Financial Summary
Consolidated Financial Results for the Third Quarter Ended
December 31, 2006

February 14, 2007

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

1

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
Registered Business Location: Tokyo(URL: http://www.bandainamco.co.jp/)
February 14, 2007

Consolidated Financial Report for the Third Quarter
Ended December 31, 2006
Representative:
Takeo Takasu, President and Representative Director
Director in charge: Keiji Tanaka, Director

1. Notes on Presentation of Quarterly Operating Results(1) Use of simplified accounting methods: Yes
The simple method has been used in the calculation of income taxes, etc.
(2) Changes in accounting method from the most-recent consolidated fiscal year: Yes
The classification of businesses in the segment information section by business type has been changed.
(3) Changes in scope of consolidation and application of equity method: Yes
Consolidated subsidiaries
New: 5(Lantis Co., Ltd., CCP Co., Ltd., NAMCO NETWORKS AMERICA INC.,
CREATIVE B WORKS CO., LTD., NAMCO BANDAI GAMES EUROPE S.A.S.)
Excluded: 2(St. Tropez Ltd., BANDAI GAMES INC.)
Companies accounted for by the equity method
Excluded: 1(Tohato Inc.)

2. Consolidated Results for the Third Quarter Ended December 31, 2006
(April 1, 2006 ~ December 31, 2006)(1) Consolidated Operating Results
Net sales

Third Quarter Ended
December 31, 2006
Third Quarter Ended
December 31, 2005
(Ref.) FYE March 31, 2006

Operating income¥ million%¥ million%¥ million%

330,517(4.3)

32,235(9.5)

34,508(6.2)

345,396－

35,600－36,801－450,829

35,669Net income

Third Quarter Ended
December 31, 2006
Third Quarter Ended
December 31, 2005
(Ref.) FYE March 31, 2006

Recurring income

37,122

Net income per share

Net income per share(diluted)¥ million%¥¥

19,892

12.3

78.64

78.58

17,711

－

70.19

70.18

54.39

54.37

14,149* Percentage figures accompanying net sales, operating income, recurring income and net income
represent changes compared to the same period of the prior year.

2(2) Consolidated Financial Position
Total assets¥ million

Net assets

Equity ratio¥ million

Net asset per
share
%

¥

Third Quarter Ended
394,965
267,77165.5
1,023.29
December 31, 2006
Third Quarter Ended
400,379
243,30160.8
969.29December 31, 2005
(Ref.) FYE March 31, 2006
386,651
243,60763.0
961.36* Previous figures of “Stockholders’ equity”, “Stockholders’ equity ratio”, and “Stockholders’ equity pershare” are used for figures from third quarter ended December 31, 2005 and fiscal year ended March 31,
2006.

(3) Consolidated Statement of Cash Flows
Operatingactivities

Third Quarter Ended
December 31, 2006
Third Quarter Ended
December 31, 2005
(Ref.) FYE March 31, 2006

Investingactivities

Financing
activities¥ million¥ million¥ million

Cash and cash
equivalents at
year-end¥ million

24,565(3,917)(21,646)

113,694

14,249(8,142)(20,235)

110,996

31,808(24,406)(19,965)

113,186

3. Consolidated Projections for Fiscal Year ending March 2007
(April 1, 2006 ~ March 31, 2007)
Net sales¥ million

Fiscal Year Ending
March 31, 2007
460,000(Reference)
Projected net income per share (full year): 92.90 yen

Operatingincome¥ million

Recurring income

Net income¥ million¥ million

40,00040,50023,500Notes:*Figures are in millions of yen, rounded down, except where noted.
*Qualitative information regarding forward-looking statements:
Forward-looking statements that are stated in this document are based on management’s estimates, assumptions, projections andinformation available at the time of its publications. A number of factors could cause actual results to differ materially fromexpectations.

34. Qualitative information related to quarterly operating results, financial position and forecasts(1) Qualitative information related to consolidated operating results
In the period under review, economic conditions in general were on a recovery track, despite global
crude oil prices continuing to rise. In the domestic realm, a gradual upturn continued amid sustainedrobust corporate earnings.
The entertainment industry witnessed proliferating and expanding network environments driven bytechnological innovation, spurring full-scale global competition. In home video games, handheld game
consoles proved highly popular amid a string of sales launches surrounding next-generation game
consoles. This led to strongly performing home video games eclipsing an overall weak toy market during
the year-end selling season in Japan.
Amid this environment, the Group continued strengthening, enriching, and expanding its portfolio
management, based on its 3-year medium-term management plan started this fiscal year.
As to individual operations, in the Toys & Hobby Business, the globally popular Tamagotchi Plus series
performed well in terms of main products and peripheral merchandise, while a widened product lineup
proved successful in expanding the target stratum of DATA CARDDASS. In the Game Contents Business,
performance was weak, caused by a shift in the launch dates for some home video game software titles
originally scheduled for the current term to the next term. Nonetheless, in coin-operated game machines,
Mobile Suit GUNDAM: Senjo no Kizuna proved popular, connecting to a revitalization of amusement
facilities. However, the Network Business struggled with a continuing decline in the number ofsubscribers, and although group synergy effects emerged in the Visual & Music Content Business from
the Mobile Suit GUNDAM series, given that core products concentrate on the fourth quarter, results fell
below the level of a year earlier.
The Group’s consolidated results from operations for the third quarter came to net sales of ¥330,517
million, a decline of 4.3% on the year, with operating income of ¥32,235 million, a decline of 9.5% on
the year, and recurring income of ¥34,508 million, a decline of 6.2% on the year. Net income for thequarter was ¥19,892 million, an increase of 12.3% on the year, reflecting gains on the sale of shares ofTohato, Inc. in the first half of the fiscal year and fixed asset impairment charges related to NAMCO
NAMJA TOWN (Toshima-ku, Tokyo).
An overview of each business is shown below.
Performance by business segment

