance our business infrastructure, expand andstrengthen our business fields, and promote incubation.
Establish and enhance business infrastructure / Expand and strengthen business fields / Promote incubation
3. Region strategy “Gain momentum with ALL BANDAI NAMCO”
The regional holding companies and the business of each unit will form a unifying ALL BANDAI NAMCO concept
to advance the Group’s strategies autonomously on a regional basis through their deep knowledge of the customer
base in each region.
Make full-scale business expansion in the Chinese market / Establish system for ALL BANDAI NAMCO
4. Personnel strategy “Make personnel the core of the Group”
In addition to training the necessary global personnel, actively enabling personnel exchange, and establishingsystems for promoting active participation of a diverse workforce, as well as various systems to enable employees
to work in good mental and physical health, the Group will work on initiatives such as a proposal system for
employees to take up new challenges, and systems for supporting their endeavors.
Establish environment to optimize employees’ performance by tapping their individual strengths, and to empower
new ventures
By implementing these main strategies, we aim to further strengthen the Group’s foundation so that we can make steadyprogress in an operating environment marked by dramatic change, and achieve growth in global markets.
(5) Basic Policy on the Distribution of Profits
The Company ranks the return of profits to shareholders as one of its highest priorities in its management. The Company
aims to further strengthen the Group’s competitiveness and, while maintaining a sound financial status, to achieve regular
distributions of dividends and improvement in the Company’s corporate value. Specifically, the Company follows a basic
policy of providing a return to shareholders that targets a total return ratio of 50% or more based on stable dividend payments
of 2% of DOE (dividends on equity). Under this policy, the Company strives to maintain long-term and stable dividend levels
and be more aware of capital cost.
For the annual cash dividend per share for the fiscal year ended March 31, 2020, a performance-based dividend of 92
yen will be added to a base dividend of 40 yen. In total, the annual cash dividend for the fiscal year will be 132 yen per share.
Since the Company paid an interim dividend of 20 yen per share on December 6, 2019, the year-end dividend will be 112
yen per share. The Company’s annual dividend forecast for the fiscal year ending March 31, 2021 is 42 yen per share, whichis the base dividend set in accordance with 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.

-5-

2. Basic Concept Regarding Selection of Accounting Standards
The Group plans to continue using Japanese GAAP to prepare its consolidated financial statements for the time being, as
they facilitate comparison with previous consolidated financial statements and with other companies.
The Group’s policy on applying International Financial Reporting Standards is to take action as appropriate based on
considerations of various conditions in Japan and overseas.

-6-

3.

Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2019)(As of March 31, 2020)

AssetsCurrent assets
Cash and time deposits

213,851

189,856

Trade receivables

93,08383,754

Finished goods and merchandise

19,062

22,282Work in process

42,42851,098Raw materials and supplies

3,580

3,409

Other current assets

26,83634,658

Allowance for doubtful receivables
Total current assets(890)(1,398)397,951

383,662

Fixed assets
Property, plant and equipment
Buildings and structures

31,15233,076

Accumulated depreciation(16,084)(17,676)

Buildings and structures, net

15,067

15,399Amusement facilities and machines

72,882

72,030

Accumulated depreciation(55,275)(55,949)

Amusement facilities and machines, net

17,606

16,081

42,67743,156Land
Construction in progress

3,175

7,720

103,484

126,155(94,418)(111,606)

9,066

14,54887,59396,906933

15,704

Other intangible assets

10,912

11,718

Total intangible assets

11,84527,423

Investments and other assets
Investment securities

74,02366,453Net defined benefit asset

147

223

Deferred tax assets

24,81927,313

Other investments and assets

Other property, plant and equipment
Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment
Intangible assets
Goodwill

16,941

18,270Allowance for doubtful receivables

(366)

(432)

Total investments and other assets

115,564

111,827

215,003

236,157

612,955

619,819

Total fixed assets
Total assets-7-(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2019)(As of March 31, 2020)

Liabilities
Current liabilities
Trade payables

74,80470,169Provision for directors’ bonuses

1,835

1,891

Other provision

1,669

2,001

Other current liabilities

85,58368,444

Total current liabilities

163,893

142,506

10,383

9,840

333

249

8,700

12,538Long-term liabilities
Net defined benefit liability
Deferred tax liabilities for land revaluation
Other long-term liabilities
Total long-term liabilities

