Bandai Namco Holdings Inc.
Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2023

August 5, 2022

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/)
August 5, 2022

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2023 (Japanese GAAP)
Representative:
Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director
Scheduled filing date of the quarterly security report:
August 8, 2022
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2022)

First Quarter of the Fiscal YearEnding March 31, 2023
First Quarter of the Fiscal Year
Ended March 31, 2022

Net sales¥ million
216,241%21.5

178,049

22.8

Profit attributable toowners of parent¥ million%
37,01977.0(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
44,39364.3
51,274
78.3
27,021

35.7

Basic earnings per share

28,75440.9

Diluted earnings per
share¥First Quarter of the Fiscal Year
168.29Ending March 31, 2023
First Quarter of the Fiscal Year
20,91758.7
95.22
Ended March 31, 2022
(Note) Comprehensive income: 51,269 million yen [108.9%] (FY2023.3 1Q), 24,541 million yen [49.6%] (FY2022.3 1Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of June 30, 2022
841,092
594,143
70.6
As of March 31, 2022
862,650
584,233
67.7(Reference) Equity: 593,890 million yen (as of June 30, 2022), 583,995 million yen (as of March 31, 2022)¥––

2. Cash Dividends
End offirst quarterEnd ofsecond quarter
¥
¥
–
24.00
–
27.00

Annual cash dividends
End ofFiscalthird quarteryear-end¥¥–
188.00

Total¥
Fiscal Year Ended March 31, 2022
212.00Fiscal Year Ending March 31, 2023
Fiscal Year Ending March 31, 2023
–
27.00
54.00
(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2023: No
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March
31, 2023, 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, 2023, will be considered by the Company based on the basic policy on the
distribution of profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable to
Basic earnings
profitprofitownersper shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
430,000
9.2
72,00016.6
80,00024.8
57,00044.2
259.12September 30, 2022
Full Fiscal Year880,000(1.0)
100,000(20.3)
101,000(24.4)
70,000(24.5)
318.22(Note) Revision to the projections: Yes
Consolidated projections for the six months ending September 30, 2022 (announced on May 11, 2022) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions toConsolidated Projections” announced today (August 5, 2022).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 11 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: 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 “(3) Notes to Consolidated Financial Statements, (Changes in Accounting
Policies)” of “2. Consolidated Financial Statements and Significant Notes” on page 11 of the attached material.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2022
222,000,000 shares
As of March 31, 2022
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
2,022,880 shares
As of June 30, 2022
As of March 31, 2022
2,023,206 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,976,829 shares
For the First Quarter of the Fiscal Year Ending March 31, 2023
For the First Quarter of the Fiscal Year Ended March 31, 2022
219,673,187 shares

* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public
accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on 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 “(3) Explanation
Regarding Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated
Results for the First Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on August 5, 2022.

