Consolidated Financial Report for the Fiscal Year Ended
March 31, 2013

May 9, 2013

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

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
May 9, 2013

Consolidated Financial Report for the Fiscal Year Ended March 31, 2013 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 24, 2013
Scheduled starting date for dividend payments:
June 25, 2013
Scheduled filing date of the annual security report:
June 25, 2013
The additional materials of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2013 (April 1, 2012 to March 31, 2013)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2013
Fiscal Year Ended
March 31, 2012

Net sales¥ million
487,241%7.3

454,21015.2

Net income(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
48,642
40.6
49,97242.9
34,606111.8

Net income per share

34,960113.2

Net income per share(diluted)¥ million%¥
Fiscal Year Ended
32,38367.8
147.40March 31, 2013
Fiscal Year Ended
19,303
944.3
85.62
March 31, 2012
(Note) Comprehensive income: 41,505 million yen [92.6%] (FY2013.3), 21,551 million yen [– %] (FY2012.3)
ROE(Net income / Net assets)

ROA(Recurring income /Total assets)¥––

Operating margin(Operating income /Net sales)%%%
Fiscal Year Ended
14.1
14.0
10.0
March 31, 2013
Fiscal Year Ended
9.1
10.7
7.6
March 31, 2012
(Reference) Gain or loss from application of equity method: 341 million yen (FY2013.3), (246) million yen (FY2012.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
374,203
248,769
66.0
As of March 31, 2012
342,171
213,125
61.8(Reference) Equity: 247,030 million yen (as of March 31, 2013), 211,443 million yen (as of March 31, 2012)
As of March 31, 2013

Net assets
per share¥
1,124.45
962.45

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
36,411¥ million(14,861)¥ million(12,500)

Cash and cash
equivalents at endof period¥ million
119,041

39,112(15,263)(5,932)

107,327

Fiscal Year Ended
March 31, 2013
Fiscal Year Ended
March 31, 2012
2. Cash Dividends

Fiscal Year Ended
March 31, 2012
Fiscal Year Ended
March 31, 2013

End offirstquarter¥––

Annual Cash Dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
14.00
12.00

–

33.00

Total

¥
26.00

Payout ratio
Dividend /Total(Consolidated) Net assets
dividend(Consolidated)
payment(Full year)¥ million
%
%
5,783
30.4
2.8

45.00

9,891

30.5

4.3

–
12.00
–
12.00
24.00
Fiscal Year Ending
20.3
March 31, 2014
(Projections)(Note) Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2014, the stable dividend portions are stated based on the Company’s basic policy regarding distribution of
surplus. The year-end cash dividend for the fiscal year ending March 31, 2014, will be considered by the Company inconsideration of the consolidated operating results and other factors.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
218,000(2.1)
18,000 (35.1)
18,000 (35.9)
11,500 (33.6)
52.35
September 30, 2013
Full Fiscal Year
480,000(1.5)
40,000 (17.8)
40,000 (20.0)
26,000 (19.7)
118.35* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes
Included: – company
Excluded: 1 company (NAMCO BANDAI Partners S.A.S.)(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Important Information
Constituting the Basis for Preparation of Consolidated Financial Statements)” of “3. Consolidated Financial Statements” on page
20 of the attached material.
(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Yesd) Restatement: No(Note) These items fall under those set forth in Article 14-7 (Change in accounting policy that is difficult to distinguish from change inaccounting estimation) of the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial
Statements. For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Change in
Accounting Policy That Is Difficult to Distinguish from Change in Accounting Estimation)” of “3. Consolidated Financial
Statements” on page 21 of the attached material.
(3) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2013
222,000,000 shares
As of March 31, 2012
222,000,000 shares

b) Number of shares of treasury stock at the end of the period
As of March 31, 2013
As of March 31, 2012c) Average number of shares during the period
For the Fiscal Year ended March 31, 2013
For the Fiscal Year ended March 31, 2012

2,309,342 shares
2,308,176 shares
219,691,255 shares
225,464,803 shares(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2013 (April 1, 2012 to March 31, 2013)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2013
Fiscal Year Ended
March 31, 2012

Operating revenue¥ million%
18,18846.5
12,417120.3

Net income

Fiscal Year Ended
March 31, 2013
Fiscal Year Ended
March 31, 2012

(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
15,233
54.9
15,259
57.6
9,834

238.9

Net income per share

9,684

242.8

Net income per share(diluted)¥ million
15,298

%
–

¥
69.60

¥
–

(2,944)–(13.05)–(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
323,642
236,159
73.0
As of March 31, 2012
336,430
224,451
66.7(Reference) Equity: 236,159 million yen (as of March 31, 2013), 224,451 million yen (as of March 31, 2012)
As of March 31, 2013

Net assets
per share¥
1,074.40
1,021.13

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring income
Net income
Net income
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
22,00021.0
18,00018.0
18,00017.7
81.89* Implementation status of audit
This Consolidated Financial Report was exempt from audit which was based on Financial Instruments and Exchange Law of Japan. Asof the fiscal year disclosing, audit for the financial statements are under way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
Forward-looking statements included in this document are based on management’s estimates, assumptions, projections and information
available at the time of its publications and do not purport to be a promise by the Company to achieve such results. A number of factors
could cause actual results to differ materially from expectations. Please refer to the section of “(1)Analysis on Results of Operations (Outlook for the Fiscal Year Ending March 31, 2014)” of “1. Analysis on Results of Operations andFinancial Position” on pages 3-4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results will be posted on the Company’s website on May 9, 2013.

