Consolidated Financial Report for
the Fiscal Year Ended March 31, 2012

May 8, 2012DISCLAIMER- 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 8, 2012

Consolidated Financial Report for the Fiscal Year Ended March 31, 2012 (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 18, 2012
Scheduled starting date for dividend payments:
June 19, 2012
Scheduled filing date of the annual security report:
June 19, 2012
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, 2012 (April 1, 2011 to March 31, 2012)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Net sales
Operating income
Recurring income¥ million%¥ million%¥ million%
Fiscal Year Ended
454,21015.2
34,606111.8
34,960113.2
March 31, 2012
Fiscal Year Ended
394,178
4.1
16,338767.3
16,399759.6
March 31, 2011
Net income

Net income per share

Net income per share(diluted)¥ million%¥
Fiscal Year Ended
19,303
944.3
85.62
March 31, 2012
Fiscal Year Ended
1,848
–
7.71
March 31, 2011
(Note)
Comprehensive income: 21,551 million yen [– %] (FY2012.3), (4,599) million yen [– %] (FY2011.3)
ROE(Net income / Net assets)

ROA(Recurring income /Total assets)

¥
–
7.71

Operating margin(Operating income /Net sales)%%
Fiscal Year Ended
9.1
10.7
March 31, 2012
Fiscal Year Ended
0.8
5.2
March 31, 2011
(Reference)
Gain or loss from application of equity method: (246) million yen (FY2012.3), (8) million yen (FY2011.3)

%
7.6
4.1

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2012
342,171
213,125
61.8
As of March 31, 2011
308,269
213,693
68.8(Reference)
Equity: 211,443 million yen (as of March 31, 2012), 212,102 million yen (as of March 31, 2011)

Net assets
per share¥
962.45896.83

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
39,112¥ million(15,263)¥ million(5,932)

Cash and cash
equivalents at endof period¥ million
107,327

22,561(7,372)(18,825)

89,329Fiscal Year Ended
March 31, 2012
Fiscal Year Ended
March 31, 2011
2. Cash Dividends

End offirstquarter¥–

Annual cash dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
12.00

Total

Payout ratio
Dividend /Total
Net assets
dividend (Consolidated)(Consolidated)
payment(Full year)¥ million
%
%
5,738
311.3
2.6

¥
Fiscal Year Ended
24.00
March 31, 2011
Fiscal Year Ended
–
12.00
–
14.00
26.00
5,783
30.4
2.8
March 31, 2012
Fiscal Year Ending
–
12.00
–
12.00
24.00
30.1
March 31, 2013 (Projections)(Note) The stable portion of the cash dividends is given in the projections for the end of second quarter and the fiscal year-end for the
Fiscal Year Ending March 31, 2013 based on the Company’s basic policy regarding appropriation of profits. Thus, the actual
fiscal year-end dividend will be decided according to the consolidated financial results.

3. Consolidated Projections for the Fiscal Year Ending March 31, 2013 (April 1, 2012 to March 31, 2013)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
200,000
3.0
13,500(14.3)
13,500(15.5)
7,500
(6.6)
34.14
September 30, 2012
Full Fiscal Year
440,000(3.1)
30,000(13.3)
30,000(14.2)
17,500(9.3)
79.66* Notes(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in Scope ofConsolidation): No(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: No
b. Changes in accounting policies due to revisions to other reasons: No
c. Changes in accounting estimation: No
d. Restatement: No(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, 2012
222,000,000 shares
As of March 31, 2011
240,000,000 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2012
2,308,176 shares
As of March 31, 2011
3,497,884 sharesc. Average number of shares during the period
For the Fiscal Year ended March 31, 2012
225,464,803 shares
For the Fiscal Year ended March 31, 2011
239,810,150 shares(Note) Please refer to the section of “Per-Share Data” on page 28 for the number of shares used to calculate “Net income pershare.”

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2012 (April 1, 2011 to March 31, 2012)(1) Non-consolidated Operating Results(Percentages indicate year-on-year changes.)
Operating revenue
Operating income
Recurring income¥ million%¥ million%¥ million%
Fiscal Year Ended
12,417
120.3
9,834
238.9
9,684
242.8
March 31, 2012
Fiscal Year Ended
5,635(41.4)
2,902(58.4)
2,825(56.3)March 31, 2011
Net income

Fiscal Year Ended
March 31, 2012
Fiscal Year Ended
March 31, 2011

Net income per share

Net income per share(diluted)¥ million(2,944)%–¥(13.05)

¥
–

1,435

(80.3)

5.98

5.98(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets
per share¥ million¥ million%
As of March 31, 2012
336,430
224,451
66.7
As of March 31, 2011
329,240
247,143
75.1(Reference)
Equity: 224,451 million yen (as of March 31, 2012), 247,143 million yen (as of March 31, 2011)¥
1,021.13
1,044.50

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2013 (April 1, 2012 to March 31, 2013)(Percentages indicate year-on-year changes.)
OperatingRecurring
Net income
Net income
revenueincomeper share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
18,00045.0
13,80042.5
14,200–64.60* 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.
1. Forward-looking statements in 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 from expectations. Please refer to thesection of “(1) Analysis on Results of Operations” of “1. Results of Operations” on pages 3-4 for matters pertaining to the earnings
projections.
2. The additional materials of the Financial Results will be posted on the Company’s website.

