Consolidated Financial Report for the Fiscal Year Ended
March 31, 2010

May 7, 2010DISCLAIMER- NAMCO BANDAI Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.
- This document does not include the non-consolidated financial statements of NAMCO BANDAI Holdings Inc.

-1-

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
May 7, 2010

Consolidated Financial Report for the Fiscal Year Ended March 31, 2010
Representative:
Contact:
Date of Ordinary General Meeting of Shareholders:
Scheduled starting date for dividend payments:
Scheduled filing date of the annual security report:

Shukuo Ishikawa, President and Representative Director
Yuji Asako, Executive Officer, Corporate Planning Division
June 21, 2010
June 22, 2010
June 22, 2010

1. Consolidated Results for the Fiscal Year Ended March 31, 2010
(April 1, 2009 to March 31, 2010)(Millions of yen with fractional amounts discarded, unless otherwise noted)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net sales

Fiscal Year Ended
March 31, 2010
Fiscal Year Ended
March 31, 2009

¥ million
378,547%(11.2)¥ million
1,883%(91.6)¥ million
1,907%(92.2)

426,399(7.4)

22,348(33.1)

24,513(32.3)Net income

Fiscal Year Ended
March 31, 2010
Fiscal Year Ended
March 31, 2009

Net income per share

Net income per share(diluted)¥ million(29,928)%–¥(123.98)¥–

11,830(63.8)

47.95

47.88

ROE
(Net income / Net assets)

ROA(Recurring income /Total assets)

Operating margin(Operating income /Net sales)%%
Fiscal Year Ended(12.4)
0.6
March 31, 2010
Fiscal Year Ended
4.3
6.3
March 31, 2009
(Reference)
Gain or loss from the equity method: 0 million yen (FY2010.3), 360 million yen (FY2009.3)

%
0.5
5.2

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2010
325,935
229,012
69.5
As of March 31, 2009
363,444
260,579
70.9(Reference)
Equity: 226,666 million yen (as of March 31, 2010), 257,645 million yen (as of March 31, 2009)-2-

Net assets
per share¥
938.74
1,067.71

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
10,581¥ million(9,863)¥ million(15,276)

Cash and cash
equivalents at endof period¥ million
97,776

19,301(10,327)(16,529)

110,037

Fiscal Year Ended
March 31, 2010
Fiscal Year Ended
March 31, 2009
2. Dividend

Dividend record dates

End offirstquarter¥–

Dividend per share
End of
End ofFiscalsecondthird
year-endquarterquarter
¥
¥
¥
12.00
–
12.00

Total
Payout ratio
Dividend /dividend (Consolidated)
Net assets
payment(Consolidated)(Full year)¥ million
%
%
5,853
50.1
2.2

Total

¥
Fiscal Year Ended
24.00
March 31, 2009
Fiscal Year Ended
–
12.00
–
12.00
24.00
5,797
–
2.4
March 31, 2010
(Projection)
–
12.00
–
12.00
24.00
–
Fiscal Year Ending
March 31, 2011
Note: The stable portion of the dividend is given in the projection for the end of second quarter and the fiscal year-end for the Fiscal YearEnding March 31, 2011 based on the Company’s basic policy regarding appropriation of profits. Thus, the actual fiscal year-end
dividend will be decided according to the consolidated financial results.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2011
(April 1, 2010 to March 31, 2011)
Net sales

Six Months Ending
September 30, 2010
Full Year¥ million
175,000%
1.3

Operatingincome¥ million(1,000)400,000

5.7

11,000%–483.9

Recurringincome¥ million(1,000)10,500(Percentages indicate year-on-year changes.)
Net income
Net income
per share% ¥ million%¥–(3,500)–(14.50)

450.4

4,500

–

18.64

4. Other Information(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in Scope ofConsolidation): Yes
Included: 4 companies (Distribution Partners S.A.S., Atari Asia Holdings Pty.Ltd., Atari Australia Pty.,Ltd., Atari UK Ltd.)
Excluded: 1 company (Bandai Networks Co., Ltd.)
Note: For more details, please refer to the section of “2. The BANDAI NAMCO Group” on pages 13-20.
(2) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Consolidated Financial Statements
a. Changes due to revisions to accounting standards and other regulations: Yes
b. Changes due to other reasons: Yes
Note: For more details, please refer to the section of “Changes in the Important Information Constituting the Basis for Preparation ofConsolidated Financial Statements” on page 43.
(3) Number of Issued Shares (Common Stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2010

250,000,000 shares

As of March 31, 2009

250,000,000 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2010

8,540,776 shares

As of March 31, 2009

8,694,796 shares

Note: Please refer to the section of “Per Share Data” on page 65 for the number of shares used to calculate “Net income per share”.

-3-(Reference) Non-consolidated Financial Statements
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2010
(April 1, 2009 to March 31, 2010)(1) Non-consolidated Operating Results(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net sales

Fiscal Year Ended
March 31, 2010
Fiscal Year Ended
March 31, 2009

¥ million
9,608%(59.5)¥ million
6,976%(66.6)¥ million
6,465%(68.9)

23,754

98.7

20,869146.5

20,773144.7

Net income

Fiscal Year Ended
March 31, 2010
Fiscal Year Ended
March 31, 2009

Net income per share

Net income per share(diluted)¥ million
7,296%(63.4)

¥
30.21

¥
30.20

19,936

161.5

80.72

80.62

(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2010
329,222
255,757
77.4
As of March 31, 2009
306,579
252,893
82.0(Reference)
Equity: 254,947 million yen (as of March 31, 2010), 251,425 million yen (as of March 31, 2009)

Net assets
per share¥
1,055.39
1,041.48*Proper use of earnings projections, and other special matters
The above projections are based on information available to the Company as of the date of the announcement of these materials and on
assumptions pertaining to uncertain factors, which may affect future operating results, as of the date of the announcement of thesematerials. Actual business results may differ from the projections due to a number of factors in the future. Please refer to the section of“(1) Analysis on Results of Operations” of “1. Results of Operations” on pages 5-9 for matters pertaining to the earnings projections.

-4-1. Results of Operations(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2009 to March 31, 2010)
In this fiscal year, during the global economic recession, there were visible signs of a partial recovery in the economy in
the context of government deployment of emergency economic stimulus measures and other factors. However, economic
conditions remained harsh due to, among other things, weakness in the self-sustainability of the recovery and highunemployment rates. Reduced consumption had a substantial impact on the entertainment industry, causing continued
uncertainty in the industry as a whole.
In this environment, the Group has worked to put in place the global management foundation adopted in the three-year
Mid-term Business Plan that has been implemented since April 2009. Moreover, prior to launching the “BANDAI
NAMCO Group Restart Plan” in April 2010, for the purpose of a more assured implementation of the global managementfoundation, the Group carried out steps, including a review of its personnel structure, to improve profitability.
On the business front, although long-established character toys in the Toys and Hobby Business posted strong
performance figures in Japan, amidst weak individual consumption world-wide, overall results for the Group were harsh,especially in the Game Contents Business.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 378,547 million yen (year-on-year
decrease of 11.2%), operating income of 1,883 million yen (year-on-year decrease of 91.6%), and recurring income of
1,907 million yen (year-on-year decrease of 92.2%). Moreover, the Group recorded losses on, among other things, theamusement facilities scheduled to be closed in the following fiscal year and recorded expenses related to the review of its
personnel structure. Further, as a result of strict examination of the future business plans of certain subsidiaries, animpairment loss on goodwill was recognized, and there was a withdrawal of a fixed amount from deferred tax assets. As aresult, the Group recorded a net loss of 29,928 million yen (compared with a net income of 11,830 million yen in theprevious fiscal year).
An overview of each business is presented as follows.

(¥ million)

Operating Results by Business Segment
Year Ended
March 31,2010

Net SalesYear Ended
March 31,2009

Toys and Hobby

148,843

165,725

Decrease of
16,881

Operating Income
Year Ended
ChangeMarch 31,2009
Decrease of
10,786
11,533746

Game Contents

137,528

149,891

Decrease of
12,362

Loss of
6,845

11,609Decrease of
18,454Visual and Music Content

29,236

34,638Decrease of
5,402

Loss of871

38

Decrease of910

Amusement Facility

65,362

77,269Decrease of
11,907284

393

Decrease of108

Other Businesses

17,452

19,009Decrease of
1,556

358

565

Decrease of
206

Eliminations andCorporate(19,876)(20,133)

Increase of257(1,828)(1,792)

Decrease of36

Consolidated

378,547

426,399

Decrease of47,852

1,883

22,348Decrease of
20,464-5-

ChangeYear Ended
March 31,2010

Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys, such as the MASKED RIDER series and FRESH
PRETTY CURE !, posted strong performance figures in Japan, mainly during the Christmas shopping season. Also,
Tamagotchi, for which there were tie-ups to a made-for-television animation, and the DATA CARDDASS MASKED
RIDER BATTLE: GANBARIDE became popular. In addition, HYPER YO-YO and VooV, both of which were launched to
expand the target population for the purpose of aiming for the overwhelming position of No. 1 in Japan, made favorable
starts.
Overseas, despite the strong sales of BEN10 character toys, overall performance was weak, especially in theAmericas where the competitive environment was particularly fierce.
As a result, net sales in the Toys and Hobby Business were 148,843 million yen (year-on-year decrease of 10.2%),and operating income was 10,786 million yen (year-on-year decrease of 6.5%).

Game Contents BusinessIn the Game Contents Business, although some signs of recovery were discernible for home video game software,such as by the fact that GOD EATER for PlayStation Portable was launched in Japan in the fourth quarter and proved
popular, this business segment faced difficulties throughout the fiscal year mainly with small to medium size game
titles. Overseas, Tekken 6, released for the PlayStation 3 and Xbox 360, was a hit. However, a lack of other hit titles in a
depressed market kept performance sluggish.
As for arcade game machines, despite the launch of the force-feedback battle party game TANK! TANK! TANK! inthis fiscal year and repeat sales of machines launched in the previous fiscal year, performance did not reach the level ofthe previous fiscal year, when large medal machines and other machines were popular.
In addition, amortization of goodwill (1,263 million yen from July 2009 through March 2010) was recorded withrespect to NAMCO BANDAI Partners S.A.S. (home video game software sales company), which became a wholly
owned subsidiary of the Company this fiscal year.
As a result, net sales in the Game Contents Business were 137,528 million yen (year-on-year decrease of 8.2%),and operating loss was 6,845 million yen (compared with an operating income of 11,609 million yen in the previous
fiscal year). Note that due to changes in the business segments in this fiscal year, in order to make year-on-yearcomparisons, the results of the previous fiscal year were reconfigured to reflect the post-change segments.

Visual and Music Content BusinessIn the Visual and Music Content Business, GUNDAM 30th ANNIVERSARY COLLECTION, Psalms of Planets
Eureka Seven, and other visual package software were popular in Japan. In addition, application of the new businessmodel, which called for simultaneous worldwide development through special theater screenings, packaged productsales, and on-demand distribution, helped to make the first episode of Mobile Suit Gundam UC (Unicorn) a huge hit in
the fourth quarter. However, amidst a stagnant package software market, the visual package software business as awhole faced steep challenges. On the other hand, sales of music package software were solid, particularly foranimation-related music. Overseas, the profitability of business in the Americas improved through greater efficiency ofthe business.
As a result, net sales in the Visual and Music Content Business were 29,236 million yen (year-on-year decrease of
15.6%), and operating loss was 871 million yen (compared with an operating income of 38 million yen in the previous-6-fiscal year).

Amusement Facility BusinessIn the Amusement Facility Business, implementation of different marketing strategies for each customer segment inJapan led to glimmers of a gradual recovery in sales at existing facilities, but their sales remained sluggish throughout
the fiscal year, at 91.2% of the figure for the previous fiscal year. Costs, on the other hand, were reduced as a result of
the strategic closure or sale of 63 facilities, most of which were unprofitable, in the previous fiscal year, and theongoing efforts to improve business efficiency. Overseas, despite efforts to improve operational efficiency in theAmericas and business development in Europe centered on complex facilities, overall performance was sluggish.
As a result, net sales in the Amusement Facility Business were 65,362 million yen (year-on-year decrease of 15.4%),
and operating income was 284 million yen (year-on-year decrease of 27.5%).
Facilities as of March 31, 2010
Directly Managed

Revenue-Sharing

Facilities

Facilities

289

896

Other

Total

5

1,190

Other Businesses
Other Businesses consist of companies that conduct operations, such as logistics support and building management
for each of the Group’s strategic business units. During this fiscal year, efforts were made to improve the efficiency ofthese operations related to group support. However, due to a decline in the amount of work handled, performance did
not reach the level of the previous fiscal year.
As a result, net sales in the Other Businesses were 17,452 million yen (year-on-year decrease of 8.2%), andoperating income was 358 million yen (year-on-year decrease of 36.6%).

(¥ million)

Operating Results by Geographic Segment
Net Sales

Operating Income

Year Ended
March 31,2010

Year Ended
March 31,2009

ChangeYear Ended
March 31,2010

Year Ended
March 31,
2009

Japan

297,978

333,534

Decrease of
35,556

5,537

15,863

Decrease of
10,326

Americas32,85250,933

Decrease of
18,081

Loss of
3,324

872

Decrease of
4,197

Europe46,91645,020

Increase of
1,895

Loss of388

6,248

Decrease of
6,636

Asia

38,69137,377

Increase of
1,313

2,768

2,289

Increase of478

Eliminations andCorporate(37,891)(40,466)

Increase of
2,575(2,708)(2,926)

Increase of
218

Consolidated

378,547

426,399

Decrease of47,852

1,883

22,348Decrease of
20,464-7-

ChangeJapanIn the Toys and Hobby Business, mainly during the Christmas shopping season, long-established character toys
such as the MASKED RIDER series and FRESH PRETTY CURE !, as well as Tamagotchi and the DATA CARDDASS
among others became popular. In the Game Contents Business, although some signs of recovery were discernible forhome video game software, such as by the fact that GOD EATER for PlayStation Portable proved popular, this businesssegment faced difficulties throughout the fiscal year mainly with small to medium size game titles.
In the Visual and Music Content Business, amidst a stagnant package software market, the visual package software
business faced steep challenges. In the Amusement Facility Business, although sales at existing facilities were weak,
costs were reduced as a result of the efforts to improve business efficiency.
As a result, net sales in Japan were 297,978 million yen (year-on-year decrease of 10.7%) and operating income
was 5,537 million yen (year-on-year decrease of 65.1%).

Americas
In the Toys and Hobby Business, the BEN10 character toys performed solidly, but overall the business struggled
due to intensified market competition. The Game Contents Business struggled due to a lack of hit titles amongst home
video game software amidst a stagnant market. On the other hand, efforts on cutting costs by improving operational
efficiency continued in the Visual and Music Content Business and the Amusement Facility Business.
As a result, net sales in Americas were 32,852 million yen (year-on-year decrease of 35.5%) and operating loss was
3,324 million yen (compared with an operating income of 872 million yen in the previous fiscal year).

EuropeIn the Toys and Hobby Business, although the BEN10 character toys became popular, overall business was sluggish
in the midst of a difficult market environment. In the Game Contents Business, although Tekken 6, released for the
PlayStation 3 and Xbox 360, was a hit, the segment struggled due to a lack of other hit titles amongst home video gamesoftware in a depressed market, and the Amusement Facility Business performed weakly under the impact of theeconomic downturn. In addition, NAMCO BANDAI Partners S.A.S. (home video game software sales company)
became a wholly owned subsidiary of the Company this fiscal year, and while sales increased, amortization of goodwill(1,263 million yen from July 2009 through March 2010) was recorded.
As a result, net sales in Europe were 46,916 million yen (year-on-year increase of 4.2%) and operating loss was 388
million yen (compared with an operating income of 6,248 million yen in the previous fiscal year).

Asia
In the Toys and Hobby Business, in addition to long-established character products such as Mobile Suit Gundam,
the BEN10 character toys became popular. Also, in the Amusement Facility Business, performance was solid,
particularly with respect to Wonder Park Plus, a large-scale amusement facility in Hong Kong. In addition, NAMCO
BANDAI Partners S.A.S. (home video game software sales company) became a wholly owned subsidiary of theCompany this fiscal year, and its Asian subsidiaries contributed to the sales and profit of the Game Contents Business.
As a result, net sales in Asia were 38,691 million yen (year-on-year increase of 3.5%) and operating income was
2,768 million yen (year-on-year increase of 20.9%).

