Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2016

August 5, 2015

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: http://www.bandainamco.co.jp/)
August 5, 2015

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2016 (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 10, 2015
Scheduled starting date for dividend payments:–
The additional materials 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, 2016
(April 1, 2015 to June 30, 2015)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2015)

First Quarter of the Fiscal YearEnding March 31, 2016
First Quarter of the Fiscal Year
Ended March 31, 2015

First Quarter of the Fiscal YearEnding March 31, 2016
First Quarter of the Fiscal Year
Ended March 31, 2015
(Note)Net sales¥ million
137,376%
12.1

122,504

15.7

Profit attributable toowners of parent¥ million%
13,94919.9
11,632(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
18,1397.7
18,7806.5
16,84726.2

17,633

22.1

Basic earnings per share

Diluted earnings per share

¥
63.50

¥
63.48

52.95

52.94

22.3

Comprehensive income: 15,549 million yen [52.9%] (FY2016.3 1Q), 10,167 million yen [(23.8)%] (FY2015.3 1Q)(2) Consolidated Financial Position

As of June 30, 2015
As of March 31, 2015

Total assets¥ million
432,201
441,763

Net assets¥ million
308,116
303,512Equity ratio
%
71.1
68.6

(Reference) Equity: 307,436 million yen (as of June 30, 2015), 302,893 million yen (as of March 31, 2015)

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥50.00Fiscal Year Ended March 31, 2015–
Fiscal Year Ending March 31, 2016–
Fiscal Year Ending March 31, 2016
¥12.00–(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2016: No¥12.00Total¥62.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2016 (April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
incomeincometo ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
255,000(1.7)
25,000(21.6)
25,500(23.6)
17,000(20.1)
77.39
September 30, 2015
Full Fiscal Year
530,000(6.3)
45,000(20.1)
46,000(22.5)
30,000(20.2)
136.56(Note) Revision to the projections: Yes
Consolidated projections for the Six Months Ending September 30, 2015 (announced on May 8, 2015) are revised in this document. For
details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions to Consolidated Projections for theSecond Quarter (Six Months)” announced today (August 5, 2015).
* 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 “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Notes)” on page 5 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: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(3) Changes in Accounting Policies, Changes in Accounting Estimation andRestatement” of “2. Matters Regarding Summary Information (Notes)” on page 5 of the attached material.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
222,000,000 shares
As of June 30, 2015
222,000,000 shares
As of March 31, 2015b) Number of shares of treasury stock at the end of the period
2,320,646 shares
As of June 30, 2015
2,316,797 shares
As of March 31, 2015c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,680,491 shares
For the First Quarter of the Fiscal Year Ending March 31, 2016
219,687,326 shares
For the First Quarter of the Fiscal Year Ended March 31, 2015
* Implementation status of quarterly review
This Consolidated Financial Report for the First Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the first quarter disclosing, quarterly review for the consolidated financial statements is under way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the First Quarter” on page 4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results for the Quarter will be posted on the Company’s website on August 5, 2015.

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 .............................................. 4

2. Matters Regarding Summary Information (Notes) ........................................................................... 5(1) Changes in Significant Subsidiaries during the Period ....................................................................................................... 5(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements ................................. 5(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement ..................................................... 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Consolidated Balance Sheets .............................................................................................................................................. 6(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................... 8(Consolidated Statements of Operations) ........................................................................................................................... 8(Consolidated Statements of Comprehensive Income)....................................................................................................... 9(3) Notes to Consolidated Financial Statements ..................................................................................................................... 10(Notes on Premise of Going Concern) ............................................................................................................................. 10(Notes on Significant Changes in the Amount of Stockholders’ Equity) ......................................................................... 10(Segment Information) ..................................................................................................................................................... 10-1-