19,417

22,628183,311

165,135

Common stock

10,00010,000Capital surplus

52,30852,004Retained earnings

369,315394,699

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,298)(3,634)

Total stockholders’ equity

429,326

453,069

20,19016,837

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

5250

Revaluation reserve for land, net of tax(5,920)(3,902)Foreign currency translation adjustments(8,864)(12,321)

Remeasurements of defined benefit plans, net of tax(5,705)(4,639)(294)(3,776)

612

5,392

429,644454,684

612,955

619,819

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-8-(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2018
to March 31, 2019)

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)

Net sales

732,347

723,989

Cost of sales

469,791

463,041

Gross profit

262,555

260,948

Selling, general and administrative expenses

178,510

182,172

Operating profit

84,04578,775Interest income

536

692

Dividend income

584

821

Rent income

398

304

Gain on valuation of derivatives

753–

Other non-operating income

701

643

Total non-operating income

2,973

2,461

Interest expense

36

124

Share of loss of entities accounted for using equity method–

182

Foreign exchange losses

–

1,008

Other non-operating expenses

118

123

Total non-operating expenses

155

1,440

86,86379,797

Non-operating income

Non-operating expenses

Recurring profit
Extraordinary income
Gain on sales of fixed assets

2,109

1,931

Gain on step acquisitions

–

1,722

Other extraordinary income

228

30

Total extraordinary income

2,338

3,683

Loss on impairment of fixed assets

954

3,596

Loss on disposal of receivables on affiliated companies

781–

Other extraordinary loss

627

1,131

Extraordinary loss

Total extraordinary loss

2,362

4,728

Profit before income taxes

86,83878,753

Corporate income, inhabitant and enterprise taxes

29,56622,541

Adjustment for income taxes(5,361)(1,695)

Total income taxes

24,205

20,845

Profit62,632

57,908

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

-9-

(751)

242

63,383

57,665

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2018
to March 31, 2019)
ProfitCurrent Fiscal Year
(From April 1, 2019
to March 31, 2020)

62,632

57,908

8,685(3,101)

305

244

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

682

Foreign currency translation adjustments(531)(3,468)Remeasurements of defined benefit plans, net of tax

(948)

1,065

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

(190)

(17)

Total other comprehensive income
Comprehensive income

7,319(4,595)69,95253,31270,70052,847(747)

465

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 10 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Stockholders’ equity

Balance at beginning of year

Common stock

Capital surplus

10,00052,196

Retained earnings
334,264

Treasury stock(2,326)

Cumulative effects ofchanges in accounting
policies
Restated balance

Total stockholders’equity394,133–

10,00052,196334,264(2,326)394,133

Changes during the period
Cash dividends(28,366)(28,366)

Profit attributable to ownersof parent

63,38363,383

Change of scope of
consolidation–

Capital increase of
consolidated subsidiaries
Change of scope of
consolidation - foreign
currency translation
adjustment
Change in ownership interestof parent due to transactions
with non-controllinginterests–––

Purchase of treasury stock

112

Disposal of treasury stock
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

(5)

(5)

33

145

0

0

33

33

Net changes of items otherthan stockholders’ equity
Total changes during the period
Balance at end of year–

112

35,051

28

35,192

10,00052,308369,315(2,298)429,326- 11 -

(¥ million)
Accumulated other comprehensive income
Valuation
Remeasurements Total accumulated Non-controlling
difference on Deferred gains or
Revaluation
Foreign currencyinterestsof defined
otheravailable-for-sale losses on hedges, reserve for land,translation
benefit plans, net comprehensive
securities, net of
net of tax
net of tax
adjustmentsof taxincometax

Balance at beginning of year

11,696(300)(5,887)(8,330)(4,756)(7,577)

797

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

387,354–

11,696(300)(5,887)(8,330)(4,756)(7,577)797

387,354

Changes during the period
Cash dividends(28,366)

Profit attributable to ownersof parent

63,383

Change of scope of
consolidation–

Capital increase of
consolidated subsidiaries
Change of scope of
consolidation - foreign
currency translation
adjustment
Change in ownership interestof parent due to transactions
with non-controllinginterests–

Purchase of treasury stock(5)

Disposal of treasury stock

145

–

–

Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

0

(33)

(33)