Toys & Hobby
Amusement Facility
Game Contents
Network
Visual & Music
Content
Other

Net Sales
Q3 FY07.3 Q3 FY06.3
135,399
134,710[49,615][52,171]
64,977
61,660[21,760][19,659]
100,223
105,180[43,215][41,190]
9,156
9,389
[2,889][3,439]28,19933,453[8,916][10,399]
16,215
15,413[5,272][5,398](¥ million)
Operating income/loss
Change Q3 FY07.3 Q3 FY06.3 Change
689
14,76018,093-3,332[-2,556][6,573][9,696][-3,122]
3,316
2,323
1,370
952
[2,101][439][-613][1,052]-4,957
9,581
12,427-2,846[2,025][7,728][5,265][2,463]
-233
669
1,439
-769
[-549][128][582][-453]-5,254
5,502
6,128
-626
[-1,483][985][3,033][-2,047]
801
1,206
1,016
190
[-126][306][473][-166]
4

1. Figures in parentheses [ ] denote results for the third quarter (3-month period).
2. The proportion of overhead cost borne by the Toys and Hobby, Amusement Facility, and Game
Contents segments has increased compared to the same period last year due to organizational
restructuring associated with management integration.
3. Figures for the third quarter of FY06.3 are reclassified. Details of reclassification are provided in thesegment information.
Toys & Hobby BusinessIn the Toys & Hobby Business, the worldwide popularity of the Tamagotchi Plus series continued, withgreat performance of peripheral items in addition to main products in the domestic market. Moreover,
DATA CARDDASS remained a favorite mostly with boys and girls in the lower elementary school grades.
During the year-end selling season, the biggest event for the toy market, the industry overall fared poorly
as handheld game consoles took center stage. Although toys for long-established characters for boys suchas Boukenjar (Power Rangers) did well, toys for girls struggled, with results falling short of last year’s.
Overseas, in addition to Tamagotchi, as mentioned above, the Power Rangers series performed well
worldwide, while in the Americas region, local character BEN10 became popular among character toys
for boys.
As a result, the Toys & Hobby Business posted net sales of ¥135,399 million, an increase of 0.5% on theyear, with operating income of ¥14,760 million, a decline of 18.4% on the year.
Amusement Facility BusinessIn the Amusement Facility Business, domestic operations saw more families visiting facilities thanks tothe popularity of card games such as DATA CARDDASS and crane game machines. In addition, Mobile
Suit GUNDAM: Senjo no Kizuna proved extremely popular mainly with core users following an
introduction since October. As a result, same-store revenue rose 1.6% on the year. Furthermore, newlarge-scale facilities additionally contributed to revenue, such as NAMCO WONDERPARK HERO’SBASE (Kawasaki city, Kanagawa Prefecture), which had a great start as an effort geared at creatinggroup synergies.
Overseas, operating performance was solid as initiatives tuned-in on regional characteristics went ahead,
which in Europe centered on the U.K., and includes the launch of hybrid facilities featuring
entertainment offerings such as bowling alleys. In the Americas region, we continued to expand
revenue-sharing facilities accompanied by cost-cutting measures with a view to enhancing profitability.
As a result, the Amusement Facility Business reported net sales of ¥64,977 million, an increase of 5.4%
on the year, with operating income of ¥2,323 million, an increase of 69.5% on the year.
Facilities as of December 31, 2006
Directly managed Revenue-sharing
facilities
facilities
457
1,237

Theme parks

Spa Resorts

Total

7

3

1,704

Game Contents BusinessIn the Game Contents Business, new titles in home video game software were launched, concurrent withemerging next-generation game consoles. At the same time, Mobile Suit GUNDAM SEED Destiny:
Rengou vs. Z.A.F.T. II Plus and Tales of Destiny for PlayStation 2 performed well in the domestic realm.
Moreover, TEKKEN DARK RESURRECTION for PlayStation Portable, which has been popular in Japan,
5