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

2. Consolidated Financial Statements and Significant Notes ................................................... 7(1) Consolidated Balance Sheets ............................................................................................................................................ 7(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ............................. 9(Consolidated Statements of Operations) ........................................................................................................................ 9(Consolidated Statements of Comprehensive Income).................................................................................................. 10(3) Notes to Consolidated Financial Statements ................................................................................................................. 11(Notes on Premise of Going Concern) ............................................................................................................................. 11(Notes on Significant Changes in the Amount of Stockholdersʼ Equity) ........................................................................ 11(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) ........................ 11(Changes in Accounting Policies) .................................................................................................................................... 11(Segment Information) .................................................................................................................................................... 12- 1 -1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2023, the continued spread of the novel
coronavirus disease (COVID-19), changes in the social situation, and spread of digital technologies, among other factors,
affected both Japanese and overseas economies and societies, as well as customer lifestyles and preferences. Although
we saw a trend of economic recovery with measures to prevent the spread of infection being promoted worldwide, thefuture remained uncertain overall.
Under such circumstances, the Bandai Namco Group (“the Group”) has been giving the highest priority to the safetyof our various stakeholders, including Group employees and their families and our customers, while continuing ourmeasures to prevent the spread of COVID-19. From April 2022, with Purpose being the ultimate definition of who we are
as a Group and the introduction of the new logo, we began our new three-year Mid-term Plan. In the Mid-term Plan,
toward the aims of the Bandai Namco Group based on our Purpose, we have established a mid-term vision of “Connect
with Fans” that aims to constantly meet the needs of global fans, a wide range of business partners, Group employees,
and communities around the world and to foster deep, broad, multifaceted connections. As key strategies, we arepromoting our “IP axis strategy,” “personnel strategy,” and “sustainability.” By propelling the emphasis measures, wewill take advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning characters andother intellectual property) to further evolve the “IP axis strategy” that aims to maximize IP value through the provisionof the optimal products and services at the optimal possible times. We will also strengthen the global development of
the “IP axis strategy,” enhancing our sense of unity and collective strength under the ALL BANDAI NAMCO concept, inorder to achieve continuous growth.
The Group’s revenue for the first quarter (three months) exceeded that of the same period of the previous fiscal year,
as we swiftly implemented various measures to adapt to the changes in customer lifestyles and preferences, and theDigital Business, the Toys and Hobby Business and the Amusement Business enjoyed favorable performance. Profit
enjoyed large growth due to strong repeat sales of home video games with high profit margins. In addition, due to weakyen, there was also an increase in foreign exchange gains associated with transactions denominated in foreign
currencies.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 216,241 million
yen (year-on-year increase of 21.5%), operating profit of 44,393 million yen (year-on-year increase of 64.3%), recurring
profit of 51,274 million yen (year-on-year increase of 78.3%), and profit attributable to owners of parent of 37,019 million
yen (year-on-year increase of 77.0%).
Operating results by segment are as follows.
Effective from the first quarter of the fiscal year ending March 31, 2023, the Group changed the classification of its
reportable segments. Consequently, in the following year-on-year comparisons, the figures for the same period of theprevious fiscal year have been restated into the figures for the classifications after the change.
Digital Business
As for the Digital Business, in home video games, while there were no launches of big new titles during the firstquarter (three months), repeat sales were strong for existing titles for worldwide distribution such as ELDEN RING
launched in the previous fiscal year, contributing to results. In network content, sales were strong due to ongoingmeasures targeting users for key titles and for titles for which we launched service in the previous fiscal year.
As a result, net sales in the Digital Business were 89,599 million yen (year-on-year increase of 34.1%), and segment
profit was 29,411 million yen (year-on-year increase of 148.7%).
Toys and Hobby Business
As for the Toys and Hobby Business, products for the mature fan base such as plastic models of the Mobile Suit
Gundam series, collectible figures, and character lotteries performed favorably in Japan and overseas mainly due to thesuccessful outcomes produced by sales, marketing, and expansion of the product lineup. In Japan, long-established IP
and new IP toys, as well as trading card games, confectionery, capsule toys and other toy related products were popular.
As a result, net sales in the Toys and Hobby Business were 94,872 million yen (year-on-year increase of 14.2%), andsegment profit was 14,363 million yen (year-on-year decrease of 0.9%).
IP Production Business
As for the IP Production Business, in relation to IPs such as the Mobile Suit Gundam series and the LoveLive! series,
we produced video works, sold visual and music package software, and held live events and streamed video works, but- 2 -as for the video works, the contribution to profits was limited due to the business model of recording initial expenses inadvance. Licensing revenue fell short of that of the same period of the previous fiscal year when IP-related licensing
revenue was strong.
As a result, net sales in the IP Production Business were 15,686 million yen (year-on-year decrease of 10.2%), andsegment profit was 1,085 million yen (year-on-year decrease of 66.3%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19 in some region, recovery was seen inboth Japan and overseas, with net sales of existing amusement facilities in Japan for the first quarter (three months),amounting to 127.1% that of the same period of the previous fiscal year. The Amusement Machines Sales Business also
performed favorably in Europe and the U.S. mainly. For the Amusement Business, in addition to continuing to improve
efficiency, we will aim to strengthen the revenue base by promoting initiatives that only the Bandai Namco Group canoffer, such as strengthening the use of Group products and services.
As a result, net sales in the Amusement Business were 23,022 million yen (year-on-year increase of 51.2%), andsegment profit was 2,113 million yen (segment loss for the same period of the previous fiscal year was 662 million yen).
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 7,027 million yen (year-on-year increase of 5.6%), and segment profit was 131
million yen (year-on-year decrease of 10.9%).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2023, total assets stood at 841,092 million yen, adecrease of 21,557 million yen from the end of the previous fiscal year. The main factor was a decrease of 36,572 million
yen in cash and time deposits mainly due to cash dividends paid, despite increases of 10,774 million yen in finishedgoods and merchandise, and 8,703 million yen in work in process.
Total liabilities amounted to 246,949 million yen, a decrease of 31,467 million yen from the end of the previous fiscal
year. The main factors were decreases of 8,403 million yen in trade payables, 9,298 million yen in accrued income taxes,
and 14,476 million yen in other current liabilities mainly due to a decrease in accounts payable-other.
Total net assets stood at 594,143 million yen, an increase of 9,909 million yen from the end of the previous fiscal year.
The main factors were increases of 3,754 million yen in valuation difference on available-for-sale securities, net of tax
and 9,674 million yen in foreign currency translation adjustments, despite a decrease of 4,349 million yen in retained
earnings mainly due to cash dividends paid.
As a result, the equity ratio became 70.6% compared with 67.7% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, the Group expects uncertainty to continue in various regions around the world. We also expect thechanges in market environment as well as in customers’ 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 an IP axis strategy, the Bandai Namco Group will enhance our sense of unityand collective strength under the ALL BANDAI NAMCO concept, while utilizing the characteristics of each business. From
April 2022, as Purpose being the ultimate definition of who we are as a Group and the introduction of the new logo, tomaintain continuous growth over medium to long term for the aims under our Purpose, the new three-year 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.

