Consolidated Financial Report for the Fiscal Year Ended
March 31, 2015

May 8, 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/)
May 8, 2015

Consolidated Financial Report for the Fiscal Year Ended March 31, 2015 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 22, 2015
Scheduled starting date for dividend payments:
June 23, 2015
Scheduled filing date of the annual security report:
June 23, 2015
The additional materials of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2015
Fiscal Year Ended
March 31, 2014

Net sales¥ million
565,486%
11.4

507,679

4.2

Net income(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
56,32026.1
59,38325.1
44,672(8.2)

Net income per share

47,456(5.0)

Net income per share(diluted)¥ million%¥
Fiscal Year Ended
37,58850.0
171.10March 31, 2015
Fiscal Year Ended
25,054(22.6)
114.05
March 31, 2014
(Note) Comprehensive income: 43,356 million yen [32.9%] (FY2015.3), 32,633 million yen [(21.4)%] (FY2014.3)
ROE(Net income / Net assets)

ROA(Recurring income /Total assets)¥
171.08114.03Operating margin(Operating income /Net sales)%%%
Fiscal Year Ended
13.2
14.0
10.0
March 31, 2015
Fiscal Year Ended
9.7
12.2
8.8
March 31, 2014
(Reference) Gain or loss from application of equity method: 1,025 million yen (FY2015.3), 1,169 million yen (FY2014.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2015
441,763
303,512
68.6
As of March 31, 2014
405,092
267,951
66.0(Reference) Equity: 302,893 million yen (as of March 31, 2015), 267,521 million yen (as of March 31, 2014)

Net assets
per share¥
1,378.77
1,217.74

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
50,103¥ million(19,515)¥ million(12,591)

Cash and cash
equivalents at endof period¥ million
153,764

41,291(14,421)(15,070)

134,666

Fiscal Year Ended
March 31, 2015
Fiscal Year Ended
March 31, 2014
2. Cash Dividends

Fiscal Year Ended
March 31, 2014
Fiscal Year Ended
March 31, 2015

End offirstquarter¥––

Annual Cash Dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
23.00
12.00

–

50.00

Total

¥
35.00

Payout ratio
Dividend /Total(Consolidated) Net assets
dividend(Consolidated)
payment(Full year)¥ million
%
%
7,693
30.7
3.0

62.00

13,627

36.2

4.8

–
12.00
–
12.00
24.00
Fiscal Year Ending
17.6
March 31, 2016
(Projections)(Note) The year-end cash dividend per share for the fiscal year ended March 31, 2015 consists of:
Ordinary cash dividend per share: 40.00 yen and Special dividend per share: 10.00 yen.
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2016, the stable dividend portions are 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, 2016, will be considered by the Company in light of theconsolidated operating results and other factors.
3. 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
245,000(5.5)
20,000 (37.3)
20,500 (38.6)
13,500 (36.5)
61.45
September 30, 2015
Full Fiscal Year
530,000(6.3)
45,000 (20.1)
46,000 (22.5)
30,000 (20.2)
136.56* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Change in Accounting Policy)”of “4. Consolidated Financial Statements” on page 21 of the attached material.
(3) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2015
222,000,000 shares
As of March 31, 2014
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of March 31, 2015
2,316,797 shares
As of March 31, 2014
2,312,098 sharesc) Average number of shares during the period
For the Fiscal Year ended March 31, 2015
219,685,816 shares
For the Fiscal Year ended March 31, 2014
219,689,321 shares

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2015
Fiscal Year Ended
March 31, 2014

Operating revenue¥ million%
24,1497.922,38323.1

Net income

Fiscal Year Ended
March 31, 2015
Fiscal Year Ended
March 31, 2014

(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
22,286
14.6
22,591
14.6
19,44227.6

Net income per share

19,70929.2

Net income per share(diluted)¥ million(3,685)%–¥(16.77)¥–

19,787

29.3

90.02

90.01

(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
334,531
236,857
70.8
As of March 31, 2014
336,338
247,059
73.4(Reference) Equity: 236,813 million yen (as of March 31, 2015), 247,015 million yen (as of March 31, 2014)
As of March 31, 2015

Net assets
per share¥
1,077.42
1,123.81

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2016 (April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring income
Net income
Basic earnings
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
29,00020.1
24,0006.2
24,000–109.19* Implementation status of audit
This Consolidated Financial Report was exempt from audit which was based on Financial Instruments and Exchange Law of Japan. Asof the fiscal year disclosing, audit for the 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 “(1) Analysis on Results ofOperations b. Future Outlook” of “1. Analysis on Results of Operations and Financial Position” on pages 3-4 of the attached material
for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results will be posted on the Company’s website on May 8, 2015.

Attached Material
Index
1. Analysis on Results of Operations and Financial Position ................................................................ 2(1) Analysis on Results of Operations ...................................................................................................................................... 2(2) Analysis of Financial Position ............................................................................................................................................ 5(3) Basic Policy on the Distribution of Profits ......................................................................................................................... 6

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

3. Basic Concept Regarding Selection of Accounting Standards ........................................................ 10
4. Consolidated Financial Statements ....................................................................................................11(1) Consolidated Balance Sheets ............................................................................................................................................ 11(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................. 13(Consolidated Statements of Operations) ......................................................................................................................... 13(Consolidated Statements of Comprehensive Income)..................................................................................................... 14(3) Consolidated Statements of Changes in Net Assets .......................................................................................................... 15(4) Consolidated Statements of Cash Flows ........................................................................................................................... 17(5) Notes to Consolidated Financial Statements ..................................................................................................................... 19(Notes on Premise of Going Concern) ............................................................................................................................. 19(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements) .......................... 19(Change in Accounting Policy) ........................................................................................................................................ 21(Segment Information) ..................................................................................................................................................... 22(Per-Share Data) ............................................................................................................................................................... 28(Significant Subsequent Events) ...................................................................................................................................... 29

5. Other .................................................................................................................................................... 31
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 31-1-

1. Analysis on Results of Operations and Financial Position(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2014 to March 31, 2015)
During this fiscal year, although the Japanese economy showed a moderate tone of recovery, it was also affected by apullback from the last minute demand due to the consumption tax increase, and the continued depreciation of the yen andfall in the crude oil price. These factors contributed to uncertainty in the outlook for the overall economy, which had an
impact encompassing personal consumption. Overseas, in Asia there was continued market expansion in the ASEAN
region in line with growth in incomes, while, on the other hand, other regions experienced slowdowns in economic growth.
Although in North America economic conditions and internal demand followed moderate recovery trends, some areas inEurope showed slow growth in internal demand.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various initiatives aimed at medium- tolong-term growth, focusing on its IP (Intellectual Property: intellectual property of characters) axis strategy, under theconcept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of the Group’s three-year Mid-term
Plan, started in April 2012. On the business front, the Toys and Hobby Business in Japan had favorable sales of new IP
products and long-established IP products. In addition, sales were favorable in the Content Business in game software in
North America and Europe as well as network content and visual and music content.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 565,486 million yen (year-on-yearincrease of 11.4%), operating income of 56,320 million yen (year-on-year increase of 26.1%), recurring income of 59,383
million yen (year-on-year increase of 25.1%), and net income of 37,588 million yen (year-on-year increase of 50.0%).
Operating results by segment are as follows.

Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed favorably thanks to products of the new IP Yokai Watch
and long-established IP such as Mobile Suit Gundam. In addition, sales of products including the long-established IP
KAMEN RIDER series and Super Sentai series (Power Rangers series), and the IP Aikatsu! for girls, performed
favorably due to cross-functional efforts undertaken across all businesses. Aside from that, the Group strived to broaden
the variety of its target customers by such means as stepping up development of products for adults, and also for babies
and pre-school children, to steadily move toward achieving our objective of becoming No. 1 in each target and market
in Japan by an overwhelming margin.
Overseas, in North America and Europe, products of the Power Rangers series sold steadily, while products of the
newly launched movie IP BIG HERO 6 sold favorably. Nevertheless, performances in North America and Europe wereweak overall. In the Asian region, toys, plastic models and collectable toys for adults became popular thanks todevelopments in conjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 230,918 million yen (year-on-year increase of 23.9%),and segment income was 17,040 million yen (year-on-year increase of 62.1%).

Content BusinessLooking at the Content Business, in Japan, key titles in social games and application games for smartphones soldstably. In addition, new titles, such as ONE PIECE Treasure Cruise and DRAGON BALL Z Dokkan Battle, soldfavorably. In home video game software, there was a decline in sales in comparison with the previous fiscal year, when-2-

there were launches of several big titles. Also, in the area of visual and music content, visual and music content such as
LoveLive! School idol project, which is IP for which visual content was developed in conjunction with music content,
and Mobile Suit Gundam UC (Unicorn) episode 7: Over the Rainbow, etc. sold favorably and contributed toperformance. In addition, the Group proactively held live events such as concerts as a new outlet for its IP axis strategy.
However, while popular series titles for arcade game machines have sold steadily, the business struggled due to theeffects of fluctuations in the market and so on.
Overseas, sales of game software launched in North America and Europe, DRAGONBALL XENOVERSE, andrepeat sales of DARK SOULS II released in the previous fiscal year moved to an excellent position.
As a result, net sales in the Content Business were 288,009 million yen (year-on-year increase of 3.4%), andsegment income was 40,927 million yen (year-on-year increase of 9.9%).

Amusement Facility BusinessIn the Amusement Facility Business, the Group pushed ahead with a range of measures aimed at rebuilding thebusiness, such as strengthening the allocation of store personnel and measures to attract customers. In addition, theGroup pushed ahead with initiatives such as developing differentiated facilities that offer the experience of itsdistinctive worldview of specific IPs and concentrating resources on large stores. However, sales of existing facilities inJapan declined to 91.2% of the previous fiscal year. Overseas, sales were steady thanks to efficient operations.
As a result, net sales in the Amusement Facility Business were 55,538 million yen (year-on-year decrease of 4.6%),
and segment loss was 2,287 million yen (compared with segment loss of 897 million yen for the previous fiscal year).

Number of Facilities as of March 31, 2015
Directly Managed
Facilities

Revenue-Sharing
Facilities

Others

Total

237

1,046

10

1,293

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kindsof administration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU,
Content SBU, and Amusement Facility SBU. We are making efforts to manage such operations related to group support
in an efficient manner.
As a result, net sales in the Other Businesses were 27,006 million yen (year-on-year decrease of 1.3%), and segment
income was 1,462 million yen (year-on-year decrease of 11.2%).

b. Future Outlook
Looking ahead, although there are some bright signs in Japanese economic trends, the business environment is
expected to remain beset by uncertainties, including the impact on personal consumption from uncertainty in the overall
economy as well as economic trends in North America and Europe. Such factors are also expected to have an impact on theentertainment industry, in which the Group is extensively involved, resulting in ongoing uncertainty in this businessenvironment.
Facing these circumstances, the Group started a new Mid-term Plan with the vision “NEXT STAGE: Empower, Gain
-3-

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 “Gain Momentumin Global Markets,” the Group will not only maintain its pursuit of becoming No. 1 in each of its markets in Japan, but also
proactively expand its business in Asia, where there is a promising outlook for future growth. In Americas and Europe, theGroup 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 inglobal markets.
In order to carry out these initiatives, the Group changed its organizational structure in April 2015, under which it
previously implemented business strategies with a focus on its array of three businesses: the Toys and Hobby SBU(Strategic Business Unit), the Content SBU, and the Amusement Facility SBU. The Group will push ahead with its
strategies with a focus on the following three SBUs: the Toys and Hobby SBU, which will aim to strengthen the IP axis
strategy and gain momentum in global markets; the Network Entertainment SBU, which will aim to deploy a new businessthat goes beyond the framework of the existing game business and fuses networks and entertainment; and the Visual andMusic Production SBU, which will create IP and strengthen the Group’s business deployment as it looks toward newoutlets. The former Amusement Facility SBU will be added to the Network Entertainment SBU. It does not only develop
its value chain so as to deploy a unified business; it also aims to create a new business by combining real-life face-to-facecommunications and digital technology.
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 the above considerations, the consolidated projections of the fiscal year ending March 31, 2016 are as
follows: net sales of 530,000 million yen (year-on-year decrease of 6.3%), operating income of 45,000 million yen(year-on-year decrease of 20.1%), recurring income of 46,000 million yen (year-on-year decrease of 22.5%), and profit
attributable to owners of parent of 30,000 million yen (year-on-year decrease of 20.2%).