Attached Material
Index
1. Analysis on Results of Operations and Financial Position ................................................................ 2(1) Analysis on Results of Operations ...................................................................................................................................... 2(2) Analysis of Financial Position ............................................................................................................................................ 4(3) Fundamental Policy on Profit Sharing ................................................................................................................................ 6

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

3. Consolidated Financial Statements ....................................................................................................11(1) Consolidated Balance Sheets ............................................................................................................................................ 11(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................. 13(Consolidated Statements of Operations) ......................................................................................................................... 13(Consolidated Statements of Comprehensive Income)..................................................................................................... 14(3) Consolidated Statements of Changes in Net Assets .......................................................................................................... 15(4) Consolidated Statements of Cash Flows ........................................................................................................................... 18(5) Notes to Consolidated Financial Statements..................................................................................................................... 20(Notes on Premise of Going Concern).............................................................................................................................. 20(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements) .......................... 20(Change in Accounting Policy That Is Difficult to Distinguish from Change in Accounting Estimation) ....................... 21(Segment Information) ..................................................................................................................................................... 22(Per-Share Data) ............................................................................................................................................................... 29(Significant Subsequent Events)....................................................................................................................................... 29

4. Other .................................................................................................................................................... 29
Changes in Directors and Audit & Supervisory Board Members........................................................................................... 29-1-

1. Analysis on Results of Operations and Financial Position(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2012 to March 31, 2013)
In this fiscal year, although some signs of improvement in economic conditions have begun appearing thanks topositive expectations towards factors such as economic policies aimed at promoting growth in the domestic environment
from late 2012, the economic slowdown in Europe resulting from financial instability and the effect of exchange rate
fluctuations have meant that, overall, harsh economic conditions continued. As for the entertainment industry, weak
individual consumption and other factors added further uncertainty to conditions.
In this environment, the BANDAI NAMCO Group (“the Group”) is implementing various measures aimed at
medium-to long-term growth under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the visionof the Group’s new Mid-term Plan, started in this fiscal year. On the business front, the Content Business contributed toperformance in each category, particularly in network content by coordinated deployment revolving around IP (intellectual
property) such as characters.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 487,241 million yen (year-on-yearincrease of 7.3%), operating income of 48,642 million yen (year-on-year increase of 40.6%), recurring income of 49,972
million yen (year-on-year increase of 42.9%), and net income of 32,383 million yen (year-on-year increase of 67.8%).
Operating results by segment are as follows.

Toys and Hobby BusinessIn the Toys and Hobby Business, domestically, sales performed favorably due to coordinated sales of products inthe variety of categories revolving around toys including long-established characters such as the KAMEN RIDER series
and PRETTY CURE! series. Although domestic performance was lower year on year in total, for reasons such as alower gross margin ratio resulting from changes in the product mix, the Group made steady efforts toward broadening
the scope of target customers, including by developing products such as the new Aikatsu! characters for girls, plastic
models for elementary school students, and highly collectable toys for adults.
Overseas, in North America and Europe, although products of the Power Rangers series sold favorably, overall
performance was weak amid a harsh market environment. In the Asian region, plastic models and highly collectabletoys for adults became popular in addition to character toys thanks to developments in conjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 172,977 million yen (year-on-year decrease of 2.8%),
and segment income was 11,255 million yen (year-on-year decrease of 30.1%).

Content BusinessIn the Content Business, the network content area made a significant contribution to performance mainly throughsocial games such as the Mobile Suit Gundam series, ONE PIECE Grand Collection, and THE IDOL M@STER
CINDERELLA GIRLS. Arcade game machines for well-established series and new game machines such as FishingSpirits became popular, and prize sales of popular characters were favorable. Also contributing to performance werevisual and music content areas, which enjoyed favorable sales of Mobile Suit Gundam UC (Unicorn) and repeat sales ofvisual packages that were launched in previous years, as well as sales of LCD units for pachinko and pachi-slot
machines. In home video game software, the launch of the latest titles of popular series such as SOULCALIBUR,
NARUTO, TALES OF, and ONE PIECE in both the Japanese and overseas markets, and domestic sales of titles with-2-

concepts based on popular television programs, trended strongly.
As a result, net sales in the Content Business were 263,595 million yen (year-on-year increase of 16.9%), andsegment income was 36,438 million yen (year-on-year increase of 114.3%).

Amusement Facility BusinessIn the Amusement Facility Business, domestically, despite a steady performance mainly by differentiated facilities
located in shopping centers that offer customers the opportunity to experience the distinctive worldview of specificcharacters, sales at existing facilities declined to 95.5% from the previous fiscal year, when we recorded a high level ofsales.
In the challenging market environment presented by countries outside Japan, results were roughly level with thoseof the previous fiscal year as a result of efficiency in operations from the selection and concentration of stores.
As a result, net sales in the Amusement Facility Business were 60,185 million yen (year-on-year decrease of 1.4%),
and segment income was 1,683 million yen (year-on-year decrease of 29.3%).

Number of Facilities as of March 31, 2013
Directly Managed

Revenue-Sharing

Facilities

Facilities

254

1,015

Others

Total

2

1,271

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kindsof administration and operational support for each of the Group’s strategic business units. We are making efforts tomanage such operations related to group support in an efficient manner.
As a result, net sales in the Other Businesses were 25,788 million yen (year-on-year decrease of 6.2%), and segment
income was 1,692 million yen (year-on-year decrease of 17.5%).

b. Outlook for the Fiscal Year Ending March 31, 2014
Looking ahead, although there are some bright signs such as a recovery in Japan’s stock markets, the businessenvironment is expected to remain beset by uncertainties including individual consumption trends and economic
developments in North America and Europe. Such factors are also expected to have an impact on the entertainment industry,in which the Group is extensively involved, resulting in ongoing uncertainty in this business environment.
Facing these circumstances, the Group started its three-year Mid-term Plan in April 2012, and will steadily implement
the strategies in this plan. Specific areas of focus include obtaining new IP, developing products and services, and working
to construct new business models with the aim of medium-to long-term growth, in addition to strengthening the businessfoundation further to stabilize and improve profitability.
In the Toys and Hobby Business, our plan for the Japanese market is to strengthen development through coordinatedsales of products in the variety of categories revolving around long-established character toys, such as the KAMEN RIDER
series, Super Sentai series (POWER RANGERS series), and PRETTY CURE! series. We will also expand our character
lineup by such means as developing the new Aikatsu! characters for girls through cross-functional efforts undertaken acrossall businesses and launching new characters for boys. In tandem with this, we will aim to be No. 1 in Japan by an-3-

