Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2012

August 2, 2011DISCLAIMER- 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/)
August 2, 2011

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2012 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 5, 2011
Scheduled starting date for dividend payments:
The additional materials of the Financial Results for the First Quarter: Yes
The information session of the Financial Results for the First Quarter: Yes (for investors and the press)* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2012
(April 1, 2011 to June 30, 2011)(1) Consolidated Operating Results (For the first quarter ended June 30, 2011)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net salesFirst Quarter of the Fiscal YearEnding March 31, 2012
First Quarter of the Fiscal Year
Ended March 31, 2011

¥ million
88,241%
7.7¥ million
6,329

%
114.3

¥ million
6,605

%
124.5

81,912

8.2

2,953

－

2,942

－

Net income

First Quarter of the Fiscal YearEnding March 31, 2012
First Quarter of the Fiscal Year
Ended March 31, 2011
(Note)Net income per share

Net income per share(diluted)¥ million
3,248

%
－

¥
14.02

¥
－

(1,644)－(6.81)－

Comprehensive income: 5,812 million yen [– %] (FY2012.3 1Q),

(2,104) million yen [– %] (FY2011.3 1Q)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

As of June 30, 2011

¥ million
290,283¥ million
209,625%
71.6

As of March 31, 2011

308,269

213,693

68.8(Reference) Equity: 207,859 million yen (as of June 30, 2011), 212,102 million yen (as of March 31, 2011)

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

Annual cash dividends
End ofFiscalthird quarteryear-end¥12.00－Fiscal Year Ended March 31, 2011
Fiscal Year Ending March 31, 2012
Fiscal Year Ending March 31, 2012
¥12.00－(Projections)* Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2012: No¥12.00Total¥24.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2012 (April 1, 2011 to March 31, 2012)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
178,000
2.5
6,500
28.3
6,500
29.8
3,200
－
13.89
September 30, 2011
Full Fiscal Year
400,000
1.5
16,5001.0
16,500
0.6
8,000
332.8
34.85
* Revision to the projections: Yes
Consolidated projections for the six months of the fiscal year ending March 31, 2012 (announced on May 10, 2011) are revised in thisreport.
4. Other Information(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No
Included: – company
Excluded: – company(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Others)” on page 5 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of period (including treasury stock)
As of June 30, 2011
240,000,000 shares
As of March 31, 2011
240,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of June 30, 2011
11,337,585 shares
As of March 31, 2011
3,497,884 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the First Quarter of the Fiscal Year ending March 31, 2012
231,611,160 shares
For the First Quarter of the Fiscal Year ended March 31, 2011
241,455,286 shares* Implementation status of quarterly review
This Consolidated Financial Report for the First Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the first quarter disclosing, quarterly review for the quarterly financial statements are under way.
* Explanation on appropriate use of the projections of business results, etc.:
Forward-looking statements that have been released prior to this document are based on management’s estimates, assumptions, projections
and information available at the time of its publications. A number of factors could cause actual results to differ materially fromexpectations. Please refer to the section of “(3) Qualitative Information Regarding Consolidated Projections” of “1. Qualitative Information
Regarding Consolidated Results for the First Quarter” on pages 4-5 of the attached material for matters pertaining to the earnings
projections.

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

2. Matters Regarding Summary Information (Others)......................................................................... 5(1) Changes in Significant Subsidiaries during the Period ...................................................................................................... 5(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements................................. 5(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement .................................................... 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Quarterly Consolidated Balance Sheets ............................................................................................................................. 6(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income ... 8(Quarterly Consolidated Statements of Operations) ................................................................................................................ 8(Quarterly Consolidated Statements of Comprehensive Income)............................................................................................ 9(3) Notes on Premise of Going Concern................................................................................................................................ 10(4) Segment Information........................................................................................................................................................ 10(5) Notes on Significant Changes in the Amount of Stockholders’ Equity............................................................................ 11(6) Significant Subsequent Events......................................................................................................................................... 11-1-