–

Net changes of items otherthan stockholders’ equity

8,494

305

–

(534)

(948)

7,316

(185)

7,131

Total changes during the period

8,494

305

(33)

(534)

(948)

7,282

(185)

42,289Balance at end of year

20,1905(5,920)(8,864)(5,705)

(294)

612

429,644- 12 -

Current Fiscal Year (From April 1, 2019 to March 31, 2020)(¥ million)
Stockholders’ equity

Balance at beginning of year

Common stock

Capital surplus

10,00052,308Cumulative effects ofchanges in accounting
policies
Restated balance

Retained earnings
369,315

Treasury stock(2,298)948
10,00052,308370,264

Total stockholders’equity429,326
948(2,298)430,275

Changes during the period
Cash dividends(32,328)(32,328)

Profit attributable to ownersof parent

57,66557,665

Change of scope of
consolidation

433

Capital increase of
consolidated subsidiaries
Change of scope of
consolidation - foreign
currency translation
adjustment
Change in ownership interestof parent due to transactions
with non-controllinginterests(1,370)

1

(937)
1
–

(715)

(715)

Purchase of treasury stock

409

Disposal of treasury stock
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

(8)

(8)

42

451

0

0

(1,335)(1,335)

Net changes of items otherthan stockholders’ equity
Total changes during the period
Balance at end of year

–

(304)

24,434(1,336)

22,79410,00052,004

394,699(3,634)453,069- 13 -

(¥ million)
Accumulated other comprehensive income
Valuation
Remeasurements Total accumulated Non-controlling
difference on Deferred gains or
Revaluation
Foreign currencyinterestsof defined
otheravailable-for-sale losses on hedges, reserve for land,translation
benefit plans, net comprehensive
securities, net of
net of tax
net of tax
adjustmentsof taxincometax

Balance at beginning of year

20,1905(5,920)(8,864)(5,705)

(294)

612

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

429,644948

20,1905(5,920)(8,864)(5,705)

(294)

612

430,593

Changes during the period
Cash dividends(32,328)

Profit attributable to ownersof parent

57,665

Change of scope of
consolidation
Capital increase of
consolidated subsidiaries
Change of scope of
consolidation - foreign
currency translation
adjustment
Change in ownership interestof parent due to transactions
with non-controllinginterests

15

4,032

3,095

28

30

15

15

274

(441)

Purchase of treasury stock(8)

Disposal of treasury stock

451

Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedReversal of revaluation
reserve for land

0

1,335

1,335

–

Net changes of items otherthan stockholders’ equity(3,353)244

682(3,472)

1,065(4,832)444(4,388)

Total changes during the period(3,353)

244

2,017

(3,456)

1,065(3,482)

4,779

24,091

Balance at end of year

16,837250(3,902)(12,321)(4,639)(3,776)

5,392

454,684- 14 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2018
to March 31, 2019)

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)

Cash flows from operating activities
Profit before income taxes

86,83878,753

Depreciation and amortization

21,37023,239954

3,596

Loss on impairment of fixed assets

177

667

Increase (decrease) in allowance for doubtful receivables(1,321)

199

Increase (decrease) in provision for directors’ bonuses

31

28

Increase (decrease) in other provision

(541)

504

Increase (decrease) in net defined benefit liability

648

610

(1,121)(1,514)36

124

Foreign exchange losses (gains)

126

232

Equity in loss (gain) of affiliated companies

(242)

182

Loss (gain) on valuation of derivatives

(753)

25

Amortization of goodwill

Interest and dividend income
Interest expense

325

268

(2,078)(1,904)

Loss on disposal of amusement facilities and machines

161

337

Loss (gain) on sales of investment securities, net

(226)

(5)

–

(1,722)

Loss on disposal of fixed assets
Loss (gain) on sales of fixed assets, net

Loss (gain) on step acquisitions

781–(4,965)

12,813

Decrease (increase) in inventories(7,689)(10,864)

Acquisition of amusement facilities and machines(10,187)(7,335)

Increase (decrease) in trade payables

5,270(7,349)

Increase (decrease) in accounts payable-other(196)(4,159)Loss on disposal of receivables on affiliated companies
Decrease (increase) in trade receivables

Increase (decrease) in consumption tax payables

326

89

Increase (decrease) in other current liabilities

13,972(2,542)

Other(1,752)(6,487)