overwhelming margin by introducing new products and services such as card games, plastic models, and highly collectabletoys for adults targeting a variety of customers. Outside Japan, in North America and Europe where the market
environment continues to be harsh, the Group will strive to improve profitability by strengthening integrated brandmanagement structure of North America and Europe and developing product sales with a focus on content for boys such as
the mainstay Power Rangers series. In Asian markets, the Group aims to achieve growth through developments inconjunction with Japan, focusing on plastic models, highly collectable toys for adults and card products that are popular inJapan.
In the Content Business, the Group will enhance its IP strategy for offering products and services in a wide variety of
categories with a focus on IP. To this end, the Group will supplement its existing IP lineup by cultivating new properties
mainly through various business operations centered around PAC-MAN and the Ghostly Adventures, a new animated seriesscheduled to be broadcast primarily in North America and Europe. Furthermore, the Group will put in place and improvethe development environment from a medium- and long-term perspective, such as by implementing measures to respondswiftly to technological progress and changes in the environment. Looking at approaches by business, in the network
content area, the Group will work to achieve stable deployment of social games and online games through the launch of
new games and timely upgrades of existing content. In the area of home video game software, the Group will introduce
popular series while also taking a more proactive approach to new initiatives that make use of network functions such as
download-only titles. For arcade game machines, in addition to development and sale of popular game machines, theGroup will work to diversify sales methods through approaches including a system in which fees vary according to theamount of use. In the area of visual and music content, the Group will work to supplement sales of the Mobile Suit Gundam
series by taking a proactive approach to creating new IP like the Aikatsu! characters.
In the Amusement Facility Business, in Japan, the Group will plan and operate facilities and services aimed at eachtarget customer through reinforcement of its marketing by customer segment. The Group will also continue to promote thedevelopment of differentiated facilities that offer the experience of the Group’s distinctive worldview of specific characters.
In the summer of 2013, the Group will open new facilities including an indoor theme park based on popular creations fromthe comic book Weekly Shonen Jump. These various facilities will be operated as promotional venues for the entire Group.
The Group will also strive to improve profitability by implementing various efficiency measures in North America andEurope.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2014 are as
follows: net sales of 480,000 million yen (year-on-year decrease of 1.5%), operating income of 40,000 million yen(year-on-year decrease of 17.8%), recurring income of 40,000 million yen (year-on-year decrease of 20.0%), and net
income of 26,000 million yen (year-on-year decrease of 19.7%).

(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2013, total assets stood at 374,203 million yen, an increase of 32,031
million yen from the end of the previous fiscal year. The main factors were increases of 12,174 million yen in cash andtime deposits and 7,967 million yen in trade receivables in connection with favorable results, 3,227 million yen in
investment securities due to market valuation, and 3,818 million yen in deferred tax assets.
Total liabilities amounted to 125,433 million yen, a decrease of 3,612 million yen from the end of the previous fiscal
year. The main factors were decreases of 5,383 million yen in long-term borrowings and 1,176 million yen in short-term-4-

borrowings, both due to repayment.
Total net assets stood at 248,769 million yen, an increase of 35,644 million yen from the end of the previous fiscal year.
The main factors were increases of 25,868 million yen in retained earnings thanks to the recording of net income throughfavorable consolidated results, and 6,163 million yen in foreign currency translation adjustments due to foreign exchange
fluctuation, despite cash dividends paid of 5,714 million yen.
As a result, the equity ratio became 66.0% compared with 61.8% at the end of the previous fiscal year.

b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (hereafter “funds”) remaining on hand had increased by
11,714 million yen from the end of the previous fiscal year to 119,041 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 36,411 million yen (down 6.9% compared with theprevious fiscal year). As a main breakdown of funds used, income taxes paid was 20,378 million yen (compared with
13,834 million yen in the previous fiscal year) and an increase in trade receivables was 5,522 million yen (compared with
12,667 million yen in the previous fiscal year). However, overall, there was a net increase in funds due to income before
income taxes and minority interests of 48,489 million yen (compared with 30,408 million yen in the previous fiscal year),depreciation and amortization of 20,415 million yen (compared with 18,142 million yen in the previous fiscal year), and anincrease in accounts payable-other of 2,235 million yen (compared with a decrease of 1,434 million yen in the previous
fiscal year).

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 14,861 million yen (down 2.6% compared with the previous
fiscal year). The main breakdown of funds used was purchases of property, plant and equipment and intangible assets
totaling 13,531 million yen (compared with 14,529 million yen in the previous fiscal year).

(Cash Flows from Financing Activities)
The amount of funds used in financing activities amounted to 12,500 million yen (up 110.7% compared with theprevious fiscal year). The main factors for funds used were cash dividends paid of 5,714 million yen (compared with 5,545
million yen in the previous fiscal year) and repayment of long-term borrowings of 5,333 million yen (compared with 5,166
million yen in the previous fiscal year).

-5-

(Reference) Cash Flow Indices
FY2009.3

FY2010.3

FY2011.3

FY2012.3

FY2013.3

Equity ratio (%)

70.9

69.5

68.8

61.8

66.0

Equity ratio (market capitalization basis) (%)

65.3

67.5

69.6

76.7

97.8

1.1

1.2

0.2

0.5

0.4

113.0

32.9

42.0

338.4

244.8

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

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(3) Fundamental Policy on Profit Sharing
The Company places the return of profits to shareholders as one of its highest priorities in its management. The
Company assumes that its basic policy is to further strengthen the Group’s competitiveness and, while maintaining a soundfinancial status, to achieve regular distributions of dividends and improvement in the Company’s corporate value. In
concrete terms, the Company will provide a return to shareholders that targets a consolidated payout ratio of 30%, based onstable annual dividend payments of 24 yen per share. The Company plans to add a performance-based dividend of 21 yen
per share to the stable annual dividend of 24 yen per share, to pay 45 yen per share for the annual dividend for this fiscal
year (year ended March 31, 2013). At present, the Company’s annual dividend forecast for next fiscal year (year ending
March 31, 2014) is the provision of the stable dividend of 24 yen per share, and this will be considered by the Company inlight of the consolidated operating results and other factors.
In addition, its fundamental policy is that part of any profit, after deduction of dividends, may be used to acquire
treasury stock, upon comprehensive consideration of the amount of funds on hand, performance trends, recent share pricetrends, the existence or nonexistence of major investment proposals, and other factors.