Attached Material
Index
1. Results of Operations............................................................................................................................ 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 on Premise of Going Concern................................................................................................................................. 20(6) Important Information Constituting the Basis for Preparation of Consolidated Financial Statements ............................. 20(7) Additional Information...................................................................................................................................................... 21(8) Notes to Consolidated Financial Statements..................................................................................................................... 22(Segment Information)...................................................................................................................................................... 22(Per-Share Data)................................................................................................................................................................ 28(Significant Subsequent Events) ....................................................................................................................................... 29

4. Other .................................................................................................................................................... 32
Changes in Directors and Corporate Auditors ........................................................................................................................ 32-1-

1. Results of Operations(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2011 to March 31, 2012)
In this fiscal year, harsh economic conditions continued, due to factors related to the Great East Japan Earthquake, suchas the extensive damage it caused and electric power shortages, as well as other factors such as the depressed markets inNorth America and Europe and the rapid appreciation of the yen. As for the entertainment industry, weak individual
consumption and other factors have added further uncertainty to the outlook.
In this environment, the BANDAI NAMCO Group (“the Group”) pressed ahead with the development of its global
management foundation, in the final fiscal year of the three-year Mid-term Plan that started in April 2009, and sought torealize medium- to long-term growth.
On the business front, long-established character toys and peripheral toy category products such as cards in the Toysand Hobby Business and arcade game machines, network content, and home video game software in the Content Business
contributed to performance. In the Amusement Facility Business, existing-facility sales in Japan trended favorably.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 454,210 million yen (year-on-yearincrease of 15.2%), operating income of 34,606 million yen (year-on-year increase of 111.8%), recurring income of 34,960
million yen (year-on-year increase of 113.2%), and net income of 19,303 million yen (year-on-year increase of 944.3%).
Operating results by segment are as follows.

Toys and Hobby BusinessIn the Toys and Hobby Business, domestically, products in the KAMEN RIDER series and the Super Sentai series(POWER RANGERS series) proved extremely popular as a result of product categories being developed in coordination
with each other. Also contributing to this business’s results was strong performance by card games, including digital
card games such as DRAGON BALL HEROES and trading card games such as Battle Spirits. In new developments, The
Little Battlers plastic models gained popularity, mainly among elementary-school-age boys, and highly collectable toys
for adults also performed well.
Overseas, in the North American region, Power Rangers SAMURAI toys, the first new creation in the Power
Rangers series in two years, proved popular, and sales in the Asian region, mainly of character products popular inJapan, trended favorably. In the European region, products were developed in new categories, including toys for girls
and for pre-school-aged children, but performance did not reach the level of the previous fiscal year, when thisbusiness’s solid performance centered mainly on popular character toys.
As a result, net sales in the Toys and Hobby Business were 177,994 million yen (year-on-year increase of 12.4%),
and segment profit was 16,112 million yen (year-on-year increase of 16.7%).

Content BusinessIn the Content Business, in the arcade game machines area, in addition to the latest arcade game machines for
popular series such as Wangan Midnight Maximum Tune 4, repeat sales of well-established prize machines and sales ofprizes and the like contributed to performance. In home video game software, the popular title in North America andEurope was DARK SOULS, for PlayStation 3 and Xbox 360. Domestically, games such as TALES OF XILLIA and ONE
PIECE KAIZOKU MUSOU for PlayStation 3 and AKB1/48 Idol to Guam de Koishitara . . . for PlayStation Portable
proved highly popular. In addition, in the network content area, social games such as the Mobile Suit Gundam series-2-and ONE PIECE Grand Collection performed extremely well. In the visual and music content areas, visual package
software such as Mobile Suit Gundam UC (Unicorn) and TIGER & BUNNY also proved popular.
As a result, net sales in the Content Business were 225,503 million yen (year-on-year increase of 25.3%), andsegment profit was 17,003 million yen (year-on-year increase of 449.9%).

Amusement Facility BusinessIn the Amusement Facility Business, domestically, differentiated facilities located in shopping centers that offer
customers the opportunity to experience the distinctive worldview of specific characters were particularly popular.
Within a market environment that is difficult to read, existing facilities performed favorably, with net sales rising to100.1% of the result for the previous fiscal year. In addition, in implementing the plan to specialize in core businesses
with the objective of increasing profitability, transfers of some businesses were carried out.
In the challenging market environment presented by countries outside Japan, sales declined in North America andEurope, but profits trended favorably, due to selection and concentration of stores.
As a result, net sales in the Amusement Facility Business were 61,032 million yen (year-on-year decrease of 2.1%),
and segment profit was 2,380 million yen (year-on-year increase of 33.8%).

Number of Facilities as of March 31, 2012
Directly Managed

Revenue-Sharing

Facilities

Facilities

255

1,008

Others

Total

2

1,265

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, building management, andprinting for each of the Group’s businesses. During this fiscal year, such businesses related to group support expanded,
while efforts were also made to improve the efficiency of their operations.
As a result, net sales in the Other Businesses were 27,482 million yen (year-on-year increase of 48.5%), andsegment profit was 2,050 million yen (year-on-year increase of 153.0%).