had a successful sales launch also overseas, promoting the Group’s multi-platform strategy andindicating an overall tone of recovery. Even so, however, due mainly to a shift in the scheduled launchdates for some products from the current to the next term, results overall fell short compared with lastyear’s performance, which benefited from major software products launched in the first half of the term.
In coin-operated game machines, Mobile Suit GUNDAM: Senjo no Kizuna - a product that combines theexpertise of the Group - proved a favorite in Japan as a cockpit-type game machine allowing users toengage in online combat nationwide. Game contents for mobile devices including mobile phones,
performed well thanks to expanded new content in Japan and overseas.
As a result, the Game Contents Business recorded sales of ¥100,223 million, a decrease of 4.7% on theyear, with operating income of ¥9,581 million, a decline of 22.9% on the year.
Network BusinessIn the Network Business, performance was solid in high added-value content, such as Mobile Suit
GUNDAM: Senjo no Kizuna featuring mobile phone content, tied-in with coin-operated game machines.
In addition, mini game comprehensive sites such as SIMPLE 100 became popular. However, results werestrongly impacted by a decline in subscribers for stand-by screens and ring tones and overall
performance of the Mobile Content Service was in a struggle.
The Solution Service focused its efforts on providing new technology offerings for mobile phones,
spearheaded by a 3D engine, as well as corporate solutions such as system development for mobile sites.
As a result, the Network Business reported net sales of ¥9,156 million, a decline of 2.5% on the year,with operating income of ¥669 million, a drop of 53.5% on the year.
Visual & Music Content Business
The Visual & Music Content Business saw contributions to earnings from packaged visual software
including a new original video animation and the compilation versions of the TV animation series,
Mobile Suit GUNDAM, as well as a new original video animation of the Ghost in the Shell series. Added
to this was the further increased demand for sales to rental-use DVD video. However, with major
products concentrating on the fourth quarter, results declined compared with last year, when strong groupsynergy effects were generated from TV broadcasts and the motion picture version of the Mobile Suit
GUNDAM series.
As a result, the Visual & Music Content Business reported net sales of ¥28,199 million, a decline of
15.7% on the year, with operating income of ¥5,502 million, a decline of 10.2% on the year.
Other Business
Other Business comprises companies providing support to the Group’s strategic business units throughoperations in logistics, leasing, and building management. During the period under review, this segment
remained focused on efforts at efficient operations of these group support services.
As a result, Other Business operations reported net sales of ¥16,215 million (an increase of 5.2% on theyear), with operating income of ¥1,206 million (an increase of 18.7% on the year).

6Performance by region(¥ million)
Net Sales
Operating Income/loss
Q3 FY07.3 Q3 FY06.3 Change Q3 FY07.3 Q3 FY06.3 Change
271,165
290,304-19,138
28,71538,542-9,827
Japan[100,062][105,575][-5,513][12,116][16,164][-4,047]
35,89534,3371,557-9-3,0183,008
Americas[15,101][13,707][1,393]
[858]
[208]
[649]
23,33820,040
3,297
2,838
3,201
-363
Europe[9,339][7,380][1,958][1,433][1,410][22]
26,72824,073
2,654
2,344
2,048
296
Asia
[10,314][10,244]
[70]
[971]
[845]
[125]
1. Figures in parentheses [ ] denote results for the third quarter (3-month period).
2. The proportion of overhead cost borne by the Japan segment has increased compared to the same period
last year due to organizational restructuring associated with management integration.
Japan
In Japan, the Toys and Hobby Business experienced solid performances surrounding the Tamagotchi
Plus series and DATA CARDDASS. However, during the year-end selling season, despite solid
performance of character toys for boys, struggling toys for girls resulted in a decline compared with ayear earlier. In the Amusement Facility Business, card game machines and crane game machines as well
as Mobile Suit GUNDAM: Senjo no Kizuna proved popular, with same-store revenues increasing 1.6%
on the year. Although the Game Contents Business launched new titles in home video game software,
timed to coincide with emerging next-generation game consoles, and some titles for existing game
consoles performed well, results declined on the year due in part to a shift in the launch dates for someproducts from this term to the next. Sales of coin-operated game machines fared well, centered on
products such as Mobile Suit GUNDAM: Senjo no Kizuna. In the Network Business, the Mobile Content
Business struggled with the effects of declining subscriber numbers for mobile phone applications. In the
Visual & Music Content Business, group synergy effects emerged from the Mobile Suit GUNDAM series,
but given the concentration of major products on the fourth quarter, resulted in lower performancecomparing to the previous year.
As a result, domestic net sales came to ¥271,165 million, a decline of 6.6% on the year, with operating
income of ¥28,715 million, a decline of 25.5% on the year.
Americas
In the Americas, the Toys & Hobby Business enjoyed the popularity of Tamagotchi and character toys
for boys, such as POWER RANGERS and BEN10. In the Amusement Facility Business, efforts continued
to expand revenue-sharing facilities and lower costs, while the Visual & Music Content Business strove
to enhance profitability by reviewing its marketing activities. In home video game software operations,
TEKKEN DARK RESURRECTION for PlayStation Portable and NARUTO: ULTIMATE NINJA for
PlayStation 2 were popular.
As a result, in the Americas, net sales were ¥35,895 million, an increase of 4.5% on the year, with anoperating loss of ¥9 million, improved from a ¥3,018 million operating loss a year earlier.
EuropeIn Europe, the Toys and Hobby Business experienced great performance surrounding toys of theTamagotchi series and Nintendo DS game software, as well as character toys for boys in the POWER
RANGERS series. In the Amusement Facility Business, hybrid facilities equipped with entertainment
offerings such as bowling alleys were launched. In home video game software, however, despite the7popularity of TEKKEN DARK RESURRECTION for PlayStation Portable, earnings declined comparedwith last year, when major software products, repeat orders, and low-priced titles contributed to results.
As a result, in Europe, net sales came to ¥23,338 million (an increase of 16.5% on the year), with
operating income of ¥2,838 million, an 11.4% decline on the year.
Asia
In Asia, the Toys & Hobby Business reported good performance for boys’ toys in the POWER RANGERS
series and plastic models in the Mobile Suit GUNDAM series, as well as character toys for boys in the
MASKED RIDER series. In the Amusement Facility Business, initiatives surrounding prize games andGroup products continued to do well.
As a result, in Asia, net sales came to ¥26,728 million (an increase of 11.0% on the year), with operating
income of ¥2,344 million, a 14.5% increase on the year.
(2) Qualitative information related to consolidated financial position
Cash and cash equivalents (“Cash”) at the end of the third quarter totaled ¥113,694 million, which was¥2,697 million higher than a year earlier. Cash flows were as follows.
Cash flows from operating activities
Operating activities provided net cash of ¥24,565 million. This was mainly due to net income before
income taxes and minority interests of ¥36,955 million and ¥11,587 million in income taxes paid.
Cash flows from investing activities
Cash used in investing activities totaled ¥3,917 million. This was mainly due to ¥5,974 million inproceeds from sales of investment securities, chiefly in Tohato, Inc. and proceeds from ¥3,338 million in
net loan collection, as well as expenditures of ¥10,468 million for the purchase of property, plant andequipment and intangible assets; expenditures of ¥1,099 million for the acquisition of shares ofBanpresto Co., Ltd. for the entity to become a fully owned subsidiary; and expenditures of ¥1,238
million for the acquisition of bowling alley operations in Europe.
Cash flows from financing activities
Cash used in financing activities totaled ¥21,646 million. This was mainly due to a ¥13,325 million
reduction in short term borrowings, ¥1,920 million in repayment of long-term debt, and ¥6,073 million in
dividend paid.
(3) Qualitative information related to operating forecasts
Prospects for the economy going forward are for moderate growth to continue overall, fueled by
improved corporate earnings and rising capital expenditures. On the other hand, there are some concerns
such as sustained high crude oil prices and rising interest rates. Moreover, the environment of theentertainment business surrounding the Group is changing significantly in the industry, driven by future
trends in handheld game consoles and next-generation game consoles in the game industry amid further
diversification in consumer trends. The outlook is thus likely to remain unclear.
In this environment, the Group will continue strengthening, enriching, and expanding its portfolio
management based on the 3-year medium-term management plan implemented from April 2006.
In the Toys & Hobby Business, the Tamagotchi Plus series and merchandise surrounding its charactershave been doing well. Additionally, merchandise will be reinforced centered primarily on boys’ toys
featuring characters with new series such as GEKIRANGER (Power Rangers) and MASKED RIDER
8