-8-

b. Outlook for the Fiscal Year Ending March 31, 2011
As for the future of the economy, the uncertain environment of weak individual consumption and employment
instability on a global environment is expected to continue. This, moreover, is having a global impact on the entertainment
industry, in which the Group is extensively involved.
Facing these circumstances, the Group has commenced the “BANDAI NAMCO Group Restart Plan” for the purpose ofa more assured implementation of the global management foundation adopted in the three-year Mid-term Business Plan
that has been in operation since April 2009. Through these measures, the Group intends to transform itself into a speedyGroup, improve its profitability and strengthen its financial standing.
Specifically, in the Toys and Hobby Business our plan for Japan is to further develop the long-established character
series aimed at existing users such as GOSEIGER (Power Rangers series) and MASKED RIDER W (Double), aimed atboys, and HEART CATCH PRETTY CURE !, aimed at girls, while strengthening others including Mobile Suit Gundam
plastic models, which is celebrating its 30th anniversary, and the popular DATA CARDDASS. In addition, to expand thetarget population for the purpose of aiming for the overwhelming position of No. 1 in Japan, we shall focus on further
strengthening new products such as HYPER YO-YO and VooV. Meanwhile overseas, in addition to the BEN10 character
toys, which have become a long-established character series, we shall place our attention on expanding new categories
such as girls’ toys and pre-school toys.
In the Content Business, the Group will place particular focus on the home video game software business in North
America and Europe as it continues its world-wide deployment of multiple major software titles that are potential
candidates for new franchise titles. Considering that this segment faced difficulties in Japan in the fiscal year ended March
31, 2010, mainly with small to medium size game titles, our plan for Japan is to more strictly scrutinize each title during
the development process in order to improve our profitability. Also, effective April 2010, the Group integrated the existingGame Contents Business and Visual and Music Content Business, which will allow the Group to respond swiftly to theincreasing diversification of customer needs and to maximize the value of the Group’s content.
For the Amusement Facility Business, the Group shall improve profitability by continuing to implement various
efficiency measures mainly overseas, while pursuing a strategy of differentiation through the promotion of stores as places
where users can experience the Group’s unique world-view of characters in Japan.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2011 are as
follows: net sales of 400,000 million yen (year-on-year increase of 5.7%), operating income of 11,000 million yen(year-on-year increase of 483.9%), recurring income of 10,500 million yen (year-on-year increase of 450.4%), and net
income of 4,500 million yen (compared with a net loss of 29,928 million yen in this fiscal year).

(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2010, total assets stood at 325,935 million yen, a decrease of 37,509
million yen from the end of the previous fiscal year. The main factors of this decline were decreases of 10,099 million yen
in cash and time deposits, 9,792 million yen in trade receivables and 9,103 million yen in goodwill from recognition of
impairment losses. Concerning goodwill, the impairment losses, including one related to the goodwill that generated in thisfiscal year as a result of NAMCO BANDAI Partners S.A.S. becoming a wholly owned subsidiary, were recognized.
Total liabilities amounted to 96,923 million yen, a decrease of 5,942 million yen from the end of the previous fiscal
year. The main factors were as follows. While there were increases of 4,324 million yen in advances received included in-9-other current liabilities due to the deferral of game software revenue at a U.S. subsidiary and 1,864 million yen in accrued
income taxes due to the recording of income taxes for the previous period, there were decreases of 4,695 million yen inaccounts payable-other and 8,657 million yen in long-term borrowings due to repayment.
Total net assets stood at 229,012 million yen, a decrease of 31,566 million yen from the end of the previous fiscal year.
This decline was mainly due to the net loss of 29,928 million yen.
As a result, the equity ratio became 69.5% compared with 70.9% at the end of the previous fiscal year.

b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (hereafter “funds”) remaining on hand had decreased by
12,260 million yen from the end of the previous fiscal year to 97,776 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 10,581 million yen (down 45.2% compared with theprevious fiscal year). As a main breakdown of funds used, loss before income taxes and minority interests was 19,294
million yen (compared with income before income taxes and minority interests of 21,125 million yen in the previous fiscal
year), income taxes paid was 8,761 million yen (compared with 12,726 million yen in the previous fiscal year) and adecrease in trade payables was 6,701 million yen (compared with 58 million yen in the previous fiscal year). However,overall, there was a net increase in funds due to depreciation and amortization of 18,988 million yen (compared with
22,545 million yen in the previous fiscal year), loss on impairment of fixed assets of 15,902 million yen (compared with
953 million yen in the previous fiscal year), and a decrease in trade receivables of 13,478 million yen (compared with
3,826 million yen in the previous fiscal year).
(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 9,863 million yen (down 4.5% compared with the previous
fiscal year). As a breakdown of funds used, there were purchases of property, plant and equipment and intangible assets of
10,008 million yen (compared with 10,811 million yen in the previous fiscal year).
(Cash Flows from Financing Activities)
The amount of funds used in financing activities amounted to 15,276 million yen (down 7.6% compared with theprevious fiscal year). The main factors for funds used were repayment of long-term borrowings of 8,761 million yen(compared with 5,338 million yen in the previous fiscal year) and dividends paid of 5,795 million yen (compared with
6,009 million yen in the previous fiscal year).

- 10 -

(Reference) Cash Flow Indices
FY2006.3

FY2007.3

FY2008.3

FY2009.3

FY2010.3

63.0

67.1

69.4

70.9

69.5

105.5

116.1

83.1

65.3

67.5

Cash flows to interest bearing debt ratio (%)

102.0

53.8

41.9

95.5

156.2

Interest coverage ratio (times)

90.4

180.1

199.6

113.0

32.9

Equity ratio (%)
Equity ratio (market capitalization basis)(%)

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.
(3) Fundamental Policy on Profit Sharing
The Company places the return of profits to shareholders as one of its highest priorities in its management. The
Company assumes that its basic policy is to further strengthen the Group’s competitiveness and, while maintaining a soundfinancial status, to achieve regular distributions of dividends and improvement in the Company’s corporate value. In
concrete terms, the Company will provide a return to shareholders that targets a consolidated payout ratio of 30%, based onstable annual dividend payments of 24 yen per share. In addition, part of any profit, after deduction of dividends, may be
used to acquire treasury stock upon comprehensive consideration of the amount of funds on hand, performance trends,
recent share price trends, the existence or nonexistence of major investment proposals, and other factors.
The Company will make priority use of profit, after deduction of dividends, for forward-looking investment in
expanding operations overseas under the three-year Mid-term Business Plan that has been implemented since April 2009.
* Please refer to page 3 for the dividend forecasts of FY2010.3 and FY2011.3.

(4) Business Risks
Risk factors related to the Group’s businesses that may significantly affect decisions made by the investmentcommunity, include, but are not limited to, those listed below. These statements on risk are based on information available
to the Group as of May 7, 2010, the filing date for the NAMCO BANDAI Holdings Inc.’s financial report (Kessan
Tanshin) for the fiscal year ended March 31, 2010.

Risks associated with the core business model
The Group’s businesses are centered on products and services based on content, including various characters. The
Group’s operating results may be affected by changes in the popularity of specific content or related trends. Therefore, theGroup is working to achieve stable earnings by striving to diversify risks by expanding business in a diverse array ofbusiness fields, using a wide variety of characters and content, and across various regions around the world.

- 11 -

Risks associated with overseas business expansion
The Group is aggressively expanding its business overseas. This initiative exposes the Group to a variety of risks,
including business risks associated with regional characteristics, such as local media and distribution systems; risks
associated with intellectual property rights, such as those related to counterfeit products; and risks associated withfluctuations in exchange rates. Operationally, the Group conducts sufficient research to minimize these risks, develops theorganizational structures and formulates countermeasures before proceeding with overseas business expansion. With
respect to intellectual property rights, the Group cooperates with local government agencies and other authorities to
identify counterfeit products, promote enhanced recognition of genuine products, etc. In addition, for foreign exchangerisks, the Group uses forward contracts as needed to lower the risks from short-term fluctuations in the exchange rates for
major currencies.

Retaining and developing key personnel
In the fast-changing entertainment industry, it is essential for the Group to retain and develop personnel who can
respond effectively to rapid changes. In addition to developing compensation system that will facilitate the retention ofthese employees, the Group actively delegates authority. To develop the next generation of employees, the Group isdevoting resources to training seminars and other development programs. Furthermore, we will actively adopt personnel
exchanges with the aim of reinforcing cooperation between each Strategic Business Unit.

Risks associated with diversification of platforms and customer needs
In developing game content, visual content, and network content, the Group faces the risk of delays in changing its
business models in response to increasing diversification of content-provision platforms and customer needs. The Groupwill review development based on existing business categories and drive forward business strategies based on the Group’scontent, which will allow the Group to respond swiftly to the increasing diversification of platforms and customer needs
and to maximize the value of the Group’s content.

Decline in domestic birthrate
In the future, an ongoing decline in the domestic birthrate might affect the financial results of the Group. Accordingly,
the Group has been expanding the scope and target of its business activities in Japan and is aggressively taking steps toexpand its scope of business and the regions in which it conducts operations in overseas markets.

Concentration of production and quality control in China
In the Group’s Toys and Hobby Business, most of the products, particularly toys, are manufactured in China. Thus theGroup faces the following risks: the risk of higher production costs from the revaluation of the yuan and labor cost
increases, country risk stemming from the regional concentration of production, and risk regarding quality control of the
products. In response, the Group is working to reduce production costs and to diversify its production bases into Southeast
Asia and other regions. Additionally, the Group is realizing its social responsibility as a company thoroughly committed toquality and safety such as by establishing stricter quality standards and designing products with safety in mind based on
relevant legal restrictions and industry quality and safety standards in all of its business fields, and regularly implementing
C.O.C. (Code of Conduct) audits of contracted producers by third-party organizations.
- 12 -

Additional risks include disasters, such as natural disasters or accidents, changes in laws and regulations, defective or
deficient products or services, leaks of customer information, litigation associated with business activities, and increased
production costs etc. as a result of higher crude oil prices. The Group maintains risk management systems and works tostrengthen its management foundation in order to minimize the effects on its results in the unlikely event that any of theserisks should materialize.

2. The BANDAI NAMCO Group(1) Business Overview
The BANDAI NAMCO Group (“the Group”) comprises NAMCO BANDAI Holdings Inc. (“the Company”), 97
subsidiaries and 10 affiliates. Operations primarily encompass the manufacture and sales of toys and plastic models, the core
activity of the character merchandising business; production and sales of home video game software; manufacture and salesof arcade game machines and other related products; mobile content; production and sales of video-related products; andamusement facility operations. The Group is also engaged in distribution, planning, development and the provision of otherservices related to the above areas of business.
The Group’s businesses and the relationships among the Company and its subsidiaries and affiliates with businesssegments are outlined below. Business classifications correspond directly to the classifications for business segment
information.
Business
Segment

Business Outline

RegionDomestic

Toys and
Hobby
Business

Toys, candy toys, products forvending machines, cards, plastic
models, apparel, sundries
Overseas- 13 -

Major Companies
Bandai Co., Ltd., Megahouse Corp.,
Seeds Co., Ltd., Plex Co., Ltd.,CCP Co., Ltd., People Co., Ltd.,Sun-Star Stationery Co., Ltd.,
Tsuburaya Productions Co., Ltd.
and 1 other company
BANDAI AMERICA INC., BANDAI S.A.,BANDAI U.K. LTD., BANDAI ESPANA S.A.,BANDAI (H.K.) CO., LTD.,BANDAI ASIA CO., LTD.,BANDAI INDUSTRIAL CO., LTD.,BANDAI KOREA CO., LTD.,
CREATIVE B WORKS CO., LTD.,BANDAI (SHENZHEN) CO., LTD.,BANDAI (GUANGZHOU) CO., LTD.,and 5 other companies

Business
Segment

Business Outline

RegionDomestic

Game
Contents
Business

Home-use video game software,
arcade game machines, mobile
contents, prizes for amusement
arcade machines

Overseas

Visual andMusic
Content
Business

Video contents, video software, on
demand video distribution, music
software

Domestic

Overseas
Domestic

Amusement
Facility
Business

Amusement facilities operation

Other
Businesses

Transportation and storage of
products, leases, real estate
management, printing, sales ofenvironmental devices

Corporate

Overseas

Planning and implementation ofmanagement strategy and business
management and instruction of thegroup companies
Management and instruction ofregional business companies

Domestic

Major Companies
NAMCO BANDAI Games Inc.,
Banpresto Co., Ltd., D3 INC.,
D3PUBLISHER INC.,
Entertainment Software Publishing Inc.,
VIBE Inc., Bec Co., Ltd.,
Banpresoft Co., Ltd.,NAMCO TALES STUDIO LTD.,
NAMCO BANDAI Online Inc.,
Banpresto Sales Co., Ltd.,and 3 other companies
NAMCO BANDAI Games America Inc.,
NAMCO AMERICA INC.,
NAMCO NETWORKS AMERICA INC.,
D3Publisher of America, Inc.,
Vicious Cycle Software, Inc.,
NAMCO Holdings UK LTD.,
NAMCO BANDAI Games Europe S.A.S.,
NAMCO EUROPE LTD.,
NAMCO BANDAI Networks Europe LTD.,
D3Publisher of Europe Ltd., D3DB S.r.l.,
NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, BANPRESTO (H.K.) LTD.,and 2 other companies
BANDAI VISUAL CO., LTD., Sunrise Inc.,
Bandai Channel Co., Ltd., Lantis Co., Ltd.,EMOTION CO., LTD.,SUNRISE Music Publishing Co., Ltd.
BANDAI ENTERTAINMENT INC.,
BEEZ ENTERTAINMENT S.A.S.,
and 1 other company
NAMCO LIMITED, Pleasure Cast Co., Ltd.,
Hanayashiki Co., Ltd., NAMCO SPA RESORT LTD.
NAMCO CYBERTAINMENT INC.,
NAMCO OPERATIONS EUROPE LTD.,
Bowling Station S.L.U.,
NAMCO ENTERPRISES ASIA LTD.,
SHANGHAI NAMCO LTD.
BANDAI LOGIPAL INC.,
LOGIPAL EXPRESS INC.,
NAMCO BANDAI Business Services Inc.,
Artpresto Co., Ltd., NAMCO TRADING LTD.,
Happinet Corp., Sotsu Co., Ltd., Italian Tomato Ltd.,and 5 other companies

Overseas

3 companies

Domestic

NAMCO BANDAI Holdings Inc. (the Company)

Overseas

NAMCO BANDAI Holdings (USA) Inc.

- 14 -

Chart of business system is as follows:
END USERJAPANOVERSEAS

Seeds Co., Ltd.

Bandai Co., Ltd.

Plan and Work

Plex Co., Ltd.

CCP Co., Ltd.
People Co., Ltd.*Sun-Star Stationery Co., Ltd.*

Toys and Hobby Business

Tsuburaya Productions
Co., Ltd.*

Production

BANDAI (H.K.) CO., LTD.
BANDAI INDUSTRIAL CO., LTD.

Production（Mobile） Distribution License

Production License, Selling License

NAMCO AMERICA INC.
Licenses, Product Sale

NAMCO EUROPE LTD.
Licenses

NAMCO BANDAI
Games Europe S.A.S.
Product Sale

Product
Sale

NAMCO BANDAI Partners S.A.S.
and its subsidiaries

and its subsidiaries

BANDAI ENTERTAINMENT INC.

Intellectual
Properties License

Provide Contents

BANDAI VISUAL CO., LTD.

Product Sale

Bandai Channel Co., Ltd.

MasterRecordings
Management

Product Sale

Content Business

Visual and Music

Product Parts Sale

SUNRISE Music Publishing Co., Ltd.

Plan andWork

NAMCO BANDAI
Networks Europe LTD.

BANPRESTO (H.K.) LTD.

D3 INC.

Sunrise Inc.

NAMCO BANDAI Games
America Inc.
NAMCO NETWORKSAMERICA INC.

Product Sale

VIBE Inc.

Production

Licenses

NAMCO BANDAI Games Inc.

Plan and Work

NAMCO TALES STUDIO LTD.
Bec Co., Ltd.
Banpresoft Co., Ltd.

Banpresto Sales Co., Ltd.

Banpresto Co., Ltd.

Game Contents Business

NAMCO BANDAI Online Inc.

Product Sale

Quality Control

BANDAI(SHENZHEN) CO., LTD.

Production

Lantis Co., Ltd.

BANDAI ASIA
CO., LTD.

Production

Megahouse Corp.

Plan and WorkBANDAI KOREA
CO., LTD.

Quality Control

Licenses

Product Sale

CREATIVE B WORKS
CO., LTD.

BANDAI AMERICA INC.
BANDAI S.A.
BANDAI U.K. LTD.
BANDAI ESPANA S.A.
BANDAI (GUANGZHOU) CO., LTD.

BEEZ ENTERTAINMENT S.A.S.

Provide Works EMOTION CO., LTD.

SHANGHAI
NAMCO LTD.*

NAMCO LIMITED

Amusement Facility Business

Pleasure Cast Co., Ltd.
Hanayashiki Co., Ltd.

NAMCO SPA RESORT LTD.

NAMCO OPERATIONS EUROPE LTD.
Bowling Station S.L.U.

NAMCO ENTERPRISES ASIA LTD.
NAMCO CYBERTAINMENT INC.

BANDAI LOGIPAL INC.
LOGIPAL EXPRESS INC.
NAMCO BANDAI
Business Services Inc.
Artpresto Co., Ltd.
NAMCO TRADING LTD.
Happinet Corp.*
Sotsu Co., Ltd.*
Italian Tomato Ltd.*

Other Businesses

Services to Support Group Companies

NAMCO BANDAI Holdings (USA) Inc.

NAMCO Holdings UK LTD.**NAMCO BANDAI Holdings Inc.
*Affiliated companies accounted for by the equity method.
** NAMCO Holdings UK LTD. is a regional holding company in Europe, and is included in the Game Contents segment.

15

(2) Associated Companies (Subsidiaries and Affiliated Companies)

Name

Address

CapitalMain Business

Ratio of
VotingRightsOwnership(%)

Description ofRelationship

Notes(Consolidated subsidiaries)
A: 2
4, 10,
B: ¥19,052
18
millionBandai Co., Ltd.

Taito-ku, Tokyo¥24,664 million Toys and Hobby

100.0

Megahouse Corp.

Taito-ku, Tokyo¥10 million Toys and Hobby

100.0(100.0)––

Seeds Co., Ltd.

Shimotsuga-gun,Tochigi¥100 million Toys and Hobby

100.0(100.0)––Plex Co., Ltd.

Taito-ku, Tokyo¥50 million Toys and Hobby

100.0(100.0)––

CCP Co., Ltd.

Taito-ku, Tokyo¥10 million Toys and Hobby

100.0(100.0)––BANDAI AMERICA INC.