-4-

(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2015, total assets stood at 441,763 million yen, an increase of 36,670
million yen from the end of the previous fiscal year. The main factors were increases of 22,138 million yen in cash andtime deposits and 11,287 million yen in trade receivables.
Total liabilities amounted to 138,250 million yen, an increase of 1,109 million yen from the end of the previous fiscal
year. The main factor was an increase of 5,632 million yen in trade payables, despite decreases of 2,493 million yen in
short-term borrowings included in other current liabilities and 2,321 million yen in long-term borrowings included in otherlong-term liabilities due to repayment.
Total net assets stood at 303,512 million yen, an increase of 35,561 million yen from the end of the previous fiscal year.
The main factors were an increase of 29,858 million yen in retained earnings thanks to the recording of 37,588 million yen
in net income, and increases of 1,105 million yen in deferred gains or losses on hedges, net of tax, and 3,603 million yen inforeign currency translation adjustments due to foreign exchange fluctuation, despite cash dividends paid of 7,693 million
yen.
As a result, the equity ratio became 68.6% compared with 66.0% at the end of the previous fiscal year.

b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (hereafter “funds”) remaining on hand had increased by
19,097 million yen from the end of the previous fiscal year to 153,764 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 50,103 million yen (up 21.3% compared with the previous
fiscal year). As a breakdown of funds used, income taxes paid was 19,532 million yen (compared with 18,219 million yen
in the previous fiscal year). However, overall, there was a net increase in funds due to income before income taxes andminority interests of 56,484 million yen (compared with 42,759 million yen in the previous fiscal year) and depreciation
and amortization of 23,712 million yen (compared with 21,725 million yen in the previous fiscal year).

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 19,515 million yen (up 35.3% compared with the previous
fiscal year). The main breakdown of funds used was purchases of property, plant and equipment and intangible assets
totaling 16,771 million yen (compared with 15,602 million yen in the previous fiscal year).

(Cash Flows from Financing Activities)
The amount of funds used in financing activities amounted to 12,591 million yen (down 16.5% compared with theprevious fiscal year). The main factors for funds used were cash dividends paid of 7,693 million yen (compared with 9,891
million yen in the previous fiscal year) and repayment of long-term borrowings of 4,877 million yen (compared with 6,051
million yen in the previous fiscal year).

-5-

(Reference) Cash Flow Indices
FY2011.3

FY2012.3

FY2013.3

FY2014.3

FY2015.3

Equity ratio (%)

68.8

61.8

66.0

66.0

68.6

Equity ratio (market capitalization basis) (%)

69.6

76.7

97.8

132.5

116.3

0.2

0.5

0.4

0.2

0.1

42.0

338.4

244.8

308.0

635.3

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

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(3) Basic Policy on the Distribution of Profits
The Company places the return of profits to shareholders as one of its highest priorities in its management. The
Company assumes that its basic policy is to further strengthen the Group’s competitiveness and, while maintaining a soundfinancial status, to achieve regular distributions of dividends and improvement in the Company’s corporate value. In
concrete terms, the Company will provide a return to shareholders that targets a consolidated payout ratio of 30%, based onstable annual dividend payments of 24 yen per share. The Company will add a performance-based dividend of 28 yen per
share to the stable annual dividend of 24 yen per share, and will also pay an additional special dividend due to achieving
targets of the previous Mid-term Plan (April 2012 - March 2015) and because ten years have passed since the Group’s
establishment, to pay an annual dividend of 62 yen per share for this fiscal year (year ended March 31, 2015). At present,
the Company’s annual dividend forecast for next fiscal year (year ending March 31, 2016) is the provision of the stabledividend of 24 yen per share, and this will be considered by the Company in light of the consolidated operating results andother factors.
In addition, its fundamental policy is that part of any profit, after deduction of dividends, may be used to acquire
treasury stock, upon comprehensive consideration of the amount of funds on hand, performance trends, recent share pricetrends, the existence or nonexistence of major investment proposals, and other factors.

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2. Management Policies(1) Fundamental Management Policy
The Group mission is to offer “Dreams, Fun and Inspiration,” to people throughout the world, through the products andservices of the Group’s Toys and Hobby Business, Network Entertainment Business and Visual and Music Production
Business, aiming at the vision of becoming “The Leading Innovator in Global Entertainment.”
Under the Mid-term Plan implemented from April 2012 to March 2015, the Group pursued various strategies aroundthe “IP Axis Strategy.” On the business front, specific measures aimed at the regional characteristics of each market were
pursued. Japan, where the Group has secured a certain level of market share, was set as the “Basic Business Area,” and theGroup aimed to further expand its existing share and revenue utilising the strengths of each business operation. North
America and Europe, set as the “Profit Recovering Area,” had revenue recovery as its first priority, and also aimed towards
stabilising revenue. In Asia, set as the “New Growth Area,” the Group focused on strengthening expansion of each business
operation, and aimed to grow around the pillars of new business operations and regions.
Under the three-year Mid-term Plan that started in April 2015 the Group will further strengthen the “IP Axis Strategy”
to expand the value of its IPs based on the Mid-term Vision of “NEXT STAGE: Empower, Gain Momentum and Accelerate
Evolution” taking light of the effects and issues arising in the previous Mid-term Plan, through taking advantage of theworldview and unique characteristics of its IPs and providing 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 areaof high growth potential, which is Asia.
Advancing these policies based on the Mid-term Plan, the Group aims to move to the next stage as an entertainment
corporate group.

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

(3) Medium- to Long-term Business Strategy
Under the three-year Mid-term Plan, which started in April 2015, the Group will implement three main strategies:
Business Strategies to “Accelerate Evolution in IP Axis Strategy,” Region Strategies to “Gain Momentum in Global
Markets” and Functional Strategies to “Empower and Innovate Business Model.”Business Strategies to “Accelerate Evolution in IP Axis Strategy”
a. Cultivate Original Group IPs
b. Enlarge New IP Businesses
c. Expand Target Market
d. Collaborate across SBUs

In order to further solidify the IP axis strategy, the BANDAI NAMCO Group’s strength, we will cultivate originalGroup IPs by such means as creating and obtaining IP. In addition to creating IP through its products and services, the-7-Group will implement an organizational change for the purpose of strengthening its capability to create IP, and strengthen
this capability accordingly. The Group will also expand new IP business such as live events, expand its target markets, andfurther strengthen collaboration among its businesses, a distinctive feature of the BANDAI NAMCO Group.

