Bandai Namco Holdings Inc.
Consolidated Financial Report for the Fiscal Year Ended
March 31, 2022

May 11, 2022

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” inJapanese shall prevail.
- This document contains forward-looking statements that are based on managementʼs estimates, assumptions
and projections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Bandai Namco Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
May 11, 2022

Consolidated Financial Report for the Fiscal Year Ended March 31, 2022 (Japanese GAAP)
Masaru Kawaguchi, President and Representative Director
Representative:
Contact:
Yuji Asako, Director
Date of Ordinary General Meeting of Shareholders:June 20, 2022
Scheduled starting date for dividend payments:
June 21, 2022
Scheduled filing date of the annual security report:
June 20, 2022
The Financial Highlights of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2022
Fiscal Year Ended
March 31, 2021

Net sales¥ million
889,270%
20.0

740,903

2.3(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
125,49648.2
133,608
52.5
84,654

Profit attributable toowners of parent¥ million%
92,752
89.7

7.5

Basic earnings per share

87,612

9.8

Diluted earnings per
share¥
Fiscal Year Ended
422.09March 31, 2022
Fiscal Year Ended
48,894(15.2)
222.58March 31, 2021
(Note) Comprehensive income: 96,299 million yen [6.4%] (FY2022.3), 90,527 million yen [69.8%] (FY2021.3)
ROE(Profit attributable toowners of parent / Net
assets)%
16.9

ROA(Recurring profit /Total assets)¥––

Operating margin(Operating profit /Net sales)%
Fiscal Year Ended
16.7
March 31, 2022
Fiscal Year Ended
10.2
13.0
March 31, 2021
(Reference) Gain or loss from application of equity method: 618 million yen (FY2022.3), (31) million yen (FY2021.3)

%
14.1
11.4

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2022
862,650
584,233
67.7
As of March 31, 2021
732,782
511,433
69.7(Reference) Equity: 583,995 million yen (as of March 31, 2022), 510,515 million yen (as of March 31, 2021)

Net assets
per share¥
2,654.81
2,323.98

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
121,212¥ million(27,136)¥ million(25,450)

Cash and cash
equivalents at endof period¥ million
277,891

60,483(29,771)(19,037)

203,698

Fiscal Year Ended
March 31, 2022
Fiscal Year Ended
March 31, 2021
2. Cash Dividends

Fiscal Year Ended
March 31, 2021
Fiscal Year Ended
March 31, 2022

End offirstquarter¥––

Annual cash dividends
End of
End ofFiscalsecondthird
yearquarter quarter
end
¥
¥
¥
21.00
–
91.00
24.00

–

188.00Total¥
112.00Total
Payout ratio
Dividend /dividend (Consolidated) Net assets
payment(Consolidated)(Full year)¥ million%%
24,64050.3
5.1

212.0046,64950.2

8.5

Fiscal Year Ending
–
27.00
–
27.00
54.00
–
March 31, 2023
(Projections)(Note) Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2023, the base dividend is stated based on the Companyʼs basic policy on the distribution of profits. The yearend cash dividend for the fiscal year ending March 31, 2023, will be considered by the Company based on the basic
policy on the distribution of profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(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
400,000
1.6
46,000 (25.5)
46,500 (27.5)
33,000 (16.5)
150.02September 30, 2022
Full Fiscal Year880,000(1.0) 100,000 (20.3) 101,000 (24.4)
70,000 (24.5)
318.22* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements, (Changes in Accounting
Policies)” of “3. Consolidated Financial Statements and Significant Notes” on page 18 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)
222,000,000 shares
As of March 31, 2022
As of March 31, 2021
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
2,023,206 shares
As of March 31, 2022
As of March 31, 2021
2,326,752 sharesc) Average number of shares during the period
219,743,585 shares
For the Fiscal Year Ended March 31, 2022
For the Fiscal Year Ended March 31, 2021
219,670,097 shares(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2022
Fiscal Year Ended
March 31, 2021

Operating revenue¥ million%
45,627(61.0)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
36,956(66.6)
37,709(66.1)

116,975

110,761

260.8

ProfitFiscal Year Ended
March 31, 2022
Fiscal Year Ended
March 31, 2021

314.1

Basic earnings per share

111,194

303.5

Diluted earnings pershare¥ million
37,026%(66.3)¥
168.28¥–109,865304.3

499.42–(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2022
534,095
366,622
68.6
As of March 31, 2021
529,866
360,694
68.1(Reference) Equity: 366,622 million yen (as of March 31, 2022), 360,694 million yen (as of March 31, 2021)

Net assets
per share¥
1,666.13
1,639.51

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring profit
ProfitBasic earnings
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
41,000(10.1)
31,000(17.8)
31,000(16.3)
140.88* Consolidated Financial Reports are not required to be audited by certified public accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on managementʼs estimates, assumptions and projections at thetime of publication and those forward-looking statements 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 “(4) Future Outlook”
of “1. Overview of Operating Results and Others” on page 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 May 11, 2022.

Attached Material
Index
1. Overview of Operating Results and Others ....................................................................................... 2(1) Overview of Operating Results for the Period (April 1, 2021 to March 31, 2022) ............................................................. 2(2) Overview of Financial Position for the Period .................................................................................................................. 3(3) Overview of Cash Flows for the Period ............................................................................................................................. 3(4) Future Outlook................................................................................................................................................................... 4(5) Basic Policy on the Distribution of Profits ........................................................................................................................ 7

2. Basic Concept Regarding Selection of Accounting Standards......................................................... 7
3. Consolidated Financial Statements and Significant Notes ............................................................. 8(1) Consolidated Balance Sheets ............................................................................................................................................ 8(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ........................... 10(Consolidated Statements of Operations) ...................................................................................................................... 10(Consolidated Statements of Comprehensive Income).................................................................................................. 11(3) Consolidated Statements of Changes in Net Assets ....................................................................................................... 12(4) Consolidated Statements of Cash Flows ........................................................................................................................ 16(5) Notes to Consolidated Financial Statements ................................................................................................................. 18(Notes on Premise of Going Concern) ............................................................................................................................. 18(Changes in Accounting Policies) .................................................................................................................................... 18(Segment Information) .................................................................................................................................................... 20(Per-Share Data) ............................................................................................................................................................... 27(Significant Subsequent Events) ..................................................................................................................................... 28