California,
U.S.A.

US$
Toys and Hobby
24,600 thousand

100.0(100.0)–4

BANDAI S.A.

Cergy-Pontoise,FranceEuro
Toys and Hobby
15.0 million

100.0

–

4, 13

BANDAI U.K. LTD.

Southampton,
U.K.

Stg £.

Toys and Hobby

100.0

–

14

BANDAI ESPANA S.A.

Madrid, Spain

Euro
Toys and Hobby
4,808 thousand

100.0

–

13

BANDAI (H.K.) CO., LTD.

Kowloon,Hong KongHK$
Toys and Hobby
103 million

100.0

–

4

BANDAI ASIA CO., LTD.

Kowloon,Hong KongHK$

Toys and Hobby

100.0(100.0)––BANDAI INDUSTRIAL
CO., LTD.

Chachoengsao,
Thailand

Baht

Toys and Hobby

100.0(100.0)–4

BANDAI KOREA CO.,LTD.

Seoul, Korea

WON
Toys and Hobby
1,500 million

66.7

–

–

5 million

7 million
475 million

CREATIVE B WORKS CO.,Seoul, Korea
LTD.

WON

Toys and Hobby

100.0(100.0)––BANDAI (SHENZHEN)
CO., LTD.

Shenzhen City,
China

RMB
Toys and Hobby
25,034 thousand

100.0(100.0)––BANDAI (GUANGZHOU)
CO., LTD.

Guangzhou,
China

RMB
Toys and Hobby
11,164 thousand

100.0(100.0)––

NAMCO BANDAI GamesInc.

Shinagawa-ku,
Tokyo¥15,000 million Game Contents

100.0

B: ¥13,079
4, 11,
million 18

Banpresto Co., Ltd.

Shinagawa-ku,
Tokyo¥100 million Game Contents

100.0(100.0)

B: ¥4,680
million18

D3 INC.

Shibuya-ku,
Tokyo¥100 million Game Contents

100.0(100.0)––

D3PUBLISHER INC.

Shibuya-ku,
Tokyo¥100 million Game Contents

100.0(100.0)––50 million- 16 -

Name

Address

CapitalMain Business

Ratio of
VotingRightsOwnership(%)

Description ofRelationship

Notes

Entertainment Software
Publishing Inc.

Shibuya-ku,
Tokyo¥90 million Game Contents

100.0(100.0)––

VIBE Inc.

Shinagawa-ku,
Tokyo¥352 million Game Contents

100.0(100.0)––Bec Co., Ltd.

Shinagawa-ku,
Tokyo¥10 million Game Contents

100.0(100.0)––Banpresoft Co., Ltd.

Shinagawa-ku,
Tokyo¥200 million Game Contents

100.0(100.0)––

NAMCO TALES STUDIO
LTD.

Toshima-ku,
Tokyo¥100 million Game Contents

100.0(100.0)––

NAMCO BANDAI Online
Inc.

Shinagawa-ku,
Tokyo¥50 million Game Contents

100.0(100.0)––Banpresto Sales Co., Ltd.

Shinagawa-ku,
Tokyo¥200 million Game Contents

100.0(100.0)––

NAMCO BANDAI Games
America Inc.

California,
U.S.A.

Game Contents

100.0(100.0)––

NAMCO AMERICA INC.

Illinois, U.S.A.

Game Contents

100.0(100.0)––

NAMCO NETWORKSAMERICA INC.

California,
U.S.A.

US$

Game Contents

100.0(100.0)––

D3Publisher of America, Inc.

California,
U.S.A.

US$
Game Contents
975 thousand

100.0(100.0)––

Vicious Cycle Software, Inc.

North Carolina,
U.S.A.

US$

Game Contents

100.0(100.0)––

NAMCO Holdings UK LTD. London, U.K.

Stg £.
Game Contents
24,500 thousand

100.0

–

4, 14

NAMCO BANDAI Games
Europe S.A.S.

Cergy-Pontoise,FranceEuro
Game Contents
34,241 thousand

100.0(100.0)–4, 15

NAMCO EUROPE LTD.

London, U.K.

Stg £.
Game Contents
7,300 thousand

100.0(100.0)–4

NAMCO BANDAI
Networks Europe LTD.

London, U.K.

Stg £.
Game Contents
1,500 thousand

100.0(100.0)––

D3Publisher of Europe Ltd.

Cambridge, U.K.

Stg £.
Game Contents
683 thousand

100.0(100.0)––

D3DB S.r.l.

Milano, Italy

Euro
Game Contents
10 thousand

50.0(50.0)–

8

NAMCO BANDAI Partners
S.A.S.

Lyon, FranceEuro

Game Contents

100.0(100.0)–4, 16,
17

NAMCO BANDAI Partners
UK Ltd.

London, U.K.

Game Contents

100.0(100.0)–4, 16,
17

Game Contents

100.0(100.0)

–

–

100.0
(100.0)–4, 16,
17

BANPRESTO (H.K.) LTD.

New Territories,
Hong Kong

NAMCO BANDAI Partners
Asia Holdings Pty. Ltd.

New South
Wales, Australia

US$
100
US$
10
10

230

80 million
Stg £.
25 millionHK$
32 million
AU$68,826 Game Contents
thousand- 17 -

Main Business

Description ofRelationship

Notes

100.0
(100.0)–4, 16,
17

Name

Address

NAMCO BANDAI Partners
Australia Pty. Ltd.

New South
Wales, Australia

BANDAI VISUAL CO.,LTD.

Shinagawa-ku,
Tokyo¥2,182 million

Visual andMusic Content

100.0

A: 1
B: ¥4,391
4, 18
millionSunrise Inc.

Suginami-ku,
Tokyo¥49 million

Visual andMusic Content

99.5
(7.6)

B: ¥9,786
million18

Bandai Channel Co., Ltd.

Minato-ku,
Tokyo¥30 million

Visual andMusic Content

94.5

–

–

Lantis Co., Ltd.

Shibuya-ku,
Tokyo¥420 million

Visual andMusic Content

53.2(53.2)––EMOTION CO., LTD.

Shinagawa-ku,
Tokyo¥120 million

Visual andMusic Content

100.0(100.0)––SUNRISE Music PublishingCo., Ltd.

Suginami-ku,
Tokyo¥10 million

Visual andMusic Content

100.0(100.0)––BANDAI
ENTERTAINMENT INC.

California,
U.S.A.

US$
Visual and
100 thousand Music Content

100.0(100.0)––BEEZ ENTERTAINMENT
S.A.S.

Paris, France

Euro

100.0
(100.0)––

NAMCO LIMITED

Ota-ku, Tokyo¥10 billion

Amusement
Facility

100.0

Pleasure Cast Co., Ltd.

Shinagawa-ku,
Tokyo¥480 million

Amusement
Facility

100.0(100.0)––Hanayashiki Co., Ltd.

Taito-ku, Tokyo¥480 million

Amusement
Facility

100.0(100.0)––

NAMCO SPA RESORTLTD.

Kishiwada,
Osaka¥100 million

Amusement
Facility

100.0(100.0)

–

–

NAMCO
CYBERTAINMENT INC.

Illinois, U.S.A.

US$

Amusement
2,800 Facility

100.0(100.0)––

NAMCO OPERATIONSEUROPE LTD.

London, U.K.

Stg £.

Amusement
23 million Facility

100.0(100.0)–

4

Bowling Station S.L.U.

Madrid, Spain

Euro
Amusement
500 thousand Facility

100.0(100.0)––

NAMCO ENTERPRISESASIA LTD.

Causeway Bay,
Hong Kong

100.0

–

–

BANDAI LOGIPAL INC.

Katsushika-ku,
Tokyo¥1,424 million Other

100.0

LOGIPAL EXPRESS INC.

Katsushika-ku,
Tokyo¥100 million Other

100.0(100.0)––

NAMCO BANDAI Business
Taito-ku, Tokyo
Services Inc.

¥100 million Other

100.0

–

4

Artpresto Co., Ltd.

¥30 million Other

100.0

–

–

Taito-ku, Tokyo

CapitalRatio of
VotingRightsOwnership(%)

AU$60,800 Game Contents
thousandHK$

Visual and5 million Music Content

Amusement
47 million Facility- 18 -

A: 1
4, 12,
B: ¥8,486
18
millionB: ¥1,136
4, 18
millionName

Address

NAMCO TRADING LTD.

Shinagawa-ku,
Tokyo

NAMCO BANDAI Holdings California,(USA) Inc.
U.S.A.

CapitalMain Business¥40 million OtherManagement andinstruction ofbusiness
10 companies in the
North America
RegionUS$

Ratio of
VotingRightsOwnership(%)

Description ofRelationship

Notes

100.0
(100.0)

–

–

100.0

A: 1

–

(Companies accounted for by the equity method)
70.0(70.0)––¥238 million Toys and Hobby

20.5
(0.1)

–

5, 7

Taito-ku, Tokyo¥2,751 million Other

26.7
(0.3)

–

5, 6

Chuo-ku, Tokyo¥414 million Other

17.0

–

5, 7, 9¥100 million Other

30.6(30.6)––

Sun-Star Stationery Co., Ltd. Taito-ku, Tokyo¥50 million Toys and Hobby

33.4(33.4)––

Tsuburaya Productions Co.,Ltd.

¥310 million Toys and Hobby

49.0(49.0)––SHANGHAI NAMCO LTD.

Shanghai, China

People Co., Ltd.

Chuo-ku, Tokyo

Happinet Corp.
Sotsu Co., Ltd.
Italian Tomato Ltd.

Minato-ku,
Tokyo

Setagaya-ku,
Tokyo

RMB
Amusement
26,724 thousand Facility* The value of ‘A’ represents the number of Directors and Corporate Auditors at the company in question who are also
Directors, Corporate Auditors, or employers of NAMCO BANDAI Holdings Inc.
* The value of ‘B’ represents the amount of borrowings from the subsidiaries to NAMCO BANDAI Holdings Inc.
Notes: 1.
2.
3.
4.
5.
6.
7.
8.
9.

In the “Main Business” column, the name of the relevant type-of-business segment is given.
In “Ratio of Voting Rights Ownership,” amounts within parenthesis represent indirect ownership.
NAMCO BANDAI Holdings Inc. manages and provides guidance to BANDAI NAMCO Group companies,
except for certain affiliated companies.
These companies are “Tokutei Kogaisha” (specified subsidiaries).
These companies file their “Yuka Shoken Houkokusho” (annual security reports).
Listed on the First Section of the Tokyo Stock Exchange (TSE).
Listed on the JASDAQ Stock Exchange.
Although 50% or less voting rights are owned, the company in question is classified as a subsidiary because
NAMCO BANDAI Holdings Inc. substantially controls the company.
Although less than 20% voting rights are owned, the company in question is classified as an affiliated company
because NAMCO BANDAI Holdings Inc. has effective leverage over the company.

- 19 -

10. The percentage of net sales (excluding inter-segment sales among consolidated subsidiaries) of Bandai Co., Ltd.
exceeds 10% of the consolidated net sales.
Key financial data(¥ million)(1) Net sales

102,327(2) Recurring income

7,764(3) Net income

3,018(4) Net assets

61,101(5) Total assets

86,285

11. The percentage of net sales (excluding inter-segment sales among consolidated subsidiaries) of NAMCO
BANDAI Games Inc. exceeds 10% of the consolidated net sales.
Key financial data(¥ million)(1) Net sales

79,609(2) Recurring loss

3,621(3) Net loss

7,912

(4) Net assets

60,791(5) Total assets

81,243

12. The percentage of net sales (excluding inter-segment sales among consolidated subsidiaries) of NAMCO
LIMITED exceeds 10% of the consolidated net sales.
Key financial data(¥ million)(1) Net sales

50,452(2) Recurring income

473(3) Net loss

4,249(4) Net assets

35,763(5) Total assets

42,498

13. BANDAI S.A. carried out a capital increase by a debt equity swap and a contribution in kind where shares of
BANDAI ESPANA S.A. and other subsidiary owned by the Company were contributed on February 25, 2010.
Through this action, the capital of BANDAI S.A. is 21,690 thousand euro as of March 31, 2010, and the sharesof BANDAI ESPANA S.A. and other subsidiary are owned by BADAI S.A (shareholding ratio of the Company
is 100% (indirect ownership)).
14. NAMCO Holdings UK LTD. carried out a capital increase by a contribution in kind where shares of BANDAI
U.K. LTD. owned by the Company were contributed on February 25, 2010. Through this action, the capital of
NAMCO Holdings UK LTD. is 29,500 thousand pounds as of March 31, 2010, and the shares of BANDAI U.K.
LTD. are owned by NAMCO Holdings UK LTD. (shareholding ratio of the Company is 100% (indirectownership)).
15. NAMCO BANDAI Games Europe S.A.S. carried out a capital increase by a debt equity swap on February 25,
2010. Through this action, the capital of NAMCO BANDAI Games Europe S.A.S. is 50,000 thousand euro asof March 31, 2010.
16. The corporate name changed after becoming a wholly owned subsidiary.
17. NAMCO BANDAI Partners S.A.S. has 15 subsidiaries in addition to the subsidiaries listed above, and 18
subsidiaries in total.
18. This is a loan for the Company to centrally manage the Group’s fund surplus based on the Group’s financial
rules.

- 20 -

3. Management Policies(1) Fundamental Management Policy
Guided by our vision of becoming “The Leading Innovator in Global Entertainment,” the Group mission is to continue
to offer “Dreams, Fun and Inspiration,” through entertainment, to people throughout the world. Moreover, with the sights
set on the medium- to long-term Group vision of becoming a “Globally Recognized Entertainment Group,” the Group willpress ahead with various medium- to long-term strategies for strengthening overseas business, making innovation in ourcontent strategy, and expanding our scale to compete in the global market. Furthermore, for the purpose of a more assured
implementation of these strategies, the Group began implementing the “BANDAI NAMCO Group Restart Plan” in April
2010 under the new management structure to transform itself into a speedy Group and to improve its profitability andstrengthen its financial standing.
The Group aims to achieve an operating income of 100 billion yen, overseas sales ratio of 50% and ROE of 10% or
higher in the Mid-term Business Plan starting from 2015.

(2) Targets and Management Performance Indicators
The Group has adopted ROE (Return on Equity) as management performance indicators. Looking ahead, we aim tofurther expand profits by strengthening investments, particularly in overseas business, as well as effectively utilize
stockholders’ equity to build a strong and stable management base over the medium- to long-term. Specifically, the Groupaims to achieve consolidated ROE of 10% or higher in the Mid-term Business Plan starting from 2015, and are tackling toachieve this target on two fronts: business expansion and efficient management. In addition, the Group has introduced theuse of return on invested capital (ROIC) as an indicator in making rapid decisions about restructuring businesses orwithdrawing from them in the rapidly changing entertainment industry.

(3) Medium- to Long-term Business Strategy
a. Strategy of Mid-term Business Plan
The three-year Mid-term Business Plan that went into effect on April 1, 2009, promotes two strategies, “Focus,” thebusiness strategy, and “Enhancing the Entertainment-hub,” the functional strategy, to lay the foundation for global growth.
Efforts toward the business strategy “Focus”
Under “Focus,” the business strategy, the Group clarifies the mission of each of the business units on the basis ofmarket environment and competitive superiority. In concrete terms, aiming for growth overseas, the Group will makeforward-looking investments in the area of the Toys and Hobby SBU and the Content SBU. On the other hand, in thedomestic market, the Group will focus on implementing measures to improve profitability, particularly in the Amusement
Facility SBU.
Efforts toward the functional strategy “enhance the Entertainment-hub”
The functional strategy, “Enhancing the Entertainment-hub,” is directed at further strengthening a series of functions
such as creation and acquisition, development and utilization of contents by adding synergies among the Group as well as
between the Group and external partner companies. The Mid-term Business Plan calls for developing that approach, which
thus far has largely been implemented domestically, into a global model.

- 21 -

b. Initiatives in Support of Mid-term Business Plan Strategies
Strengthening the corporate governance structure
The Company, after the relevant proposal is approved by the Ordinary General Meeting of Shareholders scheduled forJune 21, 2010, plans to appoint the President and Representative Directors of the major companies of each strategic
business unit as Directors of the Company so that they each hold interlocking directorate positions. While strengthening thecollaborative efforts between the holding companies and business companies, and between the business companies, thismove will facilitate a speedier decision-making process as a Group. In addition, three out of nine Directors will be fromoutside the Company to strengthen the management oversight function.
Promoting efficient management
The Group has put in place rules for restructuring and withdrawing from businesses; it has reinforced systems forcontinuous monitoring in order to discern business trends more swiftly, and has introduced the use of return on invested
capital (ROIC) as an indicator in making rapid decisions about restructuring businesses or withdrawing from them. In
addition, the Group is working towards cost reductions by standardizing processes across the Group as a whole and is
promoting managerial efficiency.
Reinforcing personnel strategies
Aiming for dynamic growth in overseas markets, the Group is strengthening its global systems for acquiring andtraining personnel. In addition, the Group is driving forward a proactive system for personnel exchanges within the Groupto invigorate its human resources.
Reinforcing CSR activities
Strengthening its environmental management, the Group is aiming at a 5.4% reduction in CO2 emissions from each of
our worksites by Fiscal Year ending March 2012 (as compared with the Fiscal Year ended March 2009 level) as a mid-termGroup environmental target.

