Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2013

November 2, 2012DISCLAIMER- NAMCO BANDAI 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/)
November 2, 2012

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2013 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
November 8, 2012
Scheduled starting date for dividend payments:
December 10, 2012
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 Second Quarter of the Fiscal Year Ending March 31, 2013
(April 1, 2012 to September 30, 2012)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2012)

Second Quarter of the Fiscal YearEnding March 31, 2013
Second Quarter of the Fiscal Year
Ended March 31, 2012

Net sales¥ million
222,610%14.6

194,241

11.9

Net income

Second Quarter of the Fiscal YearEnding March 31, 2013
Second Quarter of the Fiscal Year
Ended March 31, 2012
(Note)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
27,75376.1
28,07575.7
15,757211.0

Net income per share

15,977

Net income per share(diluted)¥ million
17,320

%
115.8

¥
78.84

¥
–

8,026

–

34.96

–

Comprehensive income: 16,145 million yen [68.5%] (FY2013.3 2Q), 9,579 million yen [– %] (FY2012.3 2Q)(2) Consolidated Financial Position

As of September 30, 2012
As of March 31, 2012

219.2

Total assets¥ million
334,606
342,171

Net assets¥ million
226,039
213,125

Equity ratio
%
67.1
61.8

(Reference) Equity: 224,413 million yen (as of September 30, 2012), 211,443 million yen (as of March 31, 2012)

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥14.00Fiscal Year Ended March 31, 2012–
Fiscal Year Ending March 31, 2013–
Fiscal Year Ending March 31, 2013–
(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2013: No¥12.00Total¥26.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2013 (April 1, 2012 to March 31, 2013)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year455,000
0.2
40,00015.6
40,00014.4
23,00019.1
104.69(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2013 (announced on August 2, 2012) are revised in this document.
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes
Included: – company
Excluded: 1 company (NAMCO BANDAI Partners S.A.S.)(Note) For more details, please refer to the section of “(1) Changes in Significant Subsidiaries during the Period” of “2. Matters
Regarding Summary Information (Notes)” on page 5 of the attached material.
(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: Yesd) Restatement: No(Note) These items fall in those set forth in Article 10-5 of the Ordinance on Terminology, Forms, and Preparation Methods ofQuarterly Consolidated Financial Statements. For more details, please refer to the section of “(3) Changes in Accounting
Policies, Changes in Accounting Estimation and Restatement” 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)
As of September 30, 2012
222,000,000 shares
As of March 31, 2012
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of September 30, 2012
2,308,750 shares
As of March 31, 2012
2,308,176 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Second Quarter of the Fiscal Year ending March 31, 2013
219,691,505 shares
For the Second Quarter of the Fiscal Year ended March 31, 2012
229,592,993 shares* Implementation status of quarterly review
This Consolidated Financial Report for the Second Quarter was exempt from quarterly review which was based on Financial
Instruments and Exchange Law of Japan. As of the second quarter disclosing, quarterly review for the quarterly financial statements areunder way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
Forward-looking statements that have been released prior to this document are based on management’s estimates, assumptions,projections and information available at the time of its publications and do not purport to be a promise by the Company to achieve such
results. A number of factors could cause actual results to differ materially from expectations. Please refer to the section of “(3)Qualitative Information Regarding Consolidated Projections” of “1. Qualitative Information Regarding Consolidated Results for theSecond 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 November 2, 2012.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Second Quarter ....................... 2(1) Qualitative Information Regarding Consolidated Operating Results.................................................................................. 2(2) Qualitative Information Regarding Consolidated Financial Position ................................................................................. 3(3) Qualitative Information Regarding Consolidated Projections ............................................................................................ 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(4) Additional Information........................................................................................................................................................ 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Quarterly Consolidated Balance Sheets .............................................................................................................................. 6(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income.... 8(Quarterly Consolidated Statements of Operations) ........................................................................................................... 8(Quarterly Consolidated Statements of Comprehensive Income) ....................................................................................... 9(3) Notes on Premise of Going Concern................................................................................................................................. 10(4) Notes on Significant Changes in the Amount of Stockholders’ Equity............................................................................. 10(5) Segment Information ........................................................................................................................................................ 10-1-