-6-

2. Management Policies(1) Fundamental Management Policy
The Group mission is to offer “Dreams, Fun and Inspiration,” to people throughout the world, through the products andservices of the Group’s Toys and Hobby Business, Content Business and Amusement Facility Business, aiming at thevision of becoming “The Leading Innovator in Global Entertainment.” Under the three-year Mid-term Plan, which newly
started in April 2012, the Group will “Empower, Gain Momentum, Accelerate Evolution” in every aspect of its businesses,
including products, services, business models, operation, and numerical targets in order to achieve growth in the Japaneseand overseas markets.

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

(3) Medium- to Long-term Business Strategy
Under the three-year Mid-term Plan, which started in April 2012, we will promote five Focus Strategies. These consistof three Business Area Strategies, which will be applied to each business (strategic business unit (“SBU”)), and two
Functional Strategies, which will be applied commonly across all businesses.

Business Area Strategies
Under the Mid-term Plan, we will classify the Group’s businesses into three areas and implement strategies for each of
them.

a. Basic Business Area
Because each of the businesses in Japan has already secured stable market share and profit, these businesses havebeen classified as the Basic Business Area. The Group will aim to achieve No. 1 position in each of these businesses byexecuting strategies aimed at profit growth.

b. Profit Recovering Area
Although currently facing various challenges, the businesses in North America and Europe have high future growthpotential. The Group has classified these businesses as the Profit Recovering Area and aims to build a solid profit basefor this area.

c. New Growth Area
The businesses in the Asian region have been classified as the New Growth Area, and the Group aims to foster andgrow these businesses as a new growth pillar of the Group.

-7-

Functional Strategies
Included in the strategies to be commonly implemented by each SBU will be the Group-wide Network Strategy, which
is aimed at constructing new business models which are unique to the Group, and the Human Resources Strategy, aimed atdeveloping the personnel who can work successfully at a global level.

a. Group-wide Network Strategy
We will construct unique business models by using the various websites and network services that the Group isdeveloping and expanding as a marketing tool to send information directly to users.

b. Human Resources Strategy
We will be promoting our hiring and training of valuable personnel from a medium-term perspective by hiring more
new graduates on a global basis and by implementing strategic personnel transfers across different businesses andregions. We will also promote employees based overseas more actively and offer training programs that take into
account the Group’s global development.

Strategies by Business
Focus strategies in each SBU to advance the Group’s Business Area Strategies are as follows.

a. Toys and Hobby SBU• Carry out integrated brand management of the U.S. and Europe• Conduct Japan-originated business activities simultaneously in Asia
• Become overwhelming No. 1 in Japan• Enhance competitiveness through value chain reformb. Content SBU• Reconstruct existing business: Strategy of achieving No. 1 share• Maximize business integration using IP as an axis
• Form a network strategy schemec. Amusement Facility SBU• Advance marketing by customer segment• Establish chain store management• Develop models to utilize IP at facilities• Explore overseas markets-8-(4) Issues to be Addressed
The Group and this industry must address many important, long-term issues, including (i) the increasing diversificationof consumer needs, (ii) reacting to changes in the market and the environment, and (iii) increasingly intense competition ona global scale. The Group is applying the focus strategies defined in its Mid-term Plan to address these issues swiftly.

a. Common Issues Faced by All Strategic Business Units (“SBUs”)
Efforts Toward Maximizing the Value of Content
The Group is reinforcing its content creation, acquisition, development, and utilization functions in order to respond tochanges in the environment, including the development of oligopolies in the distribution and media fields and thewidespread penetration of networks. Specifically, the Content Business Strategy Meeting, which is a Group-wide body,seeks to maximize the value of each content asset and aims for more vigorous creation and acquisition of new content.

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

b. Issues Specific to Each SBU
Toys and Hobby SBU
This unit’s industry is facing issues, such as a “shrinking domestic market due to the falling birthrate” and “increasingly
diverse consumer needs.” This unit is addressing these issues by aiming for the position as the overwhelming No. 1 inJapan, working at expanding its target population segment and creating new businesses, while reinforcing its coordinateddeployment of content popular in Japan in the rest of Asia. In the North American and European markets, in addition to
improving profitability by reinforcing its existing businesses, it is working to expand its content lineup and the regions inwhich it is operating, with a view to achieving medium-term growth. In addition, on the development and production side,
improvements in the value chain will enable more speedy and price-competitive product development.

Content SBU
This unit’s industry is facing issues that include “evolution of platforms and networks” and “increasingly diverse
customer needs.” The Group is reviewing development based on its existing business categories and promoting its
content-focused IP strategy, thereby achieving a speedy response to changing customer needs throughout the world whileworking to maximize the value of its content. Specifically, in the domestic market, it is aiming to secure the No. 1 positionin each of its main business categories. For overseas, it is reinforcing deployment of its arcade game machines indeveloping countries, mainly in Asia, and is carrying out the world-wide launch of carefully selected home video gamesoftware titles developed domestically, seeking to improve profitability. On the development front, it will put in place andimprove the development environment from a medium- and long-term perspective, such as by implementing measures to-9-respond swiftly to technological progress and changes in the environment.

Amusement Facility SBU“Increasingly diverse consumer preferences,” “weak individual consumption,” and “revision of consumption tax rate”
are among the issues for this unit’s industry. To address these issues, this unit is reinforcing its domestic sales andmarketing by customer segment, while it increases added value by making use of its know-how in character merchandising
and works to differentiate the Group’s facilities. Overseas, it is considering development of business in Asia while
implementing a continuous process of selection and concentration of businesses in North America and Europe.