b. Outlook for the Fiscal Year Ending March 31, 2013
As for the future of the economy, a difficult business environment is expected to continue due to factors such as weak
individual consumption in Japan, economic sluggishness in North America and Europe and the rise in the yen. Such factors
are also expected to have an impact on the entertainment industry, in which the Group is extensively involved, resulting inongoing uncertainty in this business environment.
Facing these circumstances, the Group started its three-year Mid-term Plan with the mid-term vision of “Empower,
Gain Momentum, Accelerate Evolution” in April 2012, and under this Plan, it is pursuing initiatives to achieve 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 the KAMEN RIDER series,
Super Sentai series (POWER RANGERS series), and PRETTY CURE! series. In addition, while aiming for the position as
the overwhelming No. 1 in Japan, we will introduce new products and services such as card games, plastic models forelementary school students, and products for adults in order to broaden the variety of customers targeted. Overseas, the-3-Group will strive to improve profitability by focusing on products of the mainstay content Power Rangers series bystrengthening integrated brand management of North America and Europe. In the Asian region, the Group aims to achieve
growth through developments in conjunction with Japan, focusing on plastic models and products for adults that are
popular in Japan.
With respect to the Content Business, in arcade game machines, while strengthening development and sales ofmachines that provide new play experiences, we aim to achieve growth by establishing multiple sales channels andstrengthening development aimed at the developing countries, particularly those in Asia. In home video game software, we
aim to boost profitability by releasing franchise titles that are linked with arcade game machines and titles that matchcustomer needs in a timely manner. Additionally, aiming to maximize the value of our content, we shall strengthen oursocial games by ensuring speedy provision of content and appropriate operation, and strengthen our sales of visual package
software for the Mobile Suit Gundam series aimed at each generation, among other measures.
In the Amusement Facility Business, in Japan, we will continue to promote differentiated facilities that offer theexperience of the Group’s distinctive worldview of specific characters, while developing facilities and services aimed ateach target customer through reinforcement of our marketing by customer segment. Overseas, while striving to boost
profitability by implementing various efficiency measures in North America and Europe, we will embark upon thedevelopment of facilities utilizing popular characters aimed at the Asian market.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2013 are as
follows: net sales of 440,000 million yen (year-on-year decrease of 3.1%), operating income of 30,000 million yen(year-on-year decrease of 13.3%), recurring income of 30,000 million yen (year-on-year decrease of 14.2%), and net
income of 17,500 million yen (year-on-year decrease of 9.3%).

(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2012, total assets stood at 342,171 million yen, an increase of 33,902
million yen from the end of the previous fiscal year. The main factors were increases of 18,832 million yen in cash andtime deposits, 11,839 million yen in trade receivables, and 2,808 million yen in deferred tax assets due to accounting
treatment that assumes the application of the consolidated taxation regime, while there was a decrease of 7,323 million yen
in work in process.
Total liabilities amounted to 129,046 million yen, an increase of 34,470 million yen from the end of the previous fiscal
year. The main factors of this increase were increases of 12,101 million yen in trade payables, 12,883 million yen in
long-term borrowings accompanying new borrowings, and 3,344 million yen in short-term borrowings.
Total net assets stood at 213,125 million yen, a decrease of 567 million yen from the end of the previous fiscal year.
The main factor was an increase of 16,565 million yen in treasury stock through the acquisition of the Company’s own
shares by tender offer and on the market, while there were increases of 13,758 million yen in retained earnings thanks to
the recording of net income through favorable consolidated results, and 2,419 million yen in unrealized gains or losses onother securities, net of tax. Moreover, additional paid-in capital and treasury stock each decreased by 17,677 million yen
due to the retirement of treasury stock.
As a result, the equity ratio became 61.8% compared with 68.8% at the end of the previous fiscal year.

-4-b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (hereafter “funds”) remaining on hand had increased by
17,997 million yen from the end of the previous fiscal year to 107,327 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 39,112 million yen (up 73.4% compared with the previous
fiscal year). As a main breakdown of funds used, income taxes paid was 13,834 million yen (compared with 10,437 million
yen in the previous fiscal year) and an increase in trade receivables was 12,667 million yen (compared with 8,155 million
yen in the previous fiscal year). However, overall, there was a net increase in funds due to income before income taxes andminority interests of 30,408 million yen (compared with 11,460 million yen in the previous fiscal year), depreciation andamortization of 18,142 million yen (compared with 18,000 million yen in the previous fiscal year), and an increase in trade
payables of 12,634 million yen (compared with 3,668 million yen in the previous fiscal year).

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 15,263 million yen (up 107.0% compared with the previous
fiscal year). The main breakdown of funds used was purchases of property, plant and equipment and intangible assets
totaling 14,529 million yen (compared with 9,312 million yen in the previous fiscal year).

(Cash Flows from Financing Activities)
The amount of funds used in financing activities amounted to 5,932 million yen (down 68.5% compared with theprevious fiscal year). The main factors for funds used were purchase of treasury stock of 16,565 million yen (comparedwith 4,171 million yen in the previous fiscal year), cash dividends paid of 5,545 million yen (compared with 5,797 million
yen in the previous fiscal year) and repayment of long-term borrowings of 5,166 million yen (compared with 8,657 million
yen in the previous fiscal year), although there were proceeds from long-term borrowings of 20,050 million yen (notpresent in the previous fiscal year).

(Reference) Cash Flow Indices
FY2008.3

FY2009.3

FY2010.3

FY2011.3

FY2012.3

Equity ratio (%)

69.4

70.9

69.5

68.8

61.8

Equity ratio (market capitalization basis) (%)

83.1

65.3

67.5

69.6

76.7

Cash flows to interest bearing debt ratio (%)

41.9

95.5

156.2

34.7

30.0

Interest coverage ratio (times)

199.6

113.0

32.9

42.0

338.4

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.
-5-(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 2 yen
per share to the stable annual dividend of 24 yen per share, to pay 26 yen per share for the annual dividend for this fiscal
year (year ended March 31, 2012). At present, the Company’s annual dividend forecast for next fiscal year (year ending
March 31, 2013) is the provision of the stable dividend of 24 yen per share.
In addition, 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 price trends, the existence or nonexistenceof major investment proposals, and other factors. Based on this policy, during this fiscal year, the Company made anacquisition of treasury stock as outlined below.