4. Other .................................................................................................................................................... 33
Changes in Directors and Audit & Supervisory Board Members .......................................................................................... 33- 1 -1. Overview of Operating Results and Others(1) Overview of Operating Results for the Period (April 1, 2021 to March 31, 2022)
During the fiscal year ended March 31, 2022, the continued spread of the novel coronavirus disease (COVID-19),changes in the social situation, and spread of digital technologies, among other factors, affected both Japanese andoverseas economies and societies, as well as customer lifestyles and preferences. As part of our response against the
spread of COVID-19, the Bandai Namco Group (“the Group”) has been giving the highest priority to the safety of ourvarious stakeholders, including employees and their families and our customers, while implementing measures toprevent the spread of infection. We also promoted various measures to adapt to diversification in lifestyles andpreferences of customers such as by strengthening the sales and marketing that utilize digital strategies. We have also
been taking advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning characters andother intellectual property) to further enhance the “IP axis strategy” that aims to maximize IP value through the provisionof the optimal products and services at the optimal possible times. The measures also include initiatives to expand
global development, an initiative to strengthen development in regions and businesses with high growth potential, andan initiative to realize the total capabilities of the Group in regions around the world under the ALL BANDAI NAMCO
concept. In addition, the Company determined that in light of the rapidly changing environment, it was necessary to
formulate a new strategy for a new era and has postponed the start of the new Mid-term Plan, which was originallyscheduled to start in April 2021, by one year. We positioned the fiscal year ended March 31, 2022 as the period to establish
a business foundation and organizational structure to promote the strategies of the new Mid-term Plan and promoted
various initiatives to examine strategies, restructure organizations, and strengthen cooperation among businesses.
The Group’s operating results for the fiscal year ended March 31, 2022 exceeded those of the previous fiscal year
wherein each business was severely impacted by the temporary closure of retail stores and amusement facilities in many
regions both in Japan and overseas and the cancellation of events, etc. due to the spread of COVID-19. With regard tobusiness operations, the Digital Business and the Toys and Hobby Business enjoyed favorable performance, and theGroup’s wide-ranging business portfolio has produced successful outcomes, including the swift implementation ofvarious measures to adapt to the changes in customer lifestyles and preferences in each business.
Consequently, the Group’s consolidated operating results for the fiscal year ended March 31, 2022 were net sales of889,270 million yen (year-on-year increase of 20.0%), operating profit of 125,496 million yen (year-on-year increase of
48.2%), recurring profit of 133,608 million yen (year-on-year increase of 52.5%), and profit attributable to owners ofparent of 92,752 million yen (year-on-year increase of 89.7%).
Operating results by segment are as follows.
Effective from the fiscal year ended March 31, 2022, the Group changed the classification of its reportable segments.
Consequently, in the following year-on-year comparisons, the figures for the previous fiscal year have been restated into
the figures for the classifications after the change.
Digital Business
As for the Digital Business, home video games enjoyed favorable performance with the strong sales of new home
video game titles such as ELDEN RING and Tales of ARISE for worldwide distribution, and strong repeat sales of existing
titles due to ongoing measures targeting users. In addition, in network content, new titles enjoyed favorable debuts andthe performance of key titles was stable, but the favorable levels seen in the previous fiscal year were not reached. During
the fiscal year ended March 31, 2022, initial expenses, such as development expenses, increased due to the increase oflaunches of new major titles in comparison to the previous fiscal year.
As a result, net sales in the Digital Business were 378,173 million yen (year-on-year increase of 11.9%), and segment
profit was 69,634 million yen (year-on-year increase of 22.6%).
Toys and Hobby Business
As for the Toys and Hobby Business, products for the mature fan base such as plastic models of the Mobile Suit
Gundam series, collectible figures, and character lotteries performed favorably due to the successful outcomesproduced by sales, marketing, etc. that utilize digital strategies and expansion of the Business overseas. In addition,
product sales have recovered, including for prizes, etc. which were affected by the temporary closure of amusement
facilities in the previous fiscal year. Moreover, in Japan, long-established IP and new IP toys, as well as trading cards foroverseas markets, confectionery, capsule toys and other toy related products were popular.
As a result, net sales in the Toys and Hobby Business were 373,625 million yen (year-on-year increase of 24.2%), andsegment profit was 52,319 million yen (year-on-year increase of 33.9%).

- 2 -Visual and Music Business
As for the Visual and Music Business, in addition to the sales of IP related visual and music package software,
including the Mobile Suit Gundam series, the LoveLive! series and The iDOLM@STER series, IP related licensing revenue
contributed to performance. Furthermore, we proceeded with initiatives for new forms of live events that are suited tochanges in the business environment, such as by streaming the events and utilizing new technologies, and the numberof events held increased from the previous fiscal year.
As a result, net sales in the Visual and Music Business were 53,941 million yen (year-on-year increase of 57.6%), andsegment profit was 5,698 million yen (year-on-year increase of 267.9%).
Creation Business
As for the Creation Business, we produced new video works such as the Mobile Suit Gundam series and the LoveLive!
series, but the contribution to profits was limited due to the business model of recording initial expenses in advance.
Although licensing revenue was strong due to increased popularity of Gundam, etc., GUNDAM FACTORY YOKOHAMA, which
disseminates information on IP, was impacted by the spread of COVID-19.
As a result, net sales in the Creation Business were 37,564 million yen (year-on-year increase of 33.1%), and segment
profit was 2,830 million yen (year-on-year increase of 3.3%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19, there were signs of recovery with net
sales of existing amusement facilities in Japan increasing 115.5% compared with the previous fiscal year, andamusement facilities in Europe and Asia recovered compared with the previous fiscal year. For the Amusement Business,in addition to continuing to improve efficiency, we will aim to strengthen the revenue base by promoting initiatives that
only the Bandai Namco Group can offer, such as strengthening the use of Group products and services.
As a result, net sales in the Amusement Business were 82,344 million yen (year-on-year increase of 28.8%), andsegment profit was 4,051 million yen (segment loss for the previous fiscal year was 8,379 million yen).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds ofadministration and operational support for each of the Group companies. We have been making efforts to manage suchoperations related to group support in an efficient manner.
As a result, net sales in the Other Businesses were 27,667 million yen (year-on-year increase of 12.2%), and segment
profit was 347 million yen (year-on-year decrease of 42.4%).
(2) Overview of Financial Position for the Period
At the end of the fiscal year ended March 31, 2022, total assets stood at 862,650 million yen, an increase of 129,867
million yen from the end of the previous fiscal year. The main factors were increases of 75,074 million yen in cash andtime deposits, 30,976 million yen in trade receivables and contract assets (trade receivables at the end of the previous
fiscal year), and 12,476 million yen in work in process.
Total liabilities amounted to 278,416 million yen, an increase of 57,067 million yen from the end of the previous fiscal
year. The main factors were increases of 17,335 million yen in trade payables and 16,071 million yen in accrued income
taxes.
Total net assets stood at 584,233 million yen, an increase of 72,800 million yen from the end of the previous fiscal
year. The main factors were an increase of 67,660 million yen in retained earnings mainly due to the recording of 92,752
million yen in profit attributable to owners of parent despite cash dividends paid of 25,271 million yen.
As a result, the equity ratio became 67.7% compared with 69.7% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Period
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand increased by 74,193 million
yen from the end of the previous fiscal year to 277,891 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 121,212 million yen (year-on-year increase of 100.4%).
As a breakdown of funds used, increase in trade receivables was 26,577 million yen (compared with 6,653 million yen in
the previous fiscal year). However, overall, there was a net increase in funds due to profit before income taxes of 130,882
million yen (compared with 71,940 million yen in the previous fiscal year) and depreciation and amortization of 25,726
million yen (compared with 24,684 million yen in the previous fiscal year).
- 3 -(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 27,136 million yen (year-on-year decrease of 8.9%). The main
breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 26,798 million
yen (compared with 23,849 million yen in the previous fiscal year).
(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 25,450 million yen (year-on-year increase of 33.7%). The
main breakdown of funds used was cash dividends paid of 25,271 million yen (compared with 29,220 million yen in theprevious fiscal year).
(Reference) Cash Flow Indices
FY2018.3
71.5