1. Qualitative Information Regarding Consolidated Results for the Second Quarter(1) Qualitative Information Regarding Consolidated Operating Results
During the second quarter (six months) of the fiscal year ending March 31, 2013, although there were signs of gradual
recovery in the Japanese economy, overall economic conditions continued to be harsh, mainly because of a slowdown inoverseas economies caused by financial instability in Europe and the rise in the yen. As for the entertainment industry,
weak individual consumption and other factors have added further uncertainty to the outlook.
In this environment, the BANDAI NAMCO Group (“the Group”) is implementing various measures aimed at mediumto long-term growth under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of theGroup’s new Mid-term Plan, started in the current fiscal year.
On the business front, the Content Business made a substantial contribution to performance, particularly in network
content by coordinated deployment revolving around IP (Intellectual Property) such as characters, while the Toys andHobby Business performed steadily, mainly in long-established character toys, and made steady progress deploying thestrategies of the Mid-term Plan.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 222,610 million
yen (year-on-year increase of 14.6%), operating income of 27,753 million yen (year-on-year increase of 76.1%), recurringincome of 28,075 million yen (year-on-year increase of 75.7%), and net income of 17,320 million yen (year-on-yearincrease of 115.8%).

Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, domestically, sales performed well due to coordinated sales of products in the varietyof categories revolving around toys of long-established character products including the KAMEN RIDER series and SMILE
PRETTY CURE!. Favorable sales were enjoyed for the Mobile Suit Gundam series, The Little Battlers plastic models,
which became popular among elementary-school-age boys, and the highly collectable toys for adults. Although domestic
performance was lower year on year in total, for reasons such as the latest Super Sentai series (POWER RANGERS series)
not performing as well as the successful predecessor, and the recording of preparatory costs such as advertising expenses
for the launch of new characters, the Group made steady progress deploying the strategies of the Mid-term Plan.
Overseas, amid efforts to improve profitability in North America and Europe, products of the Power Rangers series
sold favorably. In the Asian region, plastic models and highly collectable toys for adults became popular in addition tocharacter toys thanks to developments in conjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 80,411 million yen (year-on-year decrease of 1.5%), andsegment income was 6,451 million yen (year-on-year decrease of 28.2%).

Content BusinessIn the Content Business, the network content area made a significant contribution to this business’s performance
mainly through social games such as the Mobile Suit Gundam series and ONE PIECE Grand Collection. In addition,
arcade game machine sales were favorable, particularly Mobile Suit Gundam Extreme VS. Full Boost and prizes of popularcharacters. Also contributing to performance were visual and music content areas, which enjoyed favorable sales of Mobile
Suit Gundam UC (Unicorn) and repeat sales of visual packages that were launched in previous years, as well as sales of
LCD units for pachinko and pachi-slot machines. In home video game software, the Mobile Suit Gundam Battle Operation,-2-

a download-only PlayStation 3 title, was popular in Japan, while there were contributions from sales of SOULCALIBUR V
and NARUTO Shippuden: Ultimate Ninja Storm Generations for PlayStation 3 and Xbox 360 in the North American
region.
As a result, net sales in the Content Business were 116,686 million yen (year-on-year increase of 34.6%), and segment
income was 20,136 million yen (year-on-year increase of 275.0%).

Amusement Facility BusinessIn the Amusement Facility Business, domestically, despite a steady performance mainly by differentiated facilities
located in shopping centers that offer customers the opportunity to experience the distinctive worldview of specificcharacters, sales of existing facilities declined to 94.6% from the same period of the previous fiscal year, when we recordedhigh level of sales.
In the challenging market environment presented by countries outside Japan, results were roughly level with those of
the same period of the previous fiscal year as a result of efficiency in operations from the selection and concentration of
stores.
As a result, net sales in the Amusement Facility Business were 29,872 million yen (year-on-year decrease of 4.6%), andsegment income was 1,051 million yen (year-on-year decrease of 44.4%).