1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Qualitative Information Regarding Consolidated Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2012, the economy was affected by the
direct damage caused by the Great East Japan Earthquake, which struck on March 11, 2011, problems with shortages inelectric power supply, worsening employment and income circumstances, and the appreciation of the yen, and as a result,harsh economic conditions continued. As for the entertainment industry, weak individual consumption and other factors
have added further uncertainty to the outlook.
In such environment, the BANDAI NAMCO Group (“the Group”) pressed ahead with the development of its global
management foundation based on the three-year Mid-term Business Plan that started in April 2009, and sought to realize its
medium- to long-term Group vision of becoming a “Globally Recognized Entertainment Group.”
On the business front, the long-established character toys and card products in the Toys and Hobby Business as well as
prizes for amusement facilities and sales of visual package software in the Content Business contributed to performance. In
addition, in the Amusement Facility Business, existing-facility sales in Japan trended favorably.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 88,241 million yen(year-on-year increase of 7.7%), operating income of 6,329 million yen (year-on-year increase of 114.3%), recurringincome of 6,605 million yen (year-on-year increase of 124.5%), and net income of 3,248 million yen (compared with net
loss of 1,644 million yen for the same period of the previous fiscal year).

Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, domestically, sales of the long-established character toys, particularly the KAMENRIDER OOO (pronounced “O’s”) and GOKAIGER (Power Rangers series), and card games such as the DRAGONBALL HEROES digital card game and the network play capable PRO BASEBALL OWNERS LEAGUE card gameperformed well, making a significant contribution to this business’s performance. In fresh developments, The Little
Battlers plastic models have gained popularity mainly among elementary school-age boys, and highly collectable toys
for adults performed well.
Overseas, in the North American region, products of the Power Rangers SAMURAI, the first new creation from thePower Rangers series in two years became popular, and sales in the Asian region were steady thanks to developments
in conjunction with Japan. Meanwhile, in the European region, efforts were made to develop new product categories
like girls’ toys and pre-school toys, but performance did not reach the level of the same period of the previous fiscal
year which enjoyed a strong performance centered around popular character toys.
As a result, net sales in the Toys and Hobby Business were 39,177 million yen (year-on-year increase of 12.5%),and segment profit was 5,037 million yen (year-on-year increase of 22.6%).

Content BusinessIn the Content Business, sales of arcade game machines contributed to this business’s performance, mainly through
DRAGON BALL ZENKAI BATTLE ROYAL and prizes for amusement facilities. In home video game software, ONE
PIECE UNLIMITED CRUISE SP for the Nintendo 3DS was popular, as was visual package software such as Mobile
Suit Gundam UC (Unicorn) and the newly started TIGER & BUNNY in the visual and music content area. In the
network content area, the number of monthly subscribers to existing services has declined, but GUNDAM ROYALE for-2-

SNS (social networking services) posted a strong performance.
As a result, net sales in the Content Business were 35,604 million yen (year-on-year increase of 8.1%), and segment
profit was 519 million yen (compared with segment loss of 619 million yen for the same period of the previous fiscal
year).

Amusement Facility BusinessIn the Amusement Facility Business, domestically, the number of customers drawn recovered, mainly at stores
located in shopping centers, and the portion of stores that halted operation due to the Great East Japan Earthquake
reopened for business. In addition, differentiated facilities offering the experience of the distinctive worldviews ofcharacters were popular, and existing facilities’ net sales performed strongly, rising to 107.9% of the figure for the same
period of the previous fiscal year.
In the challenging environment presented by countries outside Japan, while sales in North America and Europe
declined, profits grew steadily thanks to the selection and concentration of stores.
As a result, net sales in the Amusement Facility Business were 14,740 million yen (year-on-year decrease of 0.2%),and segment profit was 744 million yen (year-on-year increase of 373.7%).