FY2019.3
70.0

FY2020.3
72.5

FY2021.3
69.7

FY2022.3
67.7

Equity ratio (market capitalizationbasis) (%)

142.1

186.1

185.8

236.6

236.9

Cash flows to interest bearing debt
ratio (years)

0.0

0.0

0.1

0.5

0.2

1,468.2

2,180.5

345.8

296.0

321.0

Equity ratio (%)

Interest coverage ratio (times)

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(4) Future Outlook
Looking ahead, the Group expects uncertainty to continue due to changes in the social situation despite anticipatingthat the economy and personal consumption will recover due to the promotion of measures against the spread of COVID19 and COVID-19 vaccinations in various regions around the world.
Under these circumstances, the Group will continue carrying out initiatives to prevent the spread of COVID-19, giving
the highest priority to the safety of our stakeholders, including employees and their families, and customers. Moreover,adapting to escalating competitiveness in global markets and diversification in lifestyles and preferences of customers,in line with an IP axis strategy, the Bandai Namco Group will enhance sense of unity and its total capabilities under the
ALL BANDAI NAMCO concept, while utilizing the characteristics of each business. From April 2022, as Purpose being theultimate definition of who we are as a Group and the introduction of the new logo, to maintain continuous growth overmedium to long term for the aims under our Purpose, the new three-year Mid-term Plan has started.
1)

Formulation of Bandai Namcoʼs Purpose and introduction of the new logo

From April 2022, we have established our new Purpose as the ultimate definition of who we are as a Group,
conveying “the reason for our existence,” why we conduct our businesses and corporate activities, and themeaningfulness we derive from working at Bandai Namco Group. What we believe to be particularly importantelements in our Purpose are the ideas of “Connecting and working together to create things" and we will achieve“Fun for All into the Future” by Bandai Namco Group and our fans connecting through dreams, fun and inspiration.

- 4 -<Bandai Namcoʼs Purpose>

From April 2022, we have introduced a new logo that expresses the spirit of Purpose. All companies with “Bandai
Namco” in their names will use this logo, and companies with and without “Bandai Namco” in their names will
display this new Group logo on all their products and services, in principle. This will enable us to bring together thevalue of all our products, services, and labels under one logo and elevate the brand value of the Bandai Namco
Group in the global market.
<New logo>

2)

Purpose-driven aims

In accordance with the Purpose, the Bandai Namco Group aims to connect with IP fans, business partners, Group
employees, and communities around the world. We will strive to connect more deeply with current fans and more
broadly with new fans. In addition, we will aim to foster multifaceted connections among current fans and new fansas well as communities of fans. In fostering connections with and among various fans, our highest priority will be
the quality of the connections. Under the Mid-term Plan, we will advance a variety of initiatives focusing on deep,
broad, and multifaceted connections with fans and on the quality of those connections.
3)

Mid-term Vision

In accordance with the purpose, as we work toward what we aim to be, under the Mid-term Plan we will strive toalways meet the needs of IP fans, a wide range of business partners, Group employees, and communities aroundthe world and to foster deep, broad, multifaceted connections.
4)

Main strategies and investment plan
IP axis strategy

The IP axis strategy, which is the Bandai Namco Groupʼs strength, is the core of the Mid-term Plan. We will aim
for sustainable growth by implementing new initiatives to foster deep, broad, and multifaceted connections withfans around the world; by accelerating evolution in the IP axis strategy; and by working to build businesses as wework together under the ALL BANDAI NAMCO concept in regions around the world.
· IP x Fans (connecting with fans through IP): New framework for connecting with fans
Based on the IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connectingwith fans. In this IP Metaverse, we are anticipating virtual spaces that will enable customers to enjoy a wide range
of entertainment surrounding IP, as well as frameworks that leverage Bandai Namco’s distinctive strengths to fusephysical products and venues with digital elements. We are aiming for open frameworks that provide venues for- 5 -connections with and among fans and business partners. Through the IP Metaverse, we will establish communities
among Bandai Namco and fans, as well as among fans themselves. Through these communities and content, we
will build deep, broad, multifaceted connections that continue for long periods of time, and we will focus on thequality of those connections. In this way, we will work to maximize IP value over the medium to long term.
· IP x Value (enhancing IP value): Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among physical and digital elements, and we will redefine the optimal IP axis strategy for IP fans
and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.
· IP x World (connecting the world through IP): Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in regions worldwide, wehave implemented such initiatives as organizational restructuring and base consolidation around the world.
Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.
· Investment plan for accelerating evolution in the IP axis strategy
Over the three years of the Mid-term Plan, we will implement a total of 40.0 billion yen in strategic investment
to accelerate evolution in the IP axis strategy.
Strategic investment to maximize IP value: 25.0 billion yen
Investment to develop the IP Metaverse: 15.0 billion yen
Personnel strategy: Developing diverse human resources
In accordance with our Purpose, the Group strives to be a community of “Same Spirit, Diverse Talents,” where
diverse companies and people of different skills, individual characteristics and values can thrive. We will further
focus on recruiting and promoting individuals regardless of whether they are new graduates or mid-career hires andregardless of gender or nationality, in addition to which we will focus on developing systems and environments thatenable a diverse array of people to thrive and work in a way that is both physically and mentally healthy. Under the
Mid-term Plan, we will promote initiatives to support challenges taken on by employees and the development of
human resources to promote the IP axis strategy on a global scale, as well as new and diverse ways to work.
Sustainability: Connecting to a future of smiles
In accordance with our Purpose and the Bandai Namco Group Sustainability Policy, the Bandai Namco Groupwill work together with fans to advance sustainability activities for the realization of a sustainable society in ways
such as working on the action plan in line with the newly identified material issues.
5)

System for promotion of the Mid-term Plan
Strengthening the governance system of Bandai Namco Holdings·

In order to further increase corporate value by strengthening our corporate governance system andimplementing rapid decision-making and business execution, we will transition to a company with an Audit &Supervisory Committee on the condition that the proposal for this transition is approved and adopted at theSeventeenth Ordinary General Meeting of Shareholders to be held in June 2022.
·

Partial changes of the Unit structure

From April 2022, we restructured the IP Production Unit and also integrated the Visual and Music Business andthe Creation Business into the IP Production Business. In the IP Production Unit, Bandai Namco Filmworks Inc.
will serve as a business management company upon having combined three companies that engage in the visualbusiness within the IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., andBandai Namco Rights Marketing Inc.
6)