(4) Issues to be Addressed
The Group and this industry must address many important, long-term issues, including (i) the increasing diversificationof consumer needs, (ii) reacting to changes in the market and the environment, and (iii) increasingly intense competition ona global scale. To address these issues, the Group is using “Focus,” a business strategy called for in its Mid-term Business
Plan, to clarify the mission of each of its business units.
In addition, given the difficult economic environment that now prevails and the Group’s decline in profitability, theGroup, seeking to realize its medium- to long-term Group vision of becoming a “Globally Recognized Entertainment
Group,” began implementing the “BANDAI NAMCO Group Restart Plan” in April 2010 under the new management
structure, to transform itself into a speedy Group and to improve its profitability and strengthen its financial standing.

a. Common Issues Faced by All Strategic Business Units (“SBUs”)
Efforts toward domestic business expansion
The Group will, in order to create new markets and attract new customer segments for the expansion of its domestic
operations, maximize utilization of the managerial resources that it owns and expand its targets and categories through- 22 -

making effective use of synergies between its business units, alliances with external partners, and other approaches. In
addition, in response to the changes in the environment surrounding the entertainment industry, the Group will tackle avariety of tasks with speed without resorting to existing business practices and models.
It will also strive for improved efficiency in the Group as a whole by taking actions such as a review of indirect
operations.
Efforts toward overseas business expansion
Based on the strategies laid out in the Mid-term Business Plan, the Group will proactively invest in ways that are
directed at dynamic growth in the Toys and Hobby SBU and the Content SBU in the European and North American
markets. In particular, it will expand the business categories and regions for the Toys and Hobby Business and maximize
the value of its content focusing on home video game software content with a view to expanding overseas operations.
Efforts toward changing the content strategy
The Group is reinforcing its content creation, acquisition, development, and utilization functions in order to respond tochanges in the environment, including the development of oligopolies in the distribution and media fields and thewidespread penetration of networks. Specifically, the Contents Business Strategy Meeting, which crosscuts the entire
Group, focuses on maximizing the value of each content. The Group also founded the IP Project on April 1, 2010, to aim
for more vigorous creation and acquisition of new content.
Efforts toward Corporate Social Responsibility (CSR)
The Group’s corporate philosophy is to continue to provide “Dreams, Fun and Inspiration” to people around the world,
through entertainment based on creativity and boundless enthusiasm. To ensure that we can continue to provide “Dreams,
Fun and Inspiration,” we have formulated the CSR initiatives, which are crosscutting the Group and that include three
types of responsibilities: environmental and social contribution responsibilities, economic responsibilities, and legal andethical responsibilities. In accordance with these fundamental principles, a range of measures is being implemented by theGroup CSR Committee and its sub-committees—the Group Social Contribution Committee and the Group Environmental
Committee, as well as by the Group Risk Compliance Committee, the Group Information Security Committee, and theInternal Control Committee.

b. Issues Specific to Each SBU
Toys and Hobby SBU
This unit’s industry is facing issues, such as a “shrinking domestic market due to the falling birthrate” and “increasingly
diverse consumer needs.” This unit is addressing these issues by aiming for the overwhelming position of No. 1 in Japan,
expanding its target population segment, and creating new businesses, as well as by working to reinforce its existing
operations, expand its categories, and expand the business regions in the overseas market, particularly in the European andNorth American markets. For the purpose of a more efficient and effective implementation of these actions, this unit will
actively devote managerial resources, especially in Europe and North America, with a view to building cooperative
relationships with external partners.

- 23 -

Contents SBUThis unit’s industry is facing issues, such as the “diversification of both platforms and customer needs.” The Group
integrated the Game Contents Business and Visual and Music Content Business in April 2010 and the Group will review
development based on existing business categories and drive forward business strategies based on the Group’s content,
which will allow the Group to respond swiftly to changing customers’ needs throughout the world and to maximize thevalue of the Group’s content. Within this business unit, the Production Group, which focuses on creation and acquisition ofcontent, will be an aggregator of smaller organizations and provide rapid response to changing customer needs bydelegating its authority. In the medium term, this unit will reinforce its development and sales structures to expand its
business, focusing on home video game software in the European and North American markets and to create andstrengthen franchise titles suitable for worldwide deployment.
Amusement Facility SBU“Increasingly diverse consumer needs,” “weak individual consumption,” and a “revision of consumption tax rate” areamong the issues for this unit’s industry. To address these issues, by using its know-how in character merchandizing,
especially in its domestic operations, this unit will drive the operation of more differentiated facilities and provision ofservices with the added value that only the Group can offer.
In addition, this unit will work to improve profitability by specializing in its core operations and closing unprofitablefacilities throughout the world.

- 24 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2009)

Current Fiscal Year(As of March 31, 2010)

AssetsCurrent assets
Cash and time deposits

106,747*2

96,647

Trade receivables*2

62,518*4

52,726

Short-term investments

4,426

2,037

Finished goods and merchandise

11,642

12,817Work in process

21,65323,805

Raw materials and supplies

4,354

4,334

Deferred tax assets

6,145

5,763

Other current assets

19,044

20,769Allowance for doubtful receivables(446)(1,138)236,085

217,762

24,066

24,671

Accumulated depreciation(13,410)(14,173)

Buildings and structures, net

10,655

10,497

Amusement facilities and machines

70,82360,826

Accumulated depreciation(51,728)(45,499)

Amusement facilities and machines, net

19,094

15,327

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

Land

*3

Other property, plant and equipment
Accumulated depreciation
Other property, plant and equipment, net

11,782*3

11,592

67,284

71,180(56,825)(62,582)

10,4598,597

51,99146,014

Goodwill

12,054

2,951

Other intangible assets

10,2309,550

Total intangible assets

22,285

12,501

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities*1

24,949*1

23,275

Guarantee money deposited

18,012–

Deferred tax assets

7,124

5,886

Other investments and assets

4,248

22,302

Allowance for doubtful receivables(1,254)(1,807)

Total investments and other assets

53,08149,656

127,359

108,172

363,444

325,935

Total fixed assets
Total assets- 25 -

(¥ million)
Prior Fiscal Year(As of March 31, 2009)

Current Fiscal Year(As of March 31, 2010)

Liabilities
Current liabilities
Trade payables

36,76035,956

Short-term borrowings

8,857

8,876

Accounts payable-other

18,437

13,741

Accrued income taxes

6,374

8,239

Provision for directors’ bonuses

635

402

Provision for losses from business restructuring

154

767

Provision for sales returns

911

2,034

Other current liabilities

12,171

16,584

Total current liabilities

84,30386,604

11,9903,333

Long-term liabilities
Long-term borrowings
Deferred tax liabilities, land revaluation*3

Provision for directors’ bonuses

481

*3

673

–

129

1,906

2,403

46

32

Other long-term liabilities

4,136

3,746

Total long-term liabilities

18,561

10,319102,865

96,923

Common stock

10,00010,000Additional paid-in capital

79,887

79,960Retained earnings

199,453

163,454

Treasury stock(9,624)(9,455)

Total stockholders’ equity

279,717

243,958(1,911)

19

(105)

79

Accrued retirement and severance benefits
Accrued directors’ and corporate auditors’ retirement andseverance benefits

Total liabilities
Net assets
Stockholders’ equity

Valuation difference and foreign currency translation
adjustments
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax
Land revaluation, net of tax*3(6,299)*3(6,491)

Foreign currency translation adjustments(13,755)(10,900)

Total valuation difference and foreign currency translation
adjustments(22,071)(17,292)

Stock subscription rights

1,468

810

Minority interests

1,465

1,535

260,579

229,012363,444

325,935

Total net assets
Total liabilities and net assets- 26 -

(2) Consolidated Statements of Operations(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)
Net sales

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

426,399

Cost of sales*1

Gross profit

280,376

378,547*1

146,023

Selling, general and administrative expenses*2, *3Operating income

123,674

249,793
128,753*2, *3

126,869

22,348

1,883Interest income

1,707

371

Dividend income

Non-operating income
331

212

Amortization of negative goodwill–

124

Equity in gain of affiliated companies

360–

Other non-operating income

909

526

Total non-operating income

3,309

1,234

246

378

Foreign exchange loss

744

620

Other non-operating expenses

153

212

Total non-operating expenses

1,144

1,210

24,513

1,907

Non-operating expenses
Interest expense

Recurring income
Extraordinary income
Gain on sales of fixed assets

*4

1,635

*4

37

Gain on sales of investment securities–

176

Reversal of allowance for doubtful receivables

47

61

Reversal of accrued retirement and severance benefits–

14

Reversal of provision for losses from business restructuring

338–

Gain on reversal of stock subscription rights

188

402

Other extraordinary income

110

49

Total extraordinary income

2,321

741

- 27 -

(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Extraordinary loss
Loss on sales of fixed assets

*5

45

*5

20

Loss on disposal of fixed assets

*6

256

*6

321

*7

953

*7

15,902

Loss on impairment of fixed assets
Loss on business restructuring

–

1,865

Loss on valuation of investment securities

997–

Provision for allowance of doubtful receivables

642–

Special retirement expenses

647

1,899

Litigation settlement

1,061

–

Other extraordinary loss

1,103

1,933

Total extraordinary loss

5,708

21,943

Income (loss) before income taxes and minority interests

21,125(19,294)

Corporate income, inhabitant and enterprise taxes

9,843

7,064

Income taxes for the previous period

1,173

963

Deferred income taxes(1,956)2,470

Total income taxes

9,059

10,498

Minority interests

235

135

Net income (loss)

11,830(29,928)- 28 -

(3) Consolidated Statements of Changes in Net Assets(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Stockholders’ equity
Common stock
Balance as of March 31, 2009

10,00010,000––10,00010,00087,94579,887

278

–

–

72

Retirement of treasury stock(8,336)–

Total changes during the period(8,058)72

79,887

79,960

192,865

199,453(66)–

Cash dividends(6,009)(5,795)

Net income (loss)

11,830(29,928)

818

115

–

(416)

Increase due to company split–

25

Reversal of land revaluation

15

–

6,654

(35,999)

199,453

163,454(2,840)(9,624)(15,119)(9)

Changes during the period
Total changes during the period
Balance as of March 31, 2010
Additional paid-in capital
Balance as of March 31, 2009
Changes during the period
Purchase of treasury stock from consolidated
subsidiaries
Disposal of treasury stock

Balance as of March 31, 2010
Retained earnings
Balance as of March 31, 2009
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes during the period

Changes in the scope of consolidation
Changes in the scope of application of the equity method

Total changes during the period
Balance as of March 31, 2010
Treasury stock
Balance as of March 31, 2009
Changes during the period
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Changes in treasury stock accompanying changes toholdings in companies to which the equity method isappliedTotal changes during the period
Balance as of March 31, 2010- 29 -

1

184

8,336

–

(2)

(6)

(6,784)168(9,624)(9,455)(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Total stockholders’ equity
Balance as of March 31, 2009

287,971279,717(66)–(6,009)(5,795)

Net income (loss)

11,830(29,928)

Purchase of treasury stock(15,119)

(9)

278

–

Disposal of treasury stock

1

256

Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(2)(6)

Changes in the scope of consolidation

Effect of changes in accounting policies applied to foreignsubsidiaries
Changes during the period
Cash dividends

Purchase of treasury stock from consolidated
subsidiaries

818

115

Changes in the scope of application of the equity method

–

(416)

Increase due to company split–

25

Reversal of land revaluation

15–

Total changes during the period(8,188)(35,758)

279,717

243,958

192(1,911)

Net changes in the period other than changes instockholders’ equity(2,103)

1,930

Total changes during the period(2,103)

1,930(1,911)

19

(112)

(105)

Net changes in the period other than changes instockholders’ equity

7

185

Total changes during the period

7

185

(105)

79

(6,284)(6,299)Net changes in the period other than changes instockholders’ equity

(15)

(192)

Total changes during the period

(15)

(192)

(6,299)(6,491)

Balance as of March 31, 2010
Valuation difference and foreign currency translation
adjustments
Unrealized gains or losses on other securities, net of tax
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010
Deferred gains or losses on hedges, net of tax
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010Land revaluation, net of tax
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010

- 30 -

(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Foreign currency translation adjustments
Balance as of March 31, 2009

5,028

(13,755)

Net changes in the period other than changes instockholders’ equity(18,784)

2,855

Total changes during the period(18,784)

2,855(13,755)(10,900)(1,175)(22,071)

Net changes in the period other than changes instockholders’ equity(20,896)

4,779

Total changes during the period(20,896)

4,779(22,071)(17,292)

1,531

1,468

Net changes in the period other than changes instockholders’ equity

(63)

(657)

Total changes during the period

(63)

(657)

1,468

810

1,616

1,465

Net changes in the period other than changes instockholders’ equity

(150)

69

Total changes during the period

(150)

69

1,465

1,535

Changes during the period

Balance as of March 31, 2010
Total valuation difference and foreign currency translation
adjustments
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010
Stock subscription rights
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010
Minority interests
Balance as of March 31, 2009
Changes during the period

Balance as of March 31, 2010

- 31 -

(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Total net assets
Balance as of March 31, 2009

289,944

260,579(66)–(6,009)(5,795)

Net income (loss)

11,830(29,928)

Purchase of treasury stock(15,119)

(9)

278

–

Disposal of treasury stock

1

256

Retirement of treasury stock––

Changes in treasury stock accompanying changes toholdings in companies to which the equity method isapplied(2)(6)

Changes in the scope of consolidation

Effect of changes in accounting policies applied to foreignsubsidiaries
Changes during the period
Cash dividends

Purchase of treasury stock from consolidated subsidiaries

818

115

Changes in the scope of application of the equity method

–

(416)

Increase due to company split–

25

Reversal of land revaluation

15–

Net changes in the period other than changes instockholders’ equity(21,110)

4,191

Total changes during the period(29,298)(31,566)

260,579

229,012

Balance as of March 31, 2010

- 32 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

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

21,125(19,294)

Depreciation and amortization

22,54518,988Loss on impairment of fixed assets

953

15,902

Amortization of goodwill

4,080

4,844

Increase (decrease) in allowance for doubtful receivables

(79)

946

(927)

622

Increase (decrease) in provision for sales returns

267(1,265)

Increase (decrease) in provision for directors’ bonuses

165

(102)

308

453

1

–

Increase (decrease) in provision for losses from businessrestructuring

Increase (decrease) in accrued retirement and severance
benefits
Increase (decrease) in accrued directors’ and corporate
auditors’ retirement and severance benefits
Interest and dividend income(2,038)(584)

Interest expense

246

378

Foreign exchange loss (gain)

33

225

Equity in loss (gain) of affiliated companies

(360)

(0)

Loss on disposal of fixed assets

256

321

(1,589)(16)

Loss (gain) on sales of fixed assets, net
Loss on disposal of amusement facilities and machines

795

570

Loss (gain) on sales of investment securities, net

(57)

(151)

Loss (gain) on valuation of investment securities

1,326

141

Decrease (increase) in trade receivables

3,826

13,478Decrease (increase) in inventories(2,128)(1,725)Acquisition of amusement facilities and machines(6,646)(4,410)(58)(6,701)

Increase (decrease) in accounts payable-other(4,912)(5,955)

Increase (decrease) in consumption tax payables(1,108)

(96)

Other

(5,905)2,512

Subtotal

30,12419,082

Interest and dividends received

2,074

581

Interest paid

(170)

(321)

Income taxes paid

(12,726)(8,761)

Net cash provided by (used in) operating activities

19,301

10,581

Increase (decrease) in trade payables- 33 -

(¥ million)
Prior Fiscal Year
(From April 1, 2008
to March 31, 2009)

Current Fiscal Year
(From April 1, 2009
to March 31, 2010)

Cash flows from investing activities
Payments for deposit in time deposits(1,639)(121)

Proceeds from withdrawal from time deposits

4,512

448

Purchases of property, plant and equipment(8,012)(7,177)

Sales of property, plant and equipment

4,052

123

Purchases of intangible assets(2,799)(2,830)Purchases of investment securities(3,344)(421)

Sales of investment securities

353

471

Acquisition of shares in consolidated subsidiaries, net ofcash acquired

(49)

(81)

Acquisition of subsidiary shares affecting the scope of
consolidation–

Acquisition of subsidiary shares affecting the scope of
consolidation*2

Payments of loans receivableCollection of loans receivable*2(1,760)277–(5,645)(1,069)297

171

Payments of guarantee money deposited(1,198)(398)

Collection of guarantee money deposited

2,864

2,739

2

42

(10,327)(9,863)

128

(576)

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

10,000–

Repayment of long-term debt

(5,338)(8,761)

Payment of lease obligations

(104)

(83)

Increase in treasury stock(17,500)–

Decrease in treasury stock

2,376

–

Purchase of treasury stock

(7)

(9)

Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to minority interests
Net cash provided by (used in) financing activities

1

0(6,009)(5,795)

(76)

(51)

(16,529)(15,276)

Effect of exchange rate changes on cash and cash equivalents(12,619)

2,010

Net increase (decrease) in cash and cash equivalents(20,175)(12,547)

Cash and cash equivalents at beginning of year

129,289

110,037

1,142

270

Increase in cash and cash equivalents due to consolidation of
additional subsidiaries
Increase in cash and cash equivalents due to merger of
non-consolidated subsidiaries*385

Decrease in cash and cash equivalents due to company split

*4

(305)

Cash and cash equivalents at end of year*1

110,037- 34 -

*3

61
(45)

*1

97,776

Notes on Premise of Going Concern
No items to report

Important Information Constituting the Basis for Preparation of Consolidated Financial Statements

1. Information
Concerning the
Scope ofConsolidation

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(1) Total Number of Consolidated Subsidiaries:(1) Total Number of Consolidated Subsidiaries:

63 companies

80 companies

The names of consolidated subsidiaries have been
omitted as they are listed in 2. The BANDAI
NAMCO Group; (2) Associated Companies(Subsidiaries and Affiliated Companies).