Resolution made by the Board of Directors at the meeting held on February 25, 2011
a. Period of acquisition: From February 28, 2011 to December 31, 2011
(Actual period of acquisition: From April 19, 2011 to December 28, 2011)b. Total number of shares acquired: 16,806,264 sharesc. Total amount for share acquisition: 16,561 million yen-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 achieve consolidated ROE of 10% in the fiscal year ending March 31, 2015, the final year of the Mid-term
Plan 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. An Asia Strategy Meeting was newly established in April
2012 to examine and promote Group strategies that will be commonly implemented by each SBU.

-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
By assigning a single ID to the users of our various websites and network services that the Group are developing
and expanding, we aim to interlink our existing media and services and promote horizontal integration between
business and IP (contents). We will use this single ID 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
Focus Strategies• 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
Focus Strategies• 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
Focus Strategies• 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 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 crosscuts the entire Group,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 crosscut the entire Group and include three types of
responsibilities: environmental and social contribution responsibilities, economic responsibilities, and legal and ethicalresponsibilities. In accordance with these fundamental principles, the Group CSR Committee and its sub-committee, theGroup 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, business categories,
and regions in which it is operating, with a view to achieving mid-term growth. In addition, on the development andproduction 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 will review development based on its existing business categories and promote businessstrategies revolving around content, thereby achieving speedy response to changing customer needs throughout the world
while maximizing the value of its content. Specifically, it will aim to secure the No. 1 position in each of its main businesscategories, domestically. Overseas, it will reinforce deployment of its arcade game machines in developing countries,
mainly in Asia, will carry out the world-wide launch of carefully-selected home video game software titles developed
domestically, and will seek to improve profitability. On the development front, NAMCO BANDAI Studios Inc., adevelopment company spun off in April, 2012, from NAMCO BANDAI Games Inc., the core company in this SBU, will
-9-

work to enhance the level of game development while promoting speedier and more efficient development.

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 will reinforce its domestic sales by customer
segment, using added value created by making use of its know-how in character merchandising, and working todifferentiate the Group’s facilities. Overseas, it will promote development of character facilities for elsewhere in Asia andwill implement 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, 2011)

Current Fiscal Year(As of March 31, 2012)

AssetsCurrent assets
Cash and time deposits

88,126

106,958

Trade receivables

57,262

69,102Finished goods and merchandise

10,553

12,907Work in process

26,741

19,417

Raw materials and supplies

4,406

4,714

Deferred tax assets

6,591

8,733

Other current assets

18,072

19,763

Allowance for doubtful receivables

(820)

(677)

210,934

240,920

24,16025,252

Accumulated depreciation(14,611)(14,923)

Buildings and structures, net

9,548

10,328

Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Amusement facilities and machines

61,61760,592

Accumulated depreciation(47,557)(47,034)

Amusement facilities and machines, net

14,05913,558

10,785

11,388Land
Other property, plant and equipment

68,42274,870(60,225)(65,646)

8,197

9,224

42,59144,500

8,536

8,194

Investment securities

21,16922,177

Deferred tax assets

5,759

6,426

Other investments and assets

21,181

21,663

Allowance for doubtful receivables(1,905)(1,711)

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

Total investments and other assets
Total fixed assets
Total assets- 11 -

46,20648,556

97,334

101,251

308,269

342,171(¥ million)
Prior Fiscal Year(As of March 31, 2011)

Current Fiscal Year(As of March 31, 2012)

Liabilities
Current liabilities
Trade payables

36,641

48,742

Short-term borrowings

3,428

6,773

Accounts payable-other

20,47019,191

Accrued income taxes

7,979

9,360

Provision for directors’ bonuses

878

1,693

Provision for losses from business restructuring

42

58

1,505

1,169

Provision for sales returns

165

7

Other current liabilities

Provision for loss on disaster

14,994

20,950Total current liabilities

86,105

107,946

Long-term borrowings－

12,883

Deferred tax liabilities for land revaluation

673

590

Provision for directors’ bonuses

237－

Accrued retirement and severance benefits

2,763

3,140

Other long-term liabilities

4,795

4,485

Total long-term liabilities

8,470

21,09994,576129,046

Common stock

10,00010,000Additional paid-in capital

69,92352,245Retained earnings

159,491

173,250

Treasury stock(3,496)(2,383)

Total stockholders’ equity

235,919

233,112

447

2,867

3

229

Land revaluation, net of tax(6,491)(6,408)Foreign currency translation adjustments(17,775)(18,357)

Total accumulated other comprehensive income(23,816)(21,669)

Minority interests

1,590

1,682

Total net assets

213,693

213,125

308,269

342,171

Long-term liabilities

Total liabilities
Net assets
Stockholders’ equity

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

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, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Net sales

394,178454,210

Cost of sales

254,763286,708

Gross profit

139,414167,502

Selling, general and administrative expenses

123,076

132,896

Operating income

16,33834,606

Interest income

170

214

Dividend income
Reversal of allowance for doubtful receivables

218
–

235
256

Other non-operating income

481

515

Total non-operating income

870

1,222

Interest expense

142

137

Foreign exchange loss

487

162

8

246

6

125

163

196

Non-operating income

Non-operating expenses

Equity in loss of affiliated companies
Commission for purchase of treasury stock
Other non-operating expenses
Total non-operating expenses