Facilities as of June 30, 2011
Directly Managed

Revenue-Sharing

Facilities

Facilities

264

903

Others

Total

3

1,170

Other Businesses
Other Businesses consist of companies that conduct operations, such as logistics support and building management
for each of the Group’s strategic business units. During the first quarter (three months), efforts were made to improvethe efficiency of these operations related to group support.
As a result, net sales in the Other Businesses were 5,730 million yen (year-on-year increase of 33.0%), and segment
profit was 557 million yen (year-on-year increase of 210.0%).

(2) Qualitative Information Regarding Consolidated Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2012, total assets stood at 290,283 million yen, adecrease of 17,986 million yen from the end of the previous fiscal year. The main factor was a decrease of 17,257 million
yen in cash and time deposits due to income taxes paid and the acquisition of the Company’s own shares.
Total liabilities amounted to 80,657 million yen, a decrease of 13,918 million yen from the end of the previous fiscal
year. The main factors of this decline were decreases of 8,299 million yen in accounts payable-other included in othercurrent liabilities and 4,292 million yen in accrued income taxes due to income taxes paid.
Total net assets stood at 209,625 million yen, a decrease of 4,067 million yen from the end of the previous fiscal year.
The main factors were an increase of 7,007 million yen in treasury stock through the acquisition of the Company’s own
shares by tender offer and on the market, while foreign currency translation adjustments increased by 1,706 million yen
due to currency fluctuation.
As a result, the equity ratio became 71.6% compared with 68.8% at the end of the previous fiscal year.
-3-(3) Qualitative Information Regarding Consolidated Projections
As for the future of the economy, a difficult business environment is expected to continue due to factors such as electric
power supply shortages in Japan and the rise in the yen. Such factors are also expected to have an impact on theentertainment industry, in which the Group is extensively involved, resulting in ongoing uncertainty in this businessenvironment.
Facing these circumstances, the Group is working to steadily develop its global management foundation as outlined in
the three-year Mid-term Business Plan that started in April 2009, and expects these efforts will lead to medium- tolong-term growth.
Specifically, in the Toys and Hobby Business, our plan for the Japanese market is to strengthen development throughcoordinated movement of categories revolving around long-established character toys, such as Mobile Suit Gundam AGE(scheduled to begin broadcasting on TV from October 2011), KAMEN RIDER FOURZE (scheduled to begin broadcastingon TV from September 2011), and the already popular GOKAIGER (Power Rangers series) and SUITE PRETTY CURE ♪
In addition, while aiming for a dominant position of No. 1 in Japan, we will introduce new products and services such ascard games that connect to a network for online play, plastic models for elementary school students and toys for adults inorder to broaden the variety of customers targeted. Overseas, in the North American region, the Group will strive toimprove profitability by focusing on boys’ toys such as the Power Rangers SAMURAI, which are off to a good start, andthe BEN10 character toys, which have now become a long-established character series. In the European region, the Groupwill work to expand new categories such as girls’ toys and pre-school toys, and in the Asian region, to strengthen
developments in conjunction with Japan.
In the Content Business, the Group aims to improve profitability in home video game software by focusing on popularworldwide franchise titles that were developed in Japan such as ACE COMBAT ASSAULT HORIZON for PlayStation 3 andXbox 360. The Group will also strengthen its business by the latest machines for the popular series Tekken Tag
Tournament 2 and Mobile Suit Gundam senjo-no-kizuna in arcade game machines and Mobile Suit Gundam UC (Unicorn)
and TIGER & BUNNY in visual and music content. In addition, in network content, the Group will aim to maximize
content value by launching new content for SNS (social networking services), such as KAMEN RIDER WARS, in addition
to the already popular GUNDAM ROYALE.
In the Amusement Facility Business, in Japan, while dealing with electric power conservation activities, we willcontinue to promote differentiated facilities that offer the experience of the Group’s distinctive worldviews of characters.
Overseas, we will strive to boost profitability by continuing to implement various efficiency measures.
In its projections for the current fiscal year, the Group has revised its consolidated projections for the six months of the
fiscal year ending March 31, 2012, announced on May 10, 2011, in Consolidated Financial Report for the Fiscal Year
Ended March 31, 2011, in light of the strong performance of the Toys and Hobby Business in Japan over the current firstquarter (three months) and more recent circumstances. Please see page 5 for the details of the revision.
As for the consolidated projections for the full fiscal year, the Group has taken into account that the main products andservices provided by the Toys and Hobby Business and the Content Business are concentrated from the third quarter
onward, and that the outlook for the entertainment industry is expected to continue to be uncertain as mentioned above, andno changes have been made to the previously announced projections.