The names of consolidated subsidiaries have been
omitted as they are listed in 2. The BANDAI
NAMCO Group; (2) Associated Companies(Subsidiaries and Affiliated Companies).

Since BEEZ ENTERTAINMENT S.A.S. and
SUNRISE Music Publishing Co., Ltd., gained inimportance, and BANDAI (SHENZHEN) CO.,LTD., was newly incorporated, those companies
were added to the scope of the consolidation fromthis consolidated fiscal year.

Since BANDAI (GUANGZHOU) CO., LTD.,
gained in importance, that company was added tothe scope of the consolidation from this consolidated
fiscal year. Since Bandai Networks Co., Ltd., and
ANIME CHANNEL, CO., LTD., were merged withconsolidated subsidiaries of the Company, they were
excluded from the scope of consolidation.

Since XS ENTERTAINMENT INC. and BANDAIVISUAL USA INC., were liquidated, they were
excluded from the scope of consolidation.
Furthermore, new Banpresto Co., Ltd., was newly
incorporated as a result of an incorporation-typecompany split of Banpresto Co., Ltd., and wasadded to the scope of consolidation. Banpresto Co.,
Ltd. was merged with by NAMCO BANDAI Games
Inc. due to an absorption-type merger, and thus was
excluded from the scope of consolidation.
Since a tender offer having been carried out by
NAMCO BANDAI Games Inc. for D3 INC. and its
consolidated subsidiaries, D3PUBLISHER INC.,
Entertainment Software Publishing Inc.,
D3Publisher of America, Inc., D3Publisher ofEurope Ltd., D3DB S.r.l., and Vicious Cycle
Software, Inc., those companies were added to thescope of consolidation.

NAMCO BANDAI Games Europe S.A.S., aconsolidated subsidiary of the Company,
additionally acquired shares in Distribution Partners
S.A.S., making that company a wholly owned
subsidiary, in conjunction with which Distribution
Partners S.A.S. (which changed its corporate nameto NAMCO BANDAI Partners S.A.S. after
becoming a wholly owned subsidiary) and its 18
subsidiaries were added to the scope of
consolidation.
Furthermore, NAMCO BANDAI Online Inc. wasnewly incorporated as a result of anincorporation-type company split of NAMCO
BANDAI Games Inc., a consolidated subsidiary of
the Company, and was added to the scope of
consolidation. Seika Co., Ltd., and NAMCO
ECOLOTECH LTD. were liquidated and thus were
excluded from the scope of consolidation.

(2) Names etc. of the Principal Non-Consolidated
Subsidiaries(2) Names etc. of the Principal Non-Consolidated
Subsidiaries

Principal non-consolidated subsidiaries

Principal non-consolidated subsidiaries

SHANGHAI NAMCO LTD.

SHANGHAI NAMCO LTD.

BANDAI LOGIPAL (H.K.) LTD.

BANDAI LOGIPAL (H.K.) LTD.

Total assets, net sales, net income or loss andretained earnings, etc. corresponding to theownership held by the Company of each
non-consolidated subsidiary have no material impact
on the consolidated financial statements andtherefore excluded from the scope of consolidation.

Total assets, net sales, net income or loss andretained earnings, etc. corresponding to theownership held by the Company of each
non-consolidated subsidiary have no material impact
on the consolidated financial statements andtherefore excluded from the scope of consolidation.

- 35 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)
2. Information(1) Number of Non-Consolidated Subsidiaries andConcerning
Affiliated Companies to Which the Equity Method
Was Applied: 7 companies
Application of theEquity Method
Names of the Principal Non-Consolidated
Subsidiaries and Affiliated Companies:(1) Number of Non-Consolidated Subsidiaries andAffiliated Companies to Which the Equity Method
Was Applied: 7 companies
Names of the Principal Non-Consolidated
Subsidiaries and Affiliated Companies:

Non-consolidated subsidiary:
SHANGHAI NAMCO LTD.

Non-consolidated subsidiary:
SHANGHAI NAMCO LTD.

Affiliated companies:
Happinet Corporation

Affiliated companies:
Happinet Corporation

Sotsu Co., Ltd.

Sotsu Co., Ltd.

People Co., Ltd.

People Co., Ltd.

With the sale of shares in Sunlink Co., Ltd. toHappinet Corporation, Sunlink Co., Ltd. was
excluded from the scope of application of the equity
method for this consolidated fiscal year.
Furthermore, with the investment in Distribution
Partners S.A.S. and the acquisition of shares in
Sun-Star Stationery Co., Ltd., in connection withthat company’s split, those companies were treatedas companies to which the equity method is applied.
(2) Non-Consolidated Subsidiaries and AffiliatedCompanies to Which the Equity Method Was Not
Applied

3. Information
Concerning the
Fiscal Year, etc.
for Consolidated
Subsidiaries

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)

In addition, Distribution Partners S.A.S., throughan additional acquisition of its shares, was made awholly owned subsidiary, and thus was excluded
from the scope of application of the equity method
for this consolidated fiscal year. Tsuburaya
Productions Co., Ltd., gained in importance and thus
was treated as a company to which the equity
method is applied.
(2) Non-Consolidated Subsidiaries and AffiliatedCompanies to Which the Equity Method Was Not
Applied

The equity method was not applied to
non-consolidated subsidiaries and affiliatedcompanies such as BANDAI LOGIPAL (H.K.)
LTD., because it was deemed that the exclusion ofthese companies from the application of the equity
method would have little, and no material, impact on
the consolidated net income or loss and retained
earnings, etc. and their significance is minimal as awhole.

The equity method was not applied to
non-consolidated subsidiaries and affiliatedcompanies such as BANDAI LOGIPAL (H.K.)
LTD., because it was deemed that the exclusion ofthese companies from the application of the equity
method would have little, and no material, impact on
the consolidated net income or loss and retained
earnings, etc. and their significance is minimal as awhole.

NAMCO BANDAI Holdings (USA) Inc. and someother consolidated subsidiaries (21 domestic and 25
overseas subsidiaries) have the last day ofDecember, January, or February as closing date.

NAMCO BANDAI Holdings (USA) Inc. and someother consolidated subsidiaries (18 domestic and 26
overseas subsidiaries) have the last day ofDecember, January, or February as closing date.

In, addition, BANDAI VISUAL CO., LTD. and
NAMCO BANDAI Business Services Inc. changed
their respective closing dates from the last day of
February to March 31 and thus had a 13-monthfiscal year.

In the preparation of the consolidated financial
statements, the financial statements of each company
for the relevant fiscal year were used, and necessary
adjustments for consolidation purposes were made in
the case of material transactions conducted prior to
the last day of the consolidated fiscal year for the
consolidated financial statements of the Company.

In the preparation of the consolidated financial
statements, the financial statements of eachcompany for the relevant fiscal year were used, andnecessary adjustments for consolidation purposes
were made in the case of material transactions
conducted prior to the last day of the consolidated
fiscal year for the consolidated financial statementsof the Company.

- 36 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)
4. Information
Concerning theBasis forAccounting
Treatment

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(1) Valuation Basis and Methods for Significant Assets:(1) Valuation Basis and Methods for Significant Assets:

(i)

(i)

Securities:
Held-to-maturity securities

Securities:
Held-to-maturity securities

Stated using the amortized cost method(straight-line method)Same as left column
Other securities

Other securities

Securities with market values:

Securities with market values:

Same as left column

Stated using the market price method based onamounts using market prices, etc. on theclosing date. (Unrealized gains or losses onother securities, net of tax are reflected directlyin net assets and cost of sales is calculatedusing the moving average method.)

Securities without market values:

Securities without market values:

Same as left column

Stated using the cost method based on themoving average method.
However, with respect to the contributions tolimited liability partnerships for investment
businesses and similar partnerships, the amountcorresponding to the equity holdings of thepartnership’s assets is stated as investment
securities, and the amount corresponding to
profits or losses resulting from the operationsof the partnership is stated as profits or losses
for this consolidated fiscal year.
(ii) Derivative Transactions:(ii) Derivative Transactions:

Stated using the market price method.

Same as left column(iii) Inventories:(iii) Inventories:
Work in process, such as game software, etc.:

Work in process, such as game software, etc.:

Stated using the cost method based on thespecific-cost method.
(The value stated on the balance sheets wascalculated by writing down the book value
based on declining profitability.)

Stated using the cost method based on thespecific-cost method.
(The value stated on the balance sheets wascalculated by writing down the book value
based on declining profitability.)
Others:Others:Domestic consolidated subsidiaries:
Generally, stated using the cost method
based on the average method.
(The value stated on the balance sheets wascalculated by writing down the book value
based on declining profitability.)
Overseas consolidated subsidiaries:
Generally, stated using the lower of cost
method based on the average method.

- 37 -

Domestic consolidated subsidiaries:
Generally, stated using the cost method
based on the average method.
(The value stated on the balance sheets wascalculated by writing down the book value
based on declining profitability.)
Overseas consolidated subsidiaries:
Generally, stated using the lower of cost
method based on the average method.

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(Change in Accounting Policies)“Accounting Standard for Measurement of
Inventories” (ASBJ Statement No. 9, issued on
July 5, 2006) was applied from thisconsolidated fiscal year.
The impact of this change on operating
income, recurring income, and net income
before income taxes and minority interests isimmaterial.
(2) Depreciation Methods for Significant Depreciable
Assets:(i) Property, Plant and Equipment (Exclusive of leased
assets):(2) Depreciation Methods for Significant Depreciable
Assets:(i) Property, Plant and Equipment (Exclusive of leased
assets):The Company and domestic consolidated
subsidiaries:

The Company and domestic consolidated
subsidiaries:

Generally stated using the declining-balancemethod.

Generally stated using the declining-balancemethod.

However, for buildings (excluding equipment
attached thereto) acquired on or after April 1, 1998
and for part of the amusement facilities andmachines, etc., the straight-line method was used.

However, for buildings (excluding equipment
attached thereto) acquired on or after April 1, 1998
and for part of the amusement facilities andmachines, etc., the straight-line method was used.

The general useful life of property, plant andequipment is as follows:

The general useful life of property, plant andequipment is as follows:

Buildings and structures:

2 to 50 years

Amusement facilities and machines:
3 to 15 years

Buildings and structures:

2 to 50 years

Amusement facilities and machines:
3 to 15 years(Additional Information)
The useful life of the property, plant andequipment of some domestic consolidated
subsidiary was changed from this consolidated
fiscal year, pursuant to the change in statutory
useful life in the 2008 revision of the Corporation
Tax Law.
The impact of this change on operating income,recurring income, and net income before income
taxes and minority interests is immaterial.
Overseas consolidated subsidiaries:

Overseas consolidated subsidiaries:

Stated using the straight-line method.

Same as left column

The general useful life of property, plant andequipment is as follows:
Buildings and structures:

5 to 50 years

Amusement facilities and machines:
2 to 7 years(ii) Intangible Assets:(ii) Intangible Assets:

Stated using the straight-line method.
The general useful life of software is as follows:
Software (used internally):
1 to 5 years- 38 -

Same as left column

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(iii) Leased Assets:(iii) Leased Assets:
Stated using the straight-line method, with theuseful life set to the lease period, with a residual
value of zero.

Same as left column

However, financing lease transactions other thanthose in which titles to leased property are
determined to be transferred to lessees, whichtransactions started on or before March 31, 2008,
are stated by applying the accounting treatment
applicable to ordinary operating lease transactions.
(3) Basis of Recognition for Significant Provision:(3) Basis of Recognition for Significant Provision:(i) Allowance for Doubtful Receivables:(i) Allowance for Doubtful Receivables:

The allowance for doubtful receivables isprovided for possible losses on unrecoverable
receivables. For ordinary receivables, the amount of
the allowance is based on the historical rate of loss.
For receivables from debtors at risk of bankruptcy
and receivables from debtors in bankruptcy or underreorganization, etc., the amount of the allowance isbased on individually estimated unrecoverable
amounts.
(ii) Provision for Directors’ Bonuses:

Same as left column(ii) Provision for Directors’ Bonuses:

The Company and its domestic consolidated
subsidiaries provide accrued bonuses for directors
based on the estimated amounts to be paid in respectof this consolidated fiscal year.

Same as left column(iii) Provision for Losses from Business Restructuring:(iii) Provision for Losses from Business Restructuring:

Certain consolidated subsidiaries make provision
for estimated losses on restructuring of operations.

Same as left column(iv) Provision for Sales Returns(iv) Provision for Sales Returns

Certain consolidated subsidiaries provide forlosses on returned goods after the end of thisconsolidated fiscal year based on historicexperience.
(v) Accrued Retirement and Severance Benefits:
Accrued retirement and severance benefits for
employees in respect of defined benefit plans isprovided for based on the estimated values ofprojected benefit obligations and pension plan assets
at the end of the consolidated fiscal year.
Unrecognized actuarial gain or loss is amortized,
beginning from the consolidated fiscal year
following the year in which it is incurred, using thestraight-line method over a fixed period (9 to 19
years) that does not exceed the average remaining
years of service of employees as of the end of the
fiscal year in which it is incurred.
Certain domestic consolidated subsidiaries
amortize prior service costs over a fixed period (10to 11 years) that does not exceed the averageremaining years of service of employees at the point
when the costs are incurred.

- 39 -

Same as left column(v) Accrued Retirement and Severance Benefits:
Same as left column

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(Change in Accounting Policies)“Partial Amendments to ‘Accounting Standards
for Retirement Benefits’ (Part 3)” (ASBJ Statement
No. 19, issued on July 31, 2008) were applied fromthis consolidated fiscal year.
This change has no impact on operating income,recurring income and net loss before income taxes
and minority interests.

(vi) Accrued Directors’ and Corporate Auditors’
Retirement and Severance Benefits:(vi) Accrued Directors’ and Corporate Auditors’
Retirement and Severance Benefits:
Same as left column

To provide for payment of retirement andseverance benefits to directors and corporate
auditors, certain domestic consolidated subsidiaries
record the amount payable at the end of theconsolidated fiscal year in accordance with internal
regulations.

(4) Accounting Standards for Significant Income andExpense:(i)Video Game Software Revenue Recognition:
Consolidated subsidiaries operating in the UnitedStates recognize revenue in accordance with
“Software Revenue Recognition” of FASB
Accounting Standards Codification No. 985-605,
treating video game software with online functions
as software products with multiple-element
arrangements. Unless the vendor can objectively andreasonably identify the fair value of undelivered
elements specified by the vendor, recording of any
revenue attributable to video game software isdeferred until all the elements are delivered.

(ii) Video Game Software Production Costs:
A distinctive characteristic of video gamesoftware is the process through which the software
is highly combined with content that cannot be
separated into identifiable components.
The content is considered to be an importantcomponent of each video game title, which includes
the game content and visual / music data.
Once management makes a decision to go
forward in distributing a title, the Company records
the software and content development costs as workin process.
The capitalized production costs are amortized tocost of sales based on projected sales volumes.

- 40 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)(4) Accounting Policies for Translation of Significant
Assets and Liabilities into Japanese Currency:
Receivables and payables denominated in foreign
currencies are translated at spot exchange rates
prevailing at the end of each fiscal year, andresulting gains or losses are included in income.

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(5) Accounting Policies for Translation of Significant
Assets and Liabilities into Japanese Currency:
Same as left column

Assets and liabilities of overseas subsidiaries aretranslated at spot exchange rates prevailing at theend of each fiscal year, while revenues and expensesof the same are translated at the average rates for theperiod. The differences resulting from suchtranslations are recorded in minority interests andtranslation adjustments under net assets.
(5) Accounting Standards for Income and Expense:
Video game software production costs:
A distinctive characteristic of video gamesoftware is the process through which the software
is highly combined with the content that cannot be
separated into identifiable components.
The content is considered to be an importantcomponent of each video game title, which includes
the game content and visual / music data.
Once management makes a decision to go
forward in distributing a title, the Company records
the software and content development costs as workin process.
The capitalized production costs are amortized tocost of sales based on projected sales volumes.
(6) Significant Accounting Policies for Hedging:(6) Significant Accounting Policies for Hedging:(i) Accounting for Hedging:(i) Accounting for Hedging:

The Company used deferred hedge accounting.

Same as left column

In cases where forward foreign exchange
contracts meet certain hedging criteria, the hedged
receivables and payables are translated at thecorresponding foreign exchange contract rate,“Allocation method.” Interest rate swaps that meet
specific matching criteria are accounted for using
specific allowed methods under relevant accounting
standards.
(ii) Hedging Instruments and Hedged Items:-Hedging instruments:(ii) Hedging Instruments and Hedged Items:-Hedging instruments:

Forward exchange contracts and interest rate
swaps
-Hedged items:

Same as left column-Hedged items:

Foreign-currency-denominated assets andliabilities and scheduled transactions, and interest on
borrowings- 41 -

Same as left column

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)(iii) Hedging Policies:

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(iii) Hedging Policies:

Hedging is implemented for the purpose of
reducing risks arising from fluctuations in exchange
rates and interest rates involved in operational andfinancing activities.
(iv) Method of Assessing the Effectiveness of
Hedging:
The Company assesses the effectiveness ofhedging transactions, in principle, from the start of
the transaction to the point at which effectiveness is
assessed by comparing the cumulative changes in
the fair value or the cumulative changes in the cash
flows of the hedged item with the cumulativechanges in the fair value or the cumulative changes
in the cash flows of the hedging instrument.