Region Strategies to “Gain Momentum in Global Markets”
a. Expand in Asia and Japanb. Renew in Americas and Europe

In Japan, the Group will continue seeking to be No. 1 in each market and working to appeal to target populations it has
not yet reached. Moreover, in Asia, where further growth is expected, the Group will push ahead with detailed businessstrategies that are tailored to the distinctive features of regions while maintaining linkage with Japan, and carry out
aggressive business expansion. In Americas and Europe, the Group will continue maintaining its profit foundations andimplement business growth measures such as expanding its IP lineup and its business.

Functional Strategies to “Empower and Innovate Business Model”
a. Deepen the current business modelb. Create and foster the new IP businessc. Implement IP axis strategy in global market

The Group will create and cultivate new IP business for the next generation, push ahead with creating foundations forthe implementation of its IP axis strategy in global markets, and others.

Strategies by Business
Main strategies in each SBU are as follows.

a. Toys and Hobby SBU• Strengthen the IP-based business model• No.1 in All Asia and in each business in each country• Europe and Americas Challenge• Strengthen the Global Foundationb. Network Entertainment SBU• Implement new business development in the real and digital fields• Take steps to expand business in the network field• Advance regional expansion (China)• Reinforce local models for products and services originating in current markets (Europe and the Americas)• Develop Original classic IP and user-generated content• Take on the challenge of creating new IP-8-c. Visual and Music Production SBU• Cultivate original Group IP assets• Strengthen IP production capabilities• Pursue overall optimization(4) Issues to be Addressed
The Group and this industry must address many important, long-term issues, including (i) diversifying customer needs,(ii) reacting to changes in the market and the environment, and (iii) increasingly intense competition on a global scale. The
Group is applying the main strategies defined in its Mid-term Plan to address these issues swiftly.

a. Common Issues Faced by All Strategic Business Units (“SBUs”)
Efforts Toward Maximizing the Value of IP
The Group is strengthening its IP creation, development, acquisition, and utilization functions in order to respond tochanges in the environment such as development of oligopolies in the distribution and media fields, the widespread
penetration of networks, and technological improvements. Specifically, the Group will seek to maximize the value of its IP
through promotion of collaboration among its businesses and cross-functional projects in the Group while creating IP by its
products and services and operating the IP posting system by Group employees. Furthermore, to strengthen ties with IPs
owned by other companies, we will undertake strategic investments related to IP.

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

b. Issues Specific to Each SBU
Toys and Hobby SBU
This unit’s industry is facing issues, such as a “shrinking domestic market due to the falling birthrate” and “increasingly
diverse customer needs.” This unit is addressing these issues by aiming for the position as the overwhelming No. 1 in Japan,
working at expanding its target population segment and creating new businesses. In addition, it will expand its IP lineup
and regions in which it is operating, with the aim of expanding its operations across Asia, which is predicted to continue togrow. In the North American and European markets, it is aiming for medium-term growth through establishing foundations
and strengthening major IP expansion for improving profitability. In addition, on the development and production side,
improvements in the value chain will enable more speedy and price-competitive product development.

Network Entertainment SBU
This unit’s industry is facing issues that include “increasingly diverse platforms,” “evolution of networks” and-9-

“increasingly diverse customer needs.” To address these issues, it will endeavor to create new entertainment utilizing
networks, over and above the boundaries of existing operations and products/services. As for network content such as
application game titles, it will respond to new platforms and expand overseas operations. For its amusement facility
operations, it will endeavor to improve its development of facilities to differentiate the Group by utilizing our IPs, and plan
new amusement facilities by integrating the real and digital worlds. On the development front, the unit will put in place andimprove the development environment, such as by implementing measures to respond swiftly to technological progress andchanges in the environment.

Visual and Music Production SBUThis unit’s industry is facing issues, such as “increasingly diverse customer needs” and “intensification of competition
in IP creation.” To address these issues, it will focus on production-related businesses such as in live events and fan clubs,
in addition to sales of visual and music packaged products. In addition, in the area of IP creation, it will continue to pursue
improved quality in its creations and stronger collaboration with products/services within the Group, by dividing its
organizations dealing with the planning/development and creation of animation products and so on into those aimed
towards products for older customers and those aimed towards ones for children and families.

3. Basic Concept Regarding Selection of Accounting Standards
The Group has decided to apply Japanese GAAP.
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.

- 10 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2014)

Current Fiscal Year(As of March 31, 2015)

AssetsCurrent assets
Cash and time deposits

131,403

153,541

Trade receivables

76,587

87,875

Finished goods and merchandise

15,276

14,563Work in process

23,27423,183

Raw materials and supplies

6,463

5,164

Deferred tax assets

9,913

8,953

Other current assets

22,073

24,689

(594)

(455)

284,398

317,516

26,76329,468

Accumulated depreciation(15,644)(16,356)

Buildings and structures, net

11,118

13,111

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

Amusement facilities and machines

59,88657,070

Accumulated depreciation(46,069)(43,365)

Amusement facilities and machines, net

13,816

13,704Land

11,63011,956

Other property, plant and equipment

99,418110,723

Accumulated depreciation(84,011)(96,235)

Other property, plant and equipment, net

15,407

14,48751,97253,260Intangible assets

10,145

10,275Investments and other assets
Investment securities

28,56832,85547

143

Total property, plant and equipment

Net defined benefit asset
Deferred tax assets

11,35011,651Other investments and assets

19,62517,082

Allowance for doubtful receivables(1,015)(1,022)

Total investments and other assets

58,57660,710120,694

124,247

405,092

441,763

Total fixed assets
Total assets- 11 -

(¥ million)
Prior Fiscal Year(As of March 31, 2014)

Current Fiscal Year(As of March 31, 2015)

Liabilities
Current liabilities
Trade payables

51,62557,257

Accounts payable-other

27,821

24,760Accrued income taxes

8,827

7,063

Provision for directors’ bonuses

1,094

1,260

607

94

Provision for sales returns

Provision for losses from business restructuring

1,241

984

Other current liabilities

28,916

31,714

Total current liabilities

120,134

123,136

8,062

7,999

516

468

8,427

6,647

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

17,00615,114

137,141

138,250

Common stock

10,00010,000Additional paid-in capital

52,24552,246

Retained earnings

214,416

244,274

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,390)(2,403)

Total stockholders’ equity

274,271304,118

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

6,226

6,757

194

1,300

Revaluation reserve for land, net of tax(5,743)(5,695)

Foreign currency translation adjustments(5,145)(1,542)Remeasurements of defined benefit plans(2,282)(2,045)