DEN-O which are scheduled to start in 2007, as well as on the struggling girls’ toys segment with Yes!
Pretty Cure 5 products.
In the Amusement Facility Business, efforts will continue to attract a wide stratum of visitors bycontinuously providing attractive game machines and hosting a range of events. Moreover, the segment
will work to raise the scale of sales through large-type facilities, and enhance profitability by sharing
expertise in low-cost operations.
In the Game Contents Business, strong titles are on the launch pad for home video game software,
including GUNDAM MUSOU for PLAYSTATION 3 scheduled for the fourth quarter in the domestic
market, and DRAGON BALL Z Budokai Tenkaichi 2 for PlayStation 2 in Europe, and for coin-operated
game machines, Mario Kart 2, the sequel to the highly popular racing game.
The Network Business will take a dynamic approach to content initiatives, emphasizing profitability tostrengthen the earnings base, while developing new business territories in expected future growth areas
such as the Solution Business and net-based advertising.
The Visual & Music Content Business will work to provide a wide range of offerings centered on the
DVD box for the hugely popular TV series Mobile Suit GUNDAM and generate Group synergies.
With regard to projections of consolidated operating results for the full fiscal year ending March 2007,
the Toys & Hobby Business saw girls’ toys perform poorly during the year-end selling season in Japan,
while the Game Contents Business remains faced with uncertainties over future trends in next generation
game consoles in the home video game market. Based on these factors, sales projections have beenrevised as shown below. As for earnings projections, taking into account group synergy effects fromGroup contents at the Visual & Music Content Business, the estimates released at the interim results
announcement for FY07.3 remain in force.
Revisions to consolidated operating forecasts (April 1, 2006 – March 31, 2007)
Net Sales
Recurring Income
Previous forecast (A)470,000
40,500
Revised forecast (B)460,000
40,500Change (B-A)-10,000
0
Change (%)-2.1%—(Reference)
Results for the previous FY
450,829
37,122(April 1, 2005 — March 31, 2006)(¥ million)
Net Income
23,50023,5000—14,149Forward-looking statements
This document contains forward-looking statements based on information currently available to theCompany and the Group, and as such include inherent risks and uncertainties. Actual results may differ
materially from forecasts for a variety of reasons.
Significant factors that may affect actual results include, without limitation, changes in the Company’s
and Group’s operating environments, market trends, and exchange rate fluctuations.

