Bandai Namco Holdings Inc.
Consolidated Financial Report for the Fiscal Year Ended
March 31, 2023

May 10, 2023

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

Bandai Namco Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
May 10, 2023

Consolidated Financial Report for the Fiscal Year Ended March 31, 2023 (Japanese GAAP)
Masaru Kawaguchi, President and Representative Director
Representative:
Contact:
Yuji Asako, Director
Date of Ordinary General Meeting of Shareholders:June 19, 2023
Scheduled starting date for dividend payments:
June 20, 2023
Scheduled filing date of the annual security report:
June 19, 2023
The Financial Highlights 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, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2023
Fiscal Year Ended
March 31, 2022

Net sales¥ million
990,089%
11.3(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
116,472(7.2)
128,006(4.2)

889,270

20.0

125,496

Profit attributable toowners of parent¥ million%
90,345(2.6)

48.2

Basic earnings per share

133,608

52.5

Diluted earnings per
share¥
Fiscal Year Ended
136.88March 31, 2023
Fiscal Year Ended
92,75289.7
140.70March 31, 2022
(Note) Comprehensive income: 116,064 million yen [20.5%] (FY2023.3), 96,299 million yen [6.4%] (FY2022.3)
ROE(Profit attributable toowners of parent / Net
assets)%
14.6

ROA(Recurring profit /Total assets)¥––

Operating margin(Operating profit /Net sales)%%
Fiscal Year Ended
14.3
11.8
March 31, 2023
Fiscal Year Ended
16.9
16.7
14.1
March 31, 2022
(Reference) Gain or loss from application of equity method: 2,323 million yen (FY2023.3), 618 million yen (FY2022.3)(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous
fiscal year.

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets
per share¥ million¥ million%¥
As of March 31, 2023
926,358
652,13370.4
987.58
As of March 31, 2022
862,650
584,23367.7
884.94(Reference) Equity: 651,851 million yen (as of March 31, 2023), 583,995 million yen (as of March 31, 2022)(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Net assets per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal
year.
(3) Consolidated Statements of Cash Flows

Fiscal Year Ended
March 31, 2023
Fiscal Year Ended
March 31, 2022

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
95,625¥ million(40,878)¥ million(59,524)

Cash and cash
equivalents at endof period¥ million
276,288

121,212(27,136)(25,450)

277,891

2. Cash Dividends
End offirstquarter¥–

Annual cash dividends
End of
End ofFiscalsecondthird
yearquarter quarter
end
¥
¥
¥
24.00
–
188.00Total

Payout ratio
Total
Dividend /dividend (Consolidated) Net assets
payment(Consolidated)(Full year)¥ million%%
46,64950.2
8.5¥
Fiscal Year Ended
212.00March 31, 2022
Fiscal Year Ended
–
27.00
–
179.00206.0045,33750.2
7.3
March 31, 2023
Fiscal Year Ending
–
10.00
–
10.00
20.00
–
March 31, 2024
(Projections)(Notes) 1.Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2024, the base dividend is stated based on the Companyʼs basic policy on the distribution of profits. The
year-end cash dividend for the fiscal year ending March 31, 2024, will be considered by the Company based on thebasic policy on the distribution of profits.
2. The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1,
2023. The actual amount of dividends based on before the aforementioned share split is stated for the fiscal year
ended March 31, 2022 and the fiscal year ended March 31, 2023. When converted based on the number of shares
before the aforementioned share split, the projected annual dividends for the fiscal year ending March 31, 2024 is 60
yen per share.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable
Basic earnings
profitprofitto owners
per shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
475,000(0.5)
60,000 (26.5)
62,000 (32.9)
44,000 (33.9)
66.66
September 30, 2023
Full Fiscal Year
1,000,000
1.0 125,000
7.3 129,000
0.8
91,0000.7
137.87(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
The impact of the share split has been taken into account in calculating basic earnings per share of the consolidated
projections for the fiscal year ending March 31, 2024.

* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): 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: Yesb) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements, (Changes in Accounting
Policies)” of “3. Consolidated Financial Statements and Significant Notes” on page 18 of the attached material.
(3) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
666,000,000 shares
As of March 31, 2023
666,000,000 shares
As of March 31, 2022b) Number of shares of treasury stock at the end of the period
As of March 31, 2023
5,949,648 shares
6,069,618 shares
As of March 31, 2022c) Average number of shares during the period
For the Fiscal Year Ended March 31, 2023
660,013,710 shares659,230,755 shares
For the Fiscal Year Ended March 31, 2022
(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Total number of issued shares at the end of the period, number of shares of treasury stock at the end of the period, andaverage number of shares during the period have been calculated assuming that the share split was conducted at the
beginning of the previous fiscal year.
(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2023
Fiscal Year Ended
March 31, 2022

Operating revenue¥ million%
41,260(9.6)
45,627

Profit(61.0)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
31,506(14.7)
32,752(13.1)
36,956(66.6)

Basic earnings per share

37,709(66.1)

Diluted earnings pershare¥ million%¥¥
Fiscal Year Ended
32,315(12.7)
48.95–
March 31, 2023
Fiscal Year Ended
37,026(66.3)
56.09–
March 31, 2022
(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous
fiscal year.
(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets
per share¥ million¥ million%¥
As of March 31, 2023
539,691
369,51168.5
559.65
As of March 31, 2022
534,095
366,62268.6
555.38(Reference) Equity: 369,511 million yen (as of March 31, 2023), 366,622 million yen (as of March 31, 2022)(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Net assets per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal
year.

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Operating revenue
Recurring profit
ProfitBasic earnings
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
60,00045.4
48,00046.6
48,00048.5
72.70(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
The impact of the share split has been taken into account in calculating basic earnings per share of the non-consolidated
projections for the fiscal year ending March 31, 2024.
* Consolidated Financial Reports are not required to be audited by certified public accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on managementʼs estimates, assumptions and projections at thetime of publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A
number of factors could cause actual results to differ materially from expectations. Please refer to the section of “(4) Future Outlook”
of “1. Overview of Operating Results and Others” on page 4 of the attached material for matters pertaining to the earnings projections.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on May 10, 2023.