Total accumulated other comprehensive income(6,749)(1,224)

Subscription rights to shares

44

44

Minority interests

385

575

267,951

303,512405,092

441,763

Deferred gains or losses on hedges, net of tax

Total net assets
Total liabilities and net assets- 12 -

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

Net sales

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

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)
565,486

Cost of sales

316,850

352,373

Gross profit

190,829

213,112Selling, general and administrative expenses

146,156

156,791

Operating income

44,67256,320221

180

Non-operating income
Interest income
Dividend income
Equity in gain of affiliated companies
Foreign exchange gain
Interest on refund

494

460

1,169

1,025

655

530

2

505

Other non-operating income

1,254

782

Total non-operating income

3,797

3,484

124

73

Sales discounts

16

59

Provision of allowance for doubtful accounts

173

90

Provision for loss on guarantees

263–

Loss on investments in partnerships

383

139

Other non-operating expenses

52

57

Total non-operating expenses

1,013

421

47,45659,383Non-operating expenses
Interest expense

Recurring income
Extraordinary income
Gain on negative goodwill

101–

Gain on sales of investment securities

11

510

State subsidy

93

122

Gain on forgiveness of debts

200–

Other extraordinary income

75

165

Total extraordinary income

481

798

Loss on impairment of fixed assets

2,002

2,867

Other extraordinary loss

3,175

830

Total extraordinary loss

5,178

3,697

Income before income taxes and minority interests

42,75956,484

Corporate income, inhabitant and enterprise taxes

19,193

18,813Extraordinary loss

Adjustment for income taxes(1,321)(157)

Total income taxes

17,872

18,655

Income before minority interests

24,88737,828

Minority interests in income (loss)

(167)

239

25,05437,588Net income- 13 -

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2013
to March 31, 2014)
Income before minority interests

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

24,88737,828

Unrealized gains or losses on other securities, net of tax

986

458

Deferred gains or losses on hedges, net of tax

(449)

1,093

–

47

7,159

3,598

Remeasurements of defined benefit plans, net of tax–

237

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

50

92

7,746

5,528

32,63343,35632,67043,113(36)

242

Other comprehensive income

Revaluation reserve for land, net of tax
Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests- 14 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Stockholders’ equity
Additional paid-in
capitalCommon stock
10,000

Balance as of April 1, 2013

Retained earnings

52,245

Treasury stock

199,118

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

Cumulative effects ofchanges in accounting
policies–
10,000

Restated balance

52,245

199,118(2,385)258,979

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

Net income

25,05425,054Purchase of treasury stock0

Disposal of treasury stock
Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land
Net changes in the period
other than changes instockholders’ equity

(6)

(6)

0

0

0

0

134

134

Total changes during the period–

015,298(5)

15,292

Balance as of March 31, 2014

10,00052,245

214,416(2,390)274,271

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

Balance as of April 1, 2013

5,212

Deferred gains
or losses onhedges,net of tax

642

Revaluation
reserve for land,
net of tax

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

Total accumulated Subscription Minority interests Total net assets
Remeasurements
rights to shares
otherof defined benefit
comprehensive
plansincome–(11,948)–

1,738

Cumulative effects ofchanges in accounting
policies
Restated balance

248,769

–
5,212

642

(5,608)(12,194)–(11,948)–

1,738

248,769

Changes during the period
Cash dividends(9,891)

Net income

25,054Purchase of treasury stock(6)

Disposal of treasury stock0

Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land
Net changes in the period
other than changes instockholders’ equity

0

(134)

–

(134)

1,014

(447)

–

7,049

(2,282)5,333

44(1,353)

4,024

Total changes during the period

1,014

(447)

(134)

7,049

(2,282)

5,198

44(1,353)

19,181

Balance as of March 31, 2014

6,226

194

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

267,951- 15 -

Current Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Stockholders’ equity
Additional paid-in
capitalCommon stock
10,000

Balance as of April 1, 2014

52,245Retained earnings

Treasury stock

214,416

Cumulative effects ofchanges in accounting
policies

Total stockholders’equity(2,390)274,271(37)
10,000

Restated balance

52,245(37)

214,379(2,390)274,233

Changes during the period
Cash dividends(7,693)(7,693)

Net income

37,58837,588Purchase of treasury stock0

Disposal of treasury stock
Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land
Net changes in the period
other than changes instockholders’ equity

(13)

(13)

0

1

0

0

–

Total changes during the period–

029,895(12)

29,884

Balance as of March 31, 2015

10,00052,246244,274(2,403)

304,118

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

Balance as of April 1, 2014

6,226

Deferred gains
or losses onhedges,net of tax

194

Revaluation
reserve for land,
net of tax

Foreigncurrencytranslation
adjustments

Remeasurementsof defined
benefit plans(5,743)(5,145)(2,282)

Total accumulated Subscription Minority interests Total net assets
rights to shares
othercomprehensive
income(6,749)44385

Cumulative effects ofchanges in accounting
policies
Restated balance

267,951
(37)

6,226

194

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

267,914

Changes during the period
Cash dividends(7,693)

Net income

37,588Purchase of treasury stock(13)

Disposal of treasury stock

1

Changes in treasury stock
accompanying
changes to holdings incompanies to which theequity method is applied
Reversal of revaluation
reserve for land
Net changes in the period
other than changes instockholders’ equity

0

–
531

1,105

47

3,603

237

5,524

–

189

5,714

Total changes during the period

531

1,105

47

3,603

237

5,524

–

189

35,598

Balance as of March 31, 2015

6,757

1,300

(5,695)(1,542)(2,045)(1,224)

44575

303,512- 16 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

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

42,75956,484

Depreciation and amortization

21,72523,712

Loss on impairment of fixed assets

2,002

2,867

Amortization of goodwill

120

158

Gain on negative goodwill

(101)

–

Increase (decrease) in allowance for doubtful receivables

(513)

(161)

Increase (decrease) in provision for losses from businessrestructuring

224

(506)

Increase (decrease) in provision for sales returns

(239)

(221)

Increase (decrease) in provision for directors’ bonuses

(80)

164

Increase (decrease) in net defined benefit liability
Interest and dividend income

626
(715)

410
(641)

Interest expense

124

73

Foreign exchange losses (gains)

(106)

202

(1,169)(1,025)

Loss on disposal of fixed assets

154

167

Loss (gain) on sales of fixed assets, net

(23)

(25)