809

869

16,39934,960Gain on sales of fixed assets

247

22

Gain on sales of investment securities, net

252

56

Gain on sales of investments in affiliated companies

197

84

Gain on transfer of business

405

53

Reversal of allowance for doubtful receivables

331–

Reversal of provision for loss on disaster–

49

Gain on reversal of stock acquisition rights

715–

Recurring income
Extraordinary income

Other extraordinary income

207

31

Total extraordinary income

2,356

297

Loss on sales of fixed assets

49Loss on disposal of fixed assets

564

937

Loss on impairment of fixed assets

996

1,105

2,059

1,325

848

541

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

1,205

–

Other extraordinary loss

1,615

928

Total extraordinary loss

7,295

4,848

Income before income taxes and minority interests

11,46030,408

Corporate income, inhabitant and enterprise taxes
Adjustment for income taxes

10,946(1,474)

15,583(4,634)

Total income taxes

9,471

10,949

Income before minority interests

1,988

19,459Extraordinary loss

Loss on valuation of investment securities
Special retirement expenses

Minority interests
Net income- 13 -

140

155

1,848

19,303

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)
Income before minority interests

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)
1,988

19,459Unrealized gains or losses on other securities, net of tax

465

2,452

Deferred gains or losses on hedges, net of tax

(76)

226

–

82

(6,928)

(636)

(49)

(32)

Other comprehensive income

Land revaluation, net of tax
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income(6,588)2,092(4,599)21,551

Comprehensive income attributable to owners of the parent(4,675)

21,451

Comprehensive income attributable to minority interests

75

100

Comprehensive income
Comprehensive income attributable to- 14 -

(3) Consolidated Statements of Changes in Net Assets(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Stockholders’ equity
Common stock
Balance as of April 1, 2011

10,00010,000––10,00010,00079,96069,923

Changes during the period
Total changes during the period
Balance as of March 31, 2012
Additional paid-in capital
Balance as of April 1, 2011
Changes during the period
Disposal of treasury stock

41

0Retirement of treasury stock(10,077)(17,677)

Total changes during the period(10,036)(17,677)

69,92352,245

163,454

159,491

Cash dividends(5,797)(5,545)

Net income

Balance as of March 31, 2012
Retained earnings
Balance as of April 1, 2011
Changes during the period

1,848

19,303

Change in scope of consolidation

(13)

–

Total changes during the period(3,962)

13,758

159,491

173,250(9,455)(3,496)

Purchase of treasury stock(4,171)(16,565)

Disposal of treasury stock54

0

10,077

17,677(1)(0)

Balance as of March 31, 2012
Treasury stock
Balance as of April 1, 2011
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, 2012- 15 -

5,959

1,112

(3,496)(2,383)(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Total stockholders’ equity
Balance as of April 1, 2011

243,958

235,919(5,797)(5,545)

Changes during the period
Cash dividends
Net income

1,848

19,303Purchase of treasury stock(4,171)(16,565)

Disposal of treasury stock95

0

Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(1)(0)

Change in scope of consolidation

(13)

–

Total changes during the period(8,039)(2,807)

235,919

233,11219447

Net changes in the period other than changes instockholders’ equity

428

2,419

Total changes during the period

428

2,419

447

2,867

79

3

Net changes in the period other than changes instockholders’ equity

(76)

226

Total changes during the period

(76)

226

3

229

(6,491)(6,491)

Net changes in the period other than changes instockholders’ equity–

82

Total changes during the period–

82(6,491)(6,408)(10,900)(17,775)

Net changes in the period other than changes instockholders’ equity(6,875)(581)

Total changes during the period(6,875)(581)(17,775)(18,357)

Balance as of March 31, 2012
Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012
Deferred gains or losses on hedges, net of tax
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012Land revaluation, net of tax
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012
Foreign currency translation adjustments
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012- 16 -

(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Total accumulated other comprehensive income
Balance as of April 1, 2011(17,292)(23,816)

Net changes in the period other than changes instockholders’ equity(6,524)

2,147

Total changes during the period(6,524)

2,147(23,816)(21,669)810–

Net changes in the period other than changes instockholders’ equity

(810)

–

Total changes during the period

(810)

–

–

–

1,535

1,590

Net changes in the period other than changes instockholders’ equity

54

91

Total changes during the period

54

91

1,590

1,682

229,012

213,693(5,797)(5,545)

Changes during the period

Balance as of March 31, 2012
Stock acquisition rights
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012
Minority interests
Balance as of April 1, 2011
Changes during the period

Balance as of March 31, 2012
Total net assets
Balance as of April 1, 2011
Changes during the period
Cash dividends
Net income

1,848

19,303Purchase of treasury stock(4,171)(16,565)

Disposal of treasury stock95

0

Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(1)(0)

Change in scope of consolidation

(13)

–

Net changes in the period other than changes instockholders’ equity(7,279)2,239

Total changes during the period(15,318)(567)

213,693

213,125

Balance as of March 31, 2012- 17 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

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

11,46030,408Depreciation and amortization

18,00018,142

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

1,205

–

996

1,105

Loss on impairment of fixed assets
Amortization of goodwill

2,106

369

Increase (decrease) in allowance for doubtful receivables

(83)

(317)

Increase (decrease) in provision for losses from businessrestructuring

(708)

18

Increase (decrease) in provision for sales returns

(363)

(266)

Increase (decrease) in provision for directors’ bonuses

584

578

Increase (decrease) in accrued retirement and severance
benefits

373

380

Increase (decrease) in provision for loss on disaster

165

(157)

Interest and dividend income

(388)

(450)

Interest expense

142

137

Foreign exchange loss (gain)

343

81

8

246

Loss on disposal of fixed assets

564

937

Loss (gain) on sales of fixed assets, net

(241)

(12)

Loss on disposal of amusement facilities and machines

425

434

Loss (gain) on sales of investment securities, net

(443)

(81)

Loss (gain) on valuation of investment securities

2,102

1,405

Equity in loss (gain) of affiliated companies

Loss (gain) on transfer of business

(405)