9ANNEX
Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior 3rd Quarter
As of December 31, 2005
Millions of yen(%)

Current 3rd Quarter
As of December 31, 2006

Prior Fiscal YearAs of March 31, 2006

Millions of yen

Millions of yen

(%)

(%)

(Assets)
I Current assets
1. Cash and time deposits

104,038

102,144

109,513

2. Trade receivables

84,31873,461

70,9103. Short-term investments

8,895

12,7645,546

4. Inventories

32,52337,45627,5295. Deferred tax assets

3,716

5,574

7,037

6. Other current assets

25,232

16,511

21,602

Allowance for doubtfulreceivables-1,517-651-1,506

Total current assets

257,20864.2

247,26262.6

240,634

62.2

II Fixed assets
1. Property, plant andequipment(1) Buildings and structures

16,54013,736

14,460(2) Amusement facilities andmachines

22,746

26,10023,910(3) Land

24,082

22,07322,094(4) Other property, plant andequipment

14,712

78,082

17,306

79,215

13,606

74,073

2. Intangible assets(1) Consolidation adjustment
accounts

58

－

7,668

(2) Goodwill－

10,192－(3) Other intangible assets

8,926

8,984

8,801

18,993

9,326

16,994

3. Investments and other assets(1) Investment securities

23,267

21,051

22,521(2) Guarantee money
deposited

25,196

21,06024,916(3) Deferred tax assets

3,892

4,491

3,901

(4) Other investments andassets

4,801

4,171

4,821

Allowance for doubtfulreceivables-1,053

56,104-1,28149,494-1,211

54,948

Total fixed assets

143,17135.8

147,703

37.4

146,016

37.8

Total assets

400,379100.0

394,965

100.0

386,651100.0

10

Prior 3rd Quarter
As of December 31, 2005

Current 3rd Quarter
As of December 31, 2006

Millions of yen

Millions of yen

(%)

(%)

Prior Fiscal YearAs of March 31, 2006
Millions of yen(%)(Liabilities)
I Current liabilities
1. Trade payables

46,57648,28640,561

2. Short-term borrowings

4,456

2,263

14,888

3. Bonds—current portion

10,000

5,000

5,000

4. Accounts payable—other

17,812

17,002

23,767

5. Accrued income taxes

9,902

10,423

6,827

6. Provision for directors’
bonus

－

498

－

7. Provision for losses frombusiness restructuring

－

147

147

8. Other current liabilities

15,639Total current liabilities

104,388

18,86626.1

102,488

16,33525.9

107,527

27.8

II Long-term liabilities
1. Bonds

15,00010,00010,0002. Long-term debt

2,753

1,315

2,542

849

690

690

4. Accrued retirement andseverance benefits

2,062

2,148

2,065

5. Directors’ and auditors’
retirement and severance
benefits

902

626

904

6. Other long-term liabilities

10,062

9,924

10,677

Total long-term liabilities

31,6307.9

24,705

6.3

26,8797.0

Total liabilities

136,01834.0

127,19432.2

134,407

34.8

21,059

5.2

－

－

8,636

2.2

I Common stock

10,0002.5－－

10,0002.6

II Additional paid-in capital

92,43023.1－－

95,772

24.8

III Retained earnings

167,762

41.9

－

－

164,503

42.5

IV Land revaluation difference-21,246

-5.3

－

－

-21,459-5.6

V Other securities valuationdifference

4,499

1.1

－

－

4,145

1.1

VI Translation adjustment

1,000

0.3

－

－

1,801

0.5

VII Treasury stock-11,144

-2.8

－

－

-11,156-2.9

Total stockholders’ equity

243,301

60.8

－

－

243,607

63.0

Total liabilities, minority
interests and stockholders’equity400,379

100.0

－

－

386,651

100.0

3. Deferred tax liabilities, land
revaluation difference(Minority Interests)
Minority interests(Stockholders’ equity)11

Prior 3rd Quarter
As of December 31, 2005

Current 3rd Quarter
As of December 31, 2006

Millions of yen

Millions of yen

(%)

(%)

Prior Fiscal YearAs of March 31, 2006
Millions of yen(%)(Net assets)
I Stockholders’ equity
1. Common stock－

10,000－2. Additional paid-in capital－

95,772－

3. Retained earnings－

178,011－

4. Treasury stock－-11,176－

Total stockholders’ equity－－

272,606

69.0

－

－

II Valuation difference andtranslation adjustments
1. Other securities valuationdifference

－

3,517

－

2. Deferred gains or losses onhedges－81－

3. Land revaluation difference－-21,268－

4. Translation adjustment

－

3,903

－

Total valuation difference andtranslation adjustments－－-13,765

-3.4

－

－

III Stock subscription rights

－

－

528

0.1

－

－

IV Minority interests

－

－

8,401

2.1

－

－

Total net assets－－

267,771

67.8

－

－

Total liabilities and net assets－－

394,965

100.0

－

－

12

(2) Quarterly Consolidated Statements of Income
Prior 3rd Quarter(From April 1, 2005
to December 31, 2005)

Current 3rd Quarter(From April 1, 2006
to December 31, 2006)

Millions of yen

Millions of yen(%)

Prior Fiscal Year
(From April 1, 2005
to March 31, 2006)(%)

Millions of yen(%)

I Net sales
II Cost of sales

345,396
220,874

100.0
63.9

330,517
209,051

100.0
63.2

450,829294,263

100.0
65.3

Gross profit
III Selling, general andadministrative expenses

124,52136.1

121,46536.8

156,565

34.7

88,92025.8

89,22927.0

120,896

26.8

Operating income
IV Non-operating income
1. Interest income
2. Dividend income
3. Rental income
4. Foreign exchange gain
5. Operation consignment
income6. Equity in earnings ofaffiliated companies
7. Other non-operating
income.