Subtotal

99,94577,789Interest and dividends received

1,088

1,545

(36)

(124)

Income taxes paid

(21,186)(36,079)

Net cash provided by operating activities

79,811

43,131

Interest paid

- 15 -

(¥ million)
Prior Fiscal Year
(From April 1, 2018
to March 31, 2019)

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)

Cash flows from investing activities
Payments into in time deposits(7,510)(165)

Proceeds from withdrawal of time deposits

4,482

7,132

Purchases of property, plant and equipment(10,093)(16,900)

Proceeds from sales of property, plant and equipment

2,980

2,873

Purchases of intangible assets(5,247)(5,728)Purchases of investment securities(1,574)

(901)

347

108

(4,018)(560)–(7,531)

Payments for acquisition of businesses(1,991)–

Payments of loans receivable(1,385)(237)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation

Collection of loans receivable

892

24

Payments of guarantee deposits(2,135)(1,698)541

746

Proceeds from refund of guarantee deposits

(185)

(229)

(24,899)(23,067)

Net increase (decrease) in short-term loans payable94(1,500)

Proceeds from long-term loans payable

639

200

Repayments of long-term loans payable

Other
Net cash used in investing activities
Cash flows from financing activities(1,266)(249)

Repayments of lease obligations

(67)

(931)

Purchase of treasury stock

(5)

(8)

(28,366)(32,328)–(441)(28,972)(35,258)(501)(2,531)

Net increase (decrease) in cash and cash equivalents

25,438(17,726)

Cash and cash equivalents at beginning of year

180,831206,270–

123

206,270

188,667

Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of year

- 16 -

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

(Changes in Accounting Policies)(Application of US GAAP Accounting Standards Update (ASU) No. 2014-09 “Revenue from Contracts with
Customers”)
Effective from the fiscal year ended March 31, 2020, the Company’s consolidated subsidiaries in the United States haveapplied the US GAAP ASU No. 2014-09 “Revenue from Contracts with Customers.”
With the application of ASU No. 2014-09, it is required that, at the time of transfer of the promised goods or services tocustomers, the Company recognizes revenue in an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services. In applying this ASU, the Company used the method in which it
recognizes the cumulative effect of retrospective adjustments as of the commencement date of application.
As a result of this change, in the consolidated statements of operations for the fiscal year ended March 31, 2020, net
sales increased by 537 million yen, cost of sales increased by 328 million yen, and operating profit, recurring profit, andprofit before income taxes each increased by 208 million yen. In addition, the balance at beginning of year of retained
earnings in the consolidated statements of changes in net assets increased by 936 million yen.

(Application of IFRS 16 “Leases”)
Effective from the fiscal year ended March 31, 2020, some overseas consolidated subsidiaries applied IFRS 16 “Leases.”
IFRS 16 requires the lessee to recognize both the right-of-use assets, which is the right to use the underlying assets, andthe lease liabilities, which is the obligation to make lease payments, for all leases in principle. In applying this standard,
the Company used the method in which it recognizes the cumulative effect of retrospective adjustments as of thecommencement date of application.
As a result of this change, in the consolidated balance sheets of the fiscal year ended March 31, 2020, current assets
increased by 23 million yen, property, plant and equipment increased by 4,794 million yen, current liabilities increased by
1,197 million yen, and long-term liabilities increased by 3,492 million yen, while investments and other assets decreasedby 149 million yen. The impact of this change on the consolidated statements of operations is immaterial. In addition, thebalance at beginning of year of retained earnings in the consolidated statements of changes in net assets increased by 12
million yen.

- 17 -

(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 is available
and which are periodically evaluated by the Board of Directors in deciding how to allocate management resources and inassessing the performance.
The Group is made up of (1) five Units, one for each business domain, namely the Toys and Hobby Unit, the Network
Entertainment Unit, the Real Entertainment Unit, the Visual and Music Production Unit, and the IP Creation Unit, and(2) the affiliated business companies that mainly serve a supporting role for these Units. The core company of each Unit
leads the planning and promotion of the business strategies of the unit for Japan and overseas.
Accordingly, the Group has the following five reportable segments: Toys and Hobby Business, Network Entertainment
Business, Real Entertainment Business, Visual and Music Production Business, and IP Creation Business.
The Toys and Hobby Business conducts production and sales of toys, candy toys and products for vending machines.
The Network Entertainment Business conducts planning, development and distribution of network content, and planning,development and distribution of home video games, etc. The Real Entertainment Business conducts planning, production
and sales of arcade games, etc., and planning and operation of amusement facilities. The Visual and Music Production
Business conducts planning, production and sales of visual and music content and package software, and live
entertainment operations. The IP Creation Business conducts planning and development of animations, etc., andmanagement and administration of copyrights and other rights, etc.