(53)

Decrease (increase) in trade receivables(8,155)(12,667)

Decrease (increase) in inventories(1,849)4,081

Acquisition of amusement facilities and machines(4,126)(2,925)

Increase (decrease) in trade payables

3,668

12,634

Increase (decrease) in accounts payable-other

7,635(1,434)

Increase (decrease) in consumption tax payables

675

680

Other

(538)

(684)

Subtotal

33,15752,592

Interest and dividends received

379

468

Interest paid

(536)

(115)

Income taxes paid

(10,437)(13,834)

Net cash provided by operating activities

22,561

39,112- 18 -

(¥ million)
Prior Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Cash flows from investing activities
Payments for deposit in time deposits(984)(1,582)

Proceeds from withdrawal from time deposits

275

1,498

Purchases of property, plant and equipment(6,642)(9,882)

Sales of property, plant and equipment

1,110

33

Purchases of intangible assets(2,670)(4,647)Purchases of investment securities

(92)

(239)

Sales of investment securities

604

336

Proceeds from redemption of investment securities–

24

Payments for investments in capital of affiliated companies–(1,235)

Sales of subsidiary shares affecting the scope of
consolidation

8–

Proceeds from transfer of business

405

100

Payments of loans receivable(1,372)(544)

Collection of loans receivable

1,160

435

Payments of guarantee money deposited

(370)

(393)

Collection of guarantee money deposited

1,221

900

(26)

(68)

(7,372)(15,263)

Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net

(105)

1,382

Proceeds from long-term borrowings–

20,050

Repayment of long-term borrowings(8,657)(5,166)

Payment of lease obligations

(73)

(77)

Purchase of treasury stock(4,171)(16,565)00(5,797)(5,545)–25

Proceeds from disposal of treasury stock
Cash dividends paid
Proceeds from capital paid by minority interests
Cash dividends paid to minority interests

(21)

(35)

(18,825)(5,932)

Effect of exchange rate changes on cash and cash equivalents(4,837)81

Net increase (decrease) in cash and cash equivalents(8,474)

17,997

Cash and cash equivalents at beginning of year

97,77689,32927–

89,329107,327

Net cash used in financing activities

Increase in cash and cash equivalents due to consolidation of
additional subsidiaries
Cash and cash equivalents at end of year

- 19 -

(5) Notes on Premise of Going Concern
Not applicable.

(6) 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:77 companies

Current Fiscal Year: 72 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.
Among the above, since I WILL Co., Ltd., and BNDeNA inc. were newly incorporated in this consolidated fiscal
year, those companies have been added to the scope of consolidation.
With respect to companies included among consolidated subsidiaries in the previous consolidated fiscal year,
since D3DB S.r.l., BEC Co., Ltd. and D3Publisher of Europe Ltd., were liquidated, those companies were excluded
from the scope of consolidation.
In addition, since CREATIVE B WORKS CO., LTD., NAMCO NETWORKS AMERICA INC., EMOTION
CO., LTD., and NAMCO TALES STUDIO LTD., were merged into consolidated subsidiaries, those companies
were excluded from the scope 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, they were
excluded from the scope of consolidation.
2. Information Concerning Application of the Equity Method(1) Number of Non-Consolidated Subsidiaries and Affiliated Companies to Which the Equity Method Was Applied:
7 companies
Names of the Principal Non-Consolidated Subsidiaries and Affiliated Companies:
SHANGHAI NAMCO LTD., Happinet Corporation, Sotsu Co., Ltd. and People Co., Ltd.
(2) 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 the- 20 -

equity 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.
(3) If any of the companies to which the equity method is applied has a closing date that differs from the consolidated
closing date, then the financial statements for the relevant fiscal year of that company are used.
3. Information Concerning the Fiscal Year, etc. for Consolidated Subsidiaries
NAMCO BANDAI Holdings (USA) Inc. and some other consolidated subsidiaries (one domestic and 17 overseas
subsidiaries) have the last day of December 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 last day of the consolidated fiscal year for the consolidated financial statements of
the Company.
The closing date has been changed to March 31 from this consolidated fiscal year on for BANDAI S.A. and fiveother companies whose closing date had been December 31, for ARTPRESTO Co., Ltd., whose closing date had been
January 31, and for Sunrise Inc. and five other companies whose closing date had been the last day of February. In
connection with those changes, the number of months included in this consolidated fiscal year for each of thosecompanies is 15, 14, and 13 months, respectively.
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 21, 2011).

(7) Additional Information(Application of accounting standards, etc., concerning accounting changes or error corrections)
Any accounting changes and corrections of past errors made after the beginning of this consolidated fiscal year are
subject to the “Accounting Standard for Accounting Changes and Error Corrections” (Accounting Standards Board ofJapan Statement No. 24, issued on December 4, 2009) and “Guidance on Accounting Standard for Accounting
Changes and Error Corrections” (Accounting Standards Board of Japan Guidance No. 24, issued on December 4,2009).
(Application of a consolidated taxation regime)
As the Company and some of its consolidated subsidiaries have applied for approval of the use of a consolidated
taxation regime in which the Company is the consolidated parent corporation in this consolidated fiscal year and theconsolidated taxation regime will be applied from the next consolidated fiscal year, accounting, from this consolidated
fiscal year, has been carried out on the assumption of the application of the consolidated taxation regime, based on the“Practical Solution on Tentative Treatment of Tax Effect Accounting Under Consolidated Taxation System (Part 1)”(Accounting Standards Board of Japan PITF No. 5, issued on March 18, 2011) and “Practical Solution on Tentative
Treatment of Tax Effect Accounting Under Consolidated Taxation System (Part 2)” (Accounting Standards Board ofJapan PITF No. 7, issued on June 30, 2010).