35,60010.3

32,2359.8

35,669

7.9

2,514

0.5

1,061

0.2

37,122

8.2

4,737

1.1

V Non-operating expenses
1. Interest expense
2. Amortization of
goodwill
3. Expenses related torental assets
4. Other non-operating
expenses
Recurring income
VI Extraordinary income
1. Gain on sale of property,
plant and equipment
2. Gain on sale ofinvestment securities
3. Gain on sale ofinvestments in affiliatedcompanies
4. Reversal of allowancefor doubtful receivables
5. Government subsidy
income6. Other extraordinary
income

609
192
194
369

985
126
186
349

820
140
248
17

213

263

266

79

270

27

391

2,051

0.6

370

2,550

0.7

994

212

158

292

363

—

485

58

57

63

216

851

0.2

36,801

10.7

61

278

0.1

34,508

10.4

220

186

153

1,270

479

319

480

2,602

4,917

2,592

55

103

58

—

102

—

4

3,328

0.9

13

—

5,595

1.7

335

VII Extraordinary loss
1. Loss on sale of property,
plant and equipment
2. Loss on disposal ofproperty, plant andequipment
3. Loss on impairment ofproperty, plant andequipment
4. Loss on businessrestructuring
5. Loss on sale ofinvestment securities
6. Loss on sale ofinvestments in affiliates
7. Loss on valuation of
investment securities
8. Loss on valuation of
investments in affiliates
9. Loss on valuation ofguarantee money
deposited
10. Loss on changes inequity interests
11. Provision for allowanceof doubtful receivables
12. Loss for deferringincome tax ofdepreciation of property
plant and equipment
13. Other extraordinaryloss
Net income before income
taxes and minority interests
Corporate income,inhabitant and enterprisetaxes
Minority interests
Net income

Prior 3rd Quarter(From April 1, 2005
to December 31, 2005)

Current 3rd Quarter(From April 1, 2006
to December 31, 2006)

Millions of yen

Millions of yen(%)

Prior Fiscal Year
(From April 1, 2005
to March 31, 2006)(%)

Millions of yen

40

1

799

220

192

538

1,644

1,616

3,001

205

—

296

—

1

—

—

587

—

201

478

244

21

—

16

2

—

2

21

—

21

317

170

480

—

100

—

—

2,675

0.8

37,454

3,148

0.9

6,290

1.4

10.8

36,955

11.2

35,5697.918,101

5.2

16,191

4.9

19,282

4.3

1,640

0.5

870

0.3

2,137

0.5

17,711

5.1

19,892

6.0

14,149

3.1

14

—

889

(%)

(3) Quarterly Consolidated Statements of Cash Flows
Prior 3rd Quarter(From April 1, 2005
to December 31, 2005)
Millions of yen
I Cash Flows from Operating Activities
Income before income taxes andminority interests
Depreciation and amortization
Loss on impairment of property, plantand equipment
Amortization of consolidated
adjustment account
Amortization of goodwill
Increase (decrease) in allowance for
doubtful receivables
Interest and dividend income
Interest expense
Loss (gain) on sale of investment
securities
Decrease (increase) in trade receivables

Decrease (increase) in inventories
Investment for amusement facilities andmachines
Increase (decrease) in trade payables
Increase (decrease) in accounts
payable—other
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
II Cash Flows from Investing Activities
Purchases of property, plant andequipment
Purchases of intangible assets
Purchases of investment securities
Sales of investment securities
Acquisition of shares in consolidated
subsidiaries, net of cash acquired
Purchase of subsidiary shares related tochanges in scope of consolidation
Proceeds from sale of subsidiary shares
related to changes in scope of
consolidation
Advances of loans receivableCollection of loans receivable
Net cash used for business transfer
Other
Net cash used in investing activities

Prior Fiscal Year
(From April 1, 2005
to March 31, 2006)

Millions of yen

Millions of yen

37,45436,95535,56913,783

14,101

19,144

1,644

1,616

3,001

92

―

753

―

1,736

―

337

-788

260

-802
212

-1,111
158

-960
292

-3,082-4,647-3,073-9,828-793

771-8,984

4,454
5,841

-8,258-7,798-10,892

3,833

5,381

-2,678-3,122-7,595

3,254-4,956

5,408-7,014

26,51435,202

47,952

1,019-176-13,108

1,092-142-11,587

1,348-352-17,140

14,24924,56531,808-8,019-7,496-9,924-2,414-1,946768-2,971-640
5,974-3,203-2,063783-38-1,099-18,032-1,780-416-1,780