Number of Facilities as of September 30, 2012
Directly Managed

Revenue-Sharing

Facilities

Facilities

255

1,021

Others

Total

2

1,278

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. 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 12,867 million yen (year-on-year increase of 11.7%), and segment
income was 1,289 million yen (year-on-year increase of 23.4%).

(2) Qualitative Information Regarding Consolidated Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2013, total assets stood at 334,606 million yen, adecrease of 7,565 million yen from the end of the previous fiscal year. The main factors were decreases of 7,068 million
yen in cash and time deposits mainly due to payments of cash dividends and income taxes, and 7,154 million yen in tradereceivables, while there was an increase of 6,385 million yen in work in process.
Total liabilities amounted to 108,566 million yen, a decrease of 20,480 million yen from the end of the previous fiscal
year. The main factors were decreases of 6,579 million yen in trade payables, 3,028 million yen in accrued income taxes
mainly due to income taxes paid, 2,716 million yen in long-term borrowings and 1,254 million yen in short-termborrowings due to repayment, and 2,517 million yen in accrued employee bonuses included in other current liabilities
mainly due to employee bonuses paid.
Total net assets stood at 226,039 million yen, an increase of 12,914 million yen from the end of the previous fiscal year.
-3-

The main factor was an increase of 14,243 million yen in retained earnings thanks to the recording of net income throughfavorable consolidated results, despite cash dividends paid of 3,077 million yen.
As a result, the equity ratio became 67.1% compared with 61.8% at the end of the previous fiscal year.

(3) Qualitative Information Regarding Consolidated Projections
As for the future of the economy, the Group expects a difficult business environment to continue, including a weak
individual consumption in Japan and an economic sluggishness in North America and 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 its three-year Mid-term Plan in the current fiscal year, and will steadily
implement the strategies in this plan, aiming for medium- to long-term growth.
Specifically, in the Toys and Hobby Business, our plan for the Japanese market is to strengthen development throughcoordinated sales of products in the variety of categories revolving around long-established character toys, such as the
KAMEN RIDER series and PRETTY CURE! series. In addition, while aiming for the position as the overwhelming No. 1 inJapan, we will introduce new products and services such as card games, plastic models for elementary school students,
highly collectable toys for adults, and babies’ and pre-school toys in order to broaden the variety of customers targeted.
Overseas, the Group will strive to improve profitability by focusing on products of the mainstay content Power Rangers
series by strengthening integrated brand management of North America and Europe. In the Asian region, the Group aims toachieve growth through developments in conjunction with Japan, focusing on plastic models and highly collectable toys for
adults that are popular in Japan.
With respect to the Content Business, in the popular network contents, the Group aims to gain a firmer presence amongsocial game users by achieving stable deployment of social games through the timely launch of new character games on
various platforms. In arcade game machines, while strengthening development and sales of machines that provide new playexperiences, we aim to achieve growth by establishing multiple sales channels and strengthening development aimed at thedeveloping countries, including those in Asia. In home video game software, we aim to improve profitability throughspeedy launch of the second installment of TALES OF XILLIA for PlayStation 3, which achieved popularity in the previous
fiscal year, as well as through a variety of lineup that caters for diverse customer preferences. In the visual and music
content areas, we aim to maximize the value of our content by such means as to strengthen sales of visual package software
through the creation of new IP (Intellectual Property) in addition to the popular Mobile Suit Gundam series.
In the Amusement Facility Business, in Japan, we will continue to promote the development of differentiated facilities
that offer the experience of the Group’s distinctive worldview of specific characters, while developing facilities andservices aimed at each target customer through reinforcement of our marketing by customer segment. Overseas, we will
strive to improve profitability by implementing various efficiency measures in North America and Europe.
In light of the favorable performance of the Content Business in Japan in the second quarter (six months) and more
recently, the Group has revised its consolidated projections for the full fiscal year ending March 31, 2013 that wasannounced in the Consolidated Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2013 on August
2, 2012. Please see page 5 for the details of the revision.