Numerical targets, shareholder return policy·

Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales: 1,100.0 billion yen
Consolidated operating profit: 125.0 billion yen
ROE: 12% or moreIn the future, Bandai Namco Group aims to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster deep, broad, multifaceted connection, and each
- 6 -business around the world will further work as one under the ALL BANDAI NAMCO concept on the priority strategies,
consisting of the IP axis strategy, Personnel strategy, and Sustainability, under the Mid-term Plan.
In light of the implementation of these measures, the consolidated projections of the fiscal year ending March 31,
2023 are as follows: net sales of 880,000 million yen (year-on-year decrease of 1.0%), operating profit of 100,000 million
yen (year-on-year decrease of 20.3%), recurring profit of 101,000 million yen (year-on-year decrease of 24.4%), and profit
attributable to owners of parent of 70,000 million yen (year-on-year decrease of 24.5%).
(5) Basic Policy on the Distribution of Profits
Bandai Namco Group ranks the return of profits to shareholders as one of its highest priorities in its management.
The Group aims to further strengthen the Group’s competitiveness and, while maintaining a sound financial status, toachieve regular distributions of dividends and improvement in the Group’s corporate value. In embarking on the Midterm Plan, the Company has considered its basic policy on returning profits to shareholders from various perspectives,
taking into account the Mid-term Plan’s main strategies and investment plan as well as the market environment. As aresult, the Company decided to continue its basic policy of providing a return to shareholders that targets a total return
ratio of 50% or more based on stable dividend payments of 2% of DOE (dividends on equity), maintaining long term andstable level of dividends and increasing the focus on the capital cost, with DOE and total return ratio as indicators.
For the year-end dividend for the fiscal year ended March 31, 2022, based on this basic policy and the performancein the fiscal year, a performance-based dividend of 164 yen will be added to a base dividend of 24 yen, for a total of 188
yen per share. Since the Company paid an interim dividend of 24 yen per share on December 7, 2021, the annual cash
dividend will be 212 yen per share (total return ratio of 50.2%). The Company’s annual dividend forecast for the fiscal
year ending March 31, 2023 is 54 yen per share, which is the base dividend set in accordance with the Company’s basic
policy on the distribution of profits. The year-end cash dividend for the fiscal year ending March 31, 2023 will beconsidered by the Company based on the basic policy on the distribution of profits.

2. Basic Concept Regarding Selection of Accounting Standards

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

- 7 -3. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current Fiscal Year(As of March 31, 2022)

AssetsCurrent assets
Cash and time deposits

204,326

279,401

Trade receivables

91,765–Trade receivables and contract assets–

122,742

Finished goods and merchandise

28,99433,051Work in process

73,81686,292

Raw materials and supplies

4,075

4,905

Other current assets

53,872

52,814

Allowance for doubtful receivables(1,639)(2,001)

Total current assets

455,210577,206

Fixed assets
Property, plant and equipment
Buildings and structures

38,64340,416

Accumulated depreciation(19,970)(23,399)

Buildings and structures, net

18,672

17,017

Amusement facilities and machines

60,67559,298(54,761)(52,625)

5,914

6,672

Land

43,04742,869Other property, plant and equipment

139,509

151,528(118,801)(125,637)

20,70725,89088,341

92,45017,06914,887

Accumulated depreciation
Amusement facilities and machines, net

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

15,944

19,540Total intangible assets

33,01434,428Investment securities

121,208

113,261

Deferred tax assets

16,31025,732407

525

18,707

19,831

Investments and other assets

Net defined benefit asset
Other investments and assets
Allowance for doubtful receivables

(418)

(784)

Total investments and other assets

156,215

158,565

277,571285,443

732,782

862,650

Total fixed assets
Total assets- 8 -(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current Fiscal Year(As of March 31, 2022)

Liabilities
Current liabilities
Trade payables

82,474

99,810

Short-term borrowings

385

10,810Accrued income taxes

6,820

22,891

Contract liabilities–

22,912

Provision for directorsʼ bonuses

1,646

2,180

Other provision

1,900

1,565

Other current liabilities

82,692

83,191

Total current liabilities

175,920

243,362

20,234

10,236

301

249

7,212

5,261

199

199

17,48019,106Long-term liabilities
Long-term borrowings
Other provision
Net defined benefit liability
Deferred tax liabilities for land revaluation
Other current liabilities
Total long-term liabilities
Total liabilities

45,42835,053

221,348

278,416

Net assets
Stockholdersʼ equity
Common stock

10,00010,000Capital surplus

52,232

52,574Retained earnings

414,487

482,147

Treasury stock(3,905)(2,140)Total stockholdersʼ equity

472,814542,581

51,58745,037

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

988

901

Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments(7,438)1,886

Remeasurements of defined benefit plans, net of tax(3,419)(2,394)

Total accumulated other comprehensive income

37,70141,413917

237

511,433

584,233

732,782

862,650

Non-controlling interests
Total net assets
Total liabilities and net assets- 9 -(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2020
to March 31, 2021)

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)

Net sales

740,903889,270

Cost of sales

458,897533,004

Gross profit

282,006

356,265

Selling, general and administrative expenses

197,352

230,769

Operating profit

84,654125,496

Non-operating income
Interest income

311

217

Dividend income

1,234

1,236

Foreign exchange gains

480

5,519

Other non-operating income

1,443

2,363

Total non-operating income

3,470

9,337

Interest expense

229

377

Loss on valuation of derivatives

44

244

Provision of allowance for doubtful accounts

31

369

Other non-operating expenses

206

233

Non-operating expenses

Total non-operating expenses

512

1,225

87,612

133,608

464

3,318

1,373

909

Other extraordinary income

388

469

Total extraordinary income

2,225

4,697

Recurring profit
Extraordinary income
Gain on sales of fixed assets
Subsidies for employment adjustment and other related to
COVID-19

Extraordinary loss
Loss on impairment of fixed assets

11,284

2,994

–

1,257

Loss on disposal of fixed assets

626

994

Loss on liquidation of business

1,754

–

Extra retirement payments

Other extraordinary loss

4,231

2,176

Total extraordinary loss

17,897

7,423

Profit before income taxes

71,940130,882

Income taxes - current

24,527

38,216

Income taxes for prior periods
Income taxes - deferred–(1,452)(6,713)

Total income taxes

23,07438,295

Profit48,86592,587

(28)

(165)

48,89492,752

Loss attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

6,792

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2020
to March 31, 2021)
ProfitCurrent Fiscal Year
(From April 1, 2021
to March 31, 2022)

48,86592,587

34,636(6,505)

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

736

(87)

Foreign currency translation adjustments

4,892

9,323

Remeasurements of defined benefit plans, net of tax

1,220

1,025

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

175

(44)

Total other comprehensive income
Comprehensive income

41,661

3,711

90,527

96,29990,486

96,46440(165)

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 11 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2020 to March 31, 2021)(¥ million)
Stockholdersʼ equity
Common stock
Balance at beginning of year

Capital surplus

10,000Retained earnings

52,004

394,699

Total stockholdersʼ
equityTreasury stock(3,634)453,069

Changes during the period
Cash dividends(29,220)(29,220)

Profit attributable to owners ofparent48,894

48,894

Change in ownership interest ofparent due to transactions with
non-controlling interests

5

Purchase of treasury stock
Disposal of treasury stock

222

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied
Reversal of revaluation reserve
for land

(309)

(303)

(9)

(9)

48

270

0

0

113

113

Net changes of items other thanstockholdersʼ equity
Total changes during the period
Balance at end of year–

228

19,787(270)