Loss on disposal of amusement facilities and machines

579

576

Loss (gain) on sales of investment securities, net

(11)

(500)

Loss (gain) on valuation of investment securities

262

136

Decrease (increase) in trade receivables

5,105(9,681)

Decrease (increase) in inventories(7,167)236

Acquisition of amusement facilities and machines(5,132)(5,232)

812

4,289

Increase (decrease) in accounts payable-other

3,845(3,676)

Increase (decrease) in consumption tax payables(1,140)

4,297

Other

(3,031)(3,031)

Subtotal

58,91069,074735

640

Equity in loss (gain) of affiliated companies

Increase (decrease) in trade payables

Interest and dividends received
Interest paid

(134)

(78)

Income taxes paid

(18,219)(19,532)

Net cash provided by operating activities

41,291

50,103- 17 -

(¥ million)
Prior Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

Cash flows from investing activities
Payments for deposit in time deposits(711)(4,062)

Proceeds from withdrawal from time deposits

4,230

3,340

Purchases of property, plant and equipment(10,414)(11,792)

99

84

Sales of property, plant and equipment
Purchases of intangible assets(5,187)(4,978)Purchases of investment securities

(503)

(332)

Sales of investment securities

144

632

Proceeds from liquidation of subsidiaries

575–

Purchase of investments in subsidiaries(2,743)(619)

Proceeds from sales of shares of subsidiaries

8–

Purchase of shares of subsidiaries and associates–(1,750)

Payments for investments in capital of affiliated companies

(300)

–

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

327–

Payments of loans receivable

(328)

(795)

Collection of loans receivable

834

237

Payments of guarantee money deposited

(919)

(829)

Collection of guarantee money deposited

688

1,617

Other

(222)

(267)

(14,421)(19,515)313

74

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

710–

Repayment of long-term borrowings(6,051)(4,877)

Payment of lease obligations

(128)

(82)

Purchase of treasury stock

(6)

(13)

Proceeds from disposal of treasury stock0

1(9,891)(7,693)

Cash dividends paid
Cash dividends paid to minority interests

(16)

(1)

(15,070)(12,591)

Effect of exchange rate changes on cash and cash equivalents

3,824

1,101

Net increase (decrease) in cash and cash equivalents

15,62419,097

Cash and cash equivalents at beginning of year

119,041

134,666

Cash and cash equivalents at end of year

134,666

153,764

Net cash used in financing activities- 18 -

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

(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements)
1. Information Concerning the Scope of Consolidation(1) Total Number of Consolidated Subsidiaries:
Prior Fiscal Year:66 companies

Current Fiscal Year: 65 companies
Names of Principal Consolidated Subsidiaries:
Bandai Co., Ltd., BANDAI NAMCO Games Inc., NAMCO LIMITED, BANDAI NAMCO Holdings
USA Inc., BANDAI S.A., BANDAI NAMCO Holdings UK LTD. and BANDAI NAMCO ASIA CO.,LTD.
Since BANDAI NAMCO Entertainment Malaysia Sdn. Bhd. and BANDAI NAMCO (SHANGHAI) CO., LTD.
were newly established in this consolidated fiscal year, they are included within the scope of consolidation.
Since BNDeNA Inc. and BANDAI (GUANGZHOU) CO., LTD., which were consolidated subsidiaries in thefiscal year ended March 31, 2014, were liquidated, and since the Company disposed of shares of Vicious Cycle
Software, Inc., these companies have been excluded from the scope of consolidation.
NAMCO BANDAI Holdings (USA) Inc. has changed its trade name to BANDAI NAMCO Holdings USA Inc.
and BANDAI (H.K.) CO., LTD. has changed its trade name to BANDAI NAMCO ASIA CO., LTD.
(2) Names etc. of the Principal Non-Consolidated Subsidiaries:
Principal Non-Consolidated Subsidiaries:
SHANGHAI NAMCO LTD. and BANDAI LOGIPAL (H.K.) LTD.
Non-consolidated subsidiaries have been excluded from the scope of consolidation. As the scale of the businessconducted by each of those companies is small and the total assets, net sales, net income or loss and retained
earnings, etc. corresponding to the ownership held by the Company of each non-consolidated subsidiary have nomaterial impact on the consolidated financial statements.
2. Information Concerning Application of the Equity Method(1) Number of Non-Consolidated Subsidiaries to Which the Equity Method Was Applied:
1 company
Name of the Company:
SHANGHAI NAMCO LTD.

- 19 -

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

5 companies

Current Fiscal Year: 6 companies
Names of the Principal Companies:
Happinet Corporation, Sotsu Co., Ltd. and People Co., Ltd.
Since the Company newly invested in Anime Consortium Japan Inc. during this consolidated fiscal year, thiscompany is included within the scope of application of the equity method.
(3) Non-Consolidated Subsidiaries and Affiliated Companies to Which the Equity Method Was Not Applied:
The equity method was not applied to non-consolidated subsidiaries and affiliated companies such as BANDAI
LOGIPAL (H.K.) LTD., because it was deemed that the exclusion of those companies from the application of theequity method would have little, and no material impact on the consolidated financial statements of the Company
and it seemed unimportant as a whole in consideration of net income or loss and retained earnings, etc.
corresponding to the Company’s equity share in it.
(4) If any of the companies to which the equity method is applied has a fiscal year that differs from the consolidated
fiscal year, then the financial statements for the fiscal year of that company are used.
3. Information Concerning the Fiscal Year, etc. for Consolidated Subsidiaries
The fiscal year closing dates for BANDAI (SHENZHEN) CO., LTD. and BANDAI NAMCO (SHANGHAI) CO.,LTD. are December 31, and their financial data as of their respective closing dates are used. The fiscal year closing
date for Sun-Star Stationery Co., Ltd is June 30 and its financial data is based on a provisional closing as of December
31 pursuant to procedures for the fiscal year-end closing.
Necessary adjustments on a consolidated basis are made when transactions of material importance occur between
the reported closing date and the consolidated closing date.
4. Information Concerning the Basis for Accounting Treatment
Method of accounting for retirement benefits
a. Method of attributing expected retirement benefits to periods
In calculating the retirement benefit obligations, some of the consolidated subsidiaries use the benefit formulabasis in determining the amount of the expected retirement benefit obligations attributed to the period up to the endof this consolidated fiscal year.
b. Method of recognizing actuarial gains and losses and past service costs
The entire amount of past service costs is recognized in gain or loss in the fiscal year during which it arises, andis amortized on a straight-line basis over a period (10 years), which is within the average remaining years of serviceof the eligible employees.