Attached Material
Index
1. Overview of Operating Results and Others ....................................................................................... 2(1) Overview of Operating Results for the Period (April 1, 2022 to March 31, 2023) ............................................................. 2(2) Overview of Financial Position for the Period .................................................................................................................. 3(3) Overview of Cash Flows for the Period ............................................................................................................................. 4(4) Future Outlook................................................................................................................................................................... 4(5) Basic Policy on the Distribution of Profits and Dividends for the current and next fiscal year ....................................... 7

2. Basic Concept Regarding Selection of Accounting Standards......................................................... 7
3. Consolidated Financial Statements and Significant Notes ............................................................. 8(1) Consolidated Balance Sheets ............................................................................................................................................ 8(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ........................... 10(Consolidated Statements of Operations) ...................................................................................................................... 10(Consolidated Statements of Comprehensive Income).................................................................................................. 11(3) Consolidated Statements of Changes in Net Assets ....................................................................................................... 12(4) Consolidated Statements of Cash Flows ........................................................................................................................ 16(5) Notes to Consolidated Financial Statements ................................................................................................................. 18(Notes on Premise of Going Concern) ............................................................................................................................. 18(Changes in Accounting Policies) .................................................................................................................................... 18(Segment Information) .................................................................................................................................................... 19(Per-Share Data) ............................................................................................................................................................... 25(Significant Subsequent Events) ..................................................................................................................................... 26

4. Other .................................................................................................................................................... 28
Changes in Directors and Audit & Supervisory Board Members .......................................................................................... 28- 1 -1. Overview of Operating Results and Others(1) Overview of Operating Results for the Period (April 1, 2022 to March 31, 2023)
During the fiscal year ended March 31, 2023, the future of the economic environment around the world remained
uncertain. While restrictions on activities implemented due to the novel coronavirus disease (COVID-19) wereincreasingly relaxed, the spread of COVID-19 variants, changes in the social situation, fluctuations in the prices of raw
materials and foreign currency exchange rates, and surging fuel prices, among other factors, affected society and theeconomy as well as customer lifestyles and preferences.
Under such circumstances, from April 2022, with the introduction of our Purpose as the ultimate definition of who
we are as a Group and the introduction of a new logo, we began our new three-year Mid-term Plan. In the Mid-term Plan,in order to achieve the aims of the Bandai Namco Group based on our Purpose, we have established a Mid-term Visionof “Connect with Fans” that aims to constantly meet the needs of global IP fans, a wide range of business partners, Group
employees, and communities around the world and to foster broad, deep, and multifaceted connections. As priority
strategies, we are promoting our IP axis strategy, personnel strategy, and sustainability. By propelling the priority
strategies, we will take advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning
characters and other intellectual property) to further evolve the IP axis strategy that aims to maximize IP value throughthe provision of the optimal products and services at the optimal times. We will also strengthen the global developmentof the IP axis strategy and enhance our sense of unity and collective strength under the ALL BANDAI NAMCO concept inorder to achieve continuous growth.
In the fiscal year ended March 31, 2023, in addition to taking swift measures in response to environmental changes,
we promoted various initiatives to foster broad, deep, and multifaceted connections with fans through efforts such as
strengthening collaboration among major IP development in the media and our products and services. Moreover, we
stepped up Group-wide, under the ALL BANDAI NAMCO concept, working together across regions and businesses. As aresult, sales of products and services with high profit margins, such as major titles of network content and repeat salesof home video games in the Digital Business, as well as products for the mature fan base and card products in the Toysand Hobby Business, contributed to performance around the world. Furthermore, live events in the IP Production
Business and facilities in the Amusement Business enjoyed strong customer visits as restrictions on activities wereincreasingly relaxed. Meanwhile, in the Digital Business, given the intensifying competition in the market environment
around the world, we thoroughly reviewed the status of the development of titles and our business plans with the goalof providing titles focused on quality, and as a result, we recorded valuation losses, etc. on certain work in process. We
also recorded foreign exchange gains related to foreign currency transactions in non-operating income due to weak yen.
Consequently, the Group’s consolidated operating results for the fiscal year ended March 31, 2023 were net sales of
990,089 million yen (year-on-year increase of 11.3%), operating profit of 116,472 million yen (year-on-year decrease of
7.2%), recurring profit of 128,006 million yen (year-on-year decrease of 4.2%), and profit attributable to owners of parentof 90,345 million yen (year-on-year decrease of 2.6%).
Operating results by segment are as follows.
Effective from the fiscal year ended March 31, 2023, the Group changed the classification of its reportable segments.
Accordingly, as for the following year-on-year comparisons, the figures for the previous fiscal year have been restatedinto the figures for the classifications after the change.
Digital Business
As for the Digital Business, in home video games, repeat sales were strong mainly overseas for existing titles such as
ELDEN RING, a major title for worldwide distribution launched in the previous fiscal year, contributing to results. In
addition, the sales of multiple new titles launched during this fiscal year were stable. In network content, sales werestrong for key titles such as the DRAGON BALL series and ONE PIECE and for titles that commenced service in the previous
fiscal year as a result of collaboration with IP development in the media and ongoing measures targeting users.
Compared with the previous fiscal year, changes in the product mix, in addition to differences in the composition of thetitles of home video games, affected profits. Furthermore, in this business, given the intensifying competition in themarket environment around the world, we thoroughly reviewed the status of the development of titles and our businessplans with the goal of providing titles focused on quality, and as a result, we recorded valuation losses, etc. on certain
work in process of approximately 13.0 billion yen.
As a result, net sales in the Digital Business were 385,681 million yen (year-on-year increase of 2.0%), and segment
profit was 49,339 million yen (year-on-year decrease of 29.1%).