19,745

10,00052,232

414,487(3,905)472,814- 12 -

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges,
securities, net of

net of tax

tax

Balance at beginning of year

16,837250

Revaluation
reserve forland, net of
tax

Total
Foreign currency Remeasurements

accumulatedtranslationof defined benefit

otheradjustments

plans, net of tax

comprehensive(12,321)(4,639)Non-controllinginterests

Total net assets

income(3,902)(3,776)

5,392

454,684

Changes during the period
Cash dividends(29,220)

Profit attributable to owners ofparent48,894

Change in ownership interest ofparent due to transactions with
non-controlling interests(4,823)(5,127)Purchase of treasury stock(9)

Disposal of treasury stock

270

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied

0

Reversal of revaluation reserve
for land

(113)

(113)

–

Net changes of items other thanstockholdersʼ equity

34,749

738

–

4,883

1,220

41,592349

41,941

Total changes during the period

34,749

738

(113)

4,883

1,220

41,478(4,474)56,749Balance at end of year

51,587988(4,016)(7,438)(3,419)37,701

917

511,433- 13 -

Current Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
Stockholdersʼ equity
Common stock
Balance at beginning of year

Capital surplus

10,00052,232

Cumulative effects of changes inaccounting policies
Restated balance

Retained earnings
414,487

Total stockholdersʼ
equityTreasury stock(3,905)179
10,00052,232

414,666

472,814179(3,905)472,993

Changes during the period
Cash dividends(25,271)(25,271)

Profit attributable to owners ofparent

92,752

92,752

Change of scope of
consolidation - foreign currencytranslation adjustment–

Change in ownership interest ofparent due to transactions with
non-controlling interests

(108)

(108)

Purchase of treasury stock
Disposal of treasury stock

451

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied

(8)

(8)

1,772

2,224

0

0

Net changes of items other thanstockholdersʼ equity
Total changes during the period
Balance at end of year–

342

67,4801,764

69,58810,00052,574482,147(2,140)542,581- 14 -

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges,
securities, net of

net of tax

tax

Balance at beginning of year

51,587

988

Revaluation
reserve forland, net of
tax

Total
Foreign currency Remeasurements

accumulatedtranslationof defined benefit

otheradjustments

plans, net of tax

comprehensive(7,438)(3,419)Non-controllinginterests

income(4,016)37,701

917

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

511,433
179

51,587988(4,016)(7,438)(3,419)37,701

917

511,612

Changes during the period
Cash dividends(25,271)

Profit attributable to owners ofparent

92,752

Change of scope of
consolidation - foreign currencytranslation adjustment

160

160

Change in ownership interest ofparent due to transactions with
non-controlling interests

160

(482)

(591)

Purchase of treasury stock(8)

Disposal of treasury stock

2,224

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied0

Net changes of items other thanstockholdersʼ equity(6,549)

(87)

–

9,164

1,025

3,552

(197)

3,355

Total changes during the period(6,549)

(87)

–

9,324

1,025

3,712

(679)

72,620

Balance at end of year

45,037901(4,016)

1,886(2,394)

41,413

237

584,233- 15 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2020
to March 31, 2021)

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)

Cash flows from operating activities
Profit before income taxes

71,940130,882

Depreciation and amortization

24,68425,726

Loss on impairment of fixed assets

11,284

2,994

Amortization of goodwill

2,309

2,218

Increase (decrease) in allowance for doubtful receivables

163

610

Increase (decrease) in provision for directorsʼ bonuses

(247)

524

Increase (decrease) in other provision

(60)

(390)

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

(126)

187

(1,546)(1,454)

Interest expense

229

377

Foreign exchange losses (gains)

(128)

(359)

Loss (gain) on valuation of derivatives

44

244

Loss on disposal of fixed assets

626

994

Loss (gain) on sales of fixed assets, net(452)(3,305)

Loss on disposal of amusement facilities and machines

1,607

105

Loss (gain) on sales of investment securities, net

(307)

(91)

Decrease (increase) in trade receivables(6,653)(26,577)

Decrease (increase) in inventories(29,053)(15,534)

Acquisition of amusement facilities and machines(4,252)(4,360)

Increase (decrease) in trade payables

11,30816,184

Increase (decrease) in contract liabilities–

22,270Decrease (increase) in other current assets(6,406)(11,653)

Increase (decrease) in other current liabilities

20,674488

Other(1,797)(3,757)

Subtotal

93,842

136,325

Interest and dividends received

1,560

1,447

Interest paid

(204)

(377)

Income taxes paid

(34,714)(16,182)

Net cash provided by operating activities

60,483

121,212- 16 -

(¥ million)
Prior Fiscal Year
(From April 1, 2020
to March 31, 2021)

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)

Cash flows from investing activities
Payments into in time deposits(31,313)

Proceeds from withdrawal of time deposits

31,90730

Purchases of property, plant and equipment(16,032)(19,228)

Proceeds from sales of property, plant and equipment

(878)

863

3,874

Purchases of intangible assets(7,816)(7,569)Purchases of investment securities(7,053)(1,604)522

624

Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries–

49

Purchase of shares of subsidiaries and associates

(135)

(984)

Purchase of shares of subsidiaries resulting in change inscope of consolidation

(137)

–

Other

(575)

(1,449)(29,771)(27,136)

Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

(500)

400

Proceeds from long-term borrowings

20,400250

Repayments of long-term borrowings

(397)

(223)

Purchase of treasury stock

(9)

(8)

Proceeds from disposal of treasury stock

–

1,946

Cash dividends paid

(29,220)(25,271)

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation(8,494)

(591)

Other

(815)

(1,952)(19,037)(25,450)

Effect of exchange rate changes on cash and cash
equivalents

3,357

5,328

Net increase (decrease) in cash and cash equivalents

15,031

73,954

Cash and cash equivalents at beginning of year

188,667

203,698–

238

203,698

277,891

Net cash used in financing activities

Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of year

- 17 -

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,
2020; hereinafter the “Revenue Recognition Standard”) and other relevant ASBJ regulations from the beginning of the
fiscal year ended March 31, 2022, and it has decided to recognize revenue at the time the control of promised goods orservices is transferred to the customer at the amount expected to be received upon exchange of those goods orservices. As a result of this application, revenue mainly for network content and home video games with online
functions, which was previously recognized when items used in the content or video game software was sold, etc., will
be recognized by calculating the estimated sales value for undelivered elements if there were elements that were notdelivered to customers and recognizing an amount equivalent to that value as the revenue over the reasonably
estimated period for which performance obligations are expected to be satisfied.
The application of the Revenue Recognition Standard and other relevant ASBJ regulations is subject to thetransitional treatment provided for in the proviso to paragraph 84 of the Revenue Recognition Standard. The
cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to the beginning of the current fiscal year was added to or deducted from the beginning balance of retained
earnings of the current fiscal year, and thus the new accounting policy was applied from such beginning balance.
However, applying the method provided for in paragraph 86 of the Revenue Recognition Standard, the new accounting
policy was not retrospectively applied to contracts for which nearly all the revenue amounts had been recognizedaccording to the previous treatment in periods prior to the beginning of the current fiscal year.
“Trade receivables” under current assets of the consolidated balance sheet as of the end of the previous fiscal year
has been included in “Trade receivables and contract assets” from the consolidated balance sheet as of the end of thecurrent fiscal year. In addition, “Other current liabilities” under current liabilities has been included in “Contract
liabilities” and “Other current liabilities” from the consolidated balance sheet as of the end of the current fiscal year.
However, in accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for
Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new approachto presentation.
As a result of this change, in comparison to the period before the application of the Revenue Recognition Standard,etc., for the current fiscal year, net sales increased by 83 million yen, cost of sales decreased by 1,903 million yen, andselling, general and administrative expenses increased by 2,416 million yen while operating profit, recurring profit andprofit before income taxes each decreased by 429 million yen.
Due to the reflection of the cumulative effects of changes to net assets at the beginning of the current fiscal year,
the beginning balance of retained earnings in the consolidated statements of changes in net assets increased by 179
million yen.
The impact of this change on per-share data is described in the relevant section.