- 20 -

Actuarial gains and losses are recognized in gain or loss in the year following the year in which a respective gainor loss arises, and are amortized proportionally on a straight-line basis over a certain period (9 to 19 years) that iswithin the average remaining period of service of the eligible employees.
c. The Company and certain consolidated subsidiaries use a simplified method in calculating net defined benefit
asset, net defined benefit liability, and periodic pension cost under which retirement benefit obligations are
principally based on accrued benefits at the end of the year.
Apart from the information contained above, other important information constituting the basis for preparation of
consolidated financial statements has been omitted as no significant changes have occurred since this information waspresented in the most recent annual security report (filed on June 24, 2014).

(Change in Accounting Policy)(Application of Accounting Standard for Retirement Benefits, etc.)
For the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and Guidance on
Accounting Standards for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015), the Company and its
consolidated domestic subsidiaries have additionally applied the provisions set forth in the main clauses of paragraph
35 of the Accounting Standard for Retirement Benefits and paragraph 67 of the Guidance on Accounting Standard for
Retirement Benefits effective from this consolidated fiscal year. Accordingly, the Company and its consolidated
domestic subsidiaries reviewed the calculation of retirement benefit obligations and current service cost and changed
the method of attributing expected benefits to periods from the straight-line basis to the benefit formula basis as wellas amended the determination of discount rate from that determined based on bonds with a maturity period
approximate to the expected average remaining working lives of employees to one that uses a single weighted average
discount rate reflecting the estimated timing of retirement benefit payment and the estimated amount of eachretirement benefit payment.
The application of the Accounting Standard for Retirement Benefits and its Guidance is in accordance with thetransitional measures provided in paragraph 37 of the Accounting Standard for Retirement Benefits. Accordingly, theeffect of the change in the calculation of retirement benefit obligations and current service cost has been added to or
deducted from retained earnings as of the beginning of this consolidated fiscal year.
As a result of this application, as of the beginning of this consolidated fiscal year, net defined benefit liability
increased by 47 million yen, and retained earnings decreased by 37 million yen. The effect of this application on
operating income, recurring income and income before income taxes and minority interests during this consolidated
fiscal year is immaterial.
There has also been an immaterial effect on net assets per share, net income per share, and net income per share(diluted).

- 21 -

(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Company are components of the Group whose separate financial information isavailable. These segments are periodically evaluated by the Board of Directors in deciding how to allocate management
resources and in assessing the performance.
The Group is made up of (1) three SBUs, one for each business domain, namely the Toys and Hobby SBU, theContent SBU, and the Amusement Facility SBU, and (2) the affiliated business companies that mainly serve a supportingrole for these SBUs. The major company of each SBU leads the planning and promotion of the business strategies of thestrategic business unit for Japan and overseas.
Accordingly, the Group has the following three reportable segments: Toys and Hobby Business, Content Business, andAmusement Facility Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys and production for vending
machines. The Content Business conducts distribution services for network content, manufacturing and sales of arcade
game machines, and production and sales of home video game software and video related products. The Amusement
Facility Business conducts the operation of amusement facilities.

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

- 22 -

3. Information regarding the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2013 to March 31, 2014)(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

58,137497,527

10,152507,679–

507,679

16,84562

25,472

17,19842,670(42,670)–

186,390

278,408

58,199522,999

27,350550,349(42,670)

507,679

Segment income (loss)

10,51037,248(897)

46,861

1,646

48,507(3,834)

44,672

Segment assets

117,772

158,924

36,817

313,514

23,958337,473

67,619405,092

Depreciation andamortization

11,758

4,138

5,663

21,561449

22,010(284)

21,725

Amortization of
goodwill

–

66

–

66

–

66

56

122

Impairment loss

279

20

1,697

1,996

1

1,998

4

2,002

Investment inassociates accounted
for using equity
method

439

–

27

467

8,579

9,046

–

9,046

Increase in property,
plant and equipment
and intangible assets

16,712

3,383

7,366

27,462440

27,902

1,076

28,979Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers

Content
Business

Amusement
Facility
Business

177,825

261,563

8,564

Total

(Note 2)

(Note 3)

Net sales

Others

Notes: 1.
2.

3.

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

- 23 -

Current Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Reportable Segments
Toys and
Hobby
Business

To external customers

Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

55,468555,6119,874

565,486–

565,486

10,162

69

18,855

17,13235,987(35,987)–

Content
Business

Amusement
Facility
Business

222,294

277,847

Inter-segment sales
and transfers

8,623(Note 2)

(Note 3)

Net sales

Total

230,918

288,00955,538574,467

27,006

601,473(35,987)

565,486

Segment income (loss)

17,04040,927(2,287)55,6801,462

57,143(822)

56,320

Segment assets

119,893

165,931

36,532

322,357

26,296348,653

93,109441,763

Depreciation andamortization

14,940

3,330

5,554

23,825369

24,194(482)

23,712

Amortization of
goodwill

82

62

14

159

–

159

–

159

Impairment loss

98

1,416

1,123

2,639

–

2,639

228

2,867

Investment inassociates accounted
for using equity
method

613

–

31

645

11,086

11,731–

11,731

Increase in property,
plant and equipment
and intangible assets

12,041

5,731

6,495

24,268933

25,201

2,559

27,761Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 822 million yen deducted from segment income (loss) as adjustment are an addition of
1,405 million yen in inter-segment eliminations, and a deduction of 2,228 million yen in corporate
expenses that cannot be allocated to any reportable segment. The corporate expenses are mainly costs
related to the administration division that has not been attributed to a reportable segment.
(2)
Included in the 93,109 million yen added to segment assets as adjustment are a deduction of 22,117
million yen in inter-segment eliminations, and an addition of 115,227 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 482 million yen deducted from depreciation and amortization as adjustment are adeduction of 1,606 million yen in inter-segment eliminations, and an addition of 1,123 million yen in
depreciation and amortization related to the administration division that has not been attributed to areportable segment.
(4)
Included in the 228 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(5)
Included in the 2,559 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income (loss) is adjusted with operating income in the consolidated statements of operations.

