Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2018

August 4, 2017

DISCLAIMER- BANDAI NAMCO Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
August 4, 2017

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2018 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 10, 2017
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2018
(April 1, 2017 to June 30, 2017)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2017)

First Quarter of the Fiscal YearEnding March 31, 2018
First Quarter of the Fiscal Year
Ended March 31, 2017

Net sales¥ million
144,084%(0.5)

144,792

5.4

Profit attributable toowners of parent¥ million%
13,498(27.0)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
15,611 (33.3)
16,240(29.2)
23,41929.1

Basic earnings per share

22,94822.2

Diluted earnings per share¥¥First Quarter of the Fiscal Year
61.45
61.43
Ending March 31, 2018
First Quarter of the Fiscal Year
18,502
32.6
84.23
84.20
Ended March 31, 2017
(Note) Comprehensive income: 16,291 million yen [63.3%] (FY2018.3 1Q), 9,974 million yen [(35.9)%] (FY2017.3 1Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of June 30, 2017
470,273
349,68174.2
As of March 31, 2017
488,032
348,784
71.3(Reference) Equity: 348,973 million yen (as of June 30, 2017), 348,106 million yen (as of March 31, 2017)

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥70.00

Total

Fiscal Year Ended March 31, 2017–¥82.00Fiscal Year Ending March 31, 2018–
Fiscal Year Ending March 31, 2018¥12.00–¥12.00¥24.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2018: No
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March 31,
2018, the stable dividend portion is stated based on the Company’s basic policy on the distribution of profits. The year-end cash
dividend for the fiscal year ending March 31, 2018, is scheduled to be resolved by the Company in light of the consolidated
operating results and other factors.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
profitprofitto ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
295,000
0.1
27,000(30.6)
27,500(28.2)
20,000(33.7)
91.05
September 30, 2017
Full Fiscal Year
620,000(0.0)
57,000(9.9)
58,000(8.4)
40,000(9.4)
182.10(Note) Revision to the projections: Yes
Consolidated projections for the six months ending September 30, 2017 and the full fiscal year ending March 31, 2018
(announced on May 10, 2017) are revised in this document. For details of the revisions to the consolidated projections, pleaserefer to “Notice Regarding Revisions to Consolidated Projections” announced today (August 4, 2017).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 9 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2017
222,000,000 shares
222,000,000 shares
As of March 31, 2017b) Number of shares of treasury stock at the end of the period
2,334,647 shares
As of June 30, 2017
As of March 31, 2017
2,334,579 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,665,324 shares
For the First Quarter of the Fiscal Year Ending March 31, 2018
For the First Quarter of the Fiscal Year Ended March 31, 2017219,678,136 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the First Quarter” on pages 3 and 4 of the attached material for matters pertaining to the earnings projections.
- To obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on August 4, 2017.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the First Quarter ........................... 2(1) Explanation Regarding Operating Results ......................................................................................................................... 2(2) Explanation Regarding Financial Position ......................................................................................................................... 3(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements .............................................. 3

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

1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2018, the Japanese economy continued tomoderately recover, supported mainly by a recovery in personal consumption and improved corporate profitability.
However, the outlook for the overall economy remained uncertain. Overseas, personal consumption was steady, but
impacted by uncertainty due to social instability and other factors.
In this environment, the BANDAI NAMCO Group (“the Group”) has been pushing ahead with the three-year Mid-term
Plan that started in April 2015. Targeting medium- and long-term growth under the Vision of “NEXT STAGE: Empower,
Gain Momentum and Accelerate Evolution,” the Group has focused on creating and cultivating new IP (Intellectual
Property: meaning characters and other intellectual property), expanding target markets, and growing new businesses aspart of efforts to strengthen the “IP Axis Strategy” that aims to maximize IP value through the provision of the bestproducts and services at the best possible times. The Group also worked to expand its IP lineup, business fields and areas
in overseas.
During the first quarter (three months), earnings fell below those of the same period of the previous fiscal year, whenhigh-margin new products achieved hit status, due to differences in the product lineup and launch timing. Nevertheless, thekey IP and businesses performed steadily compared with the Company’s plan.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 144,084 million
yen (year-on-year decrease of 0.5%), operating profit of 15,611 million yen (year-on-year decrease of 33.3%), recurring
profit of 16,240 million yen (year-on-year decrease of 29.2%), and profit attributable to owners of parent of 13,498 million
yen (year-on-year decrease of 27.0%).
Operating results by segment are as follows.
Effective from the current first quarter, the Group changed the classification of part of its reportable segments.
Consequently, in year-on-year comparisons the figures for the same period of the previous fiscal year have been restatedinto the figures for the classifications after the change.
Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, long-established IP products such as the KAMEN RIDER series, the Super
Sentai series, and the Dragon Ball series continued to perform well, while products of the Mobile Suit Gundam series
performed steadily, mainly in plastic models. In addition, the Group enhanced efforts to expand its target markets for adults
and implemented measures to strengthen the IP axis strategy by taking steps to expand IP lineup and the like. Overseas, in
the Asian region, products of the Mobile Suit Gundam series and collectable toys for adults became popular. In North
America and Europe, products of the Power Ranger series sold steadily. However, the Toys and Hobby Business overall
saw earnings decline year on year, mainly due to differences in the product mix.
As a result, net sales in the Toys and Hobby Business were 42,794 million yen (year-on-year decrease of 11.0%), andsegment profit was 1,346 million yen (year-on-year decrease of 61.8%).
Network Entertainment BusinessIn the Network Entertainment Business, network content such as game applications for smartphones continued toperform well and contributed to sales. However, profits declined from the same period of the previous fiscal year, whenhigh-margin new titles of the home video game had grown in popularity. In network content, key titles being distributed
worldwide such as DRAGON BALL Z DOKKAN BATTLE and ONE PIECE Treasure Cruise grew further in popularity. In
Japan, existing key titles under the iDOLM@STER series performed well, while new title The iDOLM@STER Million
Live! Theater Days made a strong start. In home video games, the new title TEKKEN 7 became popular mainly in North
America and Europe. In the amusement business, the Group’s existing amusement facilities in Japan performed favorably,
and the Group also took measures such as new store openings and development of stores in new business formats. In
arcade games, the Group worked to expand stably, mainly in popular series, while proactively developing machines andfacilities incorporating virtual reality (VR) as a new initiative combining new technology.
As a result, net sales in the Network Entertainment Business were 91,789 million yen (year-on-year increase of 7.1%),
and segment profit was 12,708 million yen (year-on-year decrease of 23.4%).
Visual and Music Production BusinessIn the Visual and Music Production Business, earnings declined from the same period of the previous fiscal year, whenhigh-margin products had grown in popularity, as the Group is planning to develop products linked with new productionsin its key IP from the second quarter onward. In the first quarter (three months), the Group conducted product development-2-