2. Method for calculating the amounts of net sales, profit/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” presented in themost recent annual security report (filed on June 24, 2019).
The profit of reportable segments is measured by operating profit.
The inter-segment transactions are based on prevailing market prices.

- 18 -

3. Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Reportable Segments
Network
Real
Visual andToys andIP
Entertain- EntertainMusic
Hobby
Creationment
ment
Production
Business
Business
Business Business Business

234,924

333,805

100,699

37,425Inter-segment sales
and transfers

7,941

7,121

793

Total

242,865

340,927

101,493

Subtotal

Other(Note 1)

Total

16,186

723,041

9,305

8,093

6,278

30,22845,51822,464753,269

Adjust- Consoliments dated Total(Note 2)

(Note 3)732,347–

732,347

20,45950,687(50,687)–

29,764

783,034(50,687) 732,347

Net sales
To externalcustomers

Segment profit

21,71047,534

4,264

8,797

5,020

87,328

1,197

88,526(4,480)84,045

Segment assets

127,726

158,563

65,87634,215

21,764

408,145

33,708441,853

171,101

612,955

Depreciation andamortization

10,877

1,522

7,461

635

47

20,544455

21,000370

21,370

Amortization of
goodwill

126

0

28

21

–

177

–

177

–

177

Loss on impairmentof fixed assets

278

44

628

–

0

951

–

951

2

954

Investment inassociates
accounted for using
equity method

969

–

–

–

–

969

15,87916,849–16,849

Increase inproperty, plant andequipment andintangible assets

12,002

2,587

12,342633

29

27,595430

28,025991

29,016

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 companies are classified.
The details of adjustment amounts are as follows:(1)
Included in the 4,480 million yen deducted from segment profit as adjustment are an addition of 1,381
million yen in inter-segment eliminations, and a deduction of 5,861 million yen in corporate expenses thatcannot 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 171,101 million yen added to segment assets as adjustment are a deduction of 36,069
million yen in inter-segment eliminations, and an addition of 207,171 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 to areportable segment.
(3)
Included in the 370 million yen added to depreciation and amortization as adjustment are a deduction of
745 million yen in inter-segment eliminations, and an addition of 1,115 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 2 million yen added to loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot be allocated to any reportable segment.
(5)
Included in the 991 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 profit is adjusted with operating profit in the consolidated statements of operations.

- 19 -

Current Fiscal Year (From April 1, 2019 to March 31, 2020)(¥ million)
Reportable Segments
Network
Real
Visual andToys andIP
Entertain- EntertainMusic
Hobby
Creationment
ment
Production
Business
Business
Business Business Business

245,880

322,872

90,98338,742

Inter-segment sales
and transfers

7,834

5,207

770

Total

253,714

328,079

Segment profit (loss)

26,733

Segment assets

Subtotal

Other(Note 1)

Total

13,291

711,770

12,219

8,209

6,458

28,47991,753

46,951

19,75043,879(1,502)

8,032

121,625

168,058

62,793

Depreciation andamortization

10,815

2,555

Amortization of
goodwill

215

Loss on impairmentof fixed assets

Adjust- Consoliments dated Total(Note 2)

(Note 3)723,989–

723,989

23,53252,012(52,012)–740,249

35,752776,001(52,012) 723,989

5,758

82,901

1,864

84,766(5,991)