- 3 -<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 the value of all
our products, services, and labels under one logo, make the Group’s 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
fans and 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 deep, broad, 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 deep, broad, 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 deep, broad, 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 for- 4 -connections 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
will build deep, broad, 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 of different skills, individual characteristics and values can thrive. We will further
focus on recruiting and promoting individuals regardless of whether they are new graduates or mid-career hires andregardless of gender or nationality, in addition to which we will focus on developing systems and environments thatenable a diverse array of people to thrive and work in a way that is both physically and mentally 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 and diverse ways to work.
Sustainability: Connecting to a future of smiles
In accordance with our Purpose and the Bandai Namco Group Sustainability Policy, the Bandai Namco Groupwill work together with fans to advance sustainability activities for the realization of a sustainable society in ways
such as working on the action plan in line with the newly specified material issues.
<Specified 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 visualbusiness within the IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., andBandai Namco Rights Marketing Inc.

- 5 -6) Numerical targets, shareholder return policy·

Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales: 1,100.0 billion yen
Consolidated operating profit: 125.0 billion yen
ROE: 12% or moreIn the future, 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 deep, broad, 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.
For the consolidated projections for the second quarter (six months) of the fiscal year ending March 31, 2023, theconsolidated projections announced on May 11, 2022 have been revised as stated in the table below in light of thesignificant progress seen in the actual results for the first quarter (three months) of the fiscal year ending March 31, 2023,
the current market environment, the marketing plans of the products and services in the second quarter, etc. The
consolidated projections for the full fiscal year are not revised in light of factors that include the planned launches ofmajor titles in home video games and the coming Christmas and New Year selling season in the third quarter (ninemonths) and thereafter, and the continuation of uncertainties in the market environment mainly due to the continuing
COVID-19 pandemic both in Japan and overseas, as well as the impact of fluctuations in currency exchange rates. We
will make further disclosures in the future based on a review of the figures in the consolidated projections for the full
fiscal year.
Revisions to consolidated projections for the second quarter (six months) of the fiscal year ending March 31, 2023
(April 1, 2022 to September 30, 2022)
Profitattributable
Basic
OperatingRecurring
Net salestoearnings per
profitprofitowners ofshareparent¥ million¥ million¥ million¥ million¥
Previous projections (A)400,000
46,00046,50033,000150.02
Revised projections (B)430,000

72,00080,00057,000259.12

Change in amount (B-A)

30,00026,00033,50024,000

–

7.5

56.5

72.0

72.7

–

393,646

61,75164,111

39,527179.92

Change (%)(Reference)
Results for the second quarter (sixmonths) of the previous fiscal year
(ended March 31, 2022)- 6 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current 1st Quarter(As of June 30, 2022)

AssetsCurrent assets
Cash and time deposits

279,401

242,828

Trade receivables and contract assets

122,742

98,455

Finished goods and merchandise

33,051

43,826Work in process

86,292

94,995

Raw materials and supplies

4,905

5,241

Other current assets

52,81453,839Allowance for doubtful receivables(2,001)(1,864)

Total current assets

577,206

537,324

92,450101,404

14,887

14,363Fixed assets
Property, plant and equipment
Intangible assets
Goodwill
Other intangible assets

19,54020,494

Total intangible assets

34,42834,857

Investment securities

113,261

119,829

Other investments and assets

Investments and other assets
46,08848,517

Allowance for doubtful receivables

(784)

(840)

Total investments and other assets

158,565

167,506

285,443

303,768

862,650

841,092

Total fixed assets
Total assets- 7 -(¥ million)
Prior Fiscal Year(As of March 31, 2022)

Current 1st Quarter(As of June 30, 2022)

Liabilities
Current liabilities
Trade payables

99,81091,406

Short-term borrowings

10,81010,995

Accrued income taxes

22,891

13,592

Provision

3,745

1,685

Other current liabilities

106,104

91,627

Total current liabilities

243,362

209,308

10,236

10,194249

249

Net defined benefit liability

5,261

4,984

Other long-term liabilities

19,30622,212Long-term liabilities
Long-term borrowings
Provision

Total long-term liabilities
Total liabilities

35,05337,641

278,416

246,949

Net assets
Stockholdersʼ equity
Common stock

10,00010,000Capital surplus

52,57452,574Retained earnings

482,147

477,798

Treasury stock(2,140)(2,141)