for existing key IP products such as the Mobile Suit Gundam series and the LoveLive! series, while also building up public
interest in its new productions. Earnings also saw a contribution from license revenue related to products such as GIRLS
und PANZER and Kuroko’s Basketball.
As a result, net sales in the Visual and Music Production Business were 10,401 million yen (year-on-year decrease of
23.6%), and segment profit was 2,607 million yen (year-on-year decrease of 43.1%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU, Network
Entertainment SBU, and Visual and Music Production SBU. We are making efforts to manage such operations related togroup support in an efficient manner.
As a result, net sales in the Other Businesses were 6,249 million yen (year-on-year increase of 1.4%), and segment loss
was 41 million yen (compared with segment profit of 101 million yen for the same period of the previous fiscal year).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2018, total assets stood at 470,273 million yen, adecrease of 17,758 million yen from the end of the previous fiscal year. The main factor was decrease of 22,160 million
yen in cash and time deposits mainly due to cash dividends paid.
Total liabilities amounted to 120,592 million yen, a decrease of 18,655 million yen from the end of the previous fiscal
year. The main factors were decreases of 7,216 million yen in accrued income taxes included in other current liabilities and8,007 million yen in accrued employee bonuses included in other current liabilities due to employee bonuses paid.
Total net assets stood at 349,681 million yen, an increase of 896 million yen from the end of the previous fiscal year.
The main factors were increases of 1,226 million yen in unrealized gains or losses on other securities, net of tax, and 1,303
million yen in foreign currency translation adjustments due to foreign exchange fluctuation, despite a decrease of 1,895
million yen in retained earnings mainly due to cash dividends paid.
As a result, the equity ratio became 74.2% compared with 71.3% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, in light of the actual results for the first quarter (three months) of the fiscal year ending March 31, 2018
and recent business trends of each business segment, specifically, the strong performance of the Network Entertainment
Business’s network content, etc. and having closely scrutinized details of products and services for the second quarter
onward, the consolidated projections for the second quarter (six months) and the full fiscal year are expected to exceed theconsolidated projections announced on May 10, 2017. As such, the consolidated projections have been revised as stated in
the table below.
Revisions to consolidated projections for the second quarter (six months) of the fiscal year ending March 31, 2018
(April 1, 2017 to September 30, 2017)
Operating profit

Recurring profit(¥ million)
275,000
295,000
20,000
7.3(¥ million)
22,50027,0004,500
20.0(¥ million)
23,00027,5004,500
19.6

Profitattributable toowners of parent(¥ million)
16,00020,0004,000
25.0

294,569

38,90438,29130,170Net sales

Previous projections (A)Revised projections (B)Change in amount (B-A)
Change (%)(Reference)
Results for the previous
second quarter(The second quarter of the
fiscal year ended March 31,
2017)

-3-

Basic earnings
per share
¥
72.84
91.05
–
–

137.34

Revisions to consolidated projections for the fiscal year ending March 31, 2018
(April 1, 2017 to March 31, 2018)
Operating profit

Recurring profit(¥ million)
600,000
620,000
20,0003.3(¥ million)
57,00057,0000
0.0(¥ million)
58,00058,0000
0.0

Profitattributable toowners of parent(¥ million)
40,00040,0000
0.0

620,061

63,23863,29044,159Net sales

Previous projections (A)Revised projections (B)Change in amount (B-A)
Change (%)(Reference)
Results for the previous
fiscal year
(The full fiscal year ended
March 31, 2017)-4-