- 2 -Toys and Hobby Business
As for the Toys and Hobby Business, while it was impacted by rising prices for raw materials and fuel caused by the
weakening of the yen, its overall performance remained strong due to efforts to expand the categories that are doing
well, advance global business development, and strengthen production operations. Specifically, products for themature fan base such as plastic models of the Gundam series, collectible figures, and character lotteries continued toperform favorably around the world mainly due to the successful outcomes produced by sales, marketing, andexpansion of the product lineup. In addition to these, card products such as the ONE PIECE trading card game and digital
cards of the Gundam series, confectionery products such as Charapaki, and capsule toys were popular. In the fourth
quarter of the fiscal year ended March 31, 2023, the Business recorded valuation losses, etc. on inventories.
As a result, net sales in the Toys and Hobby Business were 447,491 million yen (year-on-year increase of 19.8%), andsegment profit was 59,538 million yen (year-on-year increase of 13.8%).
IP Production Business
As for the IP Production Business, we changed our organizational structure to integrate resources and know-how
related mainly to visuals, music, and live events with the aim of reinforcing our IP creation. Under this new structure, we
produced and distributed video works, sold visual and music package software, streamed videos, held live events, andconducted licensing business in relation to IPs. As a result, the performance of activities such as video streaming andlicensing businesses related to video works, such as the Gundam series, the LoveLive! series, That Time I Got Reincarnatedas a Slime, and BLUELOCK, were strong. Furthermore, with COVID-19 restrictions in Japan being increasingly relaxed, thebusiness for live events and GUNDAM FACTORY YOKOHAMA exceeded that of the previous fiscal year.
As a result, net sales in the IP Production Business were 81,748 million yen (year-on-year increase of 2.2%), andsegment profit was 10,645 million yen (year-on-year increase of 20.5%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19 causing closures of facilities in certain
regions and the impact of rising utility costs caused by increased fuel prices, net sales for existing amusement facilities
in Japan increased to 114.9% year on year. In addition, we stepped up store development through collaboration with
the Group’s products and services for Bandai Namco Cross Stores and GASHAPON Department Stores. Moreover, salesof arcade game machines such as CLENA3, a new product, were also strong. For the Amusement Business, we willcontinue to promote initiatives that only the Bandai Namco Group can offer, such as store development throughcollaboration with the Group’s products and services, while also continuing to improve efficiency.
As a result, net sales in the Amusement Business were 104,602 million yen (year-on-year increase of 27.0%), andsegment profit was 6,038 million yen (year-on-year increase of 49.0%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds ofadministration and operational support for each of the Group companies. We have been making efforts to manage suchoperations related to Group support in an efficient manner.
Net sales in the Other Businesses were 31,313 million yen (year-on-year increase of 13.2%), and segment profit was
1,165 million yen (year-on-year increase of 235.9%).
(2) Overview of Financial Position for the Period
At the end of the fiscal year ended March 31, 2023, total assets stood at 926,358 million yen, an increase of 63,707
million yen from the end of the previous fiscal year. The main factors were increases of 8,272 million yen in finishedgoods and merchandise, 18,542 million yen in work in process, 15,008 million yen in property, plant and equipment, and27,444 million yen in investment securities, despite a decrease of 23,734 million yen in trade receivables and contract
assets.
Total liabilities amounted to 274,224 million yen, a decrease of 4,192 million yen from the end of the previous fiscal
year. The main factor was a decrease of 6,470 million yen in other long-term liabilities mainly due to a decrease in longterm borrowings, despite an increase of 3,131 million yen in accrued income taxes.
Total net assets stood at 652,133 million yen, an increase of 67,900 million yen from the end of the previous fiscal
year. The main factors were increases of 41,775 million yen in retained earnings, 17,634 million yen in valuationdifference on available-for-sale securities, net of tax, and 9,163 million yen in foreign currency translation adjustments.
As a result, the equity ratio became 70.4% compared with 67.7% at the end of the previous fiscal year.

- 3 -(3) Overview of Cash Flows for the Period
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand decreased by 1,602 million
yen from the end of the previous fiscal year to 276,288 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 95,625 million yen (year-on-year decrease of 21.1%). Asa breakdown of funds used, income taxes paid were 49,464 million yen (compared with 16,182 million yen in the previous
fiscal year). However, overall, there was a net increase in funds due to profit before income taxes of 126,215 million yen(compared with 130,882 million yen in the previous fiscal year) and depreciation and amortization of 28,671 million yen(compared with 25,726 million yen in the previous fiscal year).
(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 40,878 million yen (year-on-year increase of 50.6%). The
main breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 33,808
million yen (compared with 26,798 million yen in the previous fiscal year).
(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 59,524 million yen (year-on-year increase of 133.9%). The
main breakdown of funds used was cash dividends paid of 47,310 million yen (compared with 25,271 million yen in theprevious fiscal year).
(Reference) Cash Flow Indices
FY2019.3
70.0

FY2020.3
72.5

FY2021.3
69.7

FY2022.3
67.7

FY2023.3
70.4

Equity ratio (market capitalizationbasis) (%)

186.1

185.8

236.6

236.9

203.0

Cash flows to interest bearing debt
ratio (years)

0.0

0.1

0.5

0.2

0.2

2,180.5

345.8

296.0

321.0

279.9

Equity ratio (%)

Interest coverage ratio (times)

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(4) Future Outlook
Looking ahead, the Group expects uncertainty to continue in various regions around the world. We also expect thechanges in the environment surrounding us such as the market as well as customer lifestyles and preferences to become
even more intense.
Under these circumstances, adapting to escalating competitiveness in global markets and diversification in lifestyles
and preferences of customers, in line with our IP axis strategy, the Bandai Namco Group will enhance sense of unity andcollective strength under the ALL BANDAI NAMCO concept, while utilizing the characteristics of each business. From April
2022, with the introduction of our Purpose as the ultimate definition of who we are as a Group and the introduction of
the new logo, to maintain continuous growth over medium to long term for the aims under our Purpose, the new threeyear Mid-term Plan has started.
1) Formulation of Bandai Namcoʼs Purpose and introduction of the new logo
From April 2022, we have established our new Purpose as the ultimate definition of who we are as a Group,
conveying “the reason for our existence,” “why we conduct our businesses and corporate activities,” and “themeaningfulness we derive from working at Bandai Namco Group.” What we believe to be particularly importantelements in our Purpose are the ideas of “Connecting and working together to create things” and we will achieve“Fun for All into the Future” by Bandai Namco Group and our fans connecting through dreams, fun and inspiration.

- 4 -＜Bandai Namcoʼs Purpose＞

From April 2022, we have introduced a new logo that expresses the spirit of Purpose. All companies with “Bandai
Namco” in their names will use this logo, and companies with and without “Bandai Namco” in their names will
display this new Group logo on all their products and services, in principle. This will enable us to bring together thevalue of all our products, services, and labels under one logo, make the Groupʼs sense of unity and its total
capabilities appeal strongly, and elevate the brand value of the Bandai Namco Group in the global market.
<New logo>

2) Purpose-driven aims
In accordance with the Purpose, the Bandai Namco Group aims to connect with IP fans, a wide range of business
partners, Group employees, and communities around the world. We will strive to connect more deeply with current
fans and more broadly with new fans. In addition, we will aim to foster multifaceted connections among current fansand new fans as well as communities of fans. In fostering connections with and among various fans, our highest
priority will be the quality of the connections. Under the Mid-term Plan, we will advance a variety of strategies andinitiatives focusing on broad, deep, and multifaceted connections with fans and on the quality of those connections.
3) Mid-term Vision