- 18 -

(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019; hereinafter the “Fair Value Measurement Standard”) and other relevant ASBJ regulations from the beginning of
the fiscal year ended March 31, 2022 and, in accordance with the transitional treatment provided for in paragraph 19 of
the Fair Value Measurement Standard and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019), the new accounting policy provided for in the Fair Value Measurement Standard andother relevant ASBJ regulations is applied prospectively. There is no impact on the consolidated financial statements.

- 19 -

(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 and which 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 Units, one for each business domain, namely the Entertainment Unit (Digital
Business, Toys and Hobby Business), the IP Production Unit (Visual and Music Business, Creation Business), and
the Amusement Unit, and (2) the affiliated business companies that mainly serve a supporting role for these Units.
The business management company of each business leads the planning and promotion of the business strategiesof the business for Japan and overseas.
Accordingly, the Group has the following five reportable segments: Digital Business, Toys and Hobby Business,
Visual and Music Business, Creation Business, and Amusement Business.
The Digital Business conducts planning, development and distribution of network content, and planning,development and sales of home video games. The Toys and Hobby Business conducts planning, development,
production and sales of toys, capsule toys, cards, confectionery and foods, apparel, sundries, plastic models,prizes, stationery, and other products. The Visual and Music Business conducts planning, production, andmanagement of visual and music content, artist discovery and development, and live entertainment operations.
The Creation Business conducts planning and production of animations, management and administration of
copyrights and other rights, and production of music related to animations and management and administrationof music and masters related to animations. The Amusement Business conducts planning, development,
production and sales of amusement machines, and planning and operation of amusement facilities, etc.
From the fiscal year ended March 31, 2022, the Group reorganized its structure from its previous five Unit
structure to a three Unit structure ahead of the start of the Mid-term Plan from April 2022.
In conjunction with this organizational restructure, the reportable segments were changed from the Toys andHobby Business, Network Entertainment Business, Real Entertainment Business, Visual and Music Production
Business, and IP Creation Business to the Digital Business, Toys and Hobby Business, Visual and Music Business,
Creation Business, and Amusement Business from the fiscal year ended March 31, 2022.
Segment information of the prior fiscal year is prepared and disclosed based on the reportable segmentclassifications after the change.
2. Method for calculating the amounts of net sales, profit/loss, assets, liabilities and others by reportablesegment
Except for the accounting treatment for revenue recognition, the accounting method used for the businesssegments reported is the same as the accounting method stated in “Important Information Constituting the Basisfor Preparation of Consolidated Financial Statements” presented in the most recent annual security report (filedon June 21, 2021).
The profit of reportable segments is measured by operating profit.
The inter-segment transactions are based on prevailing market prices.

- 20 -

(Application of Accounting Standard for Revenue Recognition, etc.)
As described in “(Changes in Accounting Policies),” the Company has applied the “Accounting Standard for
Revenue Recognition” and other relevant ASBJ regulations from the beginning of the fiscal year ended March 31,
2022, and changed the accounting treatment for revenue recognition. Accordingly, the Company has changed themethod of measuring profit or loss of business segments.
For the current fiscal year, as a result of this change, and compared with the figures obtained by the previous
method, net sales decreased by 1,739 million yen and segment profit decreased by 422 million yen in the Digital
Business; net sales increased by 2,289 million yen and segment profit decreased by 7 million yen, respectively, in
the Toys and Hobby Business; net sales increased by 73 million yen in the Visual and Music Business; net sales
decreased by 369 million yen in the Creation Business; and net sales decreased by 170 million yen in the Amusement
Business.

- 21 -

3. Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportablesegment
Prior Fiscal Year (From April 1, 2020 to March 31, 2021)(¥ million)
Reportable segments

Consolidated
Total(Note 3)

Other
(Note 1)

Total

Adjustments(Note 2)735,059

5,844

740,903–

740,903

1,219

30,076

18,81048,887(48,887)–

28,21363,923765,136

24,655

789,791(48,887) 740,903

1,549

2,740

(8,379)91,772602

92,374(7,720)84,654

144,095

28,462

45,63356,631

483,298

26,438509,736

223,045732,7822,331

11,972

607

657

6,816

22,385458

22,844

1,840

24,684

–

333

15

1,951

8

2,309

–

2,309

–

2,309

Loss on impairmentof fixed assets

821

9

0

–

10,496

11,328–

11,328(43)

11,284

Investment inassociates
accounted for using
equity method

–

915

–

–

–

915

10,285

11,200–

11,200

Increase in property,
plant and equipment
and intangible assets

5,243

16,329

578

1,413

6,374

29,940785

30,725782

31,507

DigitalBusiness

Toys and Visual
AmuseCreation
Hobby and Music
ment
SubtotalBusiness
Business BusinessBusiness

334,303

292,099

29,535

16,41662,703

Inter-segment sales
and transfers

3,660

8,715

4,684

11,796

Total

337,964

300,815

34,219Segment profit (loss)

56,77639,086

Segment assets

208,475

Net sales
To externalcustomers

OthersDepreciation andamortization
Amortization of
goodwill

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

The details of adjustment amounts are as follows:(1)

Included in the 7,720 million yen deducted from segment profit (loss) as adjustment are an additionof 250 million yen in inter-segment eliminations, and a deduction of 7,970 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 223,045 million yen added to segment assets as adjustment are a deduction of 41,803
million yen in inter-segment eliminations, and an addition of 264,848 million yen in corporate assetsthat cannot 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 notbeen attributed to a reportable segment.

(3)

Included in the 1,840 million yen added to depreciation and amortization as adjustment are adeduction of 137 million yen in inter-segment eliminations, and an addition of 1,977 million yen in
depreciation and amortization related to the administration division that has not been attributed toa reportable segment.

(4)

Included in the 43 million yen deducted from loss on impairment of fixed assets as adjustment isrelated to inter-segment eliminations.

- 22 -

(5)Included in the 782 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 reportablesegment.

3.

Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

- 23 -

Current Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
Reportable segments

Consolidated
Total(Note 3)

Other
(Note 1)

Total

Adjustments(Note 2)

883,336

5,933

889,270–889,270

1,178

42,312

21,73364,045(64,045)–

37,564

82,344

925,648

27,667

953,315(64,045) 889,270

5,698

2,830

4,051

134,534

347

134,881(9,384) 125,496

185,166

36,91856,82654,052598,626

26,463625,090

237,559

862,650

3,096

13,866

638

1,225

3,125

21,952586

22,5393,187

25,726

Amortization of
goodwill

–

344

15

1,859

–

2,218

–

2,218

–

2,218

Loss on impairmentof fixed assets

51

600

40

164

2,122

2,979

15

2,994

–

2,994

Investment inassociates
accounted for using
equity method

–

1,384

–

–

–

1,384

10,106

11,490–11,490

Increase in property,
plant and equipment
and intangible assets

7,180

16,117

703

1,980

6,414

32,396

1,650

34,0462,507

36,554

DigitalBusiness

Toys and Visual
AmuseCreation
Hobby and Music
ment
SubtotalBusiness
Business BusinessBusiness

373,509361,884

43,85322,922

81,165Inter-segment sales
and transfers

4,663

11,74010,087

14,641

Total

378,173373,625

53,941

Segment profit

69,63452,319Segment assets

265,662

Net sales
To externalcustomers

OthersDepreciation andamortization

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

The details of adjustment amounts are as follows:(1)

Included in the 9,384 million yen deducted from segment profit as adjustment are an addition of 650
million yen in inter-segment eliminations, and a deduction of 10,035 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 237,559 million yen added to segment assets as adjustment are a deduction of 58,641
million yen in inter-segment eliminations, and an addition of 296,200 million yen in corporate assetsthat cannot 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 notbeen attributed to a reportable segment.

(3)

Included in the 3,187 million yen added to depreciation and amortization as adjustment are adeduction of 27 million yen in inter-segment eliminations, and an addition of 3,214 million yen in
depreciation and amortization related to the administration division that has not been attributed toa reportable segment.

(4)

Included in the 2,507 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 reportablesegment.

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 24 -

b. Related Information
Prior Fiscal Year (From April 1, 2020 to March 31, 2021)
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

Americas489,994

Europe102,983

Asia

Total

72,60275,323740,903

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

Americas

Europe72,327

457

Asia

Total

8,058

7,497

88,341

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

Net sales

Names of related segments

Apple Inc.

105,334

Digital Business, Toys and Hobby Business, and Visual andMusic Business

Google Inc.

75,272

Digital Business, Toys and Hobby Business, Visual and Music
Business, and Creation BusinessNote: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to thesecompanies are usage fees, etc. for users (ordinary users) of game services provided by the Group.
Current Fiscal Year (From April 1, 2021 to March 31, 2022)
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

Americas514,739

Europe158,596

Asia

102,824

Total
113,109889,270

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

Americas73,535

Europe
1,845

Asia
8,727

- 25 -

Total
8,341

92,4503. Information by major customer(¥ million)
Name of customer

Net sales

Apple Inc.

Names of related segments
Digital Business, Toys and Hobby Business, and Visual andMusic Business

99,579Note: Apple Inc. is a platform-provision company. The actual results of sales to this company is usage fees, etc.
for users (ordinary users) of game services provided by the Group.

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2020 to March 31, 2021)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2021 to March 31, 2022)
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, 2020 to March 31, 2021)(¥ million)
DigitalBusiness

Toys and
Hobby
Business

Visualand Music
Business

Eliminations andCorporate

Creation
Business

Amusement
Business

Amortized
amount

–

333

15

1,951

8

–

–

2,309

Unamortizedbalance

–

1,100

22

15,946–––

17,069

Other

Total

Current Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
DigitalBusiness

Toys and
Hobby
Business

Visualand Music
Business

Creation
Business

Amusement
Business

Amortized
amount

–

344

15

1,859

–

–

–

2,218

Unamortizedbalance–792

7

14,087–––

14,887e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2020 to March 31, 2021)
Not applicable.
Current Fiscal Year (From April 1, 2021 to March 31, 2022)
Not applicable.

- 26 -

Eliminations andCorporate

Other

Total

(Per-Share Data)

Net assets per share
Basic earnings per share
Notes: 1.
2.

Prior Fiscal Year
(From April 1, 2020 to March 31, 2021)
2,323.98 yen

Current Fiscal Year
(From April 1, 2021 to March 31, 2022)
2,654.81 yen

222.58 yen

422.09 yen

Diluted earnings per share is not presented since no potential shares exist.
The basis of calculating basic earnings per share is as follows:
Prior Fiscal Year
(From April 1, 2020 to March 31, 2021)

Current Fiscal Year
(From April 1, 2021 to March 31, 2022)

Basic earnings per share
Profit attributable to owners of parent(¥ million)
Amount not applicable to common
stockholders (¥ million)
Profit attributable to owners of parent
available to common stock (¥ million)
Average number of common stock
outstanding (shares)
3.

48,89492,752––

48,89492,752

219,670,097

219,743,585

As described in “(Changes in Accounting Policies),” the Company has applied the “Accounting Standard for
Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other relevant ASBJ regulations andcomplies with the transitional treatment provided for in the proviso to paragraph 84 of the “AccountingStandard for Revenue Recognition.” As a result, net assets per share and basic earnings per share for thecurrent fiscal year decreased by 0.54 yen and 1.36 yen, respectively.

- 27 -

(Significant Subsequent Events)(Change to reportable segments)
From April 2022, Units of the Group comprising operating companies have been restructured such that the Visualand Music Business and the Creation Business of the IP Production Unit are integrated into the IP Production Business.
In the IP Production Unit, Bandai Namco Filmworks Inc. will serve as a business management company upon having
combined three companies that engage in the visual business within the IP Production Unit, namely SUNRISE INC.,
the visual business of Bandai Namco Arts Inc., and Bandai Namco Rights Marketing Inc.
In conjunction with this organizational restructure, effective from the following fiscal year, the reportable segments
will be changed from the Digital Business, Toys and Hobby Business, Visual and Music Business, Creation Business,and Amusement Business to the Digital Business, Toys and Hobby Business, IP Production Business, and Amusement
Business.
Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment for
the fiscal year ended March 31, 2022, assuming the classification of its reportable segments after the organizationalchange is as follows.
Current Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated Total(Note 3)

DigitalBusiness

Toys and
Hobby
Business

373,509361,884

66,776

81,165883,336

5,933

889,270–889,270

Inter-segment sales
and transfers

4,663

11,74013,187

1,178

30,77021,73352,504(52,504)–

Total

378,173373,625

79,964

82,344914,107

27,667

941,774(52,504)

889,270

IP Produc- Amusetion
ment
Business Business

Subtotal

Net sales
To externalcustomers

Segment profit

69,63452,319

8,833

4,051

134,839347

135,186(9,689)125,496

Segment assets

265,662

185,166

86,06254,052590,944

26,463

617,408245,241

862,650

3,096

13,866

1,864

3,125

21,952586

22,5393,187

25,726

Amortization of
goodwill

–

344

1,874

–

2,218

–

2,218

–

2,218

Loss on impairmentof fixed assets

51

600

204

2,122

2,979

15

2,994

–

2,994

Investment inassociates accounted
for using equity
method

–

1,384

–

–

1,384

10,106

11,490–11,490

Increase in property,
plant and equipment
and intangible assets

7,180

16,117

2,683

6,414

32,396

1,650

34,0462,507

36,554

OthersDepreciation andamortization

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

The details of adjustment amounts are as follows:- 28 -

(1)Included in the 9,689 million yen deducted from segment profit as adjustment are an addition of 346
million yen in inter-segment eliminations, and a deduction of 10,035 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 245,241 million yen added to segment assets as adjustment are a deduction of 50,958
million yen in inter-segment eliminations, and an addition of 296,200 million yen in corporate assetsthat cannot 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 notbeen attributed to a reportable segment.