5,185

445

5,439

-366
482
―
-13

-11,265
14,604-1,238
187

-528
581
―
4,323

-8,14215

Current 3rd Quarter(From April 1, 2006
to December 31, 2006)-3,917-24,406

Prior 3rd Quarter(From April 1, 2005
to December 31, 2005)

Current 3rd Quarter(From April 1, 2006
to December 31, 2006)

Prior Fiscal Year
(From April 1, 2005
to March 31, 2006)

Millions of yen

Millions of yen

Millions of yen

III Cash Flows from Financing Activities
Net increase (decrease) in short-termborrowings
Repayment of long-term debt
Purchases of treasury stock
Dividends paid
Other

493

-13,325

10,847-1,658-10,548-4,415-4,105-1,920-8-6,073-319-2,398-10,552-4,415-13,445

Net cash used in financing activities-20,235-21,646-19,965

IV Effect of exchange rate changes oncash and cash equivalents

1,051

1,470

1,675

V Net increase (decrease) in cash and cash
equivalents-13,076471-10,887

VI Cash and cash equivalents at beginningof period

124,923

113,186

124,923

VII Net increase in cash and cash
equivalents due to additional
consolidation of subsidiaries

10

15

10

VIII Increase in cash and cash equivalents
due to merger of subsidiaries

―

21

―

IX Decrease in cash and cash equivalents
due to exclusion of consolidated
subsidiaries

-860

―

-860

X Cash and cash equivalents at end of
period110,996

113,694

113,18616

(4) Segment Information
By Business Segment
Prior 3rd Quarter (April 1, 2005 – December 31, 2005)

Net sales
external(1) Tocustomers(2) Intersegment sales
and transfers
Total
Operating expenses
Operating income(¥ million)

Toys & Amusement Game Contents Network
Hobby Facility Business BusinessBusiness
Business

Visual &Music
Content
Business

131,882

9,167

32,733

2,790

221

720

60,166 104,904
58,328 91,995
1,837 12,909

9,389
7,950
1,439

33,45327,325
6,128

Toys & Amusement Game Contents Network
Hobby Facility Business BusinessBusiness
Business

Visual &Music
Content
Business

130,632

64,77890,802

8,844

27,410

4,767

198

9,420

311

788

64,977 100,223
62,654 90,641
2,323
9,581

9,156
8,487
669

28,19922,696
5,502

Toys & Amusement Game Contents Network
Hobby
Business
Business Facility Business Business

Visual &Music
Content
Business

Other
Business

176,474

12,19642,27912,981 450,829

2,326

324

1,048

10,08979,384 130,430
76,878 119,979
2,506 10,451

12,521
10,685
1,835

43,32837,141
6,187

23,071 469,744
23,242 429,849-171 39,894

2,828
134,710
116,617
18,09359,813 102,114
352

Other
Business

Total

9,684 345,396
7,524

14,43817,209 359,834
17,140 319,357
68 40,477

Current 3rd Quarter (April 1, 2006 – December 31, 2006)

Net sales(1) To externalcustomers(2) Intersegment sales
and transfers
Total
Operating expenses
Operating income

135,399
120,639
14,7604,533
181,007
161,922
19,08578,792 128,104
591— 345,396-14,438—-14,438 345,396-9,562 309,795-4,876 35,600(¥ million)

Other
Business

Total

8,048 330,517
8,167

23,654

16,215 354,171
15,008 320,127
1,206 34,044

Prior Fiscal Year (April 1, 2005 – March 31, 2006)

Net sales(1) To externalcustomers(2) Intersegment sales
and transfers
Total
Operating expenses
Operating income/loss

Eliminations Consolidated
and Corporate

Eliminations
and Corporate Consolidated— 330,517-23,654—-23,654 330,517-21,845 298,281-1,808 32,235(¥ million)

Total

18,914

Eliminations Consolidated
and Corporate— 450,829-18,914—-18,914 450,829-14,689 415,160-4,225 35,669

1. Business segment classifications are in accordance with classifications adopted for internal management
purposes.
Changes in accounting policy
As part of the group restructuring, a formational-divisive reorganization was implemented by splitting off theAmusement Facility Management Business from NAMCO LIMITED (currently NAMCO BANDAI Games Inc.)and newly establishing NAMCO LIMITED on March 31, 2006. With this reorganization, the structure of each of
the Group’s strategic business units has been made clearer, and in order to present details of the Group’s products
and services more appropriately, NAMCO LIMITED’s welfare and senior citizens facilities business and all theoperations of Yunokawa Kanko Hotel Co., Ltd have been moved from “Other Business” to “Amusement Facility
Business.” The NAMCO BANDAI Games Inc. incubation business has also been moved from “Other Business" to“Game Contents Business."
The table below shows segment information for the previous 3rd-quarter consolidated accounting period and theprevious consolidated accounting year compiled on the basis of the business segments used in the current 3rdquarter consolidated accounting period.