Total stockholdersʼ equity

542,581538,23145,037

48,791

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

901

1,601

Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments

1,886

11,560Remeasurements of defined benefit plans, net of tax(2,394)(2,278)

Total accumulated other comprehensive income

41,41355,658237

252

584,233

594,143862,650

841,092

Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st Quarter(From April 1, 2021
to June 30, 2021)

Current 1st Quarter(From April 1, 2022
to June 30, 2022)

Net sales

178,049

216,241

Cost of sales

103,278

119,558

Gross profit

74,771

96,683

Selling, general and administrative expenses

47,74952,289Operating profit

27,021

44,393Non-operating income
Foreign exchange gains

352

4,669

Other non-operating income

1,487

2,913

Total non-operating income

1,840

7,582

Loss on valuation of derivatives–

595

Other non-operating expenses

107

106

Total non-operating expenses

107

702

28,754

51,274

182

74

Other extraordinary income

2,739

18

Total extraordinary income

2,922

92

Loss on impairment of fixed assets

182

99

Extra retirement payments

946–

Loss on temporary store closures and other related to
COVID-19445

57

Other extraordinary loss

200

14

Non-operating expenses

Recurring profit
Extraordinary income
Subsidies for employment adjustment and other related to
COVID-19

Extraordinary loss

Total extraordinary loss

1,774

171

Profit before income taxes

29,902

51,195

Income taxes

8,978

14,170

Profit20,92337,0245

5

20,91737,019Profit attributable to non-controlling interests
Profit attributable to owners of parent- 9 -(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st Quarter(From April 1, 2021
to June 30, 2021)
ProfitCurrent 1st Quarter(From April 1, 2022
to June 30, 2022)

20,92337,024

2,537

3,747

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

(368)

702

Foreign currency translation adjustments

1,322

9,674

Remeasurements of defined benefit plans, net of tax

146

115

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

(18)

4

Total other comprehensive income
Comprehensive income

3,618

14,24424,541

51,26924,536

51,2635

5Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 10 -

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholdersʼ Equity)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current first quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.
(Changes in Accounting Policies)(Application of US GAAP Accounting Standards Update (ASU) No. 2016-02 “Leases”)
Effective from the first quarter of the fiscal year ending 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 first quarter under review, current assets
increased by 919 million yen, property, plant and equipment increased by 1,959 million yen, current liabilities increased
by 226 million yen, and long-term liabilities increased by 2,654 million yen. Furthermore, the application of the update
had only a minimal effect on operating profit, recurring profit, and profit before income taxes in the three months ended
June 30, 2022. Moreover, the application had no impact on the opening balance of retained earnings.
(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) effective from the beginning of the first quarter of the fiscal year ending March
31, 2023, and it has applied the new accounting policy provided for in the Implementation Guidance on AccountingStandard for Fair Value Measurement prospectively in accordance with the transitional treatment provided for inparagraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement. There is no
impact on the quarterly consolidated financial statements.

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(Segment Information)
I. Prior 1st Quarter (From April 1, 2021 to June 30, 2021)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)

178,049–

178,049

5,186

11,200(11,200)–

182,593

6,656

189,250(11,200)

178,049

28,885

147

29,032(2,011)

27,021

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

66,00580,871

14,66015,042

176,5791,469Inter-segment sales
and transfers

829

2,187

2,817

179

6,013

Total

66,834

83,05917,477

15,221

Segment profit (loss)

11,827

14,498

3,221

(662)

Total

Net sales
To externalcustomers

Notes: 1.
2.

3.

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.
Included in the 2,011 million yen deducted from segment profit (loss) as adjustment are an addition of 9
million yen in inter-segment eliminations, and a deduction of 2,020 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

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

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II. Current 1st Quarter (From April 1, 2022 to June 30, 2022)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)

216,241–

216,241

5,393

13,967(13,967)–

223,181

7,027

230,209(13,967)

216,241

46,973

131

47,104(2,711)

44,393

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

To externalcustomers

88,561

91,67011,871

22,504

214,6071,634Inter-segment sales
and transfers

1,038

3,202

3,815

518

8,574

Total

89,59994,872

15,68623,022

Segment profit

29,411

14,363

1,085

2,113

Total

Net sales

Notes: 1.
2.

3.

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.
Included in the 2,711 million yen deducted from segment profit as adjustment are an addition of 90 million
yen in inter-segment eliminations, and a deduction of 2,801 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.
3. Information regarding changes to reportable segments, etc.
(Change to reportable segments)
From the first quarter of the fiscal year ending March 31, 2023, Units of the Group comprising operatingcompanies were restructured such that 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 first quarter (from April 1, 2021 to June 30, 2021) is prepared and disclosed
based on the reportable segment classifications after the change.

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