In accordance with the Purpose, as we work toward what the Bandai Namco Group aims to be, under the Midterm Plan we will strive to always meet the needs of IP fans, a wide range of business partners, Group employees,
and communities around the world and to foster broad, deep, multifaceted connections.
4) Main strategies and investment plan
IP axis strategy
The IP axis strategy, which is the Bandai Namco Groupʼs strength, is the core of the Mid-term Plan. We will aim
for sustainable growth by implementing new initiatives to foster broad, deep, and multifaceted connections withfans around the world; by accelerating evolution in the IP axis strategy; and by working to build businesses as wework together under the ALL BANDAI NAMCO concept in regions around the world.
· IP x Fans (connecting with fans through IP): New framework for connecting with fans
Based on the IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connectingwith fans. In this IP Metaverse, we are anticipating virtual spaces that will enable customers to enjoy a wide range
of entertainment surrounding IP, as well as frameworks that leverage Bandai Namco’s distinctive strengths to fusephysical products and venues with digital elements. We are aiming for open frameworks that provide venues forconnections with and among fans and business partners. Through the IP Metaverse, we will establish communities
among Bandai Namco and fans, as well as among fans themselves. Through these communities and content, we- 5 -will build broad, deep, multifaceted connections that continue for long periods of time, and we will focus on thequality of those connections. In this way, we will work to maximize IP value over the medium to long term.
· IP x Value (enhancing IP value): Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among physical and digital elements, and we will redefine the optimal IP axis strategy for IP fans
and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.
· IP x World (connecting the world through IP): Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in regions worldwide, wehave implemented such initiatives as organizational restructuring and base consolidation around the world.
Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.
· Investment plan for accelerating evolution in the IP axis strategy
Over the three years of the Mid-term Plan, we will implement a total of 40.0 billion yen in strategic investment
to accelerate evolution in the IP axis strategy.
Strategic investment to maximize IP value: 25.0 billion yen
Investment to develop the IP Metaverse:
15.0 billion yen
Personnel strategy: Developing diverse human resources
In accordance with our Purpose, the Group strives to be a community of “Same Spirit, Diverse Talents,” where
diverse companies and people with various talents, personalities, and values can thrive. We will further focus on
recruiting and promoting human resources regardless of whether they are new graduates or mid-career hires andregardless of gender, age, nationality, race, religion, or sexual orientation. In addition, we will focus on developing
systems and environments that enable a diversity of people to thrive and work in a way that is both physically andmentally healthy. Under the Mid-term Plan, we will promote initiatives to support challenges taken on by employees
and the development of human resources to promote the IP axis strategy on a global scale, as well as new anddiverse ways to work. In addition, we will actively engage in cooperation and collaboration with external humanresources.
Sustainability: Connecting to a smile into the future
Under the “Purpose” and “Bandai Namco Group Sustainability Policy,” the Group has identified five themes thatneed to be addressed with particular importance as materiality. We are promoting various specific action plans
linked to our businesses, such as initiatives to eliminate petroleum-derived plastics and the collection and recyclingof plastic model runners and empty capsules. Furthermore, to respond to the natural environmental problems thatsociety is facing, we will set targets and steps for reduction of carbon dioxide emissions from the use of energy andstrive to advance efforts toward decarbonization.
<Bandai Namco Groupʼs Sustainability Policy>
Based on the IP axis strategy, the Bandai Namco Group will work together with fans to advance sustainability
activities that focus on the social issues that the Group should address.
<Bandai Namco Groupʼs Material Issues>- Harmonious coexistence with the natural environment- Provision of appropriate products and services- Appropriate utilization and protection of intellectual property- Establishment of work environments that facilitate mutual respect- Harmonious coexistence with communities
5) System for promotion of the Mid-term Plan
・Strengthening the governance system of Bandai Namco Holdings

In order to further increase corporate value by strengthening our corporate governance system andimplementing rapid decision-making and business execution, we have made the transition to a company with an
Audit & Supervisory Committee.
・Partial changes of the Unit structure

From April 2022, we restructured the IP Production Unit and also integrated the Visual and Music Business andthe Creation Business into the IP Production Business. In the IP Production Unit, Bandai Namco Filmworks Inc.
will serve as a business management company upon having combined three companies that engage in the visual- 6 -business within the IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., andBandai Namco Rights Marketing Inc.
6) Numerical targets, shareholder return policy・ Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales:
Consolidated operating profit:
ROE:

1,100.0 billion yen
125.0 billion yen
12% or moreIn the future, the Bandai Namco Group aims to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connection, and eachbusiness around the world will further work as one under the ALL BANDAI NAMCO concept on the priority strategies,
consisting of the IP axis strategy, Personnel strategy, and Sustainability, under the Mid-term Plan.
(5) Basic Policy on the Distribution of Profits and Dividends for the current and next fiscal year
Bandai Namco Group ranks the return of profits to shareholders as one of its highest priorities in its management.
The Group aims to further strengthen the Group’s competitiveness and, while maintaining a sound financial status, toachieve regular distributions of dividends and improvement in the Group’s corporate value. Specifically, the Company
follows a basic policy of providing a return to shareholders that targets a total payout ratio of 50% or more based onstable dividend payments of 2% of DOE (dividends on equity). Under this policy, the Company strives to maintain longterm and stable dividends and be more aware of capital cost.
For the year-end dividend of the fiscal year ended March 31, 2023, based on this basic policy and the performance inthe fiscal year, a performance-based dividend of 152 yen will be added to a base dividend of 27 yen, for a total of 179 yen
per share. Since the Company paid an interim dividend of 27 yen per share on December 9, 2022, the annual cash
dividend will be 206 yen per share (total payout ratio of 50.2%).
The Company’s annual dividend forecast for the fiscal year ending March 31, 2024 is 20 yen per share, which is thebase dividend set in accordance with the Company’s basic policy on the distribution of profits. The year-end cash
dividend for the fiscal year ending March 31, 2024 will be considered by the Company based on the basic policy on the
distribution of profits. The Company implemented a three-for-one common stock split, effective April 1, 2023. When
converted based on the number of shares before the aforementioned share split, the annual dividend for the fiscal year
ending March 31, 2024 is 60 yen per share.

2. Basic Concept Regarding Selection of Accounting Standards

The Group plans to continue using Japanese GAAP to prepare its consolidated financial statements for the time being,as they facilitate comparison with previous consolidated financial statements and with other companies.
The Group’s policy on applying International Financial Reporting Standards is to take action as appropriate basedon considerations of various conditions in Japan and overseas.