17

Prior 3rd Quarter (April 1, 2005 – December 31, 2005)
Toys & Amusement Game Contents Network
Visual &
Other
Hobby
FacilityMusic Content BusinessBusiness
Business
Business BusinessBusiness
Net sales
external(1) To131,882 61,374 102,39
32,733
7,847
0 9,167
customers(2) Intersegment sales
2,828
285 2,790
221
720 7,566
and transfers
Total
Operating expenses
Operating income

134,710 61,660 105,180
116,617 60,290 92,753
18,093 1,370 12,427

9,389
7,950
1,439

33,453 15,413
27,325 14,397
6,128 1,016(¥ million)
Total

345,396—345,396

14,413-14,413—359,809319,333
40,475-14,413-9,538-4,874345,396309,795
35,600Prior Fiscal Year (April 1, 2005 – March 31, 2006)
Toys &
Hobby
Business
Net sales
external(1) Tocustomers(2) Intersegment sales
and transfers
Total
Operating expenses
Operating income

Amusement
Facility Game Contents Network
Business Business BusinessEliminations Consolidated
and Corporate(¥ million)
Visual &Music
Content
Business

Other
Business

Total

Eliminations
and Corporate Consolidated

176,474 80,769 128,44
8 12,196
4,533
525 2,326
324

42,279 10,661

450,829

1,048 10,142

18,901-18,901

181,007 81,294 130,774 12,521
161,922 79,406 121,067 10,685
19,085 1,888 9,707 1,835

43,328 20,804
37,141 19,616
6,187 1,187

469,730
429,838
39,892-18,901 450,829-14,678 415,160-4,222 35,669— 450,829

2. Principal products and business in each business segment:(1) Toys & Hobby Business
Toys, candy toys, products for vending machines, cards, plastic models,apparel, sundries, stationery and other products(2) Amusement Facility
Amusement facility operations, and other operations
Business(3) Game Contents Business
Software for home video games, coin-operated game machines, prizes forcoin-operated game machines and other products(4) Network Business
Mobile content and other services(5) Visual & Music Content
Video titles, visual software, on-demand video distribution and other
Business
products and services(6) Other BusinessTransportation and warehousing of products, leasing, real estate
management, printing, development and sale of environmental equipment
and other activities
3. Eliminations and Corporate include the following non-allocable operating expense amounts.
(¥ million)
Principal cost items
Expenses related to management divisions at the Company, Bandai
Prior 3rd quarter
5,314
Co., Ltd., and NAMCO LIMITED (currently NAMCO BANDAI
Games Inc.).
Current 3rdquarter

1,964

Expenses related to the management divisions of the Company and
NAMCO BANDAI Holdings (USA) Inc.

Prior fiscal year

5,812

Expenses related to management divisions at the Company, Bandai
Co., Ltd., and NAMCO LIMITED (currently NAMCO BANDAI
Games Inc.).

18—

By Geographic Segment
Prior 3rd Quarter (April 1, 2005 – December 31, 2005)

Net sales(1) To external customers(2) Intersegment sales andtransfers
Total
Operating expenses
Operating income/loss(¥ million)
Eliminations
Consolidated
andCorporate

Japan

Americas

Europe

Asia

Total

283,4836,821

33,458879

20,02613

8,428
15,645345,396
23,358—-23,358

345,396—

290,304
251,761
38,542

34,33737,355-3,01820,04016,8383,201

24,07322,025
2,048

368,755
327,980
40,774-23,358-18,185-5,173345,396309,795
35,600Current 3rd Quarter (April 1, 2006 – December 31, 2006)

Net sales(1) To external customers(2) Intersegment sales andtransfers
Total
Operating expenses
Operating income/loss(¥ million)
Eliminations
andConsolidated
Corporate

Japan

Americas

Europe

Asia

Total

262,925
8,240

34,571
1,323

23,337—

9,683
17,045

330,517
26,609—-26,609

330,517—271,165
242,449
28,71535,89535,904-923,33820,4992,838

26,72824,383
2,344

357,126
323,238
33,888-26,609-24,956-1,652

330,517298,281
32,235

Prior Fiscal Year (April 1, 2005 – March 31, 2006)
Japan

Americas(¥ million)
Europe

Asia

Total

Eliminations
Consolidated
andCorporate

Net sales(1) To external customers
365,823
42,76931,231
11,005 450,829—
450,829(2) Intersegment sales and
8,497
1,334
13
21,10630,951-30,951—transfers
Total
374,320
44,10331,244
32,112 481,780-30,951
450,829
Operating expenses
336,705
47,38826,91429,841 440,848-25,688415,160
Operating income/loss
37,614-3,2844,330
2,270
40,931-5,26235,669
1. Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as degree of geographic closeness,similarities in economic activities, and mutual relationship of business activities.
(2) Principal countries and regions belonging to each geographic segment(i) Americas:
U.S.A. and Canada(ii) Europe:
France, U.K. and Spain(iii) Asia:
Hong Kong, Thailand and South Korea
2. Eliminations and Corporate include the following non-allocable operating expense amounts.
(¥ million)
Prior 3rdquarter

Principal cost items
Expenses related to management divisions at the Company,
5,314 Bandai Co., Ltd. and NAMCO LIMITED (currently
NAMCO BANDAI Games Inc.).

Current 3rdquarter

1,964

Expenses related to the management divisions of theCompany and NAMCO BANDAI Holdings (USA) Inc.

Prior
fiscal year

Expenses related to management divisions at the Company,
5,812 Bandai Co., Ltd. and NAMCO LIMITED (currently
NAMCO BANDAI Games Inc.).

19