- 10 -

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

Current Fiscal Year(As of March 31, 2013)

AssetsCurrent assets
Cash and time deposits

106,958

119,132

Trade receivables

69,102

77,069

Short-term investments

2,073

4,379

Finished goods and merchandise

12,907

10,915Work in process

19,417

19,597

Raw materials and supplies

4,714

6,130

Deferred tax assets

8,733

10,579Other current assets

17,68917,483

(677)

(484)

240,920

264,804

25,252

25,318

Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation(14,923)(14,915)

Buildings and structures, net

10,328

10,403

Amusement facilities and machines

60,59260,999

Accumulated depreciation(47,034)(47,992)

Amusement facilities and machines, net

13,55813,007Land

11,388

11,537

Other property, plant and equipment

74,87086,537(65,646)(74,229)

9,224

12,307

Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment

44,50047,255Intangible assets

8,194

8,497

Investments and other assets
Investment securities

22,17725,404

Deferred tax assets

6,426

8,398

Other investments and assets

21,663

21,180Allowance for doubtful receivables(1,711)(1,338)

Total investments and other assets

48,55653,646

101,251

109,399

342,171374,203

Total fixed assets
Total assets- 11 -

(¥ million)
Prior Fiscal Year(As of March 31, 2012)

Current Fiscal Year(As of March 31, 2013)

Liabilities
Current liabilities
Trade payables

48,742

46,471

Short-term borrowings

6,773

5,596

Accounts payable-other

19,191

22,495

Accrued income taxes

9,360

7,852

Provision for directors’ bonuses

1,693

1,173

58

352

1,169

1,344

Provision for losses from business restructuring
Provision for sales returns

7–

Other current liabilities

Provision for loss on disaster

20,95023,105

Total current liabilities

107,946

108,391

Long-term liabilities
Long-term borrowings

12,883

7,500

Deferred tax liabilities for land revaluation

590

590

Accrued retirement and severance benefits

3,140

3,724

Other long-term liabilities

4,485

5,227

Total long-term liabilities

21,09917,042129,046

125,433

Common stock

10,00010,000Additional paid-in capital

52,24552,245Retained earnings

173,250

199,118

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,383)(2,385)

Total stockholders’ equity

233,112258,979

2,867

5,212

229

642

Revaluation reserve for land, net of tax(6,408)(5,608)Foreign currency translation adjustments(18,357)(12,194)

Total accumulated other comprehensive income

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax(21,669)(11,948)

Minority interests

1,682

1,738

Total net assets

213,125

248,769

342,171374,203

Total liabilities and net assets- 12 -

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Net sales

454,210487,241

Cost of sales

286,708

304,162

Gross profit

167,502

183,078

Selling, general and administrative expenses

132,896

134,435

Operating income

34,606

48,642

Interest income

214

193

Dividend income

235

264

–

341

Non-operating income

Equity in gain of affiliated companies
Foreign exchange gain–

264

Other non-operating income

772

571

Total non-operating income

1,222

1,634

Interest expense

137

141

Equity in loss of affiliated companies

246–

Foreign exchange loss

162

–

8

90

Non-operating expenses

Loss on investments in partnerships
Other non-operating expenses

313

72

Total non-operating expenses

869

305

34,96049,972Gain on sales of fixed assets

22

46

Gain on sales of investments in affiliated companies

84

34

Gain on transfer of business

53–

Gain on negative goodwill–

24

Recurring income
Extraordinary income

State subsidy–

51

Other extraordinary income

137

17

Total extraordinary income

297

173

Extraordinary loss
Loss on sales of fixed assets

976

Loss on disposal of fixed assets

937

203

Loss on impairment of fixed assets

1,105

505

167

401

Provision for losses from business restructuring
Other extraordinary loss

2,628

469

Total extraordinary loss

4,848

1,656

Income before income taxes and minority interests

30,40848,489Corporate income, inhabitant and enterprise taxes

15,583

19,649Adjustment for income taxes(4,634)(3,611)

Total income taxes

10,94916,038

Income before minority interests

19,45932,451155

68

19,30332,383

Minority interests
Net income- 13 -

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)
Income before minority interests

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

19,45932,451

2,452

2,325

Deferred gains or losses on hedges, net of tax

226

412

Revaluation reserve for land, net of tax

82–

Foreign currency translation adjustments

(636)

6,283

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

(32)

32

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

Total other comprehensive income

2,092

9,053

21,551

41,505Comprehensive income attributable to owners of the parent

21,45141,304Comprehensive income attributable to minority interests

100

200

Comprehensive income
Comprehensive income attributable to- 14 -

(3) Consolidated Statements of Changes in Net Assets(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Stockholders’ equity
Common stock
Balance as of April 1, 2012

10,00010,000––10,00010,00069,92352,2450(0)Changes during the period
Total changes during the period
Balance as of March 31, 2013
Additional paid-in capital
Balance as of April 1, 2012
Changes during the period
Disposal of treasury stock
Retirement of treasury stock(17,677)–

Total changes during the period(17,677)(0)52,24552,245

159,491

173,250

Cash dividends(5,545)(5,714)

Net income

19,30332,383–(800)

13,75825,868173,250

199,118(3,496)(2,383)Purchase of treasury stock(16,565)(1)

Disposal of treasury stock00

17,677–(0)0Balance as of March 31, 2013
Retained earnings
Balance as of April 1, 2012
Changes during the period

Reversal of revaluation reserve for land
Total changes during the period
Balance as of March 31, 2013
Treasury stock
Balance as of April 1, 2012
Changes during the period

Retirement of treasury stock
Changes in treasury stock accompanying changes toholdings in companies to which the equity method isappliedTotal changes during the period
Balance as of March 31, 2013- 15 -

1,112(1)(2,383)(2,385)(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Total stockholders’ equity
Balance as of April 1, 2012

235,919

233,112(5,545)(5,714)

Net income

19,30332,383Purchase of treasury stock(16,565)(1)

