Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2019

August 7, 2018DISCLAIMER- BANDAI NAMCO Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
August 7, 2018

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2019 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 10, 2018
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2019
(April 1, 2018 to June 30, 2018)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2018)

First Quarter of the Fiscal YearEnding March 31, 2019
First Quarter of the Fiscal Year
Ended March 31, 2018

Net sales¥ million
150,899%
4.7

144,084(0.5)

Profit attributable toowners of parent¥ million%
14,6378.4(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
17,897
14.6
19,49820.1
15,611(33.3)

Basic earnings per share

16,240(29.2)

Diluted earnings per share¥First Quarter of the Fiscal Year
66.61
Ending March 31, 2019
First Quarter of the Fiscal Year
13,498(27.0)
61.45
Ended March 31, 2018
(Note) Comprehensive income: 16,731 million yen [2.7%] (FY2019.3 1Q), 16,291 million yen [63.3%] (FY2018.3 1Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of June 30, 2018
513,770
379,676
73.8
As of March 31, 2018
540,490387,354
71.5(Reference) Equity: 379,181 million yen (as of June 30, 2018), 386,556 million yen (as of March 31, 2018)

¥
–
61.43

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥111.00

Total

Fiscal Year Ended March 31, 2018–¥123.00
Fiscal Year Ending March 31, 2019–
Fiscal Year Ending March 31, 2019¥18.00–¥18.00¥36.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2019: No
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March 31,
2019, the base dividend is stated based on the Company’s basic policy on the distribution of profits. The year-end cash dividend
for the fiscal year ending March 31, 2019, will be considered by the Company based on the basic policy on the distribution of
profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
profitprofitto ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
306,000(0.9)
29,000(17.0)
29,500(17.3)
22,000(22.0)
100.11
September 30, 2018
Full Fiscal Year
650,000(4.2)
60,000(20.0)
61,000(19.1)
43,000(20.5)
195.67(Note) Revision to the projections: No* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 8 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2018
222,000,000 shares
222,000,000 shares
As of March 31, 2018b) Number of shares of treasury stock at the end of the period
2,240,396 shares
As of June 30, 2018
2,239,901 shares
As of March 31, 2018c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,759,866 shares
For the First Quarter of the Fiscal Year Ending March 31, 2019
For the First Quarter of the Fiscal Year Ended March 31, 2018219,665,324 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public accountants
or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the First Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on August 7, 2018.

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

2. Consolidated Financial Statements and Significant Notes ................................................................ 4(1) Consolidated Balance Sheets.............................................................................................................................................. 4(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 6(Consolidated Statements of Operations) ........................................................................................................................... 6(Consolidated Statements of Comprehensive Income)....................................................................................................... 7(3) Notes to Consolidated Financial Statements ...................................................................................................................... 8(Notes on Premise of Going Concern) ............................................................................................................................... 8(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 8(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 8(Segment Information) ....................................................................................................................................................... 8-1-1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2019, the economy continued to moderately
recover both in Japan and overseas. However, the outlook for the overall economy remained uncertain.
In this environment, the BANDAI NAMCO Group (“the Group”) has started a three-year Mid-term Plan in April 2018,
under the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” whichreflects our aspiration to achieve changes in all aspects to progress to a next stage rather than being bound by previous
business models and established ideas. Aiming for medium- and long-term growth, the Group has been promoting a rangeof measures. As one of these initiatives, we have been taking advantage of the worldview and unique characteristics of IP(Intellectual Property: meaning characters and other intellectual property) to further evolve the “IP Axis Strategy” that aims
to maximize IP value through the provision of the best products and services at the best possible times. These measures also
include an initiative to strengthen development in regions and businesses with high growth potential and an initiative torealize the total capabilities of the Group in regions around the world under the ALL BANDAI NAMCO concept.
During the first quarter (three months), there were impacts from differences in the title lineup in the Network
Entertainment Business compared with the same period of the previous fiscal year; however, the Toys and Hobby Businessand the Visual and Music Production Business performed favorably. The key IP and products and services in each businesssegment also performed stably.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 150,899 million yen(year-on-year increase of 4.7%), operating profit of 17,897 million yen (year-on-year increase of 14.6%), recurring profit of
19,498 million yen (year-on-year increase of 20.1%), and profit attributable to owners of parent of 14,637 million yen (yearon-year increase of 8.4%).
Operating results by segment are as follows.
Effective from the first quarter ended June 30, 2018, the Group changed the classification of its reportable segments.
Consequently, in year-on-year comparisons the figures for the same period of the previous fiscal year shown below havebeen restated into the figures for the classifications after the change.
Toys and Hobby Business
As for the Toys and Hobby Business, we strengthened our initiatives for the mature fan base in Japan and overseas. In
Japan, products for the mature fan base such as plastic models and collectible figures of the Mobile Suit Gundam series
performed favorably, along with long-established IP products such as the DRAGON BALL series, the KAMEN RIDER series,
and the PRETTY CURE! series. Overseas, in Asian region, products of the Mobile Suit Gundam series and other products
gained in popularity, and we took steps to make a full-blown entry into the Chinese market. In Americas and Europe, we
strengthened our roll-out of products for the mature fan base, such as card products and collectible figures of DRAGON BALL
series.
As a result, net sales in the Toys and Hobby Business were 50,536 million yen (year-on-year increase of 18.1%), andsegment profit was 5,296 million yen (year-on-year increase of 293.4%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as DRAGONBALL Z DOKKAN BATTLE and ONE PIECE Treasure Cruise, and in Japan, key titles such as The iDOLM@STER seriescontinued to perform stably due to ongoing measures targeting users, while the new title DRAGON BALL LEGENDS madea strong start. We also undertook initiatives to create new services, such as starting up a new platform. In home video games,
performance was impacted by a difference in the title lineup compared with the same period of the previous fiscal year, whenmajor new titles distributed worldwide were sold; however, repeat sales of existing titles overseas continued to perform
favorably.
As a result, net sales in the Network Entertainment Business were 69,982 million yen (year-on-year decrease of 5.4%),
and segment profit was 10,207 million yen (year-on-year decrease of 20.0%).
Real Entertainment Business
As for the Real Entertainment Business, we opened amusement facilities and stores in new business formats providing
spaces to enjoy experiences that are unique to the Group. However, performance did not reach the level seen in the same
period of the previous fiscal year, when existing stores in Japan performed favorably.