- 24 -

b. Related Information
Prior Fiscal Year (From April 1, 2013 to March 31, 2014)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas419,803

Europe30,832

Asia

28,225

Total

28,817

507,679

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

Americas41,753

Europe

2,228

Asia

2,564

Total

5,426

51,972

3. Information by major customer
Name of customer
Happinet Corporation

Net sales

Names of related segments

54,954

Toys and Hobby Business and Content BusinessCurrent Fiscal Year (From April 1, 2014 to March 31, 2015)
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

Americas459,776

Europe38,632

Asia

32,431

Total

34,644565,486

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

Americas39,154

Europe

3,452

Asia

4,646

Total

6,007

53,2603. Information by major customer(¥ million)
Name of customer
Happinet Corporation

Net sales

Names of related segments

77,445

Toys and Hobby Business and Content Business- 25 -

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2013 to March 31, 2014)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2014 to March 31, 2015)
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, 2013 to March 31, 2014)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

–

66

–

–

56

122

Unamortizedbalance

412

248

–

–

–

661

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

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

2

–

–

–

2

Unamortizedbalance

–

0

–

–

–

0

Current Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

82

62

14

–

–

159

Unamortizedbalance

330

186

71

–

–

587

- 26 -

Note that the amortized amounts and unamortized balance of negative goodwill that were recognized as a result of
business combinations conducted before April 1, 2010 are as follows.
(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

0

–

–

–

0

Unamortizedbalance

–

–

–

–

–

–

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2013 to March 31, 2014)
No significant items to be reported.

Current Fiscal Year (From April 1, 2014 to March 31, 2015)
Not applicable.

- 27 -

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2013 to March 31, 2014)(From April 1, 2014 to March 31, 2015)

Net assets per share

1,217.74 yen

1,378.77 yen

Net income per share

114.05 yen

171.10 yen

Diluted net income per share

114.03 yen

171.08 yen

Note: The basis of calculating net income per share and diluted net income per share figure is as follows:
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2013 to March 31, 2014)(From April 1, 2014 to March 31, 2015)

25,05437,588––25,05437,588219,689,321

219,685,816––

Increase in number of common stock(shares)

27,75536,086[Subscription rights to shares (shares)][27,755][36,086]

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

Diluted net income per share
Net income adjustment (¥ million)

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

–- 28 -–

(Significant Subsequent Events)
Change to segment categories
The Group previously implemented business strategies with a focus on its array of three businesses, categorized bydomain: the Toys and Hobby SBU, the Content SBU, and the Amusement Facility SBU. However, the Group has
decided to revise its organizational structure in order to implement the following main strategies under its Mid-term Plan,
which has started since April 2015: “Accelerate Evolution in IP Axis Strategy,” “Gain Momentum in Global Markets”
and “Empower and Innovate Business Model.”Under the Mid-term Plan, the Group will push ahead with its strategies with a focus on the following three SBUs: theToys and Hobby SBU, which will aim to strengthen the IP axis strategy and gain momentum in global markets; theNetwork Entertainment SBU, which will aim to deploy a new business that goes beyond the framework of the existing
game business and fuses networks and entertainment; and the Visual and Music Production SBU, which will create IP
and strengthen the Group’s business deployment as it looks toward new outlets. The former Amusement Facility SBU
will be added to the Network Entertainment SBU. It does not only develop its value chain so as to deploy a unified
business; it also aims to create a new business by combining real-life face-to-face communications and digitaltechnology.
In line with this revision to the organizational structure, the Company has decided to change the previous reportablesegments of the “Toys and Hobby Business,” the “Content Business” and the “Amusement Facility Business” to the“Toys and Hobby Business,” the “Network Entertainment Business” and the “Visual and Music Production Business”
effective from the fiscal year ending March 31, 2016.
Information regarding the amounts of net sales, income/loss, assets, liabilities and other items by reportable segment
for this consolidated fiscal year, assuming the segment categories after the organizational change is as follows.

- 29 -

Current Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Total

Subtotal

Other(Note 1)

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To external customers

222,294

292,558

40,758555,6119,874

565,486–

565,486

Inter-segment sales
and transfers

8,623

3,884

3,015

15,523

17,13232,655(32,655)–

Total

230,918

296,442

43,773571,134

27,006598,141(32,655)

565,486

Segment income

17,04029,29010,07756,408

1,462

57,871(1,550)56,320

Segment assets

119,893

169,634

31,434

320,962

26,296347,258

94,504

441,763

Depreciation andamortization

14,9407,439

632

23,012369

23,382329

23,712

Amortization of
goodwill

82

14

62

159

–

159

–

159

Impairment loss

98

2,528

12

2,639

–

2,639

228

2,867

Investment inassociates accounted
for using equity
method

613

31

–

645

11,086

11,731–

11,731

Increase in property,
plant and equipment
and intangible assets

12,041

11,312914

24,268933

25,201

2,559

27,761Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 1,550 million yen deducted from segment income as adjustment are an addition of 677
million yen in inter-segment eliminations, and a deduction of 2,228 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 94,504 million yen added to segment assets as adjustment are a deduction of 20,722
million yen in inter-segment eliminations, and an addition of 115,227 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 329 million yen added to depreciation and amortization as adjustment are a deduction of
793 million yen in inter-segment eliminations, and an addition of 1,123 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 228 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(5)
Included in the 2,559 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

- 30 -

5. Other
Changes in Directors and Audit & Supervisory Board Members(1) Change in Representative (Effective June 22, 2015)
New candidate for Representative Director
President and Representative Director

Mitsuaki Taguchi (current position: Adviser of theCompany)

Retiring Representative Director
Executive Vice President and Representative Director

Kazunori Ueno

Change in title of Representative Director
Chairman and CEO, Representative Director

Shukuo Ishikawa (current position: President andRepresentative Director of the Company)(2) Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Director
Director

Kazumi Kawashiro (current position: Executive Officer of the Company, President andRepresentative Director of BANDAI VISUAL CO., LTD.)

Retiring Director
Director

Hitoshi Hagiwara

Change in title of Director
Director

Kazunori Ueno (current position: Executive Vice President and Representative Directorof the Company）(3) Responsible Area of Directors (Effective June 22, 2015)
Shukuo Ishikawa

Chairman and Representative Director

Mitsuaki Taguchi

President and Representative Director

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Kazunori Ueno

Director (Part-time) in charge of Toys and Hobby SBU

Satoshi Oshita

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

Kazumi Kawashiro

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

Nobuo Sayama

Director (Outside)

Tomohisa Tabuchi

Director (Outside)

Yuzuru Matsuda

Director (Outside)- 31 -