- 7 -3. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current Fiscal Year(As of March 31, 2023)

AssetsCurrent assets
Cash and time deposits

279,401

280,226

Trade receivables and contract assets

122,742

99,007

Finished goods and merchandise

33,051

41,324Work in process

86,292

104,835

Raw materials and supplies

4,905

6,063

Other current assets

52,81462,266

Allowance for doubtful receivables(2,001)(1,086)

Total current assets

577,206

592,637

40,41644,724

Accumulated depreciation(23,399)(25,549)

Buildings and structures, net

17,017

19,174

Fixed assets
Property, plant and equipment
Buildings and structures

Amusement facilities and machines
Accumulated depreciation
Amusement facilities and machines, net
Land
Other property, plant and equipment

59,29859,443(52,625)(50,944)

6,672

8,499

42,86946,476

151,528

172,240(125,637)(138,932)

25,89033,30792,450107,458

Goodwill

14,887

14,561Other intangible assets

19,54021,622

Total intangible assets

34,42836,183

Investment securities

113,261

140,706

Deferred tax assets

25,732

27,572

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

Investments and other assets

Net defined benefit asset

525

596

19,831

21,860Allowance for doubtful receivables

(784)

(656)

Total investments and other assets

158,565

190,078

Other investments and assets

Total fixed assets
Total assets- 8 -285,443

333,720862,650926,358(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current Fiscal Year(As of March 31, 2023)

Liabilities
Current liabilities
Trade payables

99,81099,244

Short-term borrowings

10,81010,770Accrued income taxes

22,891

26,022Contract liabilities

22,912

22,567

Provision for directorsʼ bonuses

2,180

2,119

Other provision

1,565

1,958

Other current liabilities

83,191

84,638

Total current liabilities

243,362

247,323

249

118

5,261

3,710

Long-term liabilities
Other provision
Net defined benefit liability
Deferred tax liabilities for land revaluation

199

199

Other long-term liabilities

29,342

22,872

Total long-term liabilities

35,053

26,901

278,416

274,224

10,00010,000Total liabilities
Net assets
Stockholdersʼ equity
Common stock
Capital surplus

52,57452,897Retained earnings

482,147

523,923

Treasury stock(2,140)(2,102)

Total stockholdersʼ equity

542,581584,718

45,03762,671

901(656)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, netof taxDeferred gains or losses on hedges, net of tax
Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments

1,886

11,049Remeasurements of defined benefit plans, net of tax(2,394)(1,915)

Total accumulated other comprehensive income

41,413

67,132

Non-controlling interests
Total net assets
Total liabilities and net assets

- 9 -

237

282

584,233

652,133

862,650926,358

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2021
to March 31, 2022)

Current Fiscal Year
(From April 1, 2022 toMarch 31, 2023)

Net sales

889,270990,089

Cost of sales

533,004

621,433

Gross profit

356,265

368,656

Selling, general and administrative expenses

230,769

252,183

Operating profit

125,496

116,472

Interest income

217

1,178

Dividend income

1,236

1,460

618

2,323

Foreign exchange gains

5,519

5,010

Other non-operating income

1,745

2,122

Total non-operating income

9,337

12,095Interest expense

377

332

Loss on valuation of derivatives

244

–

–

144

Non-operating income

Share of profit of entities accounted for using equity
methodNon-operating expenses

Loss on investments in deferred compensation plan
Other non-operating expenses

603

84

Total non-operating expenses

1,225

561

133,608

128,006

2

510

909

132

Recurring profit
Extraordinary income
Gain on sales of shares of subsidiaries and associates
Subsidies for employment adjustment and other related to
COVID-19
Other extraordinary income

3,785

153

Total extraordinary income

4,697

796

2,994

1,251

Extraordinary loss
Loss on impairment of fixed assets
Loss on valuation of investment securities
Extra retirement payments
Loss on disposal of fixed assets
Other extraordinary loss

–

553

1,257

–

994

506

2,176

276

Total extraordinary loss

7,423

2,587

Profit before income taxes

130,882

126,215

Income taxes - current

38,216

42,669

Income taxes for prior periods

6,792

–

Income taxes - deferred(6,713)(6,799)Total income taxes

38,29535,870

Profit92,587

90,345

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 10 -(165)

092,752

90,345

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2021
to March 31, 2022)
ProfitCurrent Fiscal Year
(From April 1, 2022 toMarch 31, 2023)

92,587

90,345(6,505)

17,688Other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax(87)(1,554)Foreign currency translation adjustments

9,323

9,164

Remeasurements of defined benefit plans, net of tax

1,025

478

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

(44)

(57)

Total other comprehensive income

3,711

25,71996,299116,064

Comprehensive income attributable to owners of theparent96,464116,063

Comprehensive income attributable to non-controllinginterests

(165)

0

Comprehensive income
Comprehensive income attributable to- 11 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
Stockholdersʼ equity
Common stock
Balance at beginning of year

Capital surplus

10,00052,232

Cumulative effects of changes inaccounting policies
Restated balance

Retained earnings
414,487

Total stockholdersʼ
equityTreasury stock(3,905)179
10,00052,232

414,666

472,814179(3,905)472,993

Changes during the period
Cash dividends(25,271)(25,271)

Profit attributable to owners ofparent

92,752

92,752

Change in scope of
consolidation - foreign currencytranslation adjustment–

Change in ownership interest ofparent due to transactions with
non-controlling interests

(108)

(108)

Purchase of treasury stock
Disposal of treasury stock

451

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied

(8)

(8)

1,772

2,224

0

0

Net changes of items other thanstockholdersʼ equity
Total changes during the period
Balance at end of year–

342

67,4801,764

69,58810,00052,574482,147(2,140)542,581- 12 -

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges,
securities, net of

net of tax

tax

Balance at beginning of year

51,587

988

Revaluation
reserve forland, net of
tax

Total
Foreign currency Remeasurements

accumulatedtranslationof defined benefit

otheradjustments

plans, net of tax

comprehensive(7,438)(3,419)Non-controllinginterests

income(4,016)37,701

917

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

511,433
179

51,587988(4,016)(7,438)(3,419)37,701

917

511,612

Changes during the period
Cash dividends(25,271)

Profit attributable to owners ofparent

92,752

Change in scope of
consolidation - foreign currencytranslation adjustment

160

160

Change in ownership interest ofparent due to transactions with
non-controlling interests

160

(482)

(591)

Purchase of treasury stock(8)

Disposal of treasury stock

2,224

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied0

Net changes of items other thanstockholdersʼ equity(6,549)

(87)

–

9,164

1,025

3,552

(197)

3,355

Total changes during the period(6,549)

(87)

–

9,324

1,025

3,712

(679)

72,620

Balance at end of year

45,037901(4,016)

1,886(2,394)

41,413

237

584,233- 13 -

Current Fiscal Year (From April 1, 2022 to March 31, 2023)(¥ million)
Stockholdersʼ equity
Common stock
Balance at beginning of year

Capital surplus

10,00052,574Retained earnings
482,147

Total stockholdersʼ
equityTreasury stock(2,140)542,581

Changes during the period
Cash dividends(47,310)(47,310)

Profit attributable to owners ofparent90,34590,345

Change in scope of
consolidation(1,258)(1,258)Change in scope of
consolidation - foreign currencytranslation adjustment–

Purchase of treasury stock
Disposal of treasury stock

323

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied

(4)

(4)

42

365

0

0

Net changes of items other thanstockholdersʼ equity
Total changes during the period
Balance at end of year–323