-2-

As a result, net sales in the Real Entertainment Business were 20,081 million yen (year-on-year increase of 0.6%), andsegment loss was 473 million yen (compared with segment profit of 113 million yen for the same period of the previous
fiscal year).
Visual and Music Production Business
As for the Visual and Music Production Business, products such as visual and music package software of LoveLive!
Sunshine!! and The iDOLM@STER series gained in popularity. Meanwhile, IP live events such as IDOLiSH 7 and associatedproduct sales performed favorably.
As a result, net sales in the Visual and Music Production Business were 9,581 million yen (year-on-year increase of
32.7%), and segment profit was 2,679 million yen (year-on-year increase of 159.7%).
IP Creation Business
As for the IP Creation Business, the TV program and movie of the Mobile Suit Gundam series and the TV program of
the Aikatsu! series were broadcasted/launched, and they all gained popularity. In addition, we built up public interest in
related IP ahead of the movie release of LoveLive! Sunshine!!. However, profits did not reach the level seen in the same
period of the previous fiscal year, when we recorded significant license revenue.
As a result, net sales in the IP Creation Business were 3,655 million yen (year-on-year increase of 14.2%), and segment
profit was 1,200 million yen (year-on-year decrease of 19.0%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group companies. We are making efforts to manage such operations
related to group support in an efficient manner.
As a result, net sales in the Other Businesses were 6,900 million yen (year-on-year increase of 10.4%), and segment profit
was 118 million yen (compared with segment loss of 41 million yen for the same period of the previous fiscal year).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2019, total assets stood at 513,770 million yen, adecrease of 26,720 million yen from the end of the previous fiscal year. The main factor was a decrease of 22,440 million
yen in cash and deposits mainly due to cash dividends paid.
Total liabilities amounted to 134,094 million yen, a decrease of 19,041 million yen from the end of the previous fiscal
year. The main factor was a decrease of 10,179 million yen in trade payables.
Total net assets stood at 379,676 million yen, a decrease of 7,678 million yen from the end of the previous fiscal year.
The main factor was an increase of 1,578 million yen in valuation difference on available-for-sale securities, net of tax,
despite a decrease of 9,769 million yen in retained earnings mainly due to cash dividends paid.
As a result, the equity ratio became 73.8% compared with 71.5% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, in the first year of our three-year Mid-term Plan, which started in April 2018, we will move ahead withmeasures under our main strategies—the IP axis strategy, business strategy, region strategy, and personnel strategy. By
implementing these main strategies, we aim to further strengthen the Group’s business foundation and achieve growth inglobal markets.
For the fiscal year ending March 31, 2019, we have left the consolidated projections of the second quarter (six months)
and the full fiscal year unchanged from those announced on May 9, 2018, in light of our product and service lineup going
forward, and other factors.

-3-(1) Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 1st quarter(As of June 30, 2018)

AssetsCurrent assets
Cash and time deposits

185,517

163,076

Trade receivables

88,061

71,561Finished goods and merchandise

14,78017,359Work in process

37,68441,942

Raw materials and supplies

3,216

3,272

Other current assets

22,52924,937

Allowance for doubtful receivables(1,172)(1,143)

Total current assets

350,618

321,007

Property, plant and equipment

86,10486,378Intangible assets

9,475

9,560

Investment securities

56,49558,696

Other investments and assets

39,191

39,748

Allowance for doubtful receivables(1,394)(1,621)

Total investments and other assets

94,292

96,823Fixed assets

Investments and other assets

Total fixed assets
Total assets-4-

189,872

192,763

540,490

513,770(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 1st quarter(As of June 30, 2018)