-4-Revision to the consolidated projections for the six months(April 1, 2011 to September 30, 2011)
Net Sales

Operating
Income(¥ million)
Recurring
IncomeNet Income(Loss)Net Income(Loss) per SharePrevious projections (A)165,000

3,000

3,000

500

2.11 yen

Revised projections (B)178,000

6,500

6,500

3,200

13.89 yen

Change in amount (B–A)

13,000

3,500

3,500

2,700

–

Change (%)

7.9%

116.7%

116.7%

540.0%–

173,595

5,067

5,006

(1,930)(8.00) yen

Reference: Results for thesame period of the previous
fiscal year
(April 1, 2010 to September 30,
2010)

2. Matters Regarding Summary Information (Others)(1) Changes in Significant Subsidiaries during the Period
Not applicable.

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

(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatement
Not applicable.

-5-3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2011)

Current 1st Quarter(As of June 30, 2011)

AssetsCurrent assets
Cash and time deposits

88,12670,869Trade receivables

57,262

48,176

Short-term investments

2,817

3,898

Finished goods and merchandise

10,553

11,849Work in process

26,741

28,546

Raw materials and supplies

4,406

4,953

Other current assets

21,847

23,827

(820)

(632)

210,934

191,488

Property, plant and equipment

42,591

43,420Intangible assets

8,536

8,455

Other investments and assets

48,11149,038

Allowance for doubtful receivables(1,905)(2,119)Total investments and other assets

46,206

46,91997,334

98,794308,269

290,283

Trade payables

36,64135,196

Short-term borrowings

3,428

3,370

Accrued income taxes

7,979

3,687

Provision

2,590

2,087

Other current liabilities

35,46427,874

Total current liabilities

86,10572,216

2,763

2,904

Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities

Long-term liabilities
Accrued retirement and severance benefits
Other provision

237

55

Other long-term liabilities

5,469

5,481

Total long-term liabilities

8,470

8,441

94,57680,657

Total liabilities-6-(¥ million)
Prior Fiscal Year(As of March 31, 2011)

Current 1st Quarter(As of June 30, 2011)

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

69,92369,923Retained earnings

159,491

159,900

Treasury stock(3,496)(10,503)

Total stockholders’ equity

235,919

229,321

447

1,193

3

(94)

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax
Land revaluation, net of tax(6,491)(6,491)

Foreign currency translation adjustments(17,775)(16,068)

Total accumulated other comprehensive income(23,816)(21,461)

Minority interests

1,590

1,766

Total net assets

213,693

209,625

308,269

290,283

Total liabilities and net assets-7-

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Operations)(¥ million)
Prior 1st Quarter(From April 1, 2010
to June 30, 2010)
81,912Current 1st Quarter(From April 1, 2011
to June 30, 2011)
88,24150,97453,592Gross profit

30,93834,648Selling, general and administrative expenses

27,98428,319Operating income

2,953

6,329

Dividend income

118

135

Other non-operating income

214

239

Total non-operating income

332

375

Net sales
Cost of sales

Non-operating income

Non-operating expenses
Interest expense40

22Equity in loss of affiliated companies

28－

Foreign exchange loss

228－

Commission for purchase of treasury stock－

34

Other non-operating expenses

45

42

Total non-operating expenses

343

99

2,942

6,605

Recurring income
Extraordinary income
Gain on sales of fixed assets

85Gain on transfer of business

405－

Reversal of allowance for doubtful receivables

61－

Reversal of provision for loss from business restructuring

21－

Gain on reversal of stock subscription rights

715－

Other extraordinary income

191

Total extraordinary income

1,230

7

Extraordinary loss
1－

Loss on valuation of investment securities

2,052

34

Loss on adjustment for changes of accounting standard for
asset retirement obligations