41,77538

42,136

10,00052,897523,923(2,102)584,718- 14 -

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges,
securities, net of

net of tax

tax

Balance at beginning of year

45,037

901

Revaluation
reserve forland, net of
tax

Total
Foreign currency Remeasurements

accumulatedtranslationof defined benefit

otheradjustments

plans, net of tax

comprehensive

1,886(2,394)Non-controllinginterests

Total net assets

income(4,016)

41,413

237

584,233

Changes during the period
Cash dividends(47,310)

Profit attributable to owners ofparent90,345

Change in scope of
consolidation

44

Change in scope of
consolidation - foreign currencytranslation adjustment

223

223

(1,214)223

Purchase of treasury stock(4)

Disposal of treasury stock

365

Changes in treasury stock
accompanying changes toholdings in companies to which
the equity method is applied0

Net changes of items other thanstockholdersʼ equity

17,634(1,557)

–

8,940

478

25,495025,495

Total changes during the period

17,634(1,557)

–

9,163

478

25,71844

67,900

Balance at end of year

62,671(656)(4,016)

11,049(1,915)

67,132

282

652,133- 15 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2021
to March 31, 2022)

Current Fiscal Year
(From April 1, 2022
to March 31, 2023)

Cash flows from operating activities
Profit before income taxes

130,882

126,215

Depreciation and amortization

25,726

28,671

Loss on impairment of fixed assets

2,994

1,251

Amortization of goodwill

2,218

2,431

Increase (decrease) in allowance for doubtful receivables

610(1,169)

Increase (decrease) in provision for directorsʼ bonuses

524

(71)

Increase (decrease) in other provision

(390)

263

Increase (decrease) in net defined benefit liability

187

138

(1,454)(2,639)Interest expense

377

332

Foreign exchange losses (gains)

(359)

(21)

Share of loss (profit) of entities accounted for using equity
method(618)(2,323)

Loss (gain) on valuation of derivatives

244

(309)

Loss on disposal of fixed assets

994

506

Loss on disposal of amusement facilities and machines

105

228

Loss (gain) on sale of shares of subsidiaries and associates

(2)

(510)

Loss (gain) on sales of investment securities, net–

553

Decrease (increase) in trade receivables(26,577)

28,484

Decrease (increase) in inventories(15,534)(26,107)

Acquisition of amusement facilities and machines(4,360)(5,180)Interest and dividend income

Increase (decrease) in trade payables

16,184(1,595)

Increase (decrease) in contract liabilities

22,270(894)

Decrease (increase) in other current assets(10,690)(1,769)

Increase (decrease) in other current liabilities(1,380)(2,013)Other(5,627)(1,618)Subtotal

136,325

142,852

Interest and dividends received

1,447

2,579

Interest paid

(377)

(341)

Income taxes paid

(16,182)(49,464)

Net cash provided by operating activities

121,212

95,625- 16 -

(¥ million)
Prior Fiscal Year
(From April 1, 2021
to March 31, 2022)

Current Fiscal Year
(From April 1, 2022
to March 31, 2023)

Cash flows from investing activities
Payments into time deposits(878)(2,824)

Proceeds from withdrawal of time deposits

30

438

Purchases of property, plant and equipment(19,228)(25,376)

Proceeds from sales of property, plant and equipment

3,874

99

Purchases of intangible assets(7,569)(8,431)

Purchases of investment securities(1,604)

(513)

624

2

Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries

49

–

(984)

(551)

Purchase of shares of subsidiaries resulting in change inscope of consolidation–(2,019)Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation

–

(114)

Other

(1,449)(1,587)

Net cash used in investing activities(27,136)(40,878)

400

(179)

Purchase of shares of subsidiaries and associates

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

250

180

Repayments of long-term borrowings(223)(10,382)(8)(4)

Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Proceeds from share issuance to non-controllingshareholders
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation

1,946

0

(25,271)(47,310)

–

9

(591)

–

Other

(1,952)(1,837)

Net cash used in financing activities(25,450)(59,524)

Effect of exchange rate changes on cash and cash
equivalents

5,328

3,174

Net increase (decrease) in cash and cash equivalents

73,954(1,602)

Cash and cash equivalents at beginning of year

203,698

277,891238–

277,891

276,288

Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of year

- 17 -

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Changes in Accounting Policies)(Application of US GAAP Accounting Standards Update (ASU) No. 2016-02 “Leases”)
Effective from the beginning of the fiscal year ended March 31, 2023, the Companyʼs consolidated subsidiaries in the
United States have applied the US GAAP ASU No. 2016-02 “Leases.”
ASU No. 2016-02 requires the lessee to recognize both the right-of-use assets, which is the right to use theunderlying assets, and the lease liabilities, which is the obligation to make lease payments, for all leases in principle. In
applying this update, the Company used the method in which it recognizes the cumulative effect of retrospective
adjustments as of the commencement date of application.
As a result of this change, in the consolidated balance sheets for the fiscal year ended March 31, 2023, property,
plant and equipment increased by 2,755 million yen, current liabilities increased by 681 million yen, and long-term
liabilities increased by 2,073 million yen. The application of the update had only a minimal effect on operating profit,
recurring profit, and profit before income taxes in the consolidated statements of operations for the fiscal year ended
March 31, 2023. Moreover, the application had no impact on the opening balance of retained earnings in the
consolidated statement of changes in net assets for the fiscal year ended March 31, 2023.
(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter the “Fair Value Measurement Implementation Guidance”) from the
beginning of the fiscal year ended March 31, 2023, and, in accordance with the transitional treatment provided for inparagraph 27-2 of the Fair Value Measurement Implementation Guidance, it has decided to apply the new accounting
policy set out therein prospectively. There is no impact on the consolidated financial statements.