Liabilities
Current liabilities
Trade payables

69,55559,375

Provision

4,085

6,526

Other current liabilities

62,56150,740Total current liabilities

136,202116,642

Net defined benefit liability

8,485

8,409

Other long-term liabilities

8,447

9,042

Total long-term liabilities

16,933

17,451

153,135

134,094

10,00010,000Long-term liabilities

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

52,19652,196

Retained earnings

334,264

324,494

Treasury stock(2,326)(2,328)

Total stockholders’ equity

394,133

384,361

11,696

13,275

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

(300)

146

Revaluation reserve for land, net of tax(5,887)(5,887)

Foreign currency translation adjustments(8,330)(8,082)Remeasurements of defined benefit plans, net of tax(4,756)(4,632)

Total accumulated other comprehensive income(7,577)(5,179)797

494

387,354379,676

540,490

513,770

Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st quarter(From April 1, 2017
to June 30, 2017)

Current 1st quarter(From April 1, 2018
to June 30, 2018)

Net sales

144,084

150,899

Cost of sales

92,985

95,204Gross profit

51,09955,695

Selling, general and administrative expenses

35,48837,797

Operating profit

15,611

17,897

215

452

–

645

Non-operating income
Dividend income
Gain on valuation of derivatives
Other non-operating income

632

761

Total non-operating income

848

1,859

Non-operating expenses
Loss on valuation of derivatives

81–

Provision of allowance for doubtful accounts

63

223

Other non-operating expenses

74

34

Total non-operating expenses

219

257

16,24019,498Gain on sales of investment securities–

231

Other extraordinary income

13

14

Total extraordinary income

13

246

Loss on impairment of fixed assets

85

27

Loss on valuation of stocks of affiliated companies–

33

Recurring profit
Extraordinary income

Extraordinary loss

Other extraordinary loss

15

56

Total extraordinary loss

100

117

Profit before income taxes

16,154

19,627

Income taxes

2,626

5,293

Profit13,527

14,33429(303)

13,498

14,637

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st quarter(From April 1, 2017
to June 30, 2017)
ProfitCurrent 1st quarter(From April 1, 2018
to June 30, 2018)

13,527

14,334

1,085

1,654

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

81

445

1,303

247

Remeasurements of defined benefit plans, net of tax

153

124

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

140

(75)

Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income

2,763

2,397

16,291

16,731

16,262

17,03529(303)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholders’ Equity)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current first quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.
(Segment Information)
I. Prior 1st quarter (From April 1, 2017 to June 30, 2017)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Visual andRealNetwork
IP
Toys andEntertain- Entertain- Music
Creation
Hobby
ment Production
mentBusiness
Business
Business Business Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

40,922

72,764

19,514

6,451

2,080

141,732

2,351

144,084–

144,084

Inter-segment sales
and transfers

1,871

1,230

448

768

1,122

5,440

3,897

9,338

(9,338)–

Total

42,79473,994

19,962

7,220

3,202

147,173

6,249

153,423(9,338) 144,084

Segment profit (loss)

1,346

12,753

113

1,031

1,481

16,725(41)

16,684(1,073)

Notes: 1.
2.

3.

15,611The “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 companies are classified.
Included in the 1,073 million yen deducted from segment profit (loss) as adjustment are an addition of 34 million
yen in inter-segment eliminations, and a deduction of 1,107 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.
Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding 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.

-8-II. Current 1st quarter (From April 1, 2018 to June 30, 2018)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Visual andRealNetwork
IP
Toys andEntertain- Entertain- Music
Creation
Hobby
ment Production
mentBusiness
Business
Business Business Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

48,786

68,67919,986

8,527

2,487

148,467

2,432

150,899–

150,899

Inter-segment sales
and transfers

1,749

1,303

94

1,054

1,168

5,369

4,468

9,838

(9,838)–

Total

50,53669,982

20,081

9,581

3,655

153,837

6,900

160,738(9,838) 150,899

Segment profit (loss)

5,296

10,207

(473)

2,679

1,200

18,910118

19,029(1,131)

Notes: 1.
2.

3.

17,897The “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 companies are classified.
Included in the 1,131 million yen deducted from segment profit (loss) as adjustment are an addition of 184 million
yen in inter-segment eliminations, and a deduction of 1,316 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.
Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding changes to reportable segments, etc.
Effective from the first quarter ended June 30, 2018, the Group has changed its organizational structure to promote
the advancement of each of the strategies of the Mid-term Plan. The name of the units of aggregated businesscompanies that are to execute the respective business strategies has been changed from “SBUs” (Strategic Business
Units) to “Units.” In addition, to enable swifter advancement of the main strategies for each mission stated in the Midterm Plan, the Group has shifted from its previous three-SBU structure to a five-Unit structure.
In conjunction with this organizational restructure, effective from the first quarter ended June 30, 2018, thereportable segments have been changed from the Toys and Hobby Business, Network Entertainment Business, andthe Visual and Music Production Business to the Toys and Hobby Business, Network Entertainment Business, RealEntertainment Business, Visual and Music Production Business, and IP Creation Business.
Segment information of the previous first quarter (three months) is prepared and disclosed based on the reportablesegment classifications after the change.
3. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

-9-