(3)

Included in the 3,187 million yen added to depreciation and amortization as adjustment are adeduction of 27 million yen in inter-segment eliminations, and an addition of 3,214 million yen in
depreciation and amortization related to the administration division that has not been attributed toa reportable segment.

(4)

Included in the 2,507 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 reportablesegment.

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 29 -

(Reorganization of subsidiaries)
In order to further strengthen the IP axis strategy that is a core strategy of the Group, the Company decided at its
Board of Directors meeting held October 19, 2021 to reorganize the companies belonging to the Visual and Music
Business and Creation Business of the IP Production Unit by combining three companies in the visual business into
one company and combining three companies in the music and live event businesses into one company. The
Company implemented the reorganization on April 1, 2022.
(1) Purpose
The IP Production Unit, whose most important mission is to create IP, produces and develops worldviews
for IP through coordination among the visual, music and live event businesses. Furthermore, the Company
aims to maximize the value of IP by coordinating with each Unit in the Group.
By combining the companies in the visual, music and live event businesses of the IP Production Unit, thecompanies will be able to share the different expertise, strengths, external partner networks, etc. of eachcompany engaged in creating and developing IP, and effectively utilize the Companyʼs IP and music. In addition,
through personnel exchanges, etc., the Company will strengthen the development of human resources
involved in IP creation and production. With these initiatives, the Company aims to further strengthen the IP
creation and production capabilities, which are at the core of the IP axis strategy.
(2) Reorganization in the visual businessTransactions conducted by commonly controlled entities(i) Overview of transaction(i) Overview of absorption-type company split with SUNRISE INC. as the successor companya)Name and description of business involved in absorption-type company split
Name of business: Visual business of Bandai Namco Arts Inc.
Description of business: Planning, production, management, etc. of visual contentb) Date of business combination
April 1, 2022c)

Legal form of business combination
Absorption-type company split with Bandai Namco Arts Inc. as the splitting company and
SUNRISE INC. as the successor companyd) Company name after combination
Bandai Namco Filmworks Inc.
(ii) Overview of absorption-type merger with SUNRISE INC. as the surviving companya)Name and description of business of the company involved in combination
Merging company (surviving company)
Name:

SUNRISE INC.

Description of business: Planningandproduction

administration of copyrights- 30 -

ofanimation;

management

andMerged company (disappearing company)
Name:

Bandai Namco Rights Marketing Inc.

Description of business: Development, operation and sales of online video distribution
platform services; development, operation, and sales of various
community services and related toolsb) Date of business combination
April 1, 2022c)

Legal form of business combination
Absorption-type merger with SUNRISE INC. as the surviving company and Bandai Namco Rights
Marketing Inc. as the disappearing companyd) Company name after combination
Bandai Namco Filmworks Inc.
(ii) Overview of accounting process
The accounting process has been carried out as transactions conducted by commonly controlled
entities, in accordance with the Accounting Standard for Business Combinations and the Guidanceon the Accounting Standard for Business Combinations and the Accounting Standard for Business
Divestitures.
(3) Reorganization in the music and live event businesses
Transactions conducted by commonly controlled entities(i) Overview of transaction(i) Name and description of business of the company involved in combination
Merging company (surviving company)
Name:

Bandai Namco Arts Inc.

Description of business: Planning, production, and management of visual and music content,
artist discovery and development, production of live events, etc.
Merged company (disappearing company)
Name:

Bandai Namco Live Creative Inc.

Description of business: Planning and production of live performances and events; ticket
sales; planning, production, and sales of goods; management of live
viewings, etc.
Merged company (disappearing company)
Name:

SUNRISE Music INC.

Description of business: Production of music related to animations and planning and use ofmusic and masters, centered on SUNRISE INC. and Bandai Namco
Pictures Inc.
(ii) Date of business combination
April 1, 2022

- 31 -

(iii) Legal form of business combination
Absorption-type merger with Bandai Namco Arts Inc. as the surviving company and Bandai Namco
Live Creative Inc. and SUNRISE Music INC. as the disappearing companies(iv) Company name after combination
Bandai Namco Music Live Inc.
(ii) Overview of accounting process
The accounting process has been carried out as transactions conducted by commonly controlled
entities, in accordance with the Accounting Standard for Business Combinations and the Guidanceon the Accounting Standard for Business Combinations and the Accounting Standard for Business
Divestitures.

- 32 -

4. Other

Changes in Directors and Audit & Supervisory Board Members
1)

Change in Representative
Not applicable.

2)

Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Director
Director Nobuhiko Momoi (current position: Executive Officer and General Manager of Group Business
Strategy Department)
Director (Part-time) Kazuhiro Takenaka (current position: Executive Officer)
Director and Audit & Supervisory Committee Member Masataka Nagaike (current position: Audit &Supervisory Board Member)
Director and Audit & Supervisory Committee Member (Outside) Toru Shinoda (current position: Audit &Supervisory Board Member [Outside])
Director and Audit & Supervisory Committee Member (Part-time and Outside) Satoko Kuwabara (current
position: Director [Part-time and Outside])
Director and Audit & Supervisory Committee Member (Part-time and Outside) Takayuki Komiya (current
position: Representative Director of KEY Consulting Co., Ltd.)
Retiring Director
Director (Part-time) Mitsuaki Taguchi
Director (Part-time) Satoshi Kono
Director (Part-time and Outside) Mikiharu Noma3)

Scheduled Date of Assuming Office and Retirement
June 20, 2022

4) Responsible Area of Directors (Effective June 20, 2022)
New candidates for Director
Masaru Kawaguchi

President and Representative Director, Group CEO

Yuji Asako

Director, CFO, CISO, and CSO (Chief Sustainability Officer) in charge of Corporate Planning Division
and Group Administrative Headquarters

Nobuhiko Momoi

Director and General Manager of Group Business Strategy Department

Yasuo Miyakawa

Director (Part-time) in charge of Digital Business of Entertainment Unit

Kazuhiro Takenaka

Director (Part-time) in charge of Toys and Hobby Business of Entertainment Unit

Makoto Asanuma

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

Hiroshi Kawasaki

Director (Part-time) in charge of Amusement Unit

Shuji Ohtsu

Director (Part-time) and CIO in charge of Bandai Namco Business Arc Inc.

Koichi Kawana

Director (Part-time and Outside)

Toshio Shimada

Director (Part-time and Outside)

Masataka Nagaike

Director and Audit & Supervisory Committee Member

Toru Shinoda

Director and Audit & Supervisory Committee Member (Outside)

Satoko Kuwabara

Director and Audit & Supervisory Committee Member (Part-time and Outside)

Takayuki Komiya

Director and Audit & Supervisory Committee Member (Part-time and Outside)- 33 -