- 18 -

(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 and which 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 Units, one for each business domain, namely the Entertainment Unit (Digital
Business, Toys and Hobby Business), the IP Production Unit, and the Amusement Unit, and (2) the affiliatedbusiness companies that mainly serve a supporting role for these Units. The business management company ofeach business leads the planning and promotion of the business strategies of the business for Japan andoverseas.
Accordingly, the Group has the following four reportable segments: Digital Business, Toys and Hobby Business,
IP Production Business, and Amusement Business.
The Digital Business conducts planning, development and distribution of network content, and planning,development and sales of home video games. The Toys and Hobby Business conducts planning, development,
production and sales of toys, capsule toys, cards, confectionery and foods, apparel, sundries, plastic models,prizes, stationery, and other products. The IP Production Business conducts planning, production and operationof visual and music content such as animation, operation and management of copyrights, artist discovery anddevelopment, and live entertainment operations. The Amusement Business conducts planning, development,
production and sales of amusement machines, and planning and operation of amusement facilities, etc.
From April 2022, the Visual and Music Business and the Creation Business of the IP Production Unit have been
integrated into the IP Production Business.
In conjunction with this organizational restructure, the reportable segments were changed from the Digital
Business, Toys and Hobby Business, Visual and Music Business, Creation Business, and Amusement Business to
the Digital Business, Toys and Hobby Business, IP Production Business, and Amusement Business.
Segment information of the prior fiscal year is prepared and disclosed based on the reportable segmentclassifications after the change.
2. Method for calculating the amounts of net sales, profit/loss, assets, liabilities and others by reportablesegment
The accounting method used for the business segments reported is the same as the accounting method statedin “Important Information Constituting the Basis for Preparation of Consolidated Financial Statements”
presented in the most recent annual security report (filed on June 20, 2022).
The profit of reportable segments is measured by operating profit.
The inter-segment transactions are based on prevailing market prices- 19 -

3. Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportablesegment
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

DigitalBusiness

Toys and IP Produc- AmuseHobby
tion
ment
Business Business Business

Subtotal

To external customers

373,509361,884

66,776

81,165883,336

5,933

889,270–889,270

Inter-segment sales
and transfers

4,663

11,74013,187

1,178

30,77021,73352,504(52,504)–

Total

378,173373,625

79,964

82,344914,107

27,667

941,774(52,504)

889,270

Segment profit

69,63452,319

8,833

4,051

134,839347

135,186(9,689)125,496

Segment assets

265,662

185,166

86,06254,052590,944

26,463

617,408245,241

862,650

3,096

13,866

1,864

3,125

21,952586

22,5393,187

25,726

Amortization of
goodwill

–

344

1,874

–

2,218

–

2,218

–

2,218

Loss on impairment of
fixed assets

51

600

204

2,122

2,979

15

2,994

–

2,994

Investment inassociates accounted
for using equity
method

–

1,384

–

–

1,384

10,106

11,490–11,490

Increase in property,
plant and equipment
and intangible assets

7,180

16,117

2,683

6,414

32,396

1,650

34,0462,507

36,554

Net sales

OthersDepreciation andamortization

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

The details of adjustment amounts are as follows:(1)

Included in the 9,689 million yen deducted from segment profit as adjustment are an addition of 346
million yen in inter-segment eliminations, and a deduction of 10,035 million yen in corporate
expenses that cannot be allocated to any reportable segment. The corporate expenses are mainly
costs related to the administration division that has not been attributed to a reportable segment.

(2)

Included in the 245,241 million yen added to segment assets as adjustment are a deduction of 50,958
million yen in inter-segment eliminations, and an addition of 296,200 million yen in corporate assetsthat cannot be allocated to any reportable segment. The corporate assets are mainly cash and time
deposits, investment securities, and assets, etc., related to the administration division that has notbeen attributed to a reportable segment.

(3)

Included in the 3,187 million yen added to depreciation and amortization as adjustment are adeduction of 27 million yen in inter-segment eliminations, and an addition of 3,214 million yen in
depreciation and amortization related to the administration division that has not been attributed toa reportable segment.

(4)

Included in the 2,507 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 reportablesegment.
- 20 -

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 21 -

Current Fiscal Year (From April 1, 2022 to March 31, 2023)(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

DigitalBusiness

Toys and IP Produc- AmuseHobby
tion
ment
Business Business Business

Subtotal

To external customers

381,146

432,705

66,300103,172

983,324

6,764

990,089–

990,089

Inter-segment sales
and transfers

4,535

14,786

15,448

1,429

36,19924,54860,748(60,748)–

Total

385,681

447,491

81,748104,6021,019,524

31,313 1,050,837(60,748)

990,089

Segment profit

49,33959,538

10,645

6,038

125,561

1,165

126,726(10,254)

116,472

Segment assets

263,030

217,095

82,49364,775627,395

27,835655,231

271,127

926,358

Depreciation andamortization

4,640

16,562

1,220

3,652

26,074772

26,846

1,825

28,671

Amortization of
goodwill

168

396

1,866

–

2,431

–

2,431

–

2,431

Loss on impairment of
fixed assets

–

58

3

1,188

1,251

–

1,251

–

1,251

Investment inassociates accounted
for using equity
method

–

3,008

–

–

3,008

10,25013,259–13,259

Increase in property,
plant and equipment
and intangible assets

7,570

27,000

1,992

7,210

43,773741

44,514

1,223

45,737

Net sales

Others

Notes: 1.

The “Other” category is a business segment not included in reportable segments under which operations suchas logistics services for each of the Group companies are classified.

2.

The details of adjustment amounts are as follows:(1)

Included in the 10,254 million yen deducted from segment profit as adjustment are an addition of
872 million yen in inter-segment eliminations, and a deduction of 11,126 million yen in corporate
expenses that cannot be allocated to any reportable segment. The corporate expenses are mainly
costs related to the administration division that has not been attributed to a reportable segment.

(2)

Included in the 271,127 million yen added to segment assets as adjustment are a deduction of 32,587
million yen in inter-segment eliminations, and an addition of 303,714 million yen in corporate assetsthat cannot be allocated to any reportable segment. The corporate assets are mainly cash and time
deposits, investment securities, and assets, etc., related to the administration division that has notbeen attributed to a reportable segment.

(3)

Included in the 1,825 million yen added to depreciation and amortization as adjustment are adeduction of 35 million yen in inter-segment eliminations, and an addition of 1,860 million yen in
depreciation and amortization related to the administration division that has not been attributed toa reportable segment.

(4)

Included in the 1,223 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 reportablesegment.

3.

Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 22 -

b. Related Information
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)
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

Americas514,739

Europe158,596

Asia

102,824

Total
113,109889,270

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

Americas73,535

Europe
1,845

Asia

Total

8,727

8,341

92,4503. Information by major customer(¥ million)
Name of customer

Net sales

Apple Inc.

99,579Names of related segments
Digital Business, Toys and Hobby Business, and IP Production
Business

Note: Apple Inc. is a platform-provision company. The actual results of sales to this company are usage fees,
etc. for users (ordinary users) of game services provided by the Group.
Current Fiscal Year (From April 1, 2022 to March 31, 2023)
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

Americas577,998

Europe172,517

Asia

117,526

Total
122,047

990,089

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

Americas85,557

Europe
5,021

Asia
8,377

- 23 -

Total
8,500

107,458

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

Net sales

Apple Inc.

Names of related segments
Digital Business and Toys and Hobby Business

113,099

Note: Apple Inc. is a platform-provision company. The actual results of sales to this company are usage fees,
etc. for users (ordinary users) of game services provided by the Group.