Disposal of treasury stock00Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(0)0

Reversal of revaluation reserve for land

–

(800)

(2,807)25,866

233,112258,979

447

2,867

Net changes in the period other than changes instockholders’ equity

2,419

2,344

Total changes during the period

2,419

2,344

2,867

5,212

3

229

Net changes in the period other than changes instockholders’ equity

226

412

Total changes during the period

226

412

229

642

(6,491)(6,408)

Reversal of revaluation reserve for land–

800

Net changes in the period other than changes instockholders’ equity

82–

Changes during the period
Cash dividends

Total changes during the period
Balance as of March 31, 2013
Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Balance as of April 1, 2012
Changes during the period

Balance as of March 31, 2013
Deferred gains or losses on hedges, net of tax
Balance as of April 1, 2012
Changes during the period

Balance as of March 31, 2013
Revaluation reserve for land, net of tax
Balance as of April 1, 2012
Changes during the period

Total changes during the period

82

800

(6,408)(5,608)(17,775)(18,357)

Net changes in the period other than changes instockholders’ equity

(581)

6,163

Total changes during the period

(581)

6,163

(18,357)(12,194)

Balance as of March 31, 2013
Foreign currency translation adjustments
Balance as of April 1, 2012
Changes during the period

Balance as of March 31, 2013- 16 -

(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Total accumulated other comprehensive income
Balance as of April 1, 2012

(23,816)(21,669)

Changes during the period
Reversal of revaluation reserve for land–

800

Net changes in the period other than changes instockholders’ equity

2,147

8,921

Total changes during the period

2,147

9,721

(21,669)(11,948)

1,590

1,682

Net changes in the period other than changes instockholders’ equity

91

56

Total changes during the period

91

56

1,682

1,738

213,693

213,125(5,545)(5,714)

Net income

19,30332,383Purchase of treasury stock(16,565)(1)

Disposal of treasury stock00Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(0)0

Reversal of revaluation reserve for land

–

–

2,239

8,977

Balance as of March 31, 2013
Minority interests
Balance as of April 1, 2012
Changes during the period

Balance as of March 31, 2013
Total net assets
Balance as of April 1, 2012
Changes during the period
Cash dividends

Net changes in the period other than changes instockholders’ equity
Total changes during the period
Balance as of March 31, 2013- 17 -(567)

35,644

213,125

248,769

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

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

30,40848,489Depreciation and amortization

18,142

20,415

Loss on impairment of fixed assets

1,105

505

369

289

Amortization of goodwill
Gain on negative goodwill

–

(24)

Increase (decrease) in allowance for doubtful receivables

(317)

(571)

Increase (decrease) in provision for losses from businessrestructuring

18

266

Increase (decrease) in provision for sales returns

(266)

71

Increase (decrease) in provision for directors’ bonuses

578

(522)

Increase (decrease) in accrued retirement and severance
benefits

380

567

Increase (decrease) in provision for loss on disaster

(157)

(7)

Interest and dividend income

(450)

(457)

Interest expense

137

141

Foreign exchange loss (gain)

81

(251)

Equity in loss (gain) of affiliated companies

246

(341)

Loss on disposal of fixed assets

937

203

Loss (gain) on sales of fixed assets, net

(12)

30

Loss on disposal of amusement facilities and machines

434

406

Loss (gain) on sales of investment securities, net

(81)

(49)

Loss (gain) on valuation of investment securities

1,405

21

Loss (gain) on transfer of business
Decrease (increase) in trade receivables
Decrease (increase) in inventories

(53)

–

(12,667)(5,522)

4,081(1,558)Acquisition of amusement facilities and machines(2,925)(3,516)

Increase (decrease) in trade payables

12,634(4,264)

Increase (decrease) in accounts payable-other(1,434)

2,235

Increase (decrease) in consumption tax payables

680

107

Other

(684)

(188)

Subtotal

52,59256,476

Interest and dividends received

468

461

Interest paid

(115)

(148)

Income taxes paid

(13,834)(20,378)

Net cash provided by operating activities

39,112

36,411- 18 -

(¥ million)
Prior Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Cash flows from investing activities
Payments for deposit in time deposits(1,582)(4,272)

Proceeds from withdrawal from time deposits

1,498

1,920

Purchases of property, plant and equipment(9,882)(8,842)

33

271

Sales of property, plant and equipment
Purchases of intangible assets(4,647)(4,689)Purchases of investment securities

(239)

(102)

Sales of investment securities

336

101

Proceeds from redemption of investment securities

24

73

Purchase of investments in subsidiaries

–

(249)

(1,235)–

Payments for investments in capital of affiliated companies
Proceeds from transfer of business

100–

Payments of loans receivable

(544)

(228)

Collection of loans receivable

435

676

Payments of guarantee money deposited

(393)

(609)

Collection of guarantee money deposited

900

1,174

Other

(68)

(84)

(15,263)(14,861)

Increase (decrease) in short-term borrowings, net

1,382(1,317)

Proceeds from long-term borrowings

20,050–

Repayment of long-term borrowings(5,166)(5,333)

(77)

(83)

(16,565)

(1)

0

0

(5,545)(5,714)25–

Net cash used in investing activities
Cash flows from financing activities

Payment of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Proceeds from capital paid by minority interests
Cash dividends paid to minority interests
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

(35)

(49)

(5,932)(12,500)

81

2,664

17,997

11,714

Cash and cash equivalents at beginning of year

89,329107,327

Cash and cash equivalents at end of year

107,327

119,041- 19 -

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

(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements)
1. Information Concerning the Scope of Consolidation(1) Total Number of Consolidated Subsidiaries:
Prior Fiscal Year:72 companies