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, 2016, although the economic environment inJapan followed a path of recovery overall mainly reflecting a recovery in personal consumption and improved corporate
profitability, the outlook for the overall economy remained uncertain. Overseas, in Asia and in North America and Europe,
although there was a moderate economic recovery overall, the outlook became clouded by concerns over the impact on theworld economy from geopolitical unrest in some overseas regions.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various measures aimed at medium- tolong-term growth, focusing on strengthening its “IP (Intellectual Property: intellectual property of characters) Axis
Strategy” to expand the value of its IPs by providing the best products and services at the best possible times, under theconcept of “NEXT STAGE: Empower, Gain Momentum, and Accelerate Evolution,” which is the vision of the Group’s
three-year Mid-term Plan, started in April 2015. The Group also strengthened business development in the Asian region
with high growth potential. On the business front, there were favorable sales in the Toys and Hobby Business in Japan and
the Asian region, network content and overseas home video game software in the Network Entertainment Business, and theVisual and Music Production Business.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 137,376 million
yen (year-on-year increase of 12.1%), operating income of 18,139 million yen (year-on-year increase of 7.7%), recurringincome of 18,780 million yen (year-on-year increase of 6.5%), and profit attributable to owners of parent of 13,949 million
yen (year-on-year increase of 19.9%).
Operating results by segment are as follows.
Effective from the current first quarter, the Group changed the classification of its reportable segments. Consequently,
in year-on-year comparisons the figures for the same period of the previous fiscal year have been restated into the figures
for the classifications after the change.
Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed satisfactorily thanks to products of Yo-kai Watch,long-established IP such as Mobile Suit Gundam, and others. In addition, sales of products including the long-established
IP Super Sentai series (Power Rangers series) and Dragon Ball performed steadily due to cross-functional efforts
undertaken across all businesses. The Group also strived to broaden the variety of its target customers by such means as
stepping up development of products for adults, and for babies and pre-school children.
Overseas, in the Asian region, products of Mobile Suit Gundam and Yo-kai Watch, collectable toys for adults, andothers, became popular. In North America and Europe, products of the Power Rangers series sold steadily.
As a result, net sales in the Toys and Hobby Business were 50,008 million yen (year-on-year increase of 7.4%), andsegment income was 5,207 million yen (year-on-year increase of 32.0%).
Network Entertainment BusinessIn the Network Entertainment Business, in North America and Europe, repeat sales of products including the home
video game software DRAGONBALL XENOVERSE, which was launched in the previous fiscal year, and sales of new titles,
were favorable. Moreover, key titles in network content such as social games, game applications for smartphones, and PC
online games, sold stably in Japan, and the Group started provision of services overseas including Asia.
On the other hand, although the Group began developing and strengthening value chains in the overall amusementbusiness in such areas as arcade game machines and facilities, and there were certain results in efforts such as boosting
efficiency, on the whole this business struggled.
As a result, net sales in the Network Entertainment Business were 76,782 million yen (year-on-year increase of 17.0%),
and segment income was 10,421 million yen (year-on-year increase of 29.8%).
Visual and Music Production BusinessIn the Visual and Music Production Business, products and services of LoveLive! School idol project, which is IP for
which visual content was developed in conjunction with music content and live events, sold favorably, and visual package
software of Mobile Suit Gundam THE ORIGIN I Blue-Eyed Casval became popular, contributing to performance.
As a result, net sales in the Visual and Music Production Business were 11,464 million yen (year-on-year decrease of
4.8%), and segment income was 3,171 million yen (year-on-year decrease of 36.2%).