Same as left column(iv) Method of Assessing the Effectiveness of
Hedging:
Same as left column

In the event that critical terms are the same forthe hedging instrument and the hedged assets,
liabilities, or scheduled transaction, it is assumed
that the hedge is 100% effective, so the assessmentof effectiveness is not performed.
Also, for interest rate swaps for which thespecific allowed methods are applied, theassessment of effectiveness is not performed.
(7) Other Important Information Constituting the Basis ofPreparation of Consolidated Financial Statements(7) Other Important Information Constituting the Basis ofPreparation of Consolidated Financial Statements

Accounting treatment of consumption tax:

Accounting treatment of consumption tax:

Consumption tax is accounted for separately andis not figured into each listed item.

Same as left column

5. Valuation ofAssets andLiabilities ofConsolidated
Subsidiaries

Assets and liabilities of consolidated subsidiaries areassessed based on their fair market value.

Same as left column

6. Amortization of
Positive Goodwill
and Negative
Goodwill

Goodwill is amortized over a five-year period using
the straight-line method.

Same as left column

7. Scope of Cashand Cash
Equivalents inConsolidated
Statements ofCash Flows

Cash and cash equivalents include cash on hand,deposits on demand, and short-term, highly liquid
investments with maturities of 3 months or less fromthe date of acquisition that are readily convertible tocash and are subject to only insignificant risk ofchanges in value.

Same as left column- 42 -

Changes in the Important Information Constituting the Basis for Preparation of Consolidated Financial Statements
Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries for Consolidated Financial Statements)
With the adoption of the “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (PITF Practical Solution No.
18, issued on May 17, 2006), necessary adjustments to theconsolidated returns were carried out.
The impact of this change on operating income, recurringincome, and net income before income taxes and minority interests
is immaterial.
(Accounting Standard for Lease Transactions)
Before the change the accounting treatment for finance leasetransactions not involving the transfer of ownership followed themethod for operating lease transactions. However, the “AccountingStandard for Lease Transactions” (ASBJ Statement No. 13[Business Accounting Council Committee No. 1, June 17, 1993;
revised March 30, 2007]) and the “Guidance on AccountingStandard for Lease Transactions” (ASBJ Guidance No. 16 [TheJapanese Institute of Certified Public Accountants (JICPA)
Accounting Standard Committee, January 18, 1994; revised March
30, 2007]) are applied and the accounting treatment for suchtransactions follows the method for ordinary purchase or sales
transactions from this consolidated fiscal year.
In addition, for financing lease transactions other than those inwhich titles to leased property are determined to be transferred tolessees, which transactions started before the first year in which the
new standard was adopted, the accounting treatment applicable toordinary operating lease transactions continues to apply.
This change has no impact upon operating income, recurringincome and net income before income taxes and minority interests.
(Change in Accounting Policies)
Changes in classification of costs for the Amusement Facility
Business
Prior consolidated fiscal years, the costs of backroom support
operations at amusement facilities was treated as cost of sales for
the Amusement Facility Business; however, from this consolidated
fiscal year, such costs are stated as selling, general andadministrative expenses. This change is made to provide a more
appropriate presentation of costs of facilities management
operations from the point of view of the relationship between sales
and cost of sales, in conjunction with reviewing how facilities areoperated and the roles of operating staff, and clarifying the scope of
facilities management operations, given that competition has grown
more intense in the amusement facilities business.
The impact of this change, in comparison with the classification
used until the previous consolidated fiscal year, is a 2,011 million
yen reduction in the cost of sales for this consolidated fiscal yearwith an equivalent increase in gross profit, as well as an increase in
selling, general and administrative expenses by the same amount.
This change has no impact upon operating income, recurringincome and net loss before income taxes and minority interests.

- 43 -

Change in Method of Presentation
Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(Consolidated Balance Sheets)(Consolidated Balance Sheets)

1. With the adoption of the “Cabinet Office Order Partially
Amending Terminology, Format, and Method of Presentation of
Financial Statements” (Cabinet Office Order No. 50, August 7,2008), what had been stated through the previous consolidated
fiscal year as “Inventories” is, from this consolidated fiscal year,
stated separately as “Finished goods and merchandise,” “Work inprocess,” and “Raw materials and supplies.” In addition, thevalues of “Finished goods and merchandise,” “Work in process,”and “Raw materials and supplies” subsumed under “Inventories”
in the previous consolidated fiscal year were 11,463 million yen,
21,481 million yen, and 3,484 million yen, respectively.

What had been stated separately through the previous
consolidated fiscal year as “Guarantee money deposited” (forwhich the balance at the end of this consolidated fiscal year is
15,394 million yen) was stated within “Other investments andassets” under “Investments and other assets,” since it is at or below
5 percent of the total of assets.

2. What had been stated through the previous consolidated fiscal
year as “Deferred tax liabilities” (for which the balance for thisconsolidated fiscal year is 616 million yen) was stated within“Other long-term liabilities” under “Long-term liabilities,” since
it is below one percent of the total of liabilities and net assets.
(Consolidated Statements of Operations)(Consolidated Statements of Operations)

1. “Amortization of negative goodwill,” which had been stated
1. What had been stated through the previous consolidated fiscal
through the previous consolidated fiscal year within “Other
year as “Gain on sales of investments in affiliated companies”
non-operating income” under “Non-operating income” was stated(for which the balance for this consolidated fiscal year is 72
separately, since it is above 10 percent of the total non-operating
million yen) was stated within “Other extraordinary income”
income.
under “Extraordinary income,” since it is below 10 percent of thetotal extraordinary income.
The total of “Amortization of negative goodwill” for theprevious consolidated fiscal year was 116 million yen.
2. What had been stated through the previous consolidated fiscal
year as “Loss on business restructuring” (for which the balance
2. What had been stated through the previous consolidated fiscal year
for this consolidated fiscal year is 114 million yen) and as
as “Equity in gain of affiliated companies” (for which the balance for“Provision for losses on business restructuring” (for which thethis consolidated fiscal year is 0 million yen) was stated withinbalance for this consolidated fiscal year is 130 million yen) were
“Other non-operating income” under “Non-operating income,” sincestated within “Other extraordinary loss” under “Extraordinary
it is below 10 percent of the total non-operating income.
loss,” since each is below 10 percent of the total extraordinary
3. “Loss on business restructuring,” which had been stated throughloss.
the previous consolidated fiscal year within “Other extraordinary
3. “Income taxes for the previous period,” which had been statedloss” under “Extraordinary loss” was stated separately, since its
through the previous consolidated fiscal year within “Corporate
monetary importance has increased this consolidated fiscal year.
income, inhabitant and enterprise taxes,” was stated separately,
The total of “Loss on business restructuring” for the previous
since its monetary importance has increased this consolidated
consolidated fiscal year was 114 million yen.
fiscal year.
4. What had been stated through the previous consolidated fiscal“Income taxes for the previous period” subsumed underyear as “Loss on valuation of investment securities” (for which“Corporate income, inhabitant and enterprise taxes” for thethe balance for this consolidated fiscal year is 122 million yen),previous consolidated fiscal year was 13 million yen.
“Provision for allowance of doubtful receivables” (for which thebalance for this consolidated fiscal year is 718 million yen), and“Litigation settlement” (for which the balance for thisconsolidated fiscal year is 66 million yen) were stated within“Other extraordinary loss” under “Extraordinary loss,” since eachis below 10 percent of the total extraordinary loss.
(Consolidated Statements of Cash Flows)
What had been stated through the previous consolidated fiscal
year as “Increase (decrease) in accrued directors’ and corporate
auditors’ retirement and severance benefits” (for which the balance
for this consolidated fiscal year is negative 14 million yen) was
stated within “Other” in “Cash flows from operating activities” dueto its diminished monetary importance.

- 44 -

Additional Information
Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)(Legal Action, etc.)(Additional Investment in NAMCO BANDAI Partners S.A.S.)

On December 4, 2006, Kevin Curran and three other persons,
successors in interest to General Computer Corporation in the
United States, sued the Company’s group for compensation fordamages related to payment of royalty payments. An out-of-court
settlement was reached in December 2008 and a loss of 1,061
million yen (9,236 thousand US dollars) accompanying that
settlement was stated as “Litigation settlement.”

On July 7, 2009, NAMCO BANDAI Games Europe S.A.S., aconsolidated subsidiary of the Company, additionally acquired
shares in Distribution Partners S.A.S. (which changed its corporatename to NAMCO BANDAI Partners S.A.S. after becoming awholly owned subsidiary of NAMCO BANDAI Games Europe
S.A.S.), making that company a consolidated subsidiary of theCompany.
1. Name and Business Content of Acquired Company, Main Reason
for the Business Combination, Date of the Business
Combination, Legal Form of the Business Combination andPercentage of Voting Rights Acquired:(1) Name and Business Content of the Acquired Company:
Name:
Distribution Partners S.A.S.
(The Acquired Company changed its
corporate name to NAMCO BANDAI
Partners S.A.S. after becoming a wholly
owned subsidiary of NAMCO BANDAI
Games Europe S.A.S.)
Business content: Distribution of electronic products andproducts for PCs and game consoles(2) Main Reason for the Business Combination:
The objective is to build a distribution network for the Groupin European region and strengthen its Game Contents Businessin that region.
(3) Date of the Business Combination:
July 1, 2009(4) Legal Form of the Business Combination:
Acquisition of shares(5) Percentage of Voting Rights Acquired:
66.0% (Total percentage of voting rights after the additional
acquisition of shares: 100.0%)
2. Period of Performance of the Acquired Company Included in theConsolidated Financial Statements:
From July 1, 2009 to March 31, 2010
In addition, during the period from April 1, 2009 to June 30,
2009, the Acquired Company was an affiliated company of theCompany to which the equity method was applied.
3. Acquisition Cost of the Acquired Company and the Breakdownof the Cost:
Consideration paid for the
additional acquisition of shares
Direct cost of acquisition

53 million yen

Existing equity

631 million yen

Acquisition cost

- 45 -

3,627 million yen

4,312 million yen

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)
4. Value of Goodwill or Negative Goodwill Generated, Cause of theGeneration, Amortization Method and Amortization Period:(1) Value of Goodwill:

8,305 million yen(2) Cause of the Generation:
Because the cost of the acquisition exceeded the market
value of the net assets of the company at the time of thebusiness combination was carried out, the difference isrecognized as goodwill.
(3) Amortization Method and Amortization Period
Amortized by the straight-line method over five years.
At the end of this consolidated fiscal year, however, as aresult of reviewing the business plan which was considered at
the time of acquisition of the shares, it was determined that the
future super-profit initially assumed could not be expected;
thus, the relevant book value was reduced by the entire amountand that reduction stated as an impairment loss under
extraordinary loss.
5. Value of Assets Acquired and Liabilities Undertaken on the Dateof the Business Combination and their Main Breakdown:
Current assets

17,344 million yen

Fixed assets

484 million yen

Total assets

17,828 million yen

Current liabilities

19,408 million yen

Fixed liabilities

2,413 million yen

Total liabilities

21,822 million yen

6. Contents of the Conditional Payment of Acquisition Price
Stipulated in the Business Combination Agreement and theSubsequent Accounting Processing Policies:
Not applicable.
7. Amount Allocated to Research and Development Expenses, etc.
in the Acquisition Cost, and its Category:Not applicable.
8. Allocation of Acquisition Cost:
There are no distinguishable assets or liabilities that areallocated other than goodwill.

- 46 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)
9. Approximate amounts of impact on consolidated statements ofoperations if the business combination had been completed at the
beginning of this consolidated fiscal year.
Net sales

25,980 million yen

Operating loss

3,926 million yen

Recurring loss

4,396 million yen

Net loss

4,592 million yen

In the above calculation of approximate amounts for net sales
and income/loss, the net sales and income/loss of Distribution
Partners S.A.S. from April 1, 2009 through June 30, 2009 was
added to the calculation.
The above approximate amounts have not undergone
attestation by an auditor.

- 47 -

Notes to Consolidated Financial Statements(Consolidated Balance Sheets)
Prior Fiscal Year(As of March 31, 2009)

Current Fiscal Year(As of March 31, 2010)*1. Shares of non-consolidated subsidiaries and affiliatedcompanies
Investment securities (shares)*1. Shares of non-consolidated subsidiaries and affiliatedcompanies

12,150 million yen

9,420 million yen*2. Pledged assets:*2. Pledged assets:
Time deposits:

Investment securities (shares)

Time deposits:

131 million yen

4 million yen

Pledged for bank transaction guarantees

Pledged for bank transaction guarantees*3. Land revaluation*3. Land revaluation
A revaluation of land for business-use was implemented
pursuant to the “Law Concerning Land Revaluation” (Law No.
34, promulgated on March 31, 1998) and land revaluation, net
tax was reported in net assets.

A revaluation of land for business-use was implemented
pursuant to the “Law Concerning Land Revaluation” (Law No.
34, promulgated on March 31, 1998) and land revaluation, netof tax was reported in net assets.

Revaluation method: The fair value of land is determinedbased on official notice prices that arecalculated by the method assessed andpublished by the Commissioner of the
National Tax Agency. The
Commissioner assesses and publishes
the method to calculate land value that
forms the foundation for calculating
taxable value for land value tax
prescribed in “Article 16 of Land Value
Tax Law (Law No. 69, promulgated on
May 2, 1991)”, as stipulated in “Article
2-4 of the Ordinance Implementing the
Law Concerning Land Revaluation(Cabinet Order No. 119, promulgatedon March 31, 1998).” Reasonableadjustments are made to the official
notice prices.

Revaluation method: The fair value of land is determinedbased on official notice prices that arecalculated by the method assessed andpublished by the Commissioner of the
National Tax Agency. The
Commissioner assesses and publishes
the method to calculate land value that
forms the foundation for calculating
taxable value for land value tax
prescribed in “Article 16 of Land Value
Tax Law (Law No. 69, promulgated on
May 2, 1991)”, as stipulated in “Article
2-4 of the Ordinance Implementing the
Law Concerning Land Revaluation(Cabinet Order No. 119, promulgatedon March 31, 1998).” Reasonableadjustments are made to the official
notice prices.

Revaluation date:

March 31, 2002

Revaluation date:

March 31, 2002

(157) million yen

Difference between the fair value of therevalued land at the end of thisconsolidated fiscal year and therevaluated carrying amount after therevaluation:(513) million yen

Difference between the fair value of therevalued land at the end of thisconsolidated fiscal year and therevaluated carrying amount after therevaluation:*4. Discounted notes receivable:
50 million yen- 48 -

(Consolidated Statements of Operations)
Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)*1. The book value of ending inventories is devalued based upon
*1. The book value of ending inventories is devalued based upon
the declining in profitability. The following loss on valuation of
the declining in profitability. The following loss on valuation of
inventories is included in cost of sales.
inventories is included in cost of sales.
7,651 million yen

3,844 million yen*2. Major components of selling, general and administrative
expenses*2. Major components of selling, general and administrative
expenses(¥ million)(¥ million)

Advertising expenses:

28,409Advertising expenses:

29,514

Directors’ remuneration andemployees’ wages:

27,992

Directors’ remuneration andemployees’ wages:

31,645

Employees’ retirement and severance
benefits:

1,247

Employees’ retirement and severance
benefits:

1,516

Provision for directors’ bonuses:

625

Provision for directors’ bonuses:

421

Provision for directors’ and corporate
auditors’ retirement and severance
benefits:

12

Provision for directors’ and corporate
auditors’ retirement and severance
benefits:

33

Research and development expenses:

17,511

Research and development expenses:

16,144

Allowance for doubtful receivables,
investments, and other assets:

134

Allowance for doubtful receivables,
investments, and other assets:

276

17,511 million yen*3. Research and development expenses
included in general andadministrative expenses andmanufacturing costs:

16,144 million yen*3. Research and development expenses
included in general andadministrative expenses andmanufacturing costs:*4. Gain on sales of fixed assets related mainly to the sales of land.

*4. Gain on sales of fixed assets related mainly to the sales ofbuildings and structures and sales of vehicles.

*5. Loss on sales of fixed assets related mainly to the sales ofbuildings and structures.

*5. Loss on sales of fixed assets related mainly to the sales of tools,
furniture and fixtures.

*6. Loss on disposal of fixed assets related mainly to the disposal of *6. Loss on disposal of fixed assets related mainly to the disposal ofbuildings and structures and disposal of tools, furniture andbuildings and structures and disposal of tools, furniture andfixtures.
fixtures.

- 49 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)*7. Loss on impairment of fixed assets*7. Loss on impairment of fixed assets
Evaluation of fixed asset impairment is performed by
Evaluation of fixed asset impairment is performed bygrouping assets by the Company and its consolidated
grouping assets by the Company and its consolidated
subsidiaries according to management accounting
subsidiaries according to management accountingclassifications based on strategic business units, excludingclassifications based on strategic business units, excluding
significant idle assets, assets scheduled for disposal, andsignificant idle assets, assets scheduled for disposal, andleased assets. In the Amusement Facility Business, theleased assets. In the Amusement Facility Business, theindividual facility is the smallest unit used in management
individual facility is the smallest unit used in management
accounting and the basic unit for evaluating impairment.
accounting and the basic unit for evaluating impairment.
In addition, the carrying amounts of the following assets,(Changes in grouping of assets)which
exclude reusable assets, were reduced to the recoverable
In the past, in the Amusement Facility Business, asset
amount. The amount of reduction was recorded as a loss ongroupings were mainly organized by a certain region; in some
impairment of fixed assets in extraordinary loss.
domestic consolidated subsidiaries, however, due to changes intheir organization, the units used in the managerial accounting
and the units in those groupings diverge; thus, from thisconsolidated fiscal year, the individual facility, the smallest unit
used in management accounting, is mainly the basic unit forgrouping assets.
Accompanying these changes, the Company stated an
impairment loss of 160 million yen as an extraordinary loss andreduced net income before income taxes and minority interestsin the same amount of the impairment loss.
In addition, the book values of the following assets, which
exclude reusable assets, were reduced to the recoverable
amount. The amount of reduction was recorded as a loss on
impairment of fixed assets in extraordinary loss.