- 21 -

(8) Notes to Consolidated Financial Statements(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 manufacturing and sales of arcade game machines, and production and salesof home video game software and video related products. The Amusement Facility Business conducts the operation ofamusement 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.

- 22 -

3. Information regarding the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2010 to March 31, 2011)(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

62,268387,6276,550

394,178–

394,178

9,263

69

13,001

11,952

24,953(24,953)–

158,374

179,91762,337400,629

18,503419,132(24,953)

394,178

Segment income

13,812

3,092

1,778

18,684810

19,494(3,156)

16,338Segment assets

99,385

119,044

34,153

252,583

17,979270,563

37,705308,269

Depreciation andamortization

9,475

2,434

6,183

18,094

470

18,565(564)

18,000

Amortization of
goodwill

2

1,792

147

1,943

–

1,943

281

2,224

Impairment loss

Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers
Total

Content
Business

Amusement
Facility
Business

154,706

170,653

3,667(Note 2)

(Note 3)

Net sales

Others

324

83

587

995

1

996

–

996

Investment inassociates accounted
for using equity
method

1,097

–

137

1,235

7,343

8,578

–

8,578

Increase in property,
plant and equipment
and intangible assets

7,075

1,688

4,185

12,948220

13,168270

13,438Notes: 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 3,156 million yen deducted from segment income as adjustment are a deduction of 254
million yen in inter-segment eliminations, and a deduction of 2,901 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2) Included in the 37,705 million yen added to segment assets as adjustment are a deduction of 7,327 million
yen in inter-segment eliminations, and an addition of 45,033 million yen in corporate assets that cannot beallocated 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 to a reportablesegment.
(3) Included in the 564 million yen deducted from depreciation and amortization as adjustment are a deductionof 811 million yen in inter-segment eliminations, and an addition of 246 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4) Included in the 281 million yen added to amortization of goodwill as adjustment is amortization related togoodwill that cannot be allocated to any reportable segment.
(5) Included in the 270 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.

- 23 -

Current Fiscal Year (From April 1, 2011 to March 31, 2012)(¥ million)
Reportable Segments
Toys and
Hobby
Business

To external customers

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)–

Content
Business

Amusement
Facility
Business

172,151

211,568

Inter-segment sales
and transfers

5,842

Total

(Note 2)

(Note 3)

Net sales

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

10,147

2,535

3,017

15,700537

16,2381,217

17,455

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 thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(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 that cannot beallocated 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 to a reportablesegment.
(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 togoodwill that cannot be allocated to any reportable segment.
(5) Included in the 1,217 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 -

b. Related Information
Prior Fiscal Year (From April 1, 2010 to March 31, 2011)
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

Americas307,660

Europe29,690Asia

37,274

Total

19,553394,178

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

Americas37,244

Europe

1,673

Asia

1,953

Total

1,719

42,591

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

Net sales

Names of related segments

43,046

Toys and Hobby Business and Content BusinessCurrent 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 Business- 25 -

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2010 to March 31, 2011)(¥ million)
Toys and
Hobby
Business
Loss onimpairment of
fixed assets

Amusement
Facility
Business

Content
Business

324

83

Other
(Note)

587

Eliminations
and Corporate

1

Total

–

996

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, 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.
d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2010 to March 31, 2011)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Content
Business

Eliminations
and Corporate(Note)

Other

Total

Amortized
amount

2

1,792

147

–

281

2,224

Unamortizedbalance

–

384

0

–

341

726

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

Other(Note)

Eliminations
and Corporate

Total

Amortized
amount

–

4

–

114

–

118

Unamortizedbalance

–

9

–

–

–

9

Note: The amount of “Other” is the amount belonging to the logistics services for each of the Group’s strategic
business units.
- 26 -

Current 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, 2011 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

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2010 to March 31, 2011)
Not applicable.

Current Fiscal Year (From April 1, 2011 to March 31, 2012)
Not applicable.

- 27 -

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2010 to March 31, 2011)(From April 1, 2011 to March 31, 2012)

Net assets per share

896.83 yen

962.45 yen

Net income per share

7.71 yen85.62 yen

Diluted net income per share

7.71 yen–

Notes: 1. Diluted net income per share for the current fiscal year is not presented because there are no potential shares.
2. The basis of calculating net income per share figure and the diluted net income per share figure is as follows:

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2010 to March 31, 2011)(From April 1, 2011 to March 31, 2012)

Net income per share
Net income (¥ million)
Amount not applicable to common
stockholders (¥ million)
Net income available to common stock(¥ million)
Average number of common stock
outstanding (shares)

1,848

19,303

–

–

1,848

19,303239,810,150

225,464,803––

31,487–[31,487]–

Diluted net income per share
Net income adjustment (¥ million)
Increase in number of common stock(shares)[Stock acquisition rights]
Summary of potential shares not includedin the calculation of diluted net income
per share as they do not have a diluting
effect.

- 28 -

(Significant Subsequent Events)
At the Board of Directors Meeting on May 8, 2012, it was resolved that the Company would grant stockcompensation-type stock options (stock acquisition rights) to the Directors of the Company as follows, and that it would
submit the proposal to that effect to the Seventh Ordinary General Meeting of Shareholders (scheduled to be held on June18, 2012).