-2-

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’s strategic business units: Toys and Hobby SBU, Network
Entertainment SBU, and Visual and Music Production SBU. We are making efforts to manage such operations related togroup support in an efficient manner.
As a result, net sales in the Other Businesses were 6,323 million yen (year-on-year decrease of 7.1%), and segment
income was 138 million yen (year-on-year decrease of 75.8%).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2016, total assets stood at 432,201 million yen, adecrease of 9,562 million yen from the end of the previous fiscal year. The main factors were decreases of 10,910 million
yen in cash and time deposits mainly due to cash dividends and income taxes paid, and 11,593 million yen in tradereceivables, while there were increases of 5,513 million yen in work in process, and 1,941 million yen in finished goods
and merchandise.
Total liabilities amounted to 124,084 million yen, a decrease of 14,166 million yen from the end of the previous fiscal
year. The main factors were decreases of 8,272 million yen in accrued employee bonuses included in other current
liabilities due to employee bonuses paid, and 8,820 million yen in accounts payable-other included in other current
liabilities, while there was an increase of 2,952 million yen in trade payables.
Total net assets stood at 308,116 million yen, an increase of 4,604 million yen from the end of the previous fiscal year.
The main factors were an increase of 2,959 million yen in retained earnings thanks to the recording of 13,949 million yen
in profit attributable to owners of parent, and an increase of 2,083 million yen in foreign currency translation adjustment
due to foreign exchange fluctuation, despite cash dividends paid of 10,989 million yen.
As a result, the equity ratio became 71.1% compared with 68.6% at the end of the previous fiscal year.

-3-(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, although there are bright signs in Japanese and overseas economic trends, the business environment is
expected to remain beset by uncertainties, including the impact on personal consumption from uncertainty in the overall
economy as well as economic trends in Europe. Such factors are also expected to have an impact on the entertainment
industry, in which the Group is extensively involved, resulting in ongoing uncertainty in this business environment.
Facing these circumstances, the Group started a new Mid-term Plan with the vision “NEXT STAGE: Empower, Gain
Momentum, and Accelerate Evolution” in April 2015. In the Mid-term Plan, the Group will further strengthen the “IP Axis
Strategy” to expand the value of its IPs through taking advantage of the worldview and unique characteristics of its IPs andproviding the best products and services at the best possible times. In addition, aiming towards growing in the global
market, the Group will further strengthen business development in the area of high growth potential, which is Asia.
For its main strategies in the Mid-term Plan, the Group will implement Business Strategies to “Accelerate Evolution in
IP Axis Strategy,” Region Strategies to “Gain Momentum in Global Markets” and Functional Strategies to “Empower andInnovate Business Model.” In its Business Strategies to “Accelerate Evolution in IP Axis Strategy,” the Group will not
only cultivate original Group IP by such means as creating and obtaining IP, but also expand new IP business such as live
events, expand its target markets, and strengthen collaboration among its businesses. In its Region Strategies to “GainMomentum in Global Markets,” the Group will not only maintain its pursuit of becoming No. 1 in each of its markets inJapan, but also proactively expand its business in Asia, where there is a promising outlook for future growth. In Americas
and Europe, the Group will implement initiatives aimed at maintaining its business foundations and expanding its
businesses. Furthermore, in its Functional Strategies to “Empower and Innovate Business Model,” the Group will create
and cultivate new IP business for the next generation and push ahead with creating foundations for the implementation of
its IP axis strategy in global markets.
In order to carry out these initiatives, in April 2015, the Group changed its organizational structure into one centered on
three SBUs (Strategic Business Units): the Toys and Hobby SBU, the Network Entertainment SBU, and the Visual andMusic Production SBU. The Group will push ahead with its strategies with a focus on these three SBUs. The Toys andHobby SBU will aim to strengthen the “IP Axis Strategy” and gain momentum in global markets, the Network
Entertainment SBU will aim to deploy a new business that goes beyond the framework of the existing game business andfuses networks and entertainment, and the Visual and Music Production SBU will create IP and strengthen the Group’sbusiness deployment as it looks toward new outlets.
The Group will push ahead with the various strategies in the Mid-term Plan, and aims to achieve the following
numerical targets for the fiscal year ending March 31, 2018: net sales of 600,000 million yen, operating income of 60,000
million yen, and ROE of at least 10%.
In light of results in the first quarter (three months) and recent business trends in each business, the Group has revised
its consolidated projections for the six months ending September 30, 2015, which were announced on May 8, 2015, asshown in the table below.
The consolidated projections for the full fiscal year are not revised in light of coming Christmas and New Year sellingseason and the continuation of dramatic changes in the market environment.
Revisions to the consolidated projections for the six months(April 1, 2015 to September 30, 2015)

Previous projections (A)Revised projections (B)Change in amount (B-A)
Change (%)
Reference: Results for thesame period of the previous
fiscal year