- 50 -

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Location
Kanazawa City,
Ishikawa, etc.
(Note 1)
Sendai City,
Miyagi, etc.
(Note 2)
Osaka City, Osaka,
etc.
(Note 3)
Sapporo City,
Hokkaido, etc.
(Note 1)

Shibuya-ku, Tokyo(Note 4)

Seoul, KOREA(Note 1)

Minato-ku, Tokyo(Note 5)

Minato-ku, Tokyo(Note 5)

Items

Classification

Amusement
facilities andmachines, andother assets
Amusement
Amusement facilities andmachines, andfacility
other assets
Amusement
Amusement facilities andmachines, andfacility
other assets
Buildings andstructures, andAssets for
Other property,business use
plant andequipment
Buildings andstructures, andAssets for
Other property,business use
plant andequipment
Software forInternet
Other intangible
content
fixed assets
business
Buildings andAssetsstructures, andscheduled
Other property,
for disposal plant andequipment
AssetsBuildings andscheduledstructures
for disposal
Amusement
facility

Ibaraki City, Osaka,
etc.
Idle assets(Note 6)
Total

Land

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)
Impairment
loss(¥ million)

Location

Items

208

Muko City,
Kyoto, etc.
(Note 1)

Amusement
facility93

Toshima-ku,
Tokyo, etc.
(Note 2)

Amusement
facility

474

Kishiwada City,
Osaka(Note 3)

Amusement
facility

Illinois, U.S.A.,
etc. (Note 4)

Amusement
facility

Braintree, U.K.,
etc.
(Note 1)

Amusement
facility

New Territories,
H.K., etc.
(Note 1)

Amusement
facility

48

38

25
Cambridge, U.K. Assets for(Note 1)business use
22

13

28
953

Shinagawa-ku,
Tokyo(Note 4)

Assets forbusiness use

Kasuya-gun,
Fukuoka, etc.
(Note 1)

Warehouse― (Note 5)
Total- 51 -―Classification
Amusement
facilities andmachines, andother assets
Amusement
facilities andmachines, andother assets
Amusement
facilities andmachines, Land,and other assets
Amusement
facilities andmachines
Amusement
facilities andmachines, andother assets
Amusement
facilities andmachines, andother assets
Buildings andstructures, andOther property,
plant andequipment
Other property,
plant andequipment, Other
intangible fixed
assets, and otherassetsBuildings andstructures, andOther property,
plant andequipment
Goodwill

Impairment
loss(¥ million)
284

90

1,152

480

342

1

3

747

50

12,74915,902

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)

Notes:

Notes:

1. An impairment loss was recorded because it was forecasted thatthe carrying amount of these fixed assets could not be recovered
due to the decline in business profitability. In addition, theseassets were determined to have no fair value.

1. An impairment loss was recorded because it was forecasted thatthe carrying amount of these fixed assets could not be recovered
due to the decline in business profitability. In addition, theseassets were determined to have no fair value.

2. An impairment loss was recorded because it was judged that the 2. An impairment loss was recorded because it was judged that thecarrying amount that could be recovered for these fixed assets
carrying amount that could be recovered for these fixed assets
had fallen substantially due to the decision to close the facility. In
had fallen substantially due to the decision to close the facility. In
addition, these assets were determined to have no fair value.
addition, these assets were determined to have no fair value.
3. An impairment loss was recorded for these fixed assets because,
while it had previously been operated to generate income, anassessment of the main objective of the operation led to adecision to operate these assets as a research facility for new
product development and development of new types of facilities.
Based on that decision, it was judged that the value that could berecovered for these fixed assets had fallen substantially. In
addition, these assets were determined to have no fair value.
4. An impairment loss was recorded because the recoverable
amount of these fixed assets substantially decreased, due to thedecision to close the facility. In addition, these assets were
determined to have no fair value.
5. An impairment loss was recorded on these assets for which no
future use is anticipated, accompanying the relocation of theCompany and its subsidiaries’ head office functions. In addition,these assets were determined to have no fair value.

3. An impairment loss was recorded because it was forecasted thatthe carrying amount of these fixed assets could not be recovered
due to the decline in business profitability. The recoverable
amount was measured based on the estimated net selling price,which was assessed based on a reasonable estimate.
4. An impairment loss was recorded because it was forecasted thatthe carrying amount of these fixed assets could not be recovered
due to the decline in business profitability. The recoverable
amount was measured as the estimated value in use based on
future cash flows.
5. It was determined that the future super-profit assumed in thebusiness plan considered at the time of acquisition of the shares
was unlikely to be realized. Therefore, the total unamortizedbalance was recorded as an impairment loss.

6. Assets that had no foreseeable use in the future were written
down and an impairment loss was recorded. The recoverable
amount of real estate assets was measured based on the estimatednet selling price, which was assessed based on real estateappraisals.

- 52 -

(Consolidated Statements of Changes in Net Assets)
Prior Fiscal Year (From April 1, 2008 to March 31, 2009)
1. Matters concerning the type and total number of shares issued and the type and total number of treasury stock
Number of shares at the Increase in number ofend of the previous
shares in the current
periodperiodDecrease in number ofshares in the current
periodNumber of shares atthe end of the current
periodIssued shares
Common stock(Note 1)
Total

256,080,191–

6,080,191

250,000,000

256,080,191–

6,080,191

250,000,000

1,766,271

13,009,676

6,081,151

8,694,796

1,766,271

13,009,676

6,081,151

8,694,796

Treasury stock
Common stock(Note 2, 3)
Total
Notes: 1.
2.

3.

The decrease of 6,080,191 shares in the total number of shares issued resulted from the retirement of treasury
stock.
The increase of 13,009,676 shares in treasury stock (shares of common stock) consists of an increase of
13,000,000 shares from the purchase of treasury stock as per a decision made by the Board of Directors, 6,550
shares from the repurchase of shares less than a unit, and 3,126 shares as a result of an increase in theshareholding ratio in respect of affiliates to which the equity method applies.
The decrease of 6,081,151 shares in treasury stock (shares of common stock) consists of a decrease of
6,080,191 shares from the retirement of treasury stock and 960 shares from sales of shares less than a unit.

- 53 -

2. Notes to stock subscription rights and treasury stock subscription rights

Category

The
Company

Details of stock subscription rights

Number of shares covered by stock
Type of stock
Balance at
subscription rights
for stockend ofsubscription At end of Increase Decrease
periodAt end ofrights(¥ million)
previous in current in current
periodperiodperiodperiodSeries 1 Stocksubscription rights(Note)

–

–

–

–

–

195

Series 2 Stocksubscription rights(Note)

–

–

–

–

–

60

–

–

–

–

–

389

–

–

–

–

–

159

Series 2–1 Stocksubscription rights(Note)

–

–

–

–

–

175

Series 2–2 Stocksubscription rights(Note)

–

–

–

–

–

487

–

–

–

–

–

1,468

Series 3 Stock
Stocksubscription rights
subscription
rights as stock Series 4 Stocksubscription rights
options(Note)

Total

Note: Exercise periods have not started for the Series 1, Series 2, Series 4, Series 2–1 and Series 2–2 stock subscription
rights.
3. Matters concerning dividends(1) Paid cash dividend amounts
Date of resolution

Type of shares

Total amount ofcash dividends(¥ million)

Cash dividend
per share (¥)

Date of record

Effective dateCommon stock

3,053

12

March 31, 2008

June 24, 2008

Common stock

2,956

12

September 30, 2008

December 8, 2008

June 23, 2008,
Ordinary General Meetingof Shareholders (Note)
November 5, 2008,
Board of Directors’ Meeting

Note: The above is stated excluding dividends on treasury stock owned by affiliated companies. In addition, the total amountof dividends before that exclusion was 3,056 million yen.

- 54 -

(2) Cash dividends with a date of record in this consolidated fiscal year but an effective date in the following
consolidated fiscal year
Date of resolution

June 22, 2009,
Ordinary General Meeting

Type ofsharesTotal amount ofcash dividends(¥ million)

Common
stock

2,896

Source ofCash dividend
cash dividends per share (¥)

Retainedearnings

12

Date of record

Effective date

March 31, 2009

June 23, 2009of Shareholders

Current Fiscal Year (From April 1, 2009 to March 31, 2010)
1. Matters concerning the type and total number of shares issued and the type and total number of treasury stock
Number of shares at the Increase in number ofend of the previous
shares in the current
periodperiodDecrease in number ofshares in the current
periodNumber of shares atthe end of the current
periodIssued shares
Common stock

250,000,000––

250,000,000

Total

250,000,000––

250,000,000

Common stock(Note 1, 2)

8,694,796

11,562

165,582

8,540,776

Total

8,694,796

11,562

165,582

8,540,776

Treasury stock

Notes: 1.

2.

The increase of 11,562 shares in treasury stock (shares of common stock) consists of an increase of 10,204
shares from the repurchase of shares less than a unit and 1,358 shares as a result of an increase in theshareholding ratio in respect of affiliates to which the equity method applies.
The decrease of 165,582 shares in treasury stock (shares of common stock) consists of a decrease of 164,800
shares from exercising stock subscription rights and 782 shares from sales of shares less than a unit.

- 55 -

2. Notes to stock subscription rights and treasury stock subscription rights

Category

The
Company

Details of stock subscription rights

Number of shares covered by stock
Type of stock
Balance at
subscription rights
for stockend ofsubscription At end of Increase Decrease
periodAt end ofrights(¥ million)
previous in current in current
periodperiodperiodperiodSeries 3 Stocksubscription rights

–

–

–

–

–

384

Series 4 Stocksubscription rights

–

–

–

–

–

156

–

–

–

–

–

175

–

–

–

–

–

94

–

–

–

–

–

810

Stock
subscription Series 2–1 Stockrights as stock subscription rights
options(Note)
Series 2–2 Stocksubscription rights(Note)
Total

Note: Exercise periods have not started for the Series 2–1 and Series 2–2 stock subscription rights.
3. Matters concerning dividends(1) Paid cash dividend amounts
Date of resolution

Type of shares

Total amount ofcash dividends(¥ million)

Cash dividend
per share (¥)

Date of record

Effective dateCommon stock

2,896

12

March 31, 2009

June 23, 2009

Common stock

2,898

12

September 30, 2009

December 7, 2009

June 22, 2009,
Ordinary General Meetingof Shareholders
November 5, 2009,
Board of Directors’ Meeting(2) Cash dividends with a date of record in this consolidated fiscal year but an effective date in the following
consolidated fiscal year
Date of resolution
June 21, 2010,
Ordinary General Meeting

Type ofsharesTotal amount ofcash dividends(¥ million)

Common
stock

2,898

Source ofCash Dividend
cash dividends per share (¥)
Retainedearningsof Shareholders- 56 -

12

Date of record

Effective date

March 31, 2010

June 22, 2010

(Consolidated Statements of Cash Flows)
Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)*1. Relationship between cash and cash equivalents at the end of
the period under review and the amounts accounted for on the
consolidated balance sheets:*1. Relationship between cash and cash equivalents at the end of
the period under review and the amounts accounted for on the
consolidated balance sheets:(¥ million)(¥ million)

Cash and time deposits

106,747

Cash and time deposits

96,647

Short-term investments

4,426

Short-term investments

2,037

Total

111,173

Total

98,685Time deposits with maturities exceeding
3 months(1,135)Time deposits with maturities exceeding
3 months(908)

Cash and cash equivalents

110,037

Cash and cash equivalents

97,776*2. Key assets and liabilities of companies newly consolidated as
subsidiaries due to acquisition of their equity*2. Key assets and liabilities of companies newly consolidated as
subsidiaries due to acquisition of their equity
D3 INC.

NAMCO BANDAI Partners S.A.S.

Breakdown of assets and liabilities of D3 INC. and its
subsidiaries at the time of its new consolidation due to theacquisition of its shares and the reconciliation between the shareacquisition value and the net proceeds from the acquisition are
as follows:

Breakdown of assets and liabilities of Distribution Partners
S.A.S. (which changed its corporate name to NAMCO
BANDAI Partners S.A.S. after becoming a wholly owned
subsidiary) and its subsidiaries at the time of its newconsolidation due to the acquisition of its shares and thereconciliation between the share acquisition value and the net
purchases from the acquisition are as follows:(¥ million)
Current assets

7,892

Fixed assets

848

Current liabilities(1,954)Long-term liabilities(5,144)

Negative goodwill(250)

Minority interests(79)

Share acquisition value

1,313

Existing equity

Current assets
Fixed assets(3)

Cost of share acquisition

1,309

Cash and cash equivalents of D3 INC.
and its subsidiaries

1,586

Difference: Net proceeds from theacquisition(¥ million)277- 57 -

17,344484

Current liabilities(19,408)

Long-term liabilities(2,413)

Goodwill

8,305

Share acquisition value

4,312

Existing equity(631)

Cost of share acquisition

3,680

Cash and cash equivalents of NAMCO
BANDAI Partners S.A.S. and its
subsidiaries

1,920

Difference: Net purchases from theacquisition

1,760

Prior Fiscal Year
(From April 1, 2008 to March 31, 2009)

Current Fiscal Year
(From April 1, 2009 to March 31, 2010)*3. Main assets and liabilities succeeded in connection with amerger of non-consolidated subsidiaries*3. Main assets and liabilities succeeded in connection with amerger of non-consolidated subsidiaries

The following assets and liabilities are assumed from Bandai
Automobile Co., Ltd., which in the period under review mergedwith LOGIPAL EXPRESS INC. The merger caused increase of
215 million yen in capital reserve of the Company.

The following assets and liabilities are assumed from Creer
Beaute Co., Ltd., which in the period under review merged with
Bandai Co., Ltd.
(¥ million)(¥ million)

Current assets

163

Current assets

117

Fixed assets–

Fixed assets

156
Total assets

Total assets

163

273

Current liabilities

126

Current liabilities

49

Long-term liabilities

150

Long-term liabilities

8

Total liabilities

Total liabilities

57*4. Major breakdown of assets and liabilities which are decreased
due to company split
The major breakdown of assets and liabilities of Seika Co.,
Ltd. succeeded by Sun-Star Stationery Co., Ltd. Cash and cash
equivalents are decreased by 305 million yen due to thiscompany split.
(¥ million)
Current assets

1,556

Fixed assets

21
Total assets

1,577

Current liabilities

906

Long-term liabilities

342

Total liabilities

1,249- 58 -

276

(Segment Information)a. By Business Segment
Prior Fiscal Year (From April 1, 2008 to March 31, 2009)(¥ million)
Toys and
Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

NetworkBusiness

Visual andMusic
Content
Business

163,068

76,917

133,722

10,49933,6338,559

426,399–

426,399

2,656

352

5,683

391

1,004

10,44920,538(20,538)–

Other
Businesses

Total

Eliminations
Consolidated
andCorporate

I Net sales andoperating income(loss)Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total

165,725

77,269139,405

10,89034,63819,009446,938(20,538)

426,399

Operating expenses

154,191

76,876

128,465

10,221

34,59918,443422,798(18,746)

404,051

Operating income

11,533393

10,940

669

38

565

24,140(1,791)

22,348

II Assets, depreciation
and amortization,
impairment loss,
and capital
expenditure
Assets130,404

54,400108,965

11,091

48,071

19,206372,139(8,695)363,444

Depreciation andamortization

8,972

9,570

3,766

307

3,113

926

26,65785

26,742

Impairment loss

63

776

–

–

13

77

930

22

953

Capital expenditure

6,723

6,712

2,527

82

885

385

17,316164

17,481

Notes: 1.
2.

3.

4.

5.

The industry segments used above are those used for internal management purposes.
Main products in each business segment:(1) Toys and Hobby Business:
Toys, candy toys, products for vending machines, cards, plastic
models, apparel, sundries, stationery(2) Amusement Facility Business:
Amusement facilities operation(3) Game Contents Business:
Home-use video game software, arcade game machines, prizes foramusement arcade machines(4) Network Business:
Mobile contents(5) Visual and Music Content Business: Video contents, video software, on demand video distribution(6) Other Businesses:
Transportation and storage of products, leases, real estate
management, printing, development and sales of environmental
devices
Unallocatable operating expenses included in the “Eliminations and Corporate” column under “Operating
expenses” was 3,086 million yen. The majority of this cost represents administrative costs incurred by thegeneral administration department of the Company and NAMCO BANDAI Holdings (USA) Inc.
Unallocatable assets included in the “Eliminations and Corporate” column under “Assets” were 36,217 million
yen. The significant assets included in the amounts were surplus operating funds (cash and time deposits) of theCompany, long-term investment funds (investment securities), and assets held by the administrative sections.
Depreciation includes amortization of goodwill.

- 59 -

Current Fiscal Year (From April 1, 2009 to March 31, 2010)(¥ million)
Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

145,672

132,177

27,90965,112

7,674

3,170

5,350

1,326

250

9,777

Amusement
Facility
Business

Other
Businesses

Eliminations
andCorporate

Consolidated

378,547–

378,547

19,876(19,876)–

Total

I Net sales andoperating income(loss)Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total

148,843

137,528

29,23665,362

17,452

398,423(19,876)

378,547

Operating expenses

138,057

144,373

30,10765,077

17,093394,710(18,047)

376,663

Operating income(loss)

10,786(6,845)

(871)

284

358

3,712

(1,828)

1,883

II Assets, depreciation
and amortization,
impairment loss,
and capital
expenditure
Assets111,992

101,495

19,24038,775

17,578289,082

36,853

325,935

Depreciation andamortization

8,194

5,477

2,266

7,319

482

23,740216

23,956

Impairment loss

146

7,041

6,312

2,351

50

15,902–

15,902

Capital expenditure

6,865

1,870

513

4,496

422

14,168249

14,418Notes: 1.
2.