Current Fiscal Year: 70 companies
Names of Principal Consolidated Subsidiaries:
Bandai Co., Ltd., NAMCO BANDAI Games Inc., NAMCO LIMITED, NAMCO BANDAI Holdings(USA) Inc., BANDAI S.A., NAMCO Holdings UK LTD. and BANDAI (H.K.) CO., LTD.
Since NAMCO BANDAI Studios Inc. and BANDAI PHILIPPINES INC. were newly incorporated, thosecompanies have been added to the scope of consolidation for this consolidated fiscal year.
In addition, with respect to companies included among consolidated subsidiaries in the previous consolidated
fiscal year, since NAMCO BANDAI Partners S.A.S. was merged into the consolidated subsidiary NAMCO
BANDAI Games Europe S.A.S. and since NAMCO BANDAI Networks Europe Ltd., BEEZ ENTERTAINMENT
S.A.S. and NAMCO BANDAI Partners Israel Ltd. were liquidated, those companies have been excluded from thescope of consolidation.
(2) Names etc. of the Principal Non-Consolidated Subsidiaries:
Principal Non-Consolidated Subsidiaries:
SHANGHAI NAMCO LTD. and BANDAI LOGIPAL (H.K.) LTD.
As the scale of the business conducted by each of the non-consolidated subsidiaries is small, and the total assets,
net sales, net income or loss and retained earnings, etc. corresponding to the ownership held by the Company ofeach non-consolidated subsidiary have no material impact on the consolidated financial statements, thosecompanies have been excluded from the scope of consolidation.
2. Information Concerning Application of the Equity Method(1) Number of Non-Consolidated Subsidiaries to Which the Equity Method Was Applied:
1 company
Name of the Company:
SHANGHAI NAMCO LTD.
(2) Number of Affiliated Companies to Which the Equity Method Was Applied:
6 companies- 20 -Names of the Principal Companies:
Happinet Corporation, Sotsu Co., Ltd. and People Co., Ltd.
(3) Non-Consolidated Subsidiaries and Affiliated Companies to Which the Equity Method Was Not Applied:
The equity method was not applied to non-consolidated subsidiaries and affiliated companies such as BANDAI
LOGIPAL (H.K.) LTD., because it was deemed that the exclusion of those companies from the application of theequity method would have little, and no material impact on the consolidated financial statements of the Company
and it seemed unimportant as a whole in consideration of net income or loss and retained earnings, etc.
corresponding to the Company’s equity share in it.
(4) If any of the companies to which the equity method is applied has a closing date that differs from the consolidated
fiscal year, then the financial statements for the latest fiscal year of that company are used.
3. Information Concerning the Fiscal Year, etc. for Consolidated Subsidiaries
BANDAI (H.K.) CO., LTD. and some other consolidated subsidiaries (9 overseas subsidiaries) have the last day ofDecember as their closing date.
In the preparation of the consolidated financial statements, the financial statements of each company for the relevant
fiscal year were used, and necessary adjustments for consolidation purposes were made in the case of materialtransactions conducted prior to the consolidated closing date for the consolidated financial statements of the Company.
From this consolidated fiscal year, the closing date has been changed to March 31 for NAMCO BANDAI Holdings(USA) Inc. and nine other companies whose closing date had been December 31. In connection with those changes,
the number of months included in this consolidated fiscal year for each of those companies is 15 months.
4. Information Concerning the Basis for Accounting Treatment
Application of Consolidated Taxation System:
From this consolidated fiscal year, the Company has applied the consolidated taxation system.

Apart from the information contained above, other important information constituting the basis for preparation of
consolidated financial statements has been omitted as no significant changes have occurred since this information waspresented in the most recent annual security report (filed on June 19, 2012).

(Change in Accounting Policy That Is Difficult to Distinguish from Change in Accounting Estimation)(Change in Depreciation Method)
Following the revision of the Corporation Tax Act, from this consolidated fiscal year, the Company and a portion ofits domestic consolidated subsidiaries have applied the depreciation method based on the revised Corporation Tax Act
to property, plant and equipment acquired on or after April 1, 2012.
In connection with those changes, operating income, recurring income, and income before income taxes andminority interests for this consolidated fiscal year each increased by 382 million yen compared with the previous
method.

- 21 -

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

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

(Change in Depreciation Method)
Following the revision of the Corporation Tax Act, from this consolidated fiscal year, the Company and a portionof its domestic consolidated subsidiaries have applied the depreciation method based on the revised Corporation Tax
Act to property, plant and equipment acquired on or after April 1, 2012.
In accordance with these changes, the amount of impact on the segment income of each reportable segment in thisconsolidated fiscal year is as follows.
(¥ million)
Reportable Segments

Segment income

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Subtotal

249

132

0

382

Other

19

Total

401

Adjustments Consolidated
Total(Note)(19)382

Note: Included in the 19 million yen deducted from segment income as adjustment are a deduction of 44 million yen ininter-segment eliminations, and an addition of 25 million yen in corporate expenses that cannot be allocated to any
reportable segment.

- 22 -

(Change in Method for Calculating the Amount of Increases in Property, Plant and Equipment and Intangible Assets)
Up to and including the previous consolidated fiscal year, increases in property, plant and equipment and intangible
assets had been presented without including transfers from inventories, etc. Effective from this consolidated fiscal
year, however, transfers from inventories, etc. are included in the increases.
Increases in property, plant and equipment and intangible assets during the previous consolidated fiscal year arepresented based on this new calculation method.

- 23 -

3. Information regarding the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2011 to March 31, 2012)(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)60,888444,607

9,603

454,210–454,210

13,935

144

19,922

17,87937,801(37,801)–

177,994

225,503

61,032

464,530

27,482492,012(37,801)

454,210Segment income

16,112

17,0032,380

35,4972,050

37,547(2,941)

34,606

Segment assets

95,180140,901

35,157271,239

20,359291,598

50,572

342,171

Depreciation andamortization

11,125

2,469

5,544

19,139486

19,626(1,483)18,142

Amortization of
goodwill

–

228

0

229

–

229

142

372

Impairment loss

379

310

398

1,088

16

1,105

–

1,105

Investment inassociates accounted
for using equity
method

491

–

125

617

7,512

8,129

–

8,129

Increase in property,
plant and equipment
and intangible assets

12,406

3,675

5,443

21,525540

22,065

1,692

23,758Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers
Total

Content
Business

Amusement
Facility
Business

172,151

211,568

5,842(Note 2)