1,205

－

－

55

Loss on sales of fixed assets

Provision for loss on litigation
Other extraordinary loss

115

65

Total extraordinary loss

3,374

155

Income before income taxes and minority interests

798

6,457

Income taxes

2,271

3,035

Income (loss) before minority interests(1,473)

3,421

Minority interests

171

173

Net income (loss)(1,644)

3,248

-8-

(Quarterly Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st Quarter(From April 1, 2010
to June 30, 2010)
Income (loss) before minority interests

Current 1st Quarter(From April 1, 2011
to June 30, 2011)(1,473)

3,421

493

767

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

79

(97)

(1,182)

1,739

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

(22)

(18)

Total other comprehensive income

(631)

2,390

(2,104)

5,812

Comprehensive income attributable to owners of the parent(2,308)

5,603

Comprehensive income attributable to minority interests

203

209

Foreign currency translation adjustments

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

(4) Segment Information(Segment Information)
I. Prior 1st quarter (From April 1, 2010 to June 30, 2010)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments

Quarterly
Adjustments Consolidated
Total(Note 2)
(Note 3)Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Subtotal

Other(Note 1)

To external customers

33,98531,557

14,75480,297

1,615

81,912–

81,912

Inter-segment sales
and transfers

827

1,391

15

2,234

2,692

4,927

(4,927)–

Total

34,812

32,948

14,77082,532

4,308

86,840(4,927)

81,912

Segment income (loss)

4,110

(619)

157

3,647

179

3,827

(873)

2,953

Total

Net sales

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and building management for each of the Group’s strategic business units are classified.
Included in the 873 million yen deducted from segment income (loss) as adjustment are a deduction of 26
million yen in inter-segment eliminations, and a deduction of 847 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.
Segment income (loss) is adjusted with operating income in the quarterly consolidated statements of operations.

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

- 10 -

II. Current 1st quarter (From April 1, 2011 to June 30, 2011)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments

Quarterly
Adjustments Consolidated
Total(Note 2)
(Note 3)Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Subtotal

Other(Note 1)

To external customers

38,18433,42814,73086,343

1,897

88,241–

88,241

Inter-segment sales
and transfers

992

2,176

10

3,179

3,832

7,011

(7,011)–

Total

39,17735,604

14,74089,522

5,730

95,253(7,011)

88,241

5,037

519

744

6,302

557

6,859

(530)

6,329

Total

Net sales

Segment income

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and building management for each of the Group’s strategic business units are classified.
Included in the 530 million yen deducted from segment income as adjustment are an addition of 133 million yen
in inter-segment eliminations, and a deduction of 663 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division thathas not been attributed to a reportable segment.
Segment income is adjusted with operating income in the quarterly consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.
(5) Notes on Significant Changes in the Amount of Stockholders’ Equity
During the first quarter, in accordance with a decision made by the Board of Directors at a meeting held on February 25,
2011, the Company acquired 7,839,464 of its own shares at a purchase price of 7,006 million yen, raising the value oftreasury stock as of the end of the first quarter to 10,503 million yen.

(6) Significant Subsequent Events(Retirement of Treasury Stock)
Concerning a decision made by the Board of Directors at a meeting held on July 15, 2011, the Company resolved andcarried out the retirement of treasury stock in accordance with the provision of Article 178 of the Companies Act as
described below.
a. Reason for retirement:

Due to the absence of any clear use at present.

b. Method of retirement:

Reduction in other additional paid-in capitalc. Type of shares retired:

Common stockd. Total number of shares retired:

10,000,000 sharese. Retirement date:July 19, 2011

f. Total number of issued shares after retirement:

230,000,000 shares- 11 -