78,77524,384

17,584394,446

71,390465,837

153,982

619,819

7,974

519

46

21,910591

22,502

737

23,239

–

14

21

56

308

359

667

–

667

96

–

3,478

21

–

3,596

–

3,596

–

3,596

Investment inassociates
accounted for using
equity method

801

–

–

–

–

801

10,677

11,479–11,479

Increase inproperty, plant andequipment andintangible assets

11,908

3,692

10,160650

979

27,392

1,193

28,5854,820

33,406

Net sales
To externalcustomers

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 companies are classified.
The details of adjustment amounts are as follows:(1)
Included in the 5,991 million yen deducted from segment profit (loss) as adjustment are an addition of 920
million yen in inter-segment eliminations, and a deduction of 6,911 million yen in corporate expenses thatcannot 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 153,982 million yen added to segment assets as adjustment are a deduction of 34,501
million yen in inter-segment eliminations, and an addition of 188,484 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 to areportable segment.
(3)
Included in the 737 million yen added to depreciation and amortization as adjustment are a deduction of
378 million yen in inter-segment eliminations, and an addition of 1,116 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 4,820 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 profit (loss) is adjusted with operating profit in the consolidated statements of operations.

- 20 -

b. Related Information
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)
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

Americas519,068

Europe84,274

Asia

63,384

Total
65,619732,347

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

Americas76,196

Europe

2,135

Asia
4,461

Total
4,799

87,593

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

Net sales

Names of related segments
Toys and Hobby Business, Network Entertainment

Apple Inc.

103,883

Business, and Visual and Music Production
Business
Toys and Hobby Business, Network Entertainment

Google Inc.

84,677

Business, and Visual and Music Production
Business

Note: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to these companies
are usage fees, etc. for users (ordinary users) of game services provided by the Group.

Current Fiscal Year (From April 1, 2019 to March 31, 2020)
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
500,952

Americas

Europe91,11861,374

Note: Net sales are classified by country and region based on customer location.

- 21 -

Asia

Total
70,543723,989

(2) Property, plant and equipment(¥ million)
Japan

Americas80,938Europe

2,084

Asia
8,159

Total
5,723

96,906

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

Net sales

Names of related segments
Toys and Hobby Business, Network Entertainment

Apple Inc.

102,697

Business, and Visual and Music Production
Business
Toys and Hobby Business, Network Entertainment

Google Inc.

77,590Business, and Visual and Music Production
Business

Note: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to these companies
are usage fees, etc. for users (ordinary users) of game services provided by the Group.

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2019 to March 31, 2020)
This information is omitted because the same information has been presented in Segment Information.

d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Real
Visual andEntertainMusic
ment
Production
Business
Business

Amortized
amount

126

0

28

21

–

–

–

177

Unamortizedbalance

843

–

29

60

–

–

–

933

- 22 -IP
Creation
Business

Eliminations andCorporate

Other

Total

Current Fiscal Year (From April 1, 2019 to March 31, 2020)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Real
Visual andEntertainMusic
ment
Production
Business
Business

Amortized
amount

215

–

14

21

56

359

–

667

Unamortizedbalance

1,429

–

14

38

224

13,997–

15,704IP
Creation
Business

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2018 to March 31, 2019)
Not applicable.

Current Fiscal Year (From April 1, 2019 to March 31, 2020)
Not applicable.

- 23 -

Other

Eliminations andCorporate

Total

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2018 to March 31, 2019)(From April 1, 2019 to March 31, 2020)

1,952.00 yen

2,045.25 yen

288.40 yen

262.39 yen

Net assets per share
Basic earnings per share

Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. The basis of calculating basic earnings per share is as follows:

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2018 to March 31, 2019)(From April 1, 2019 to March 31, 2020)

63,383

57,665––63,383

57,665

219,781,288

219,770,515

Basic earnings per share
Profit attributable to owners of parent(¥ million)
Amount not applicable to common
stockholders (¥ million)
Profit attributable to owners of parent
available to common stock (¥ million)
Average number of common stock
outstanding (shares)- 24 -

(Significant Subsequent Events)(Change to reportable segments)
In order to advance the main strategies outlined in the Mid-term Plan, namely “Accelerate evolution in IP axis strategy,”
more reliably and promptly, the Group changed its organizational structure in April 2020.
In the fiscal year ended March 31, 2020, SOTSU CO., LTD., which became a consolidated subsidiary upon its shares
being acquired through tender offer, has been classified as a business under the “Other” category. However, in order tostrengthen IP axis strategy, the Group has reclassified it as a business under the “IP Creation Business” from the following
fiscal year.
Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment for thecurrent fiscal year, assuming the classification of its reportable segments after the organizational change is as follows.