-4-

Revision to the consolidated projections for the full fiscal year
(April 1, 2012 to March 31, 2013)
Operating
Net Sales
Income(¥ million)(¥ million)
Previous projections (A)455,000
36,500
Revised projections (B)455,000
40,000Change in amount (B–A)
03,500
Change (%)
0.0
9.6
Reference: Results for theprevious fiscal year
454,210
34,606

Recurring
Income(¥ million)
36,50040,000
3,500
9.6

Net
Income(¥ million)
21,50023,0001,500
7.0

34,96019,303Net Income
per Share
97.86 yen
104.69 yen––
85.62 yen

(April 1, 2011 to March 31, 2012)

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
During the current second quarter, on September 28, 2012, a consolidated subsidiary NAMCO BANDAI Partners
S.A.S. was merged into a consolidated subsidiary NAMCO BANDAI Games Europe S.A.S., and it became excluded fromthe scope of consolidation as a result.

(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 second quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.

(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement
Change in accounting policy that is difficult to distinguish from change in accounting estimation
Following the revision of the Corporation Tax Act, the Company and part of its domestic consolidated subsidiaries
applied the depreciation method in compliance with the revised Corporation Tax Act to property, plant and equipment
acquired on or after April 1, 2012 from the first quarter of the fiscal year ending March 31, 2013.
Consequently, operating income, recurring income, and income before income taxes and minority interests for thesecond quarter (six months) increased by 84 million yen, respectively, compared with the previous method.

(4) Additional Information
Application of consolidated taxation regime
Effective from April 1, 2012, the Company applied consolidated taxation regime.

-5-3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2012)

Current 2nd Quarter(As of September 30, 2012)

AssetsCurrent assets
Cash and time deposits

106,958

99,890Trade receivables

69,102

61,947

Finished goods and merchandise

12,907

13,460Work in process

19,41725,803

Raw materials and supplies

4,714

4,949

Other current assets

28,49728,082

(677)

(589)

240,920

233,544

Property, plant and equipment

44,50045,408Intangible assets

8,194

8,313

50,26748,880Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets
Other investments and assets
Allowance for doubtful receivables(1,711)(1,540)Total investments and other assets

48,55647,340101,251

101,062

342,171334,606

Total fixed assets
Total assets-6-(¥ million)
Prior Fiscal Year(As of March 31, 2012)

Current 2nd Quarter(As of September 30, 2012)

Liabilities
Current liabilities
Trade payables

48,742

42,162

Short-term borrowings

6,773

5,518

Accrued income taxes

9,360

6,331

Provision

2,980

1,865

Other current liabilities

40,091

34,229Total current liabilities

107,946

90,10812,883

10,166

Accrued retirement and severance benefits

3,140

3,408

Other long-term liabilities

5,075

4,882

Total long-term liabilities

21,09918,457129,046

108,566

10,00010,000Long-term liabilities
Long-term borrowings

Total liabilities
Net assets
Stockholders’ equity
Common stock
Additional paid-in capital

52,24552,245Retained earnings

173,250

187,493

Treasury stock(2,383)(2,384)

Total stockholders’ equity

233,112247,354

2,867

2,452

229

(35)

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax
Land revaluation, net of tax(6,408)(6,408)Foreign currency translation adjustments(18,357)(18,949)

Total accumulated other comprehensive income(21,669)(22,941)

Minority interests

1,682

1,626

Total net assets

213,125

226,039

342,171334,606

Total liabilities and net assets-7-

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Operations)(¥ million)
Prior 2nd Quarter(From April 1, 2011
to September 30, 2011)

Current 2nd Quarter(From April 1, 2012
to September 30, 2012)