(Note 3)

Net sales

Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and building management for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 2,941 million yen deducted from segment income as adjustment are a deduction of 149
million yen in inter-segment eliminations, and a deduction of 2,792 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 50,572 million yen added to segment assets as adjustment are a deduction of 11,714
million yen in inter-segment eliminations, and an addition of 62,287 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 1,483 million yen deducted from depreciation and amortization as adjustment are adeduction of 1,697 million yen in inter-segment eliminations, and an addition of 213 million yen in
depreciation and amortization related to the administration division that has not been attributed to areportable segment.
(4)
Included in the 142 million yen added to amortization of goodwill as adjustment is amortization related
to goodwill that cannot be allocated to any reportable segment.
(5)
Included in the 1,692 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.
- 24 -

Current Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Reportable Segments
Toys and
Hobby
Business

To external customers

Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

60,112477,860

9,381

487,241–

487,241

11,80573

18,89816,40635,305(35,305)–

Content
Business

Amusement
Facility
Business

165,957

251,790

Inter-segment sales
and transfers

7,020

Total

(Note 2)

(Note 3)

Net sales

172,977

263,595

60,185496,758

25,788522,546(35,305)

487,241

Segment income

11,25536,438

1,683

49,377

1,692

51,069(2,427)

48,642

Segment assets

103,783

152,129

34,745

290,658

21,348312,006

62,196374,203

Depreciation andamortization

12,288

2,539

5,692

20,519482

21,001(585)

20,415

Amortization of
goodwill

–

150

–

150

–

150

142

293

Impairment loss

178

12

229

420

–

420

84

505

Investment inassociates accounted
for using equity
method

517

–

130

648

7,580

8,228

–

8,228

Increase in property,
plant and equipment
and intangible assets

11,560

4,635

5,017

21,213489

21,702

2,133

23,835

Others

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
The details of adjustment amounts are as follows:(1)
Included in the 2,427 million yen deducted from segment income as adjustment are an addition of 842
million yen in inter-segment eliminations, and a deduction of 3,269 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 62,196 million yen added to segment assets as adjustment are a deduction of 19,159
million yen in inter-segment eliminations, and an addition of 81,355 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 585 million yen deducted from depreciation and amortization as adjustment are adeduction of 1,644 million yen in inter-segment eliminations, and an addition of 1,058 million yen in
depreciation and amortization related to the administration division that has not been attributed to areportable segment.
(4)
Included in the 142 million yen added to amortization of goodwill as adjustment is amortization related
to goodwill that cannot be allocated to any reportable segment.
(5)
Included in the 84 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(6)
Included in the 2,133 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.
- 25 -

b. Related Information
Prior Fiscal Year (From April 1, 2011 to March 31, 2012)
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

Americas372,617

Europe26,541

Asia

33,678

Total

21,373454,210

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

Americas37,671

Europe

1,590

Asia

1,589

Total

3,649

44,5003. Information by major customer(¥ million)
Name of customer
Happinet Corporation

Net sales

Names of related segments

47,521

Toys and Hobby Business and Content BusinessCurrent Fiscal Year (From April 1, 2012 to March 31, 2013)
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

Americas399,261

Europe35,803

Asia

28,568

Total

23,607487,241

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

Americas39,156

Europe

2,039

Asia

1,877

Total

4,183

47,255

3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% ormore of net sales in the consolidated statements of operations.

- 26 -

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2011 to March 31, 2012)(¥ million)
Toys and
Hobby
Business
Loss onimpairment of
fixed assets

Amusement
Facility
Business

Content
Business

379

310

Other
(Note)

398

Eliminations
and Corporate

16

–

Total

1,105

Note: The amount of “Other” is the amount belonging to the logistics services for each of the Group’s strategic
business units.
Current Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Toys and
Hobby
Business
Loss onimpairment of
fixed assets

Amusement
Facility
Business

Content
Business

178

12

Eliminations
and Corporate(Note)

Other

229

–

Total

84

505

Note: The amount of “Eliminations and Corporate” is the amount related to corporate assets that cannot be allocated to
any reportable segment.
d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2011 to March 31, 2012)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

–

228

0

–

142

372

Unamortizedbalance

–

155

–

–

198

354

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

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

3

–

–

–

3

Unamortizedbalance

–

5

–

–

–

5

- 27 -

Current Fiscal Year (From April 1, 2012 to March 31, 2013)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

–

150

–

–

142

293

Unamortizedbalance

–

4

–

–

56

60

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

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

3

–

–

–

3

Unamortizedbalance

–

2

–

–

–

2

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2011 to March 31, 2012)
Not applicable.

Current Fiscal Year (From April 1, 2012 to March 31, 2013)
No significant items to be reported.

- 28 -

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2011 to March 31, 2012)(From April 1, 2012 to March 31, 2013)

Net assets per share

962.45 yen

1,124.45 yen

Net income per share

85.62 yen

147.40 yen

Notes: 1. Diluted net income per share is not presented because there are no potential shares.
2. The basis of calculating net income per share figure is as follows:
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2011 to March 31, 2012)(From April 1, 2012 to March 31, 2013)

Net income (¥ million)

19,30332,383––

19,30332,383

225,464,803

219,691,255

Amount not applicable to common
stockholders (¥ million)
Net income available to common stock(¥ million)
Average number of common stock
outstanding (shares)(Significant Subsequent Events)
Not applicable.

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
Not applicable.
(3) Responsible Area of Directors (Effective June 24, 2013)
Shukuo Ishikawa

President and Representative Director

Kazunori Ueno

Executive Vice President and Representative Director in charge of Toys and Hobby
SBU

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Satoshi Oshita

Director (Part-time) in charge of Content SBU

Masahiro Tachibana

Director (Part-time) in charge of Amusement Facility SBU

Manabu Tazaki

Director (Outside)

Nobuo Sayama

Director (Outside)

Tomohisa Tabuchi

Director (Outside)- 29 -