Basic earnings
per share¥
182.10182.10––201.03

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2017)

Current 1st quarter(As of June 30, 2017)

AssetsCurrent assets
Cash and time deposits

205,516

183,356

Trade receivables

75,51966,647

Finished goods and merchandise

14,466

16,531Work in process

28,82332,623

Raw materials and supplies

3,398

3,461

Other current assets

30,512

34,694

(453)

(513)

357,782

336,801

Property, plant and equipment

52,18453,902Intangible assets

9,686

9,295

Other investments and assets

70,04071,341

Allowance for doubtful receivables(1,662)(1,066)

Total investments and other assets

68,37870,275130,249

133,472

488,032

470,273

Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets

Total fixed assets
Total assets-5-(¥ million)
Prior Fiscal Year(As of March 31, 2017)

Current 1st quarter(As of June 30, 2017)

Liabilities
Current liabilities
Trade payables

64,17359,619Provision

3,463

1,537

Other current liabilities

58,47346,300Total current liabilities

126,110

107,458

Net defined benefit liability

5,766

5,710

Other long-term liabilities

7,371

7,424

Total long-term liabilities

13,13813,134

139,248

120,592

10,00010,000Long-term liabilities

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

52,06452,064Retained earnings

297,984

296,088

Treasury stock(2,423)(2,424)

Total stockholders’ equity

357,626

355,729

7,884

9,111

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

210

291

Revaluation reserve for land, net of tax(5,693)(5,693)Foreign currency translation adjustments(8,725)(7,422)Remeasurements of defined benefit plans, net of tax(3,195)(3,042)

Total accumulated other comprehensive income(9,519)(6,755)

Subscription rights to shares

99

99

Non-controlling interests

577

607

348,784

349,681

488,032

470,273

Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st quarter(From April 1, 2016
to June 30, 2016)

Current 1st quarter(From April 1, 2017
to June 30, 2017)

Net sales

144,792

144,084

Cost of sales

87,16592,985Gross profit

57,62751,099Selling, general and administrative expenses

34,20735,488Operating profit

23,41915,611Dividend income

158

215

Equity in gain of affiliated companies

294

276

Non-operating income

Other non-operating income

216

356

Total non-operating income

669

848

Loss on valuation of derivatives

222

81

Foreign exchange losses

689–

Provision of allowance for doubtful accounts

120

63

Non-operating expenses

Other non-operating expenses

107

74

Total non-operating expenses

1,140

219

22,94816,240Gain on sales of fixed assets

160

13

Gain on sales of investment securities

71–

Recurring profit
Extraordinary income

Other extraordinary income

33–

Total extraordinary income

265

13

Loss on impairment of fixed assets

222

85

Loss on disaster

106–

Other extraordinary loss

58

15

Extraordinary loss

Total extraordinary loss

387

100

Profit before income taxes

22,826

16,154

Income taxes

4,276

2,626

Profit18,55013,52747

29

18,502

13,498

Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st quarter(From April 1, 2016
to June 30, 2016)
ProfitCurrent 1st quarter(From April 1, 2017
to June 30, 2017)18,55013,527(1,118)

1,085

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

(912)

81

(6,639)1,303

Remeasurements of defined benefit plans, net of tax

112

153

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

(17)

140

Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income(8,575)

2,763

9,974

16,291

9,926

16,262

47

29

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

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

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

(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current first quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.

(Segment Information)
I. Prior 1st quarter (From April 1, 2016 to June 30, 2016)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

46,04383,735Inter-segment sales
and transfers

2,014

Total
Segment profit

Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

12,800142,580

2,211

144,792–

144,792

1,962

818

4,795

3,951

8,746

(8,746)–48,05885,698

13,619147,375

6,163

153,539(8,746)

144,792

3,522

16,5994,583

24,705101

24,806(1,387)

23,419Net sales

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 1,387 million yen deducted from segment profit as adjustment are a deduction of 263 million
yen in inter-segment eliminations, and a deduction of 1,123 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 profit is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

-9-II. Current 1st quarter (From April 1, 2017 to June 30, 2017)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

40,922

91,079Inter-segment sales
and transfers

1,871

Total
Segment profit (loss)

Adjustments(Note 2)

Consolidated
Total(Note 3)

Total

Subtotal

Other(Note 1)

9,730

141,732

2,351

144,084–

144,084

709

671

3,252

3,897

7,150

(7,150)–42,794

91,78910,401

144,985

6,249

151,235(7,150)144,084

1,346

12,7082,607

16,662(41)

16,620(1,009)15,611

Net sales

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 1,009 million yen deducted from segment profit (loss) as adjustment are an addition of 98
million yen in inter-segment eliminations, and a deduction of 1,107 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding changes to reportable segments, etc.
Effective from the current first quarter, the Company has decided to change the classification of planning,development, production and sales businesses of prizes for amusement facilities and Loto prizes for convenience
stores and so forth previously belonging to the Network Entertainment Business to the Toys and Hobby Business.
Segment information of the previous first quarter (three months) is prepared and disclosed based on thereportable segment classifications after the change.
3. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 10 -