Current Fiscal Year (From April 1, 2019 to March 31, 2020)(¥ million)
Reportable Segments
Network
Real
Visual andToys andIP
Entertain- EntertainMusic
Hobby
Creationment
ment
Production
Business
Business
Business Business Business

245,880

322,872

90,98338,742

Inter-segment sales
and transfers

7,834

5,207

770

Total

253,714

328,079

91,753

Subtotal

Other(Note 1)

Total

16,084

714,563

9,426

8,209

7,412

29,433

46,951

23,497

743,996

Adjust- Consoliments dated Total(Note 2)

(Note 3)723,989–

723,989

21,62851,061(51,061)–

31,054775,051(51,061) 723,989

Net sales
To externalcustomers

Segment profit (loss)

26,73343,879(1,502)

8,032

6,269

83,412

1,346

84,759(5,983)78,775

Segment assets

121,625

168,058

62,79324,38455,489432,351

32,408464,760

155,059

619,819

Depreciation andamortization

10,815

2,555

7,974

519

48

21,913588

22,502

737

23,239Amortization of
goodwill

215

–

14

21

415

667

–

667

–

667

Loss on impairmentof fixed assets

96

–

3,478

21

–

3,596

–

3,596

–

3,596

Investment inassociates
accounted for using
equity method

801

–

–

–

–

801

10,677

11,479–11,479

Increase inproperty, plant andequipment andintangible assets

11,908

3,692

10,160650

979

27,392

1,193

28,5854,820

33,406

Others

Notes: 1.
2.

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 companies are classified.
The details of adjustment amounts are as follows:(1)
Included in the 5,983 million yen deducted from segment profit (loss) as adjustment are an addition of 928
million yen in inter-segment eliminations, and a deduction of 6,911 million yen in corporate expenses thatcannot 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 155,059 million yen added to segment assets as adjustment are a deduction of 33,424- 25 -

3.

million yen in inter-segment eliminations, and an addition of 188,484 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 to areportable segment.
(3)
Included in the 737 million yen added to depreciation and amortization as adjustment are a deduction of
378 million yen in inter-segment eliminations, and an addition of 1,116 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 4,820 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 profit (loss) is adjusted with operating profit in the consolidated statements of operations.

- 26 -

(Additional acquisition of stock of a subsidiary)
The Company acquired court permission and implemented an acquisition of fractional shares pursuant to the provisionsof Article 234, Paragraph 2 of the Companies Act as applied mutatis mutandis pursuant to Article 235, Paragraph 2 of thesame act with respect to fractional shares that arose from the share consolidation that SOTSU CO., LTD. carried out with
an effective date of March 1, 2020. As a result, SOTSU CO., LTD. became a wholly owned subsidiary of the Company.

1. Overview of Business Combination
(1)

(2)

Name and Description of Business of the Company Involved in the Combination
Name:

SOTSU CO., LTD.

Description of business:

Media business, rights business and sport business

Date of Business Combination
May 15, 2020

(3)

Legal Form of Business Combination
Acquisition of shares in consideration for cash

(4)Company Name After Combination
No change

2. Overview of Accounting Process
The additional acquisition is treated as part of a single transaction together with the acquisition of shares by public tenderconducted on December 2, 2019, in accordance with the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, January 16, 2019) and the “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019), and the goodwill on equity
interests that were additionally acquired after controlling interest acquisition is calculated on the assumption that the
goodwill was recognized at the time of controlling interest acquisition.

3. Acquisition cost of the acquired company, and consideration for the acquisition and breakdown thereof by consideration type
Consideration for the acquisition:

Cash8,154 million yen

Acquisition Cost:

8,154 million yen- 27 -

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
Not applicable.
(3) Responsible Area of Directors (Effective June 22, 2020)
Mitsuaki Taguchi

President and Representative Director

Masaru Kawaguchi

Executive Vice President and Director in charge of Toys and Hobby Unit

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Yasuo Miyakawa

Director (Part-time) in charge of Network Entertainment Unit

Hitoshi Hagiwara

Director (Part-time) in charge of Real Entertainment Unit

Kazumi Kawashiro

Director (Part-time) in charge of Visual and Music Production Unit

Makoto Asanuma

Director (Part-time) in charge of IP Creation Unit

Yuzuru Matsuda

Director (Outside)

Satoko Kuwabara

Director (Outside)

Mikiharu Noma

Director (Outside)

Koichi Kawana

Director (Outside)- 28 -