Net Sales

Operating
IncomeRecurring
Income(¥ million)
245,000
255,000
10,000
4.1(¥ million)
20,00025,0005,000
25.0(¥ million)
20,50025,5005,000
24.4

ProfitAttributable to
Owners of
Parent(¥ million)
13,50017,0003,500
25.9

259,333

31,87533,38921,272(April 1, 2014 to September 30,
2014)

-4-

Basic Earnings
per Share
¥
61.45
77.39
–
–

96.83

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) 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
income before income taxes and minority interests for the fiscal year including the current first quarter, and next bymultiplying the income before income taxes and minority interests by such estimated effective tax rate.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement
Changes in Accounting Policies(Application of Accounting Standard for Business Combinations, etc.)
Effective from the current first quarter, the Company has applied the Accounting Standard for Business Combinations(ASBJ Statement No. 21, September 13, 2013), the Accounting Standard for Consolidated Financial Statements (ASBJ
Statement No. 22, September 13, 2013), and the Accounting Standard for Business Divestitures (ASBJ Statement No. 7,
September 13, 2013), etc. Accordingly, the method of recording the amount of difference caused by changes in the
Company’s ownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company waschanged to one in which it is recorded as additional paid-in capital, and the method of recording acquisition-related costs
was changed to one in which they are recognized as expenses for the fiscal year in which they are incurred. Furthermore,
for business combinations carried out on or after the beginning of the current first quarter, the accounting method waschanged to one in which the reviewed acquisition cost allocation resulting from the finalization of the provisional
accounting treatment is reflected in the quarterly consolidated financial statements for the quarterly period to which thedate of business combination belongs. In addition, the presentation method for “net income” and other related items waschanged, and the presentation of “minority interests” was changed to “non-controlling interests.” To reflect these changes,
the Company has reclassified its quarterly and full-year consolidated financial statements for the previous first quarter(three months) and the previous fiscal year.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional measuresprovided for in paragraph 58-2 (4) of the Accounting Standard for Business Combinations, paragraph 44-5 (4) of the
Accounting Standard for Consolidated Financial Statements and paragraph 57-4 (4) of the Accounting Standard forBusiness Divestitures. The Company is applying the said standard, etc. prospectively from the beginning of the current firstquarter.
As a result, there was no effect from this change on operating income, recurring income and income before income
taxes and minority interests for the current first quarter (three months). In addition, the effect of this change on additional
paid-in capital as of the end of the current first quarter is immaterial.

-5-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2015)

Current 1st quarter(As of June 30, 2015)

AssetsCurrent assets
Cash and time deposits

153,541

142,631

Trade receivables

87,87576,282Finished goods and merchandise

14,563

16,504Work in process

23,183

28,696

Raw materials and supplies

5,164

5,008

Other current assets

33,64338,073

Allowance for doubtful receivables

(455)

(533)

317,516

306,663

Property, plant and equipment

53,26055,218Intangible assets

10,275

10,25561,73361,003

Total current assets
Fixed assets

Investments and other assets
Other investments and assets
Allowance for doubtful receivables(1,022)(938)

Total investments and other assets

60,71060,064

124,247

125,537

441,763432,201

Total fixed assets
Total assets-6-(¥ million)
Prior Fiscal Year(As of March 31, 2015)

Current 1st quarter(As of June 30, 2015)

Liabilities
Current liabilities
Trade payables

57,25760,210

Provision

2,768

2,106

Other current liabilities

63,11046,539Total current liabilities

123,136

108,856

136

128

Net defined benefit liability

7,999

8,048

Other long-term liabilities

6,978

7,051

Long-term liabilities
Provision

Total long-term liabilities

15,114

15,228138,250

124,084

Common stock

10,00010,000Additional paid-in capital

52,24652,246

Retained earnings

244,274

247,234

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,403)(2,407)

Total stockholders’ equity

304,118

307,073

6,757

6,550

Accumulated other comprehensive income
Unrealized gains or losses on other securities
Deferred gains or losses on hedges