Net sales

194,241

222,610

Cost of sales

119,004

134,302

Gross profit

75,23688,308Selling, general and administrative expenses

59,47860,555

Operating income

15,75727,753

Dividend income

179

190

Other non-operating income

399

559

Total non-operating income

579

750

Interest expense

47

86

Foreign exchange loss

146

318

Other non-operating expenses

165

22

Non-operating income

Non-operating expenses

Total non-operating expenses

360

428

15,97728,075Gain on sales of fixed assets

114Gain on transfer of business

54–

Other extraordinary income

60Total extraordinary income

72

4

8

152

994

185

Recurring income
Extraordinary income

Extraordinary loss
Loss on impairment of fixed assets
Other extraordinary loss
Total extraordinary loss

1,002

337

Income before income taxes and minority interests

15,046

27,742

Income taxes

6,720

10,339

Income before minority interests

8,326

17,403

300

82

8,026

17,320Minority interests
Net income-8-(Quarterly Consolidated Statements of Comprehensive Income)(¥ million)
Prior 2nd Quarter(From April 1, 2011
to September 30, 2011)
Income before minority interests

Current 2nd Quarter(From April 1, 2012
to September 30, 2012)

8,326

17,403

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

1,165

(411)

Deferred gains or losses on hedges, net of tax

(326)

(264)

Foreign currency translation adjustments

459

(579)

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

(45)

(1)

Total other comprehensive income

1,253(1,257)

9,579

16,145Comprehensive income attributable to owners of the parent

9,242

16,048Comprehensive income attributable to minority interests

337

97

Comprehensive income
Comprehensive income attributable to-9-(3) Notes on Premise of Going Concern
Not applicable.

(4) Notes on Significant Changes in the Amount of Stockholders’ Equity
Not applicable.

(5) Segment Information(Segment Information)
I. Prior 2nd Quarter (From April 1, 2011 to September 30, 2011)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

31,283

190,339

3,901

194,241–

194,241

6,738

22

9,306

7,618

16,925(16,925)–

81,62786,711

31,306

199,645

11,520211,166(16,925)

194,241

8,986

5,369

1,891

16,247

1,045

17,293(1,535)15,757

Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers
Total

Content
Business

Amusement
Facility
Business

79,082

79,973

2,545(Note 2)

(Note 3)

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 building management for each of the Group’s strategic business units are classified.
Included in the 1,535 million yen deducted from segment income as adjustment are a deduction of 224 million
yen in inter-segment eliminations, and a deduction of 1,310 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment income is adjusted with operating income in the quarterly 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 2nd Quarter (From April 1, 2012 to September 30, 2012)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

29,839217,622

4,988

222,610–

222,610

5,656

32

9,347

7,879

17,227(17,227)–

80,411

116,686

29,872226,970

12,867

239,837(17,227)

222,610

6,451

20,136

1,051

27,6391,289

28,928(1,175)27,753Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers
Total

Content
Business

Amusement
Facility
Business

76,752

111,030

3,659(Note 2)

(Note 3)

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 1,175 million yen deducted from segment income as adjustment are an addition of 381 million
yen in inter-segment eliminations, and a deduction of 1,556 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment income is adjusted with operating income in the quarterly 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.
3. Changes in reportable segments etc.
Following the revision of the Corporation Tax Act, the Company and part of its domestic consolidated subsidiaries
applied the depreciation method in compliance with the revised Corporation Tax Act to property, plant andequipment acquired on or after April 1, 2012, as described in the section of “(3) Changes in Accounting Policies,
Changes in Accounting Estimation and Restatement, Change in accounting policy that is difficult to distinguishfrom change in accounting estimation” of “2. Matters Regarding Summary Information (Notes),” from the firstquarter of the fiscal year ending March 31, 2013. As a result, the method of depreciation of reportable segments waschanged to a method that is in compliance with the revised Corporation Tax Act.
In accordance with these changes, the amount of impact on the segment income of each reportable segment is asfollows.
(¥ million)
Reportable Segments

Segment income

Note:

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Subtotal

55

13

0

69

Other

11

Total

81

Adjustments Consolidated
Total(Note)
3

84

Included in the 3 million yen added to segment income as adjustment are a deduction of 9 million yen ininter-segment eliminations, and an addition of 13 million yen in corporate expenses that cannot be allocated to any
reportable segment.
- 11 -