1. Reason for issue of stock acquisition rights
The remuneration system for the Company’s Directors (apart from Outside Directors) makes its basic policy thepromotion of the sharing value with the Company’s shareholders and enhancing the morale and motivation of the
Directors to improve the Company’s performance.
In addition, accompanying the start of the “Mid-term Plan of BANDAI NAMCO Group (from April 2012 to March
2015)” (the “Mid-term Plan”) announced in February 2012, we have been making the relationship between performanceand remuneration significantly clearer and placing more weight on performance-based remuneration in the Directors’
remuneration in order to strongly orient their focus to achieving the goals defined in the Mid-term Plan. As one part ofthat effort, we would now like to introduce a new system for allotting stock compensation-type stock options on condition
that the predefined performance goals are achieved.
Because the performance requirements have been imposed for these stock compensation-type stock options, not as acondition for exercising the options but as a condition for being allotted the options, the stock compensation-type stock
options will not be granted to the Directors if those performance requirements are not satisfied.

2. Various conditions for grant of stock acquisition rights(1)

Persons to whom stock acquisition rights are allotted
Stock acquisition rights shall be allotted to the Directors of the Company (excluding Outside Directors).
If the “Election of Nine (9) Directors” proposal is approved without requiring any changes at the Ordinary General

Meeting of Shareholders to be held on June 18, 2012, then six (6) Directors (excluding three (3) Outside Directors) will
be subject to the proposal.

(2)

Class and number of shares to be delivered upon exercise of stock acquisition rights
The maximum number of shares of common stock of the Company to be delivered upon exercise of stock acquisitionrights per year is 120,000 (0.05% of shares issued).
In the event that the Company carries out a share split or share consolidation, the number of shares to be delivered
upon exercise of stock acquisition rights will be adjusted in accordance with the following formula; provided, however,that such adjustment will only be carried out with respect to the number of shares to be delivered upon exercise of stockacquisition rights that are yet to be exercised at the time of the share split or share consolidation, and any fraction of lessthan one share resulting from such adjustment will be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustmentx

Ratio of share split orshare consolidation

Furthermore, if the number of shares to be delivered upon exercise of stock acquisition rights needs to be adjusted
because the Company carries out an absorption-type merger or a consolidation-type merger with another company with- 29 -

succession to the stock acquisition rights provided for in this proposal or because the Company carries out anincorporation-type company split or an absorption-type company split, the Company will make the necessary adjustmentin the number of the shares as well.
(3)

Total number of stock acquisition rights
The maximum number of stock acquisition rights to be allotted per year is 1,200.
The number of shares to be delivered upon exercise of one stock acquisition right is 100 shares.
(If, however, the number of shares is adjusted as provided for in the Paragraph (2) above, then the number of shares tobe delivered upon exercise of one stock acquisition right will be adjusted in the same manner.)(4)

Requirements for allotment of stock acquisition rights
If the requirement stated in (i) below is satisfied, then stock acquisition rights will be allotted up to a maximum of 60

million yen per year. If, in addition to the requirement stated in (i), the requirement stated in (ii) is also satisfied, thenstock acquisition rights will be allotted up to a maximum of 120 million yen per year.
If, however, neither of the requirements stated in (i) or (ii) is satisfied, then no stock acquisition rights will be allotted.
(i)

The Company’s consolidated operating income is 42,500 million yen or greater in any of the fiscal years
from the fiscal year ending March 2013 through the fiscal year ending March 2015;(ii) The Company’s consolidated operating income is 53,000 million yen or greater in any of the fiscal years
from the fiscal year ending March 2013 through the fiscal year ending March 2015.
(5)

Price for issuance of stock acquisition rights
The price for issuance of each stock acquisition right will be calculated based on the Black-Scholes model, an impartial

method of valuing stock acquisition rights.
The person who receives an allotment of the stock acquisition rights will, instead of paying the price for issuance of thestock acquisition rights in cash, offset his or her obligation to pay for issuance of the stock acquisition rights against therecipient’s right to his or her remuneration from the Company.
(6)

Amount to be paid upon exercising stock acquisition rights
The amount to be paid upon exercising each stock acquisition right will be one yen per share to be issued or transferredby the exercise of each stock acquisition right, multiplied by the number of shares to be granted.

(7)

Exercise period for stock acquisition rights
The exercise period for stock acquisition rights will be decided by the Company’s Board of Directors but must notexceed 20 years from the allotment date of the stock acquisition rights.

(8)

Conditions on exercise of stock acquisition rights
A person who has received an allotment of the stock acquisition rights may, within the period specified in the

Paragraph (7) “Exercise period for stock acquisition rights,” exercise those stock acquisition rights between one and tendays after the date on which that person loses his or her position as a Director, Auditor, or employee of the Company or ofa subsidiary of the Company.

- 30 -

(9)Restrictions on assignment of stock acquisition rights
Any assignment of stock acquisition rights requires the approval of the Board of Directors of the Company.

(10) Other details concerning stock acquisition rights
Other details concerning stock acquisition rights will be determined at the Board of Directors’ meeting of the Company
at which matters concerning the offering of such stock acquisition rights will be resolved.

- 31 -

4. Other
Changes in Directors and Corporate Auditors(1) Change in Representative
Not applicable.
(2) Other Changes in Directors and Corporate Auditors (Effective June 18, 2012)
New candidate for Director
Director

Satoshi Oshita (current position: President and Representative Director of NAMCO
BANDAI Games Inc.)

Retiring Director
Director

Takeo Takasu (planned position: Senior Advisor of NAMCO BANDAI Holdings Inc.)(3) Responsible Area of Directors (Effective June 18, 2012)
Shukuo Ishikawa

President and Representative Director

Kazunori Ueno

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

Shuji Ohtsu

Director in charge of Overseas Regional Headquarters Companies 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)- 32 -