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2022 to March 31, 2023)
This information is omitted because the same information has been presented in Segment Information.

d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)(¥ million)
DigitalBusiness

Toys and
Hobby
Business

IP
Production
Business

Amortized
amount

–

344

1,874

–

–

–

2,218

Unamortizedbalance–792

14,094–––

14,887

Amusement
Business

Eliminations andCorporate

Other

Total

Current Fiscal Year (From April 1, 2022 to March 31, 2023)(¥ million)
DigitalBusiness

Toys and
Hobby
Business

IP
Production
Business

Amortized
amount

168

396

1,866

–

–

–

2,431

Unamortizedbalance

1,565

767

12,227–––

14,561

Amusement
Business

Eliminations andCorporate

Other

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2021 to March 31, 2022)
Not applicable.
Current Fiscal Year (From April 1, 2022 to March 31, 2023)
Not applicable.
- 24 -

Total

(Per-Share Data)

Net assets per share
Basic earnings per share
Notes: 1.
2.

Prior Fiscal Year
(From April 1, 2021 to March 31, 2022)
884.94 yen

Current Fiscal Year
(From April 1, 2022 to March 31, 2023)
987.58 yen

140.70 yen

136.88 yen

Diluted earnings per share is not presented since no potential shares exist.
The Company conducted a share split with a ratio of three shares for every one share of common stock on
April 1, 2023. Net assets per share and basic earnings per share were calculated assuming that the share split
was conducted at the beginning of the previous financial year.

3.

The basis of calculating basic earnings per share is as follows:
Prior Fiscal Year
(From April 1, 2021 to March 31, 2022)

Current Fiscal Year
(From April 1, 2022 to March 31, 2023)

Basic earnings per share
Profit attributable to owners of parent(¥ million)

92,752

90,345––92,752

90,345659,230,755

660,013,710

Amount not applicable to common
stockholders (¥ million)
Profit attributable to owners of parent
available to common stock (¥ million)
Average number of common stock
outstanding (shares)- 25 -

(Significant Subsequent Events)(Share Split and Partial Amendments to the Articles of Incorporation in Conjunction with Share Split)
The Company conducted a share split and made partial amendments to its Articles of Incorporation as of April 1,
2023 pursuant to the resolution at the meeting of the Board of Directors held on February 7, 2023.
1.

Purpose of share split
In accordance with the Purpose of “Fun for All into the Future,” the Bandai Namco Group aims to foster broad,deep, multifaceted connections with society and all stakeholders, such as IP fans around the world, various
business partners and Group employees. The Company aims to further increase the liquidity of its shares andbroaden its shareholder base in addition to connecting with shareholders in an even broader manner by lowering
the price per investment unit through this share split.
2.

Overview of share split(1) Method of share split
The Company conducted a share split at a ratio of three shares for every one share of common stock held byshareholders listed or recorded on the final shareholder register on March 31, 2023, the record date.
(2) Number of shares increased by share split
Total number of issued shares before the share split

222,000,000 shares

Number of shares increased by the share split

444,000,000 shares

Total number of issued shares after the share split

666,000,000 shares

Total number of shares authorized to be issued after the share split

2,500,000,000 shares(3) Timetable of share split
Date of public notice of record date

March 13, 2023

Record date

March 31, 2023

Effective date

April 1, 2023

(4) Effect on per-share information
The effect of the share split on per-share data is stated in (Per Share Data).
3.

Partial amendments to the Articles of Incorporation in conjunction with share split(1) Reason for the amendments
As a result of this share split, pursuant to the provisions of Article 184, Paragraph 2 of the Companies Act, thetotal number of shares authorized to be issued in Article 5 of the Companyʼs Articles of Incorporation wasamended effective April 1, 2023.

- 26 -

(2) Detail of the amendments
The amendments are as follows.
(Amendments shown by underlines.)
Before amendments

After amendments(Total number of shares authorized to be issued)(Total number of shares authorized to be issued)

Article 5
The total number of shares authorized to beissued by the Company shall be
1,000,000,000 shares.

Article 5
The total number of shares authorized to beissued by the Company shall be
2,500,000,000 shares.

(3) Timetable of the amendments to the Articles of Incorporation

4.

Date of resolution of the Board of Directors

February 7, 2023

Effective date of the amendments to the Articles of Incorporation

April 1, 2023

Other
(1) Change in the amount of capital
There will be no change to the amount of the Companyʼs capital as a result of the share split.
(2) Dividends
As the effective date for this share split is April 1, 2023, the year-end dividends for the fiscal year ended March
31, 2023, the record date for which is March 31, 2023, are based on the number of shares before the share split.
There is no change to the Companyʼs basic policy for shareholder returns. The Company continues to rank
the return of profits to shareholders as one of its highest priorities in its management. The Company aims tofurther strengthen the Groupʼs competitiveness and, while maintaining a sound financial status, to achieve
regular distributions of dividends and improvement in the Companyʼs corporate value. Specifically, the Company
follows a basic policy of providing a return to shareholders that targets a total return ratio of 50% or more basedon stable dividend payments of 2% of DOE (dividends on equity). Under this policy, the Company strives tomaintain long-term and stable dividends and be more aware of capital cost.

- 27 -

4. Other

Changes in Directors and Audit & Supervisory Board Members
1) Change in Representative
Not applicable.
2) Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Director
Director (Part-time) Nao Udagawa (current position: Executive Officer)
Retiring Director
Director Yasuo Miyakawa
3) Scheduled Date of Assuming Office and Retirement
June 19, 2023
4) Responsible Area of Directors (Effective June 19, 2023)
Masaru Kawaguchi

President and Representative Director, Group CEO

Yuji Asako

Director, CFO, CISO, and CSO (Chief Sustainability Officer) in charge of Corporate Planning Division
and Group Administrative Headquarters

Nobuhiko Momoi

Director and General Manager of Group Business Strategy Department

Nao Udagawa

Director (Part-time) in charge of Digital Business of Entertainment Unit

Kazuhiro Takenaka

Director (Part-time) in charge of Toys and Hobby Business of Entertainment Unit

Makoto Asanuma

Director (Part-time) in charge of IP Production Unit

Hiroshi Kawasaki

Director (Part-time) in charge of Amusement Unit

Shuji Ohtsu

Director (Part-time) and CIO in charge of Bandai Namco Business Arc Inc.

Koichi Kawana

Director (Part-time and Outside)

Toshio Shimada

Director (Part-time and Outside)

Masataka Nagaike

Director, Audit & Supervisory Committee Member

Toru Shinoda

Director, Audit & Supervisory Committee Member (Outside)

Satoko Kuwabara

Director, Audit & Supervisory Committee Member (Part-time and Outside)

Takayuki Komiya

Director, Audit & Supervisory Committee Member (Part-time and Outside)- 28 -