1,300

913

Revaluation reserve for land

(5,695)(5,695)

Foreign currency translation adjustment(1,542)541

Remeasurements of defined benefit plans(2,045)(1,946)

Total accumulated other comprehensive income(1,224)363

Subscription rights to shares

44

99

Non-controlling interests

575

580

Total net assets
Total liabilities and net assets-7-

303,512308,116

441,763432,201

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st quarter(From April 1, 2014
to June 30, 2014)

Current 1st quarter(From April 1, 2015
to June 30, 2015)

Net sales

122,504

137,376

Cost of sales

72,18384,063Gross profit

50,32053,312

Selling, general and administrative expenses

33,47335,173Operating income

16,847

18,139

358

264

–

214

Other non-operating income

594

318

Total non-operating income

953

798

Non-operating income
Dividend income
Foreign exchange gains

Non-operating expenses
Foreign exchange losses

57–

Loss on valuation of derivatives

484

Loss on investments in partnerships

28

36

Other non-operating expenses

77

35

Total non-operating expenses

167

156

17,633

18,780Gain on sales of fixed assets

13

48

Gain on sales of investment securities

331–

Other extraordinary income

155Total extraordinary income

359

54

Loss on impairment of fixed assets

94

43

Other extraordinary loss

35

17

Total extraordinary loss

129

61

Income before income taxes and minority interests

17,863

18,772

Income taxes

6,195

4,811

Profit11,667

13,96135

12

11,632

13,949Recurring income
Extraordinary income

Extraordinary loss

Profit attributable to non-controlling interests
Profit attributable to owners of parent-8-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st quarter(From April 1, 2014
to June 30, 2014)
ProfitCurrent 1st quarter(From April 1, 2015
to June 30, 2015)

11,667

13,961

Unrealized gains or losses on other securities

(711)

(241)

Deferred gains or losses on hedges

(354)

(382)

Foreign currency translation adjustment

(504)

2,083

Remeasurements of defined benefit plans, net of tax

63

98

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

729(1,499)

1,587

10,167

15,54910,12915,536

38

12

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-9-(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.

(Segment Information)
Segment Information
I. Prior 1st quarter (From April 1, 2014 to June 30, 2014)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

44,13664,202

Inter-segment sales
and transfers

2,409

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

11,440119,780

2,723

122,504–

122,504

1,412

607

4,428

4,079

8,508

(8,508)–46,546

65,615

12,047124,209

6,803

131,012(8,508)

122,504

3,945

8,027

4,972

16,945570

17,515(667)

16,847

Net sales

Segment income

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 667 million yen deducted from segment income as adjustment are a deduction of 83 million yen
in inter-segment eliminations, and a deduction of 584 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division thathas not been attributed to a reportable segment.
Segment income is adjusted with operating income 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.

- 10 -

II. Current 1st quarter (From April 1, 2015 to June 30, 2015)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

48,34876,060Inter-segment sales
and transfers

1,660

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

10,764135,1732,202

137,376–

137,376

721

699

3,081

4,120

7,202

(7,202)–50,00876,782

11,464

138,255

6,323

144,578(7,202)

137,376

5,207

10,421

3,171

18,800138

18,938(799)

18,139Net sales

Segment income

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 799 million yen deducted from segment income as adjustment are an addition of 4 million yen
in inter-segment eliminations, and a deduction of 803 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division thathas not been attributed to a reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

2. Information regarding change to reportable segments, etc.
The Group reviewed its organizational structure with the aim of implementing a range of initiatives defined as main
strategies in its Mid-term Plan, which was started in April 2015. In line with this review, effective from the current
first quarter, the Group changed the classification of its reportable segments from the previous classifications of the“Toys and Hobby Business,” the “Content Business,” and the “Amusement Facility Business” to the “Toys andHobby Business,” the “Network Entertainment Business,” and the “Visual and Music Production Business.”
Segment information of the previous first quarter (three months) is prepared and disclosed based on the reportablesegment classifications after the organizational change.
3. 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.

- 11 -