3.

4.

5.

The industry segments used above are those used for internal management purposes.
Main products in each business segment:(1)

Toys and Hobby Business:

Toys, candy toys, products for vending machines, cards, plastic
models, apparel, sundries(2)

Game Contents Business:

Home-use video game software, arcade game machines, mobile
contents, prizes for amusement arcade machines(3)

Visual and Music Content Business: Video contents, video software, on demand video distribution,
music software(4)

Amusement Facility Business:

Amusement facilities operation(5)

Other Businesses:

Transportation and storage of products, leases, real estate
management, printing, sales of environmental devices

Unallocatable operating expenses included in the “Eliminations and Corporate” column under “Operating
expenses” was 2,685 million yen. The majority of this cost represents administrative costs incurred by thegeneral administration department of the Company and NAMCO BANDAI Holdings (USA) Inc.
Unallocatable assets included in the “Eliminations and Corporate” column under “Assets” were 44,168 million
yen. The significant assets included in the amounts were surplus operating funds (cash and time deposits) of theCompany, long-term investment funds (investment securities), and assets held by the administrative sections.
Depreciation includes amortization of goodwill.

- 60 -

6.

Changes in business segments
On April 1, 2009, for the further growth expected in the network-related market, an absorption-type merger
was executed between the Company’s consolidated subsidiary Bandai Networks Co., Ltd. (the extinct company)
and the Company’s consolidated subsidiary NAMCO BANDAI Games Inc. (the surviving company). As aresult of a review of business segments that accompanied this merger, it was decided to merge the Network
Business segment with the Game Contents Business segment from the current fiscal year because they had
similar business characteristics such as contents of services, content development, and support for multiple
media.
The table below presents the results of the previous fiscal year (business segment information) under the
new business segments.
(¥ million)
Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

Amusement
Facility
Business

Other
Businesses

Total

163,068

144,22133,63376,9178,559(2) Inter-segment
sales and transfers

2,656

5,669

1,004

352

Total

165,725

149,891

34,638Operating expenses

154,191

138,281

Operating income

11,533Eliminations
andCorporate

Consolidated

426,399–

426,399

10,44920,133(20,133)–

77,26919,009446,533(20,133)

426,399

34,59976,876

18,443422,393(18,341)404,051

11,609

38

393

565

24,140(1,792)

22,348130,404

119,604

48,071

54,40019,206371,687(8,242)

363,444

8,972

4,073

3,113

9,570

926

26,65785

26,742I Net sales andoperating income(loss)Net sales(1) To externalcustomers

II Assets, depreciation
and amortization,
impairment loss,
and capital
expenditure
AssetsDepreciation andamortization
Impairment loss

63

–

13

776

77

930

22

953

Capital expenditure

6,723

2,609

885

6,712

385

17,316164

17,481- 61 -

b. By Geographic Segment
Prior Fiscal Year (From April 1, 2008 to March 31, 2009)(¥ million)
Eliminations
andCorporate

Consolidated

426,399–

426,399

23,85540,466(40,466)–

45,02037,377

466,866(40,466)

426,399

50,06038,77235,087

441,591(37,540)

404,051

15,863

872

6,248

2,289

25,274(2,926)22,348293,053

28,70337,035

19,397378,188(14,743)

363,444Japan
I

Americas

Europe

Asia

Total

319,535

48,33745,004

13,522

13,999

2,595

16

Total

333,534

50,933Operating expenses

317,670

Operating income

Net sales and operating
income (loss)
Net sales(1) To externalcustomers(2) Inter-segment sales
and transfers

II Assets
Notes: 1.

2.

3.

Definition of geographic segments and main countries and regions in geographic segments:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States and Canadab.

Europe:France, United Kingdom and Spain

c.

Asia:

Hong Kong, Thailand, Korea and China

In the fiscal year ended March 31, 2009, China was included in the segment of Asia following the newincorporation of BANDAI (SHENZHEN) CO., LTD.
Unallocatable operating expenses included in the “Eliminations and Corporate” column under “Operating
expenses” were 3,086 million yen. The majority of this cost represents administrative costs incurred by thegeneral administration department of the Company and NAMCO BANDAI Holdings (USA) Inc.
Assets included in the “Eliminations and Corporate” column under “Assets” approximated 36,217 million yen.
The significant assets included in the amounts were surplus operating funds (cash and time deposits) of theCompany, long-term investment funds (investment securities) and assets held by the administrative sections.

- 62 -

Current Fiscal Year (From April 1, 2009 to March 31, 2010)(¥ million)
Eliminations
andCorporate

Consolidated

378,547–

378,547

21,57837,891(37,891)–

46,916

38,691

416,438(37,891)

378,547

36,17747,30535,922411,846(35,182)376,6635,537(3,324)

(388)

2,768

4,592

(2,708)1,883

206,157

28,46540,432

24,888299,942

25,992

325,935

Japan
I

Americas

EuropeAsia

286,20929,26945,955

17,112

11,768

3,582

961

Total

297,978

32,852

Operating expenses

292,440

Operating income(loss)Total

Net sales and operating
income (loss)
Net sales(1) To externalcustomers(2) Inter-segment sales
and transfers

II Assets
Notes: 1.

2.

3.

Definition of geographic segments and main countries and regions in geographic segments:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States, Canada, etc.

b.

Europe:France, United Kingdom, Spain, Germany, etc.

c.

Asia:

Hong Kong, Thailand, Korea, China, Australia, etc.

In the fiscal year ended March 31, 2010, due to the new consolidation of NAMCO BANDAI Partners
S.A.S. and its 18 subsidiaries, Germany was added to the Europe geographic segment and Australia to the
Asia geographic segment.
Unallocatable operating expenses included in the “Eliminations and Corporate” column under “Operating
expenses” were 2,685 million. The majority of this cost represents administrative costs incurred by the generaladministration department of the Company and NAMCO BANDAI Holdings (USA) Inc.
Assets included in the “Eliminations and Corporate” column under “Assets” approximated 44,168 million yen.
The significant assets included in the amounts were surplus operating funds (cash and time deposits) of theCompany, long-term investment funds (investment securities) and assets held by the administrative sections.

- 63 -

c. Foreign Sales
Prior Fiscal Year (From April 1, 2008 to March 31, 2009)
Americas

Europe

Asia

Total

I

Foreign sales (¥ million)

50,61746,005

17,444

114,066

II

Consolidated sales (¥ million)

–

–

–

426,399

III

Share of sales to customers
outside Japan (%)

11.9

10.8

4.1

26.8

Notes: 1.
2.

Foreign sales are defined as total sales by the Company and its consolidated subsidiaries in countries andregions other than Japan.
Segmentation by country or by region and the main countries and regions in each geographic segment are as
follows:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, Middle East and Africac.

Asia, excluding Japan: Hong Kong, Singapore, Thailand, Korea, Australia, China and Taiwan

Current Fiscal Year (From April 1, 2009 to March 31, 2010)
Americas
I

Foreign sales (¥ million)

II
III

Europe

Asia

Total

31,37046,196

21,72099,286

Consolidated sales (¥ million)

–

–

–

378,547

Share of sales to customers
outside Japan (%)

8.3

12.2

5.7

26.2

Notes: 1.
2.

Foreign sales are defined as total sales by the Company and its consolidated subsidiaries in countries andregions other than Japan.
Segmentation by country or by region and the main countries and regions in each geographic segment are as
follows:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, Germany, Middle East and Africac.

Asia, excluding Japan: Hong Kong, Singapore, Thailand, Korea, Australia, China and Taiwan

In the fiscal year ended March 31, 2010, due to the new consolidation of NAMCO BANDAI Partners
S.A.S. and its 18 subsidiaries, Germany was added to the Europe geographic segment.

- 64 -

(Per Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2008 to March 31, 2009)(From April 1, 2009 to March 31, 2010)

Net assets per share¥1,067.71

Net assets per share¥938.74

Net income per share¥47.95Net loss per share¥123.98

Diluted net income per share¥47.88

Although potential shares exist, diluted net income pershare is not disclosed due to the recording of a net loss
per share.

Note: The basis of calculating net income (loss) per share figure and the diluted net income per share figure is as follows:

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2008 to March 31, 2009)(From April 1, 2009 to March 31, 2010)

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

11,830(29,928)––

11,830(29,928)

246,743,204

241,402,251

Diluted net income per share
Net income adjustment (¥ million)––

Increase in number of common stock(shares)

312,908–[Stock subscription rights][312,908]–

Summary of potential shares notincluded in the calculation of diluted net
income per share as they do not have adiluting effect.

(the Company):(the Company):

Pursuant to resolution of the Ordinary
General Meeting of Shareholders of June
26, 2006, proposal No. 9: series 3 stock
subscription rights for 1,776,000 shares ofcommon stock;Pursuant to resolution of the Ordinary
General Meeting of Shareholders of June
26, 2006, proposal No. 9: series 3 stock
subscription rights for 1,753,000 shares ofcommon stock;Pursuant to resolution of the Ordinary
General Meeting of Shareholders of June
26, 2006, proposal No. 9: series 4 stock
subscription rights for 572,000 shares ofcommon stock

Pursuant to resolution of the Ordinary
General Meeting of Shareholders of June
26, 2006, proposal No. 9: series 4 stock
subscription rights for 562,000 shares ofcommon stock;Pursuant to resolution of the Ordinary
General Meeting of Shareholders of June25, 2007, proposal No. 3: series 2–1 stock
subscription rights for 92,600 shares ofcommon stock- 65 -

(Significant Subsequent Events)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2008 to March 31, 2009)(From April 1, 2009 to March 31, 2010)(Transactions Conducted by Commonly Controlled Entities, etc.)
The merger of subsidiaries and succession to part of thebusinesses of subsidiaries due to a company split in the course of
the restructuring of the Group’s businesses
On April 1, 2009, NAMCO BANDAI Games Inc. merged withand absorbed Bandai Networks Co., Ltd. due to an absorption-typemerger. Also, the Company succeeded to a part of the share
management business that had been carried out by Bandai
Networks Co., Ltd., due to the company split (absorption-typecompany split) on such date.
1. Names and Business Content of Combined Companies, Legal
Form of Business Combinations, and Overview of Transaction
Including Transaction Objectives(1) Names and Business Content of Combined Companies
a. NAMCO BANDAI Games Inc.
Planning, development, and sales of home video gamesoftware and arcade game machines, etc.
b. Bandai Networks Co., Ltd.
Distribution of content for mobile phones, consignmentof website development, mail order sales, etc.
c. NAMCO BANDAI Holdings Inc. (the Company)
Planning and implementation of management strategy
and business management and instruction of the groupcompanies(2) Legal Form of the Business Combinations
a. An absorption-type merger in which Bandai Networks Co.,
Ltd. was the disappearing company; and NAMCO
BANDAI Games Inc. was the surviving company.
b. An absorption-type company split in which Bandai
Networks Co., Ltd. was the split company; and theCompany was the successor company.

- 66 -

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2008 to March 31, 2009)(From April 1, 2009 to March 31, 2010)(3) Overview of Transaction Including Transaction Objectives
The Group has considered what its optimal organizational
structure would be to work for further growth in the
network-related market, which includes distributing content formobile phones: this is a market for which technological progressand other factors have produced drastic changes in theenvironment and in which competition is becoming increasingly
intense on a global scale. Thus far, NAMCO BANDAI Games
Inc. has strengths in leveraging its in-house technicaldevelopment capabilities and effectively utilizing content for eachplatform, including home video game software, arcade gamemachines, and mobile phones. Also, Bandai Networks Co., Ltd.
has strengths in the comprehensive development of operations,such as e-commerce, centered on the distribution of mobile phone
content and the provision of technical solutions. NAMCO
BANDAI Games Inc., and Bandai Networks Co., Ltd., have eachworked to grow their businesses by leveraging their respective
strengths.
The merger of these two companies and the establishment of a
new business unit within NAMCO BANDAI Games Inc. aredesigned to reinforce the total power of the network businesswithin the Group and to create new content and businesses
through the synergistic fusion of varied strengths.
In addition, upon this restructuring within the Group, theCompany has succeeded to part of the share management businessthat had been carried out by Bandai Networks Co., Ltd., due tothe company split (absorption-type company split).
2. Overview of Accounting Process
The accounting process for the consolidated financial statements
was conducted as transactions conducted by commonly controlled
entities, handled in accordance with the provisions of the“Accounting Standard for Business Combinations” (issued by theBusiness Accounting Council on October 31, 2003) and “Guidanceon Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ GuidanceNo. 10, final revision issued on November 15, 2007).
(Capital Increase in Subsidiary)
As of April 27, 2009, the Company carried out a paid-in capitalincrease of 50 million euro in BANDAI S.A., a subsidiary of theCompany. In addition, as of June 16, 2009, BANDAI S.A., asubsidiary of the Company, carried out a paid-in capital increase of
50 million euro in NAMCO BANDAI Games Europe S.A.S., asubsidiary of BANDAI S.A.
Reason for capital increase and use of funds
The capital increase was executed to secure the funds for theacquisition of shares in Distribution Partners S.A.S. from AtariEurope S.A.S. by NAMCO BANDAI Games Europe S.A.S., asubsidiary of BANDAI S.A. The money shall be used as funds toacquire the aforementioned shares.

- 67 -

Prior Fiscal Year

Current Fiscal Year

(From April 1, 2008 to March 31, 2009)(From April 1, 2009 to March 31, 2010)(Changes in Business Segments)
On April 1, 2009, for the further growth expected in the
network-related market, an absorption-type merger was executed
between the Company’s consolidated subsidiary Bandai Networks
Co., Ltd. (the extinct company) and the Company’s consolidated
subsidiary NAMCO BANDAI Games Inc. (the surviving
company). As a result of a review of business segments that
accompanied this merger, it was decided to merge the Network
Business segment with the Game Contents Business segmentfrom the next fiscal year because they had similar businesscharacteristics such as contents of services, content development,
and support for multiple media.
The table below presents the results of the current fiscal year
(business segment information) under the new business segments.
(¥ million)
Toysand Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

Visual andMusic Content
Business

Other
Businesses

163,068

76,917

144,22133,633

8,559

Total

Eliminations
andCorporate

Consolidated–

426,399

I Net sales andoperating income
Net sales(1) To externalcustomers

426,399(2) Inter-segment
sales and transfers

2,656

352

5,669

1,004

10,44920,133(20,133)–

Total

165,725

77,269149,891

34,63819,009446,533(20,133)

426,399

Operatingexpenses

154,191

76,876138,281

34,59918,443422,393(18,341)404,051

Operatingincome11,533393

11,60938

565

24,140(1,792)

22,348130,404

54,400

119,604

48,071

19,206371,687(8,242)

363,444

8,972

9,570

4,073

3,113

926

26,65785

26,742II Assets,
depreciation andamortization,
impairment loss,
and capital
expenditure
AssetsDepreciation andamortization
Impairment loss
Capitalexpenditure

63

776

–

13

77

930

22

953

6,723

6,712

2,609

885

385

17,316164

17,481

Notes:
1. Business segment classifications are in accordance withclassifications adopted for internal management purposes.
2. Principal products in each business segment:(1) Toys and Hobby Business:

Toys, candy toys, production for vending machines,
cards, plastic models, apparel, sundries, etc.

(2) Amusement Facility
Business:

Operation of amusement facilities, etc.

(3) Game Contents Business:

Home video game software, arcade game machines,
mobile content, prizes for amusement machines,etc.

(4) Visual and Music Content
Business:

Visual content, visual package software, on demandvisual distribution, etc.

(5) Other Businesses:

Transportation and storage of products, leasing,management of real estate, printing, development
and sales of environmental equipment, etc.

- 68 -(Disclosure Omissions)Disclosure of the following is omitted because the necessity of disclosure in this financial report is deemed immaterial: leasetransactions, transactions with related parties, tax effect accounting; financial instruments, short-term investments, derivativetransactions, retirement and severance benefits, stock options etc., and matters concerning business combinations etc.

- 69 -

5. Other
Changes in Directors and Corporate Auditors(1) Change in Representative
No items to report(2) Other Changes in Directors and Corporate Auditors (Effective June 21, 2010)
New candidates for Directors
Director

Yuji Asako (current position: Executive Officer, Division General Manager ofCorporate Planning Division of the Company)

Director

Masahiro Tachibana (current position: Senior Executive Officer of theCompany, President and Representative Director of NAMCO LIMITED)

Retiring Directors
Director

Jun Higashi

Director

Yusuke Fukuda

New candidate for Corporate Auditor
Corporate Auditor (Outside)

Katsuhiko Kohtari (current position: Full Time Corporate Auditor of Bandai
Co., Ltd.)

Retiring Corporate Auditor
Corporate Auditor

Katsutoshi Hirasawa(3) Responsible Area of Directors (Effective June 21, 2010)
Takeo Takasu

Chairman and Director

Shukuo Ishikawa

President and Representative Director

Shuji Ohtsu

Director in charge of Overseas Operations, Group Administrative Headquarters, andthe Internal Auditing Division

Yuji Asako

Director in charge of Corporate Planning and Division General Manager of Corporate
Planning Division

Kazunori Ueno

Director (Part-time) in charge of Toys and Hobby SBU

Masahiro Tachibana

Director (Part-time) in charge of Amusement Facility SBU

Masatake Yone

Director (Outside)

Kazuo Ichijo

Director (Outside)

Manabu Tazaki